Home Ownership

The first step in the college loan process is to fill out the FAFSA form. This form can be obtained from your child's high school guidance office and can also be obtained on the web at www.fafsa.ed.gov. Once you complete the application, you will find out what loan programs you are eligible for. Please speak to a CPA in your area for other loan options.

A home equity line of credit is a specific line of credit that you apply for and then can reuse at your discretion. The equity in your house is used as collateral. Interest expense is calculated on the outstanding balance, not the maximum credit line negotiated. Generally, the interest expense is deductible as mortgage interest as a itemized deduction on IRS Schedule A. A home equity loan is a total amount negotiated with the bank. Generally, the interest expense is deductible as mortgage interest as a itemized deduction on IRS Schedule A.

A home equity line of credit is a specific line of credit that you apply for and then can reuse at your discretion.
The equity in your house is used as collateral. Most line of credits allow disbursements by checks or credit card. Interest expense is calculated on the outstanding balance, not the maximum credit line negotiated.
Generally, the interest expense is deductible as mortgage interest as a itemized deduction on IRS Schedule A.

Real estate taxes are generally deductible as an itemized deduction on schedule A.

The (ABA)American Banking Association routing number is a unique, bank identifying number that directs electronic deposits to the proper bank. This number precedes the account number printed at the bottom of a check and is usually printed with magnetic ink.

An adjustable rate mortgage is a variable rate mortgage with an interest rate that adjusts periodically according to the financial index it is based upon plus a margin. To limit the borrower's risk, the Adjustable rate mortgage may have a payment or rate cap. An example of this is if the mortgage has a annual cap of 2 % and a total cap of 13%. This means the mortgage can only increase by 2% maximum each year and could never exceed the 13% maximum ceiling.

Currently, there is no set 20% amount that you must put down. Some first time home buyer programs require as little as 5% down. In the past, mortgage lenders most often did require a 20% down payment. Generally, in the last 10 years many loan programs have been designed to help more people buy homes. Mortgage loans can now be tailored to fit each home buyer’s needs and financial resources. *For down payments of less that 20%, mortgage insurance (MI) will be required and associated costs will apply.

A Graduated Repayment option is a repayment option that allows for interest only payments for the first couple of years, usually two or up to four years. It can lower initial monthly payments by as much as 35 to 45 percent.