Real Estate
December 2, 2020

Number one reason not to buy a home

Buying a home is a balancing act between a mortgage payment in relation to present and future expenses. One of the biggest challenges people have when buying a house is being able to plan a family budget around a mortgage payment. Real estate is not black and white, it is not linear, sometimes it’s a little bit backward, sometimes it’s a little bit difficult and sometimes things don’t always go according to plan.

 

 

Out of pocket costs relate to financing

With interest rates at historic lows, many families across the country would stand to benefit from turning in their high-cost mortgage in exchange for getting something far more affordable with today’s rates. There’s a lot that goes into the mix, including cost-benefit, what the real cost of funds is and many other factors to weigh in when deciding to restructure your debt. Here are some real things to give some consideration to if you’re thinking about refinancing your mortgage…

Risky incomes may prevent you from getting a mortgage

One of the challenges of getting mortgage loan financing these days is showing total and complete monthly income. Contrary to popular belief you must be able to support ability-to-repay (ATR) as a Consumer Financial Protection Bureau has laws in place to make sure abusive lending practices from days past don’t repeat themselves. One of the things associated with preventing predatory lending is specifically showing ability-to-repay which means fully being able to document your cash, credit and income necessary in conjunction with purchasing or refinancing a home. Watch for these risky income moves when planning to get a mortgage…