Foreclosure
12 September 2007
Foreclosure doesn't just happen to people who don't make their mortgage payments. Your homeowner's association (HOA) can take your house or condo if you're not careful. In one case, a disabled California man lost his home in a foreclosure sale because he was $123 behind on his homeowner's dues. The house was worth $280,000. Unfair? Abusive? You bet!
Read More »
12 September 2007
Foreclosure doesn't just happen to people who don't make their mortgage payments. Your homeowner's association (HOA) can take your house or condo if you're not careful. In one case, a disabled California man lost his home in a foreclosure sale because he was $123 behind on his homeowner's dues. The house was worth $280,000. Unfair? Abusive? You bet!Read More »
Mortgage vs. Rent: Which Option Suits You Best?
By Kelly WingardNFNS Columnist
Mortgage rates. Home equity loans. Closing costs. If you are unfamiliar with these terms, chances are you still live at home or renting -- helping your landlord pay his mortgage and build equity with your income. Eventually the question may surface: Should I rent or should I buy?
Turn a Necessity Into an Investment
Shelter is one of life's basic necessities. At some point you'll need to decide whether to pay rent or invest in a mortgage. Renting is usually the first option you consider after you strike out on your own, but it may not be the best option. When mortgage rates are low, buying a home becomes an attractive alternative that can turn one of life's basic necessities into a sound investment opportunity.Mortgage Pros and Cons
Buying a home has its disadvantages -- closing costs, increased costs for maintenance, property taxes, and reduced mobility to name a few -- but the advantages of getting a mortgage are pretty compelling. Unlike rent payments that leave your hands forever, mortgage payments build home equity, increasing your net worth and future borrowing potential while adding stability to your life. Emphasizing the value of home ownership, Congress even created tax incentives encouraging residents to buy, allowing qualified taxpayers to deduct mortgage interest payments and real estate taxes from their gross income.When you sell your home, you may recoup part of your mortgage payments and realize a capital gain from your home's appreciated value. When you leave an apartment, you get nothing back but your security deposit -- and there's not much security in that.
Sources
Ginnie Mae
Freddie Mac
About the Author
Kelly Wingard is a freelance writer and a 25-year veteran tax preparer. She contributes regularly to the University of Illinois Tax School training manual for tax professionals.
Other New Home Loans Articles
© NFNS 2008 Privacy Policy California Privacy