2016 Interest Rates | Does Locking In An Interest Rate Make Sense?

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If you’re ready to apply for a mortgage loan, the odds are you’re following the ups and downs of mortgage interest rates carefully. This isn’t surprising; a higher interest rate will make your monthly payment bigger. A lower one can save you a significant amount of dollars each month.

But when should you lock in a mortgage rate? That’s a challenge that many borrowers face.

In a rate lock, your mortgage lender agrees to hold the current interest rate for which you’d qualify for a certain number of days. Your lender might agree to hold an interest rate of 4% on your 30-year fixed-rate mortgage for 15 or 30 or 45 days, for example.

If you don’t lock, your rate might rise before you complete the loan-application process. But remember that average interest rates might also fall after you lock in a rate. That is a risk that you take when ordering a lock.

Remember, too, that locking a rate usually isn’t free. You may have to pay for the service, though what you pay varies depending on your lender and how long you want to lock-in that interest rate.

If you’re debating whether locking a rate makes sense for you, call us. We’d be happy to talk about the pros and cons of finding a rate and locking it in place.

 

Categories: #selling homes, Home Ownership Options', Locking in a interest rate, mortgage rates, Uncategorized

Holding Title – Options For Ownership in Real Estate

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72adf455If you are buying a home with another individual (or more than one), it’s important to understand the different ways to hold title to the property. Before closing/settlement, be sure to review how to hold title so that the title company or attorney will be able to title the ownership interests in the manner you desire.

Sole Ownership

One person holds title singly to the home regardless of marital or business partnership status. If married, the spouse of the property owner may have to sign a quitclaim deed that denies the non-owning spouse any rights to the home.

Joint Tenants (JT)

Most married buyers hold title to their homes as joint tenants. Both owners own equal shares. The ownership of the home goes to the surviving co-owner and does not go to the heirs of the deceased.

Tenants-In-Common (TIC)

Tenants-in-common provides owners with more flexibility. Either owner can sell a share of the property without permission of the other owner. If the business partnership or romantic relationship ends, selling the property is much easier.

Many unmarried buyers take title as tenants-in-common. Tenants in common can also hold different amounts of interest in the property (60%–40%, 80%–20%, etc.). This arrangement is especially useful for real estate investors.

Titling as TIC, deceased owners can leave their share of the home to their children or other heirs instead of their spouse.

Tenants-By-The-Entirety (TBTE)

This form of title, available to spouses in some states, assumes the husband and wife are one person for legal purposes. It is similar to Joint Tenants with right of survivorship in that when one spouse dies, the deceased’s share automatically goes to the surviving spouse, even if the Will says otherwise. Simply put, with Tenants-By-The-Entirety neither spouse can transfer his/her half to someone else without the other spouse’s approval — something Joint Tenants with right of survivorship and Tenants-In-Common can both do.

Trust

Once a home is held in a trust, all property is handled the same as if it wasn’t in a trust until one of the property owners dies. The trust outlines how property is to be handled after death and in most cases—unlike wills—trust terms are never made public. Trusts are often very hard to challenge in court, also unlike wills.

Community Property

Some states allow owners to hold title as community property. Wills must indicate upon an owner’s death if the home passes to the spouse or to someone else.

Before you buy your home, consult with financial and tax professionals, as well as a local real estate attorney, to learn the best way to hold title to your home.

Categories: Holding Title, Home Ownership Options', Uncategorized


Kay Baker Associates | 1001 Military Cutoff | Ste 101 Wilmington, NC 28405 | kaybakerassociates@ec.rr.com | 910-202-3607 | Fax 910-338-2428

Copyright © 2017 Wilmington NC Real Estate Guide. All rights reserved. Disclaimer: All content on this blog is my own opinion and should not be treated as fact or relied upon when purchasing or selling real estate.