Most consumers need to borrow some of the money needed to purchase a home, but lenders will seldom provide it all. Usually, they require that borrowers provide some of the money out of their own resources. This is called the "down payment requirement." The questions about down payments shown below have all been posed to me by prospective house purchasers.
Do you fork over cash to a landlord in exchange for freedom of responsibility for residential maintenance, or take out a mortgage and shell out monthly for the pride - and the eventual financial payoff - of homeownership?
PHILADELPHIA - Tom Sauerman and his wife, Sue, are still active in their Philadelphia neighborhood and continue to be members of its seniors club. He is a former president of the its community council.
PHILADELPHIA - Steve Patterson's parents owned a small hotel and restaurant in the West Midlands of Worcestershire, England, when he was growing up, so the fact that his 3-year-old business provides places to stay makes perfect sense.
Q: Exactly what kind of property insurance is required by law if I have a mortgage? Every year or two, the requirements and costs seem to go up, and now the amount of coverage my lender wants is out of line with the value of my home. Also, can the lender force me to include the insurance payment with my monthly mortgage payment?
Mortgage borrowers choosing between different types of mortgages face a puzzle, and that puzzle may be particularly perplexing today. Interest rates remain low by historic standards, and the spread between fixed- and adjustable-rate mortgages remains large. But there are widespread expectations that all rates will soon increase - unless of course the current stock market troubles cause rates to drop again. The challenge to borrowers who must choose a type of mortgage in this environment is also a challenge to anyone presumptuous enough to offer them advice.