Interest Rate BuydownsWhat is an interest-rate buydown?l It’s a tool to help you qualify for a larger loan and purchase a higher-priced house than you could under normal circumstances.l A buydown allows you to pay extra points up front in return for a lower interest rate for the first few years.l The good news: the extra points are tax deductible.l Often, people relocating for employment obtain buydowns because employers often pay the extra points as part of a relocation package.l Buydowns are a financing technique used to reduce the monthly payment for the borrower during the initial years of the loan.l Under some buydown plans, a residential developer, builder or the seller will make sub…

Interest Rate BuydownsWhat is an interest-rate buydown?l It’s a tool to help you qualify for a larger loan and purchase a higher-priced house than you could under normal circumstances.l A buydown allows you to pay extra points up front in return for a lower interest rate for the first few years.l The good news: the extra points are tax deductible.l Often, people relocating for employment obtain buydowns because employers often pay the extra points as part of a relocation package.l Buydowns are a financing technique used to reduce the monthly payment for the borrower during the initial years of the loan.l Under some buydown plans, a residential developer, builder or the seller will make sub…

Credit Cleaning Companies: Illegal!Beware the latest internet pitch: “Remove poor credit from your credit report immediately and permanently!” Claims of guaranteed credit repair are out and out false and may place clients in jeopardy of committing a felony.The Tactics: A common “strategy” is to have clients to apply for a new Social Security Number, Employer Identification Number, or Taxpayer ID Number — all illegal. Another method: inundating credit bureaus with letters disputing all negative information on a credit report, in hopes they will default on the 30-day limit allowed to respond to such requests.Ethical Ways to Do It Yourself: What credit cleaners don’t tell you is tha…

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Home Equity: How to Use It Let’s look at the different ways you can use your home’s equity. Refinance: In essence, this is a way of paying off your current mortgage and getting cash out based on how much equity (the difference between the market value of your home and what you owe on it) you have in your home. This is a great way to lower or lock in your mortgage interest rate. This is the way to get large sums of money – $30,000 or more – because you have 15 to 30 years to pay it off. On refinances, you may have to pay closing costs; discount points (used to increase the lender's yield or profit on the loan and equal to one percent of the loan amount); appraisal fees; ap…