Dr. Kareem TannousReal Estate & Mortgage Broker at Alliance Realty & Financial Services, Inc. Jeff JohnsonOwner of Simple Homebuyers AboutChristopher Boston Christopher Boston is a Senior Manager of Content Strategy and SEO at MoneyGeek. For over half a decade, they have crafted hundreds of artic...
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Most homeowners are used to sending money to their mortgage company, but rarely do they receive money back. However, certain circumstances may lead to a refund or payment from your mortgage.A refinance, refund or reverse mortgage may allow you to receive a disbursement checkfrom the mortgage len...
A drawback of the escrow system is that funds in escrow generally don't pay interest to the homeowner, who is technically the owner of the funds until they're disbursed. Homeowners must also review carefully their monthly mortgage statements and periodic statements of the activity in the escrow...
If your estimated annual property tax and homeowner’s insurance bills are $5,000 and $900, respectively, the monthly escrow payment for these is $5900/12 or $491.67. To prevent against a possible shortage, the account may have a two-month minimum balance requirement of $983.34. In the fi...
Since the interest on a mortgage is tax-deductible, most homeowners want to know if the interest on a HELOC is, too. "That also depends," says Rider. "The homeowner really needs to talk to an accountant on that one because tax laws have changed." And, they change frequently, he says...
Lump sum disbursement vs. Withdrawals as needed Another difference between a HELOC and a home equity loan is how you receive the money. A home equity loan is disbursed as a lump sum. The entire loan amount will be deposited into your preferred account(s) when you receive your funds. A ho...
There are many ways to do this, including requiring a balloon payment every x number of years, even if you amortize payments for a longer period of time (ex. 30 years). Make the buyer purchase a homeowners insurance policy. Set-up payments through a disbursement account. ...
The most common reason for the use of escrow accounts, particularly for the average American, is real estate. Most homeowners, whether or not they know it, use escrow accounts to pay property taxes and insurance. Escrow accounts figure in a number of other applications. Poker tournaments sometim...
HOMEOWNERS INSURANCE AND ADDITIONAL INSURANCE POLICIES: Covers two main types of loss: damage to property and belongings and personal liability. Most standard policies also cover loss of use, meaning the insurance company will pay for the homeowner to stay elsewhere while the home is being repaired...