CHAPTER 19
Mortgages—The Finances of Homeownership 쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆쏆
“Love your neighbor—but don’t pull down the fences.”
Do I Need to Read This Chapter? ●
Are you moving up to homeownership and want an overview of your financing options?
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Are you a current owner interested in refinancing?
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Do you wonder if you will qualify financially for a mortgage?
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Are you clear on the tax benefits and implications of holding a mortgage, especially where “points” are concerned?
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Are you considering a home equity loan, which entails borrowing money against your house?
or most people, buying a home, condo, or co-op entails taking out a mortgage to help meet the cost of the purchase. You are normally required to pay a percentage of the purchase price in cash; this is called a down payment. The remainder of the purchase price is covered by the mortgage, with your title to the house used as security for the unpaid balance on your mortgage. This means that if you are unable to repay your mortgage, the lender has
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