Financing Archives — Page 2 of 8 — First Rate Financial Group

01

Apr

Mortgage

Building An Emergency Fund During An Emergency

Building An Emergency Fund During An Emergency By now, it should be apparent that this COVID-19 (Corona-virus) pandemic is going to be here for several months. It is already causing the market to plummet and is disrupting jobs all over the country. Many people who work as hourly employees (or are independent contractors) are starting to suffer. As people’s budgets start to feel the squeeze, this is exactly the time that people should be relying on an emergency fund; however, for those who don’t have one, it is time to start saving.

How To Create An Emergency Fund

Even though cash assistance from the government might be coming soon, this is not going to be enough to get people through the crisis. To start building an emergency fund, it is important to take a look at the regular income first. Try to figure out how many shifts are going to cut and estimate what money is left (unless you are a salaried employee).

After this, take a look at other possible sources of credit. Know the limits on the card and figure out to what extent these cards can be drawn out. If there is an income tax refund coming, plan for this; however, remember that the government might be behind.

Finally, try to cut spending where possible. Remember that vacations should be postponed, given travel restrictions. Most restaurants are going to close, so try to shop at the grocery store instead. Finally, consider asking the bank to put a stop on mortgage payments. These are all great ways to save immediate money.

Save What Is Left

Finally, after figuring out all of the expenses, subtract this from the expected monthly income over the next few months. Whatever is left should be socked away into an emergency fund. It is critical to have this fund put away in case a repair is needed on the house or if someone gets laid off.

Other Ideas To Consider

Finally, while this is not advisable, people might be able to cut retirement contributions to help with the emergency fund. It is better to save for the future when possible, but this can help people save money in a pinch, if needed. Take these tips to heart over the next few months and build an emergency fund.

14

Jan

By First Rate Financial Group

Mortgage

Is A 15 Or 30 Year Mortgage Right For You?

Is A 15 Or 30 Year Mortgage Right For You When someone is looking to purchase a house, they need to think about how long they want their mortgage to last. While a bank can structure a mortgage to last for any number of years, the most common lengths are 15 and 30 years. While a 30-year mortgage is typically more affordable, a 15-year mortgage is cheaper overall.

When someone is trying to decide how long they want their mortgage to last, there are a few important tips to keep in mind.

The Benefits Of A 15-Year Mortgage

There are a few important benefits that everyone should know about a 15-year mortgage. Some of the biggest benefits include:

With a 15-year mortgage, people are going to pay off their home more quickly. This will free up cash to spend in other places. Those who are looking to retire without a mortgage may want to go with a 15-year mortgage.
Next, a 15-year mortgage is going to come with a lower interest rate. Because the bank is going to get their money back more quickly, they are going to reward the borrower with a lower interest rate. Overall, the bank is taking on less risk.
Finally, a 15-year mortgage is also going to be cheaper overall. With a lower interest rate and a loan that is paid off more quickly, the bank is going to take less of someone’s money over the life of the loan.

The Benefits Of A 30-Year Mortgage

A 30-year mortgage has some notable differences when compared to a 15-year mortgage. There are a few important benefits that people need to remember. These include:

The monthly payments are going to lower. Those who are planning on paying for their children’s college education, or who envision a car payment in the near future, may want to have extra cash on hand to fund them.
As someone pays off their mortgage the interest paid on the loan is tax-deductible. Since more interest is paid on a 30-year mortgage, there will be greater tax savings as well. This means that people will get some of their money back.
Finally, a 30-year mortgage is also more flexible. During the loan, people may elect to make extra payments. This allows someone to pay off their home more quickly.

These are a few of the most important points people need to remember when trying to decide between a 15-year and 30-year mortgage. As always, call your trusted home mortgage loan professional to discuss the options available for your personal situation.

13

Dec

By First Rate Financial Group

Real Estate

3 Traps First-Time Homebuyers Fall Into — And How To Avoid Them

3 Traps First-Time Homebuyers Fall Into -- And How To Avoid Them When someone purchases their first home, this is a significant step. There are a number of issues that people need to think about because purchasing a home is typically someone’s most significant investment.

With this in mind, there are three common traps that first-time homebuyers often fall into. Fortunately, there are ways to avoid these traps as well.

Looking At Homes Before Applying For A Mortgage

Perhaps the biggest mistake that people make is that they look for homes before they apply for a mortgage. Without a successful mortgage application, it will be difficult to find a home at all. Of course, people enjoy looking at homes because it puts their future into perspective. At the same time, it is important to have an idea of how much home someone can afford. This will be difficult to do without knowing how large of a mortgage someone will be approved for. Apply for a mortgage before looking at homes.

Draining The Savings Account

Most people will want to put down some sort of a down payment. After all, this can help one get a lower interest rate on their mortgage. At the same time, don’t think about the down payment as simply a number in the savings account. Calculate how much of a down payment is truly necessary. People shouldn’t have to drain their entire savings account for the down payment. This money might be needed for closing costs, home repairs, and other potential emergencies.

Not Working With Trusted Professionals

The internet has provided people with instant access to vast amounts of information. This has the benefit of allowing the new home buyer to educate themselves and do research on homes to purchase, mortgage financing options and a lot of other home buying topics. However, the internet can also provide incorrect information or only partial information.

That’s why it’s so important to work with trusted real estate and mortgage professionals who have your best interest in mind. Feel free to ask them a lot of questions and get specific answers about your personal financial situation and home purchasing needs. They are trained and have years of experience making sure that you get the best combination of things to serve your needs.

Purchasing A Home

These are a few of the most important issues that every first-time homebuyer should think about. It can make a significant difference in someone’s financial future. Pay attention to these and reach out to your local network of trusted professionals today!