Micah Abraham

Recent Posts

What is Mortgage Insurance and Do I Need It?

Posted by Micah Abraham on Feb 15, 2017 6:00:00 AM

There is more to homebuying than the mortgage. There are property taxes that the government requires on homes. There is also the interest on the loan. Some homebuyers need to pay HOA (homeowners’ association) fees to their neighborhood. All of these add a small amount to the total monthly payment that the homeowner makes on their property.

Some homebuyers also have to pay for private mortgage insurance, or PMI. Not every homebuyer needs to pay for PMI, but those that do should prepare to pay a few hundred extra dollars in addition to their monthly mortgage payment.

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USDA Loans – What They Are, How to Get One, and Why They Are Beneficial

Posted by Micah Abraham on Feb 13, 2017 6:00:00 AM

The United States Department of Agriculture (USDA) is for more than choice meats. The USDA also offers a unique type of home loan that allows specific borrowers to purchase a home with no money down.

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Don’t Have a 20% Down Payment? No Problem

Posted by Micah Abraham on Feb 7, 2017 6:00:00 AM

There is nothing quite like homeownership. You have a chance to buy a place you love, decorate it as you please, and also make an investment into your financial future. But if you’ve ever looked into buying a home, you have probably heard experts saying that you need at least 20% of the value of the home in cash for a down payment.

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The Benefits of Escrow Accounts

Posted by Micah Abraham on Feb 2, 2017 6:00:00 AM

There is more to purchasing a home than the cost of the home itself. There is the interest rate, which you and your lender have likely already factored into your monthly payment. There are also the fees of the real estate agent, if any. These types of costs are frequently discussed throughout the lending process.

But there are other fees as well, including property taxes – which are required by the local government – and insurance, which is required by your lender. These expenses are not crippling, but they are important enough that many lenders encourage you to set aside this money into a separate bank account known as an “escrow account.”

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Inspection vs. Appraisal – What’s the Difference?

Posted by Micah Abraham on Jan 31, 2017 6:00:00 AM

Throughout the real estate process, you’ll find yourself coming across critically important terms you may not yet be familiar with. Two terms that can be especially confusing are “inspection” and “appraisal.”

Both of these are similar, in that an expert walks through a property in order to spot trouble areas, but they both play very different roles in the home purchasing process.

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How Much Retirement Savings Do You Need?

Posted by Micah Abraham on Jan 24, 2017 6:00:00 AM

A recent study estimates that as many as 33% of Americans have $0 saved away for retirement, and over half have “less than $10,000.” Fewer employers offer any form of retirement package, and given the financial demands of the modern household, it’s no wonder that so few workers are able to save for the future.

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How to Talk to Your Kids About a Reverse Mortgage

Posted by Micah Abraham on Jan 18, 2017 6:00:00 AM

It is estimated that senior property owners are sitting on more equity than at any time in history – over $6 trillion. This has led to more seniors into considering a reverse mortgage.

If you’re thinking about getting a reverse mortgage, we strongly advise talking with your adult kids about your reasons. Here are some tips that can help guide this conversation:

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Six Questions You Should Ask Your Realtor When Buying a Home

Posted by Micah Abraham on Jan 17, 2017 6:00:00 AM

Buying a property is both an investment, and your chance to have a home for you and your family. It is a financial decision that is not to be taken lightly, and throughout the process it is important to ask questions, stay informed, and make sure that you are making the best choice for your financial future.

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When to Recommend a Reverse Mortgage to Your Parents

Posted by Micah Abraham on Jan 11, 2017 6:00:00 AM

According to the Government Accountability Office, 1/3rd of seniors age 55 and over do not have even a penny of retirement savings, and well over 50% have less than they need to live comfortably.

For the children of seniors that are limited in their retirement, there may come a time when you need to come up with some creative solutions for your parents in order to make sure they get a chance to live comfortably and be cared for the next many years. In some cases, that means you may want to recommend a reverse mortgage.

Recommending a Reverse Mortgage to Your Parents
You always have your parent’s best interests in mind, and that sometimes means making some recommendations to them to help with their financial future. A reverse mortgage could allow your parents to let their home pay them back.

W
ith a reverse mortgage, your parents can continue to live in their home throughout their retirement and receive a cash lump sum, monthly payments, or line of credit.  

As the children of a senior parent, there are times when it may be worth recommending a reverse mortgage. This can be a tough conversation, but there are situations when a reverse mortgage can be a good option for your parent’s future, including:

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15-year vs. 30-year Mortgages – Which is Better?

Posted by Micah Abraham on Jan 5, 2017 6:00:00 AM

For many, your house is more than the place you live. It is your largest investment, and your way of securing a better financial future for yourself and your family. It is this investment potential that pushes people to buy instead of rent, because they want the money they spend on the home to come back to them in the near or distant future.

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