What is Title Insurance…Why do I even need it?

Q. What is Title Insurance?  Why do I need it?

A. Throughout the years, your property (the land your home sits on) may have changed hands many times through sale, inheritance, foreclosure or bankruptcy.  In some cases, there could be defects in the title that remain hidden despite the most thorough search of public records.  A problem may have occurred long before you bought your property and could deprive you of ownership or your ability to sell or refinance it.

If an error in title has occurred and has never come to light, it puts  your Title in jeopardy.  You could lose your property and the money you paid for it.  Even if you successfully defend your rights of ownership, the cost in time and legal fees could be exorbitant.

Should the marketability of your title be challenged, you will require immediate and expert legal support.  The extent of the defect needs to be understood, a plan of action must be initiated to remove the defect and the work to clear the title must be performed diligently   and completely.  A policy of Owners Title Insurance provides you the protection you will need.

Published in: on February 16, 2010 at 9:36 am  Leave a Comment  

Still Renting…Check out the Benefits of Home Ownership

Q. What are the advantages to home ownership versus renting?

A. There are  numerous advantages such as tax breaks, investment, fixed housing costs and the pride of home ownership.  You can generally deduct the interest you pay on your mortgage as well as your real estate taxes on your federal tax return.  As you make your payments on your mortgage, you are building equity. Your home can act like a savings account for you and you can borrow against that equity in the future should you need to.  If you rent a property, you do not have control over the costs and you have no return for your monthly investment. Unless you have a solid lease, you run the risk of eviction and may never have the stability you strive for.  The financial advantages are great, but the best advantages are the control and autonomy that ownership provides.  There are disadvantages to home ownership such as utilities, maintenance costs and upkeep.  Consult your financial planner for the best advice for your situation.

The Benefits of Bi-Weekly Mortgage Payments

Q. Rates are great and I want to refinance my home for a shorter term.  Could you explain the benefits of a Bi-weekly loan?

A. A bi-weekly loan is a great option for reducing the term of your mortgage.  The basic premise of the loan is the more often you make payments the faster your principal decreases making your interest payments less over the term of the loan.  The Bi-weekly payment plan is set up to have you make 26 Bi-weekly payments as opposed to 12 month installments.  A thirty-year loan would be paid off in 23 years or less and a 15 year loan would be paid off in about 13 years.  With so many employers switching to bi-weekly periods, it makes financial planning simple.  Check with your loan officer to see if this option is available to you.

If you are not refinancing you can still set up biweekly payments on your own.  Contact your lender to see if they offer this option.

If you need a referral to a Lender or Loan Officer please contact me.

Published in: on February 4, 2010 at 11:25 am  Leave a Comment  
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