By Daniel Bortz Are you trying to save to buy your first home? Some great savings tips via Zillow. These clever ideas put homeownership within reach. Ah, the perks of being a renter. No mortgage payments, no property taxes, no pesky maintenance work or repairs (leave that to your landlord to take care of!). Sounds like a good life, right? Oh, wait, we almost forgot the big drawback: You’re not actually gaining equity in a home. So what’s stopping you from buying a home? If you’re like most renters, it’s the lack of cash for a down payment. Indeed, one in five Americans doesn’t even have a savings account — and one-third of those who do have a...
So you’re in the market to buy a home. Whether it’s your first time doing this exciting home-buying process or you’ve been through it before and have forgotten the details, this guide will provide first-time homebuyer tips to prepare you for what’s ahead. What is a first-time homebuyer? Logically, a first-time homebuyer might refer to someone who has never purchased a home before. But in some contexts, the definition is actually much broader than that. Prospective homebuyers who can’t scrape together a substantial down payment may be eligible for assistance through first-time homebuyer grants and loan programs. To qualify for many of these programs, prospective buyers generally must not have owned a home for at least the previous three years....
1. Ongoing Income with No Loss of Assets The 20th century model involved gradually selling off stocks and bonds from your nest egg. It made sense: Why force yourself to live only on the dividend and interest income, when you were only going to live for another decade or two after retiring anyway? Whatever was left over when you died would go to the kids, end of story. I don’t know about you, but I’d like to reach financial independence by 40—or at worst, by my early 40s. But that means being able to live on my investments for a half century or more—a daunting task if your plan involves gradually selling off your assets. You don’t need to sell...
Let’s start at the beginning… What is a mortgage? A mortgage is a loan from a financial institution that lets you purchase a house without paying the entire amount upfront. A mortgage is secured by the home itself, so the bank can sell the home and recoup the money it loaned to you if you default on the loan. How does a mortgage work? In a mortgage agreement, a borrower agrees to a set length of time to repay the money, at a certain interest rate and under specific terms, and makes payments in equal monthly installments. What are the different types of mortgages? There are three main types of mortgages: Conventional loans, which are any mortgages not insured or...
