Real Estate News

Real Estate News

The Mortgage Professor: Emerging tight money may hit the mortgage market hard

Rising interest rates reduce the demand for housing by increasing the monthly payment on the mortgage most borrowers need to finance a purchase. In today's market, a consumer with good credit and the capacity to put 20 percent down, looking to borrow the $200,000 needed to purchase a $250,000 house, can obtain a 30-year fixed-rate mortgage at 4 percent, on which the monthly payment is $955. When the rate goes to 8 percent, which is what I paid on my last mortgage, the payment will be $1,468.

Real Estate News

When single homeowners pair up, what happens to their real estate?

CHICAGO - It's a classic story: Two people meet, fall in love, decide to move in together. If the lovebirds are moving from one rented pad to another, it's a simple enough plan to wait until a lease is over and search for a shared abode. But if, like many young professionals, both halves of the couple already own property, the path to domestic bliss becomes a bit more complex.

Real Estate News

The Mortgage Professor: Why do borrowers pay for mortgage insurance?

Last week, I wrote an article on how home mortgage borrowers who have been required to purchase mortgage insurance could earn a high rate of return by paying it off - with the help of a new spreadsheet now on my website. That article ignored what would have been the first question posed by a smart visitor from Mars: Why does the borrower pay for insurance that protects the lender?

Real Estate News

Real estate Q&A: Tenant may need approval for boyfriend to stay over

Q: I have been renting a condominium for the past several years. The man I have been dating stays over frequently. A board member approached me and told me I need to fill out a tenant application and pay a fee for my boyfriend. The condo rules state that guests may not stay more than 14 days in any six-month period. My landlord is unaware of any of this. It all seems so juvenile to ask if I can have a sleepover. Do we need to pay this fee?