If you’re trying to get a good deal on Kansas City mortgage rates, you may have heard that you can buy points on your mortgage. Essentially, you are “buying down” your mortgage rate. But is this the right move for you and when should you do it? [Read more…]
You’ve decided you are ready to sell your home and move somewhere new. Selling your home is a huge decision, but before you put your home on the market it’s important to have a pre-sale inspection done on your property. This advice is true even if you believe it’s in good condition.
Why Do I Need a Pre-Sale Inspection?
Now that you know what liquid assets are, you have to know how to find them as they are important in determining your Kansas City mortgage rate. Lenders will use your net liquid assets to determine if you can meet the debt obligations.
You can also use your liquid assets if you need cash fast, such as for an unexpected medical bill. Finding your liquid assets doesn’t have to be hard and is a simple matter of putting the information together. [Read more…]
If you are planning on purchasing a home, you are most likely going to be taking out a home mortgage. Since your monthly mortgage payment consists of more than just your Kansas City mortgage rate, it’s important to understand the other factors that make up your overall payment, or P.I.T.I.
P.I.T.I is short for:
Many people wonder if falling mortgage rates affect the price and availability of homes. It’s a common misconception that if mortgage rates in Kansas City rise, prices of homes for sale must fall. If this was true, homes on the market would become less affordable for consumers. In actuality, there is not a strong, obvious relationship between interest rates and home prices.
Home Prices and Mortgage Rates
Mortgage rates in Kansas City are determined by two different factors which set the supply and demand for credit:
- Inflation expectations
- Economic growth
You want to refinance your Kansas City mortgage rate, but also need some extra cash for things like home improvements. Rather than get a home equity loan, you could instead opt for a cash-out refinance.
What is Cash-Out Refinancing?
A cash-out refinance is an alternative to a home equity loan, as you are not taking out a second mortgage. Instead, you are refinancing your mortgage for more than what you owe, then pocket the difference to be used at your own discretion. It is essentially a new first mortgage. [Read more…]
Do you want to lower your Kansas City mortgage rate by paying points, but are not sure exactly what it does or what it will mean for you? By paying points, you are essentially “buying down” the rate of your mortgage. In other words, you are paying part of the interest upfront as a one-time fee in exchange for a lower interest rate. Each individual point is equal to one percent of the total amount mortgaged. Whether or not you should pay points depends on your unique situation.
Your Current Loan Purchasing Situation
There are many factors you have to take into account before paying points, such as:
- How long do you plan to stay in your home?
- Do you have the money to pay for the points?
- What is the housing market like?
The internal debate you’re having on whether you want to continue renting or make the leap to buying a house has many factors to consider. Some of the biggest draws to becoming a homeowner are the tax breaks you get from that large financial responsibility.
Working for Your Money
Though there are many tax breaks at your disposal, you will have to “find the money” by filling out a more complicated form. Each of these deductibles needs to be itemized on Form 1040, Schedule A. However, the money you get back is often well worth the work of filing a non-standard form.
Multiple Deductions for Multiple Mortgages
Your Kansas City home loan payments are most likely made up of mostly interest. However, paying that mortgage interest works in your favor: it’s tax deductible on most home mortgages. This rule includes: [Read more…]
Over the years, Renting out homes has become an increasingly popular way to make a profit. Although there is money to be made with this growing trend, there are a few things landlords need to know about Kansas City mortgage rates before they move forward with this venture.
“Buy to Let” Mortgages
Being a landlord may be tempting to homeowners unable to sell their homes and others looking to add properties to their investment portfolio. “Buy to let” mortgages usually come with higher Kansas City mortgage rates and bigger fees. Most of the time, you will be expected to put down a larger deposit compared to other personal mortgages. Even if you choose to rent out your own home, you will need to let your mortgage provider know. In some cases, you may have to start paying a higher interest rate. [Read more…]
As the housing market continues to improve, low down payments are once again being offered by lenders, especially those backed by governmental organizations. Both first time homebuyers and current homeowners may be enticed to settle on a low down payment on their future home, but it’s important to know the affects of this decision. Low down payments very rarely lead to a longer term, therefore you are more likely to have larger monthly payments caused by:
- A higher Kansas City mortgage rate
- Private mortgage insurance