Need Down Payment Help? Consider Shared Equity

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You want to buy a home and have the income to support a decent monthly payment – but you can’t save up enough money for a significant down payment. With home prices and interest rates rising, you’re afraid that you’ll be priced out of the market before you can save up a full down payment.

If you qualify for FHA or VA loans, you may be able to secure a loan with far less than the standard 20% down payment required to avoid private mortgage insurance (PMI). However, you’ll have to borrow more money by definition and will end up paying considerably more in interest over the life of the loan.

A few companies are offering a new alternative for down payment assistance – a shared equity mortgage. With a shared equity mortgage, a third-party investor contributes a portion of your down payment in exchange for a share of the proceeds …

Renters’ Top 8 Biggest Concerns About Buying A Home

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Homeownership remains a goal for most Americans. According to NerdWallet’s 2018 Home Buyer Report, 91% of respondents want to own at least one home during their lifetime. However, that same report shows eight concerns renters have regarding that goal. If you haven’t bought a home yet, see if they match your concerns.

1. Purchase Cost – Home prices were the top concern, cited by approximately 65% of renters. Recent statistics validate their concern. According to Trulia, prices rose in the starter market by almost 58% over the last six years. First-time homebuyers are being squeezed out of some markets entirely.

2. Maintenance Cost – It’s easy to underestimate typical home maintenance costs – usually around 1% to 2% of your home’s value on an annual basis. Fifty-eight percent of renters cited this concern, understanding th…

American Homebuyers By The Numbers (Infographic)

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Who is buying homes in the US? Discover who these homebuyers are in our exclusive infographic above.

Lenders compare mortgage applications across several factors, including the credit scores of hopeful homebuyers. You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.

Last week, we detailed what sacrifices people made to pay for their homes. Come back next week for our final installment, which will offer a profile of U.S. home sellers.

MoneyTips is happy to help you get free mortgage quotes fr…

Video: How Much Should You Pay For Your Mortgage?

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A zero-closing-cost home loan sounds good, but not if you are trading those costs off for a much higher interest rate throughout the life of the loan. In our exclusive video above, watch Mortgage Advisor Casey Fleming explain what factors to consider when comparing mortgage offers and how to calculate a home purchase loan you can live with.

If you’re looking for a home purchase loan, you have to know your credit score. You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.

How We Paid For Our Homes (Infographic)

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How badly do you want to own a home? What would you be willing to give up to achieve the American dream? Discover what sacrifices recent homebuyers made to purchase their homes, and whether they see the acquisition as a worthwhile investment.

Your credit history is an important factor in getting your mortgage approved. You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.

The previous infographic in our Keys to Homeownership series showed the obstacles homebuyers faced in making their down payments. Part Five will present a profile of American homebuyers and their reasons for purchasing a …

First-Time Homebuyers Setting Records

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Prospective first-time homebuyers are facing stiff challenges as they enter today’s housing market – including finding an affordable home. A profound shortage of starter homes is limiting choices and raising home prices. According to Trulia, as of April 2018, the inventory of starter homes decreased 48.6% from six years prior while prices rose 57.9%.

Many would-be first-time buyers are millennials, saddled with student loan debt and struggling to save for a down payment. To make matters worse, the run of historically low interest rates appears to be over as the Federal Reserve gradually increases interest rates and mortgage rates follow suit.

According to data from Freddie Mac, first-time homebuyers are buying in record numbers despite thes…

How We Made Our Down Payments (Infographic)

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You may not need to make a down payment of 20% but putting together the down payment is still one of the most challenging steps in buying a home. Check out our infographic above to see what obstacles other recent homebuyers faced in trying to save for their down payments.

The smaller the down payment you can afford, the better your credit needs to be to secure your mortgage. You can check your credit score and read your credit report for free within minutes using Credit Manager by MoneyTips.

Part two in our Keys to Homeownership series revealed what made Americans fall in love with the homes they bought. Part four will focus on how homebuyers paid for their ho…

Home Prices Outpace Pay Increases

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Affordable Housing? What Affordable Housing?

Affordable housing is increasingly hard to find in today’s market. According to data from Trulia, America’s inventory of starter homes has decreased by almost half compared to six years ago while prices rose by almost 58%.

As consumers recovered from the housing crisis and Great Recession, more people became financially able to own a home. The existing supply was quickly consumed, leading to the current imbalance.

Recent polls suggest that affordable housing woes will continue through 2018 and beyond. According to a Reuters poll of property market analysts, home prices are expected to increase at almost double the rate of wages through 2018. Home prices are predicted to gain 5.7% more over the course of the year, while average annual earnings growth is predicted to be 2.8% – slightly above the predicted inflation rate of 2.5%.

At least inflation is expected to stay more in line with wages, hel…

4 Out Of 5 Young Borrowers Blame Student Loan Debt For Not Owning A Home

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A student loan can be your best friend or your worst nightmare. It can lead to an advanced degree that leads to a better job with higher pay and superior benefits. It can also be a millstone of debt keeping you from fulfilling other life goals – such as owning a home.

A recent survey from the National Association of Realtors (NAR) shows how pervasive the effects of student loans can be. According to the survey, 83% of millennials (age 22-35) who don’t currently own a home blame the delay on student loan burdens. The average delay in purchasing a home is seven years. Federal Reserve data shows that for every 10% increase in student loan debt, the odds of successful home ownership in the first five years beyond school drops by 1 to 2 percentage points. Given the $1.52 trillion total student loan debt reported b…