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By Kevin M
Many of us know people who are facing imminent foreclosure. Millions of people have confronted this dragon, and chances are you know a few. Have you ever been asked for advice by one of them?
I have; by more than one.
No, I’m not an attorney, or even a debt counselor. But I have spent many years in the mortgage business, which makes me a natural candidate for advice.
There’s no right or wrong advice to give to someone in this situation, and much depends on an individuals circumstances. But I sense that much of the advice I’ve given was a bit “out-of-the-box”. Not that it was my intention to do so, only that as an industry insider, my view of the situation is just different from what you might get from someone who isn’t.
What did I advise?
Continue reading What Would You Advise a Friend Facing Foreclosure? →
By Kevin M
Real estate has been the favorite whipping boy of the investment community for the past few years—heck, and most of the media too—but is it time to rethink that position? I’m not talking about the decision to buy a house as a primary residence—that’s a deeply personal decision based on your unique circumstances. No, I’m talking about real estate for investment.
A lot of people are nervous about real estate right now, and you can hardly blame them. Given the wild ride the housing market has been on for at least the past three years, this is hardly a time for unbridled optimism. Yet investing in real estate is probably a better bet than it’s been in decades.
Consider the following:
Continue reading Has the Time Come Again to Invest in Real Estate? →
By Kevin M
Are you really getting a deal on a home because you can get it for less than it would have cost three or four years ago?
Maybe. And maybe not.
In most markets, house prices have come down 20, 25, 30% or even more from their 2006-2007 peaks, and that’s caused many to believe they’re getting a deal by buying now. After all, they’re able to buy a home at discount compared to what they’d have gotten if they’d bought at the peak.
At some level, this reasoning is sound. After all, a lower price translates to a lower down payment and a lower monthly payment. And by waiting, you managed to miss the equity plunge that landed so many homeowners in deep trouble and even foreclosure. So far so good.
But is it really a deal?
Just because you’re paying less doesn’t mean a home is a deal
Continue reading How to Get a Real Deal on Your Next Home →
By Kevin M
With the general fall in house prices in the past few years, new homes have come down substantially and present a real opportunity to purchase a relatively low maintenance home. But the over-supply of existing homes is a real chance to cut the best deal price-wise. Which one do you choose?
Now that home values are no longer on a steady upward path, the choice of home you buy has greater consequences than ever. In the recent past, a purchase mistake could usually be covered by rising prices. All you had to do was wait a few years and the moment would come when you could sell the mistake at a higher price than you paid, and move on to something else.
But buying decisions today look more permanent than they did a few years ago. A home purchased today might stay with us for 10 or 15 years before selling would even begin to make sense. Against that backdrop, do you go with a brand new home or an existing one?
Continue reading New Home or Existing Home – Which is the Better Deal? →
By Kevin M
Despite hints and statistics showing a somewhat improved housing market, now is not the time to merely assume that the market is teeming with good deals and that a return to the real estate price spiral will soon cover any mistakes made in the purchase. The market remains sluggish in most areas, and if it remains this way for several more years, getting the best deal is more important than ever.
The most important moment in the ownership of a home is the purchase. A good deal at purchase can reap big rewards in the future—especially if prices don’t rise appreciably in the near future. You only have one shot at making a good deal, so make it the best you can.
But how do you get the best deal on a home in this market? The same ways you would in any type of market.
Continue reading 8 Ways to Buy Your House For Less →
By Kevin M
One of the most compelling reasons for owning a home is the heavily touted tax benefit owing to deductions for mortgage interest and property taxes. Real estate agents will play this benefit for all it’s worth in extolling the idea of homeownership for all.
However for three reasons, this benefit is not what it used to be: a generous standard deduction, low mortgage rates and low marginal tax rates.
The tax benefit of homeownership became an entrenched concept back in the 1970s and early 1980s and at that time it had overwhelming merit. Mortgage rates were in double digits most of the time, marginal tax rates ran as high as 70% and standard deductions were down in the low thousands. Owning a home made major sense even for moderate income earners and was an article of faith in the higher income brackets.
None of that is true today, yet the tax savings pitch remains. Standard deductions can exceed $11,000, interest rates are down around 5% and marginal tax rates cap out at 38% (but are substantially lower for the vast majority of households). Yet the notion of major tax savings remains almost unchallenged.
Continue reading Tax Benefits of Homeownership – Three Reasons Its Over-rated →
And other questions you should ask before buying a home!
By Kevin M
Many articles have been written on the buy-verses-rent question, but most of the analysis tends to center on the dollars and cents side of the question. We read about tax advantages, investment potential, home buyer tax credits, income ratios—all important considerations, but all essentially monetary in nature.
Rather than crunching numbers, I’d like to consider the question from a mostly non-monetary angle, and discuss factors which are of at least equal importance in making the decision to buy or rent a home. Most have to do with lifestyles, attitudes and future prospects.
Continue reading Buying vs Renting a Home – Its Not All About Money →
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General: Any information in regard to money, credit, personal finance, or in regard to any other monetary topic, provided or shared on OutOfYourRut.com is presented for information and entertainment purposes only and does not constitute financial advice. It is intended to provide general information only and does not constitute personal financial advice in regard to your specific circumstances...MORE-->
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What Would You Advise a Friend Facing Foreclosure?
By Kevin M
Many of us know people who are facing imminent foreclosure. Millions of people have confronted this dragon, and chances are you know a few. Have you ever been asked for advice by one of them?
I have; by more than one.
No, I’m not an attorney, or even a debt counselor. But I have spent many years in the mortgage business, which makes me a natural candidate for advice.
There’s no right or wrong advice to give to someone in this situation, and much depends on an individuals circumstances. But I sense that much of the advice I’ve given was a bit “out-of-the-box”. Not that it was my intention to do so, only that as an industry insider, my view of the situation is just different from what you might get from someone who isn’t.
What did I advise?
Continue reading What Would You Advise a Friend Facing Foreclosure? →