Studies have shown that the biggest barriers to home ownership are: saving for the down payment and closing costs, problems with past credit, fear of a larger monthly payment, and lack of knowledge on how to obtain a loan. Indeed, these are worthy concerns for potential home buyers. Yet, when it comes right down to it, the real question in the minds of potential home owners is how much house can they afford to buy? With the wide variety of loans and programs available through area mortgage lenders, you may be surprised that you can afford more than you think.
What are points on a mortgage loan, and what are their pros and cons?
To begin with, a point is simply an up front interest fee (better known as pre-paid interest) that a mortgage lender charges the borrower which is equal to one percent of the loan amount. For example, one point on a $100,000 loan would be $1,000. The lender determines how many points are charged on any given loan.
At the end of one year and the beginning of another is the time to reflect back on all that we accomplished and encountered during the past 12 months. Included on that list should be financial activities undertaken that will impact our tax returns.
Current home owners are already aware of the tax advantages to be had through the buying, financing and good citizenry (i.e. paying taxes) of that residence. If you are considering getting into your first home this coming year, keep in mind these tax breaks you¹ll enjoy when tax time approaches.
The Dayton Area Board of REALTORS® and the entire REALTOR® organization firmly support the principle of fair housing for all. REALTORS® in the Dayton area are fully committed to complying with the fair housing laws because there is no room in our profession for housing discrimination.