RE/MAX 440
John F. O'Hara

John F. O'Hara
731 W Skippack Pike  Blue Bell  PA 19422
Phone:  610-277-4060
Office:  215-643-3200
Cell:  267-481-1786
Fax:  267-354-6973

My Blog

Buying a Home? Tips to Grow Your Down Payment

July 6, 2016 12:57 am


A down payment is an initial payment made by a homebuyer with financing, generally ranging from 5 to 20 percent of the home’s value, according to the American Bankers Association (ABA) Foundation.

A down payment of 20 percent will save the expense of private mortgage insurance (PMI), which is often imposed on borrowers who finance more than 80 percent of their purchase, and can also result in a lower mortgage interest rate.

To grow your down payment to 20 percent, the ABA Foundation recommends:

Saving – Open a separate savings account strictly for your down payment. Setting these funds aside from other types of savings will reduce the chance you’ll draw from it in times of need.

Budgeting – Your down payment will depend on the amount you plan to spend on a home. Assess your current financial obligations to determine how much you can save each month toward the down payment. Consider that many obligations can be reduced or even eliminated.

Tracking – Keeps tabs on the discretionary income you spend—this can help pinpoint areas where you can spend less and save more.

Researching – You may be able to save more with a down payment assistance or other housing-related program. Discuss the options available in your area with your real estate professional.

Bear in mind a 20-percent down payment is not a necessity, and ultimately, your budget and savings will determine the percentage. Contact a real estate professional for further guidance.

Source: American Bankers Association (ABA)
 

Published with permission from RISMedia.


Tags:

Debt Regret: 3 Questions Students Should Ask

July 5, 2016 12:57 am


Student loan debt has ballooned to over $1.3 trillion, with more students than ever securing loans to finance a college education. The cost and results of that education—soaring tuition, burdensome debt and scant employment opportunities—have left some wondering, “Was it worth it?”

Post-secondary education is a necessary step on the path to higher earnings, but many with debt do not believe college was worth the cost, according to a recent survey by Consumer Reports—45 percent, to be exact. Of that percentage, 78 percent earn less than $50,000 a year, and 69 percent experience difficulty paying loans.

These findings present a cautionary tale for students entering college. Consumer Reports advises them and their parents to develop a financing plan that takes into account the following questions:

1. What do I want to get out of college?
2. How much will college cost?
3. How can I reduce costs?


It is crucial to enter college with a clear picture of your goals after graduation, according to Consumer Reports—taking “exploratory” classes or changing majors can cost thousands in unnecessary tuition.

The cost of college will be determined by several factors, including your academic transcript, your family’s financial circumstances, and the school you attend. To make the most economical decision, consider the bottom-line, “net price” of your education, Consumer Reports suggests.

Traverse all possible avenues to cut costs, too, Consumer Reports recommends. Is community college an option? Are scholarships available? Can studying abroad save you money? Factoring these measures into your plan can save you thousands in future debt and interest.

For more guidance related to student loans, visit ConsumerReports.org/StudentDebt.
 
Source: Consumer Reports
 

Published with permission from RISMedia.


Tags: