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How Much House Can I Afford to Buy?

How Much House Can I Afford to Buy? 1

If you are thinking about buying a house, you might be wondering, “how much house can I afford?” There is a significant distinction between what the bank will lend you versus what you can afford to pay. In general, a good rule of thumb is to┬ápay less than 25% of your income toward your monthly … Read more How Much House Can I Afford to Buy?

10 Extra Costs When You Buy a New Construction Home

10 Extra Costs When You Buy a New Construction Home 5

When you purchase a new construction home, there are several hidden costs that you might not think about. The normal costs of homeownership like mortgage payments (e.g., principal and interest), property taxes, homeowner’s insurance, and utilities are obvious. Other costs, though, can come as something of a surprise. When we bought our home (a new … Read more 10 Extra Costs When You Buy a New Construction Home

Rental Property Cash on Cash Return (CCR) and Return on Investment (ROI)

After you started investing in the stock market for a while, you are probably thinking about diversifying beyond stocks, bonds, and REITs. A common next step for many investors is investing in a rental property. Personally, that is what I did, and as a fairly seasoned real estate investor, I feel that it is important … Read more Rental Property Cash on Cash Return (CCR) and Return on Investment (ROI)

Mortgage Forbearance: Should You Ask Your Bank for a Mortgage Relief

As states and cities issue stay-at-home orders and businesses are forced to shut down due to the current pandemic crisis, more and more people are financially impacted. Homeowners are among those affected by job loss and economic slowdown. If you are one of the homeowners affected, you are probably looking for help with your mortgage … Read more Mortgage Forbearance: Should You Ask Your Bank for a Mortgage Relief

Is 15-Year Mortgage Better Than a 30-Year Mortgage?

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A 30-year fixed-rate mortgage is the most popular option for home purchases. However, you probably have seen some advertisements that encourage you to refinance your 30-year mortgage into a 15-year one. If you are a Dave Ramsey fan, you know that he is against taking out a 30-year loan and encourages you to use cash … Read more Is 15-Year Mortgage Better Than a 30-Year Mortgage?

Real Estate Investing with REITs, Pros and Cons

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Real estate can make an great addition to almost any portfolio. However, few of us have the large amount of capital needed to buy a property, and it can be difficult to get approval for a mortgage. Fortunately, there are alternative investments that allow you to become a real estate investor without having to overcome … Read more Real Estate Investing with REITs, Pros and Cons

How to Get Rid of Your Private Mortgage Insurance

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If you paid less than 20% down payment on your home purchase, you are most likely paying a monthly Private Mortgage Insurance (PMI). The PMI is an insurance policy that protects the lender — not you. If you default on your mortgage, the lender receives payment from the insurer for the loan given to you. … Read more How to Get Rid of Your Private Mortgage Insurance

How to Find a Positive Cash Flow Rental Property

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As an owner of several rental properties, I strongly believe that your rental property has to generate positive cash flow. Depending on where you are located, finding a positive cash flow rental property might be harder in certain areas. For example, I live in the Washington DC suburb and it is difficult to find good … Read more How to Find a Positive Cash Flow Rental Property

How to Invest in Real Estate

How to Invest in Real Estate 24

Many investors like the idea of investing in real estate. Real estate has the allure of being considered a tangible asset, and there is the potential for regular income with real estate. Additionally, many investors aren’t comfortable with the traditional makeup of cash, bonds, and stocks, and want to branch out a little — real … Read more How to Invest in Real Estate