It’s important to understand the benefits of biweekly mortgage payments because the savings are significant.

A lender will collect about 3 times the amount of the mortgage loan you borrowed from the interest.  This can equate to hundreds of thousands of dollars in interest you pay.  Ouch!  The best way to eliminate a lot of the interest you pay to your lender is by setting up your mortgage payments on a biweekly schedule.

Here is a real example of the savings when paying your mortgage biweekly:

Loan amount is $200,000 and the interest rate is 5% on a 30 year loan.  The total amount of interest saved is $34,356.58 and the term is reduced by 4 years and 9 months.

Here is a biweekly mortgage calculator you can use to see the savings on your personal mortgage loan:  Biweekly Mortgage Calculator.

One of the best things about a biweekly payments is that you can start at anytime.  Even if you have 10 years left on your mortgage, the amount of interest you save in 10 years is still very significant.

Here is a site to educate yourself about the benefits of biweekly payments and see what industry experts have to say.

In an effort to further stimulate the economy while also working toward his goal of making the country more energy-efficient, President Obama proposed a new program this past Tuesday.

Although details remain unclear in regards to the new proposal, Steve Nadel, who is the director at the American Council for an Energy-Efficient Economy and who helped write the bill, reports that homeowners could receive up to $12,000 in rebates if they install energy-efficient appliances and insulation in their homes. Companies that specialize in renewable energy will also be eligible to receive funding through the program.

“[Energy efficiency] creates jobs, saves money for families, and reduces the pollution that threatens our environment,” President Obama is quoted as saying in a CNN Money article. http://money.cnn.com/2009/12/08/news/economy/president_energy/index.htm “With additional resources, in areas like advanced manufacturing of wind turbines and solar panels, for instance, we can help turn good ideas into good private-sector jobs.”

Not only is the bill intended to help stimulate the economy by encouraging homeowners to make new purchases, it will also create jobs for private contractors who will be responsible for conducting home energy audits and installing the necessary equipment to make the homes more energy-efficient. According to the details that have been released so far, homeowners would be eligible to receive up to a 50% rebate on the purchase of big-ticket items such as heating systems, air conditioners, refrigerators, windows, washing machines and insulation. They will also be able to receive a rebate of up to 50% on the cost of installation, with the maximum allowable rebate for equipment and installation being $12,000.

At this point, no income restrictions have been placed on the bill, but some critics are concerned that the bill could potentially have the opposite effect of its intentions on the economy. For example, consumers who are already struggling to make their monthly bill payments may try to take advantage of the rebates, only to find themselves in even more debt. Or, they may simply choose not to pursue energy-efficient purchases, which means the bill will do nothing to help spur the economy. Nonetheless, supporters of the $10 billion bill maintain that the bill will help to further move the economy in the right direction while also helping homeowners decrease their energy bills by as much as 20%.

Details regarding how the bill would be administered are still unclear. Potential methods include assigning state agencies to oversee the program, providing the rebates directly to consumers or providing reimbursement through a tax credit.

About the Author:
Eric Bramlett is the broker & co-owner of One Source Realty. He helps people find Austin Homes for Sale, Austin Condos, and Steiner Ranch Homes for Sale. Eric actively blogs & guest blogs on a number of sites.

What are the tax implications of a Quit Claim? Who pays the property tax?

Thank you.

I was married for 8 yrs and separated now for 4 but not officially divorced yet. My ex hubs purchased a condo 3 months before we got married and I had nothing to do with any paper work or any involvement with the condo. We lived in it for 8 yrs and I left 4 yrs ago due to an unhealthy and verbal abusive environment. I left everything but by cloths and started a new life. Now after 4 years of being separated he wants me to sign a quit claim deed because he wants to sell the condo. What I don…

A friend of ours is having financial difficulties and is behind in his house payments, he is wanting to do a Quit Claim Deed transfer to us and we would take over the house payments to bring it up to date and finish paying for it. Are there legal complications in doing this since he still owes money? Should we go to the bank instead?

What are the tax implications of a Quit Claim? Who pays the property tax?

Thank you.

With today’s tough economy, it has never been more important to properly price your home. After all, if you price your home too high, there is no way you will ever get it sold. At the same time, if you price it too low, you will take a major financial loss – particularly since the current economic conditions are likely causing you to sell the home at a loss already. So, when it comes to pricing your home, it is important to keep these 5 tips in mind in order to come up with the best price possible.

Tip #1: Get it Appraised
Working with a certified appraiser will help you get a solid idea of what your home is actually worth. Ideally, you should work with an appraiser that is familiar with your particular market, as prices vary from market to market. By using this information as a starting point, you will be better prepared to determine a price that is fair.

Tip #2: Know Your Local Market
In addition to consulting with a professional appraiser, it is also important for you to have an understanding of your local market and the prices that homes are going for within that market. You also need to have an understanding of the type of demand that there is for your type of home within your market. Your real estate agent should be able to help you look at trends within your market, but you can also use the Internet or even take a look at your Sunday paper to gain a better understanding of your market.

Tip #3: Understand the Buyer
In addition to understanding your local housing market, you also need to get a better idea of who is buying in your market. If you live in a growing area that is attracting a lot of new residents, you will be able to command a higher price than if you are in an area that is not quite so popular.

Tip #4: Developing a Strategy
Based on all of the information that you have gathered, it is time for you to create a strategy to help get your home sold. If property prices are dropping in your area, you might want to consider dropping your price ahead of time. For example, if prices are dropping at a rate of 1% per month, you might set your price at 3% less than its value in order to gain a competitive edge over other properties in the area.

Tip #5: Look Beyond Your Emotions
Finally, pricing a home can be difficult due to the emotional attaching that you feel with the property. The memories you have built in the home and the price you paid for the home are not important to potential buyers. Be objective when pricing the property so you come up with a price that is fair for everyone involved.

Eric Bramlett is the broker & co-owner of One Source Realty, a full service Austin real estate company. Eric currently works with select buyers & sellers and helps his agents continue to succeed. Eric manages multiple niche websites, including his Steiner Ranch real estate website.

What are the tax implications of a Quit Claim? Who pays the property tax?

Thank you.

Are you considering the purchase of a home? Are you struggling under the threat of losing your home? If so, consider how FHA can help. FHA loans are government-backed loans that often have a much lower interest rate than a conventional (traditional) loan. Before you right off these loans as impossible options, keep in mind that millions of people are benefiting from theme right now.

Here are five ways that FHA loans can help you to obtain the home you are looking for, or help you in other ways.

#1: Lower Interest Rates: The main benefit of FHA loans is to provide individuals with a lower interest rate. If the FHA is backing your loan, you are less of a risk to the lender. Therefore, they agree to offer you a slightly lower interest rate. This translates into an interest rate that could save you thousands of dollars over the lifetime of that loan. That is money in your pocket.

#2: Better Qualifications: Many lenders have increased their standards in lending money. If you do not have a credit score over 700, then our best bet to getting a low interest rate home loan is with the FHA loans. You do not have to have as much down to qualify for these loans either.

#3: Help Getting Out Of A High Interest Loan: Perhaps you have a high interest rate loan. You are paying much more than the current four to six percent loans that are available. FHA loans can help you to get a low rate even on refinances. Definitely, worth looking forward to since it will drastically cut the amount it costs to buy your home.

#4: You Need Help: There are a number of programs available through the FHA to help you to get out of a troublesome home loan. You can stop foreclosures and often stop your overall risk of losing your home by taking advantage of these programs. If you need this help, contact an FHA loan specialist today.

#5: You Are A First Time Home Buyer: For those who have yet to buy a home and are worried about doing so, FHA loans can help. These loans are highly affordable and they are ideal for the first time homebuyer unsure of what to do next.

FHA loans can help millions of people to get into the homes they want and need, or to protect them from losing their investment. Contact a professional today to learn if you qualify.

In the current market, if you can refinance, you probably should be. Refinancing is the process of obtaining a new loan that pays off your existing home loan. There are several reasons for wanting to do this, but the most important is to get a lower interest rate so you save money on your home loan. FHA loans can help you to refinance, as can other conventional lenders. The key here is to know when it makes sense to refinancing.

What’s Your Rate?

The first step in knowing if it makes sense to refinance is to know what your interest rate currently is. According to Bankrate.com, current 30-year mortgages are available at about 5 percent, which is a very low number. Those who wish to obtain a 15-year loan may even be able to pick up a home loan that is under five percent. If your current mortgage is at an interest rate that is higher than this, you could save money by refinancing.

Here is an example. Let us say you currently have a mortgage loan payment of $1400 per month and you owe $175,000 on your home and have another 28 years to pay on it. You are currently paying about 9 percent for the mortgage. If you keep this loan for the next 28 years, you will end up paying a total of $304,984 in interest alone, on top of the purchase price of the home.

Now, let us say you refinancing your home loan to a loan for 30 more years and pay 5.5 percent on the loan. Your mortgage payment is now under $1000 a month. At the end of your payments, you will have paid just $182,707 in interest payments towards the loan. As you can see, this is much more affordable than holding onto the loan you currently own.

You will likely need to pay closing costs and your homes appraised value still needs to be high enough to cover the mortgaged amount to qualify for a refinance. There are other qualifications you may need to make, too.

To find out if this is an option for you, get a quote from a lender. You may even qualify for an FHA loan through the refinance process. This can further lower your interest rate and make it even more affordable to buy your home. To refinance a home loan, contact an FHA loan specialist to find out if you qualify.