Home Finance Basics: The American Guide to Personal Finance Volume III

Welcome to "Home Finance Basics," a comprehensive guide designed to help you navigate the complex world of home finance. Whether you're a first-time renter, looking to buy your dream home, or considering refinancing options, this book is crafted to provide you with the knowledge and tools needed to make informed decisions about your housing journey.

The path to securing a comfortable living space can be filled with financial hurdles and intricate processes. From deciphering rental agreements to securing a mortgage, and from evaluating home insurance to understanding the nuances of property taxes, every step requires careful consideration and planning.

This book is structured to guide you through each phase of the home finance journey.

Transitioning from renting to buying is a significant step, often accompanied by a mix of excitement and anxiety. We will guide you through getting pre-approved for a mortgage, understanding different types of loans, and navigating the housing market. You'll find strategies for making competitive offers, tips for negotiating with sellers, and advice on closing the deal.

Securing a mortgage is one of the most critical aspects of buying a home. We break down the mortgage process, explaining how interest rates, down payments, and loan terms affect your financial situation. You’ll learn about various mortgage products, from fixed-rate to adjustable-rate mortgages, and discover how to choose the best option for your needs.

Throughout this book, we emphasize the importance of making informed financial decisions. Each chapter includes real-life examples, practical tips, and checklists to help you stay organized and confident in your choices.

Embark on your home finance journey with the assurance that you are equipped with the knowledge to achieve your housing goals, whether renting, buying, or owning. "Home Finance Basics" is your trusted companion, offering clarity in the often confusing world of home finance.

Table of Contents:

Contents
Copyright
Dedication
Preface
Housing
Buying Homes and Renting Homes
Buying a Home
Advantages of Buying a Home
Disadvantages of Buying a Home
Renting a Home
Advantages of Renting a Home
Disadvantages of Renting a Home
Home Price Changes
Subprime Mortgages
Mortgage-Backed Securities
Types of Home Ownership
Homeowner Associations
Common Interest Home Ownership
Condominium (Condos)
Cooperatives (Co-ops)
Planned Unit Developments (PUDs)
Townhouses
Master-Planned Communities
Determining HOA Health
Affording to Buy
Family Help
Qualifying for a Mortgage
Mortgage Calculator
Other Expenses
Rent-to-buy
Home Auctions
How to Find a Home
Brokers and Agents
Finding an Agent
Real Estate Attorneys
Potential Obstacles to Home Buying
The Steps to Buying a Home
Finding a Mortgage
Prequalification for a Mortgage
Fannie Mae
Freddie Mac
Ginnie Mae
Fannie, Freddie, and Ginnie, in sum
The Federal Home Loan Banks
Homebuying Assistance
The Mortgage Application
Commitment Letter
Your Credit and Mortgage Shopping
Mortgage Application Tips
The Closing
The Closing Documents
Closing Statement
Escrow
Escrow Overcharges
Stop Paying Escrow
The Cost of a Mortgage
Fixed-Rate Mortgages
Adjustable-rate Mortgages
Other Mortgage Types
Negative Amortization
Refinancing a Home Loan
Refinancing for Lower Interest Rates
Falling Behind
Your Home as an Investment
Market Home Value
Appraised Home Value
Assessed Home Value
Equity and the Deed
Renting Out a Home You Own
Home Equity Loans and Credit
Reverse Mortgages
Mortgage Theft and Fraud
Home Title Theft
Home Insurance
Selling Your Home
For Sale By Owner
Preparing for Sale
Home Won’t Sell
Profit and Loss
Home Warranties
Taxes on the Home Sale
Conclusion