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Lower the Rate & Deduct the Interest

by The Colorado Springs Group™

A home can easily be a person’s largest personal asset and it can be a powerful tool to increase financial stability also.

Since most mortgages are amortizing, the loan becomes a forced savings account that reduces the unpaid balance with each payment. The equity could be used to improve a homeowner's financial position involving other loans.

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While every homeowner recognizes that they can deduct the interest paid on their mortgage, it is surprising how many don’t know that they can write-off the interest on up to $100,000 of home equity debt assuming there is sufficient equity in the home.

The real advantage to a homeowner is that the money borrowed can be used for any purpose and the interest is still deductible. Homeowners could payoff high-interest rate credit card debt or student loans with a considerably lower rate on a mortgage and deduct the interest on the home-equity debt.

Replacing debt with lower rate loans that have deductible interest can be a strategic decision to financial stability and a debt-free environment. A trusted mortgage professional can help you analyze your individual situation to determine if it would be better to refinance with a cash-out first-mortgage or a dedicated home equity loan.

Dates & Deadlines, Inspections & Appraisals

by The Colorado Springs Group™

Our job as Realtors can be similar to conducting a symphony when it comes to getting the dates and deadlines of a contract to line up nicely. There are several things going on at once, and keeping things in harmony will allow for a smooth ride to closing. The most important dates and deadlines that get mixed up involve Inspections and Appraisals. The reason for this is that you need enough time to have an inspection, enough time to create proper objection to remedy any problems found during the inspection, enough time for the seller to respond to any objection as to what they will or will not do, and all before ordering the appraisal so that it is done in plenty of time for review before closing.

Think about this: let's say you have an appraisal deadline 3 days after the inspection objection deadline but 2 days before the inspection resolution deadline. This means you have to order (pay) for an appraisal before you even know if the seller will do anything at all to fix problems found during the inspection. That can be a costly mistake. If you're a seller and this happens, the buyer just spent an extra $450 or more on that appraisal so maybe you feel they're more invested in this home and will accept an agreement to fewer repairs.

Displaying blog entries 1-2 of 2

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The Colorado Springs Group™
6665 Wild Indigo Drive
Colorado Springs CO 80923
(719) 799-3686

Kevin & Jessica
The Colorado Springs Group
6665 Wild Indigo Drive
Colorado Springs, CO 80923
(719) 799-3686