HUD has reduced the maximum loan-to-value on cash-out refinance loans to 80%.  Previously, a homeowner could borrow up to 85% of the loan to value which would mean that they would be able to take more cash out of the equity in their home. Previous 85% Loan-to-Value Limit New 80% Loan-to-Value Limit Property Value Example […]

The Internal Revenue Service considers four different types of real estate.  Specific types of properties have benefits based on their classification.  The determination does not depend on the property itself as much as it depends on how the property is used and what the owner’s intentions are. Principal Residence … a principal residence is the […]

Making additional principal contributions to your mortgage will save interest, build equity and shorten the term on a fixed-rate mortgage.  The concept is sound but bi-weekly may not be the best way to do it.  One strategy is to make a payment every two weeks throughout the year in the amount of half of your […]

Leverage is an investment term that describes the use of borrowed funds to control an asset; sometimes referred to as using other people’s money.  Borrowed funds can affect the investment in your home positively. For instance, if you had a $100,000 rental property, collected the rents and paid the expenses and had $10,000 left, you […]