For being the most popular investments in the country, many people have a “black box” picture of mutual funds. Money goes in one end and more money (usually) comes out the other. Mutual companies in general are a very old concept. The Egyptians had them in ancient times, mostly for insurance purposes. For one time …
Continue reading “Mutual Funds: What They Are and How They Work”
Many folks have no idea how qualified they are as borrowers. There are two ratios that, together with credit score, tell how qualified you are for a loan. The more important of these two ratios is Debt-to-Income ratio, usually abbreviated DTI. The article on that ratio is here. The less important, but still critical, ratio …
Continue reading “Loan Qualification Standards – Loan to Value Ratio”
Many people have no clue how qualified they are as buyers, or borrowers. There are two ratios that, together with the credit score, determine how qualified someone is for a loan. The first, and by far the more important, is debt to income ratio, usually abbreviated DTI. This is a measurement of how easy it …
Continue reading “Loan Qualification Standards – Debt to Income Ratio”
A search I just noticed asked the question “Who gets the deposit if escrow falls through?” The theory of the deposit is that here is an amount of cash that the buyer is putting up as evidence of their ability to consummate the transaction. This is a good question. I’ve only dealt with real estate …
The majority of the protections that folks have are aimed at helping non-professionals have a chance in the complex and nearly incomprehensible maze that is real estate. The legal presumption is basically that you are a babe in the woods, and can easily be led astray by the fast-talking real estate broker and the big …
Continue reading “Investment Property and Sophisticated Users”
One of the most discounted investments available is the annuity. An annuity can be thought of as the opposite of a life insurance policy. Instead of creating an lump sum of money, an annuity liquidates one by providing you instead with a stream of income. The original idea is simple. Suppose you get a lump …
(Originally written in 2005. Still valid) Of all the political parties, my personal sympathies lie closest to the official platform of the Libertarian Party. Nonetheless, I have never been a registered Libertarian, never sent them money, and likely never will. The Libertarian Party, you see, is primarily interested in ideological purity. They’ve been hijacked by …
Enrevanche sent me an email about a Chapomatic article and his own response on the distinction between Jihad (or “holy war”, a name for war in the name of religion), and hirabah, which to quote The term hirabah refers to public terrorism in a war against society and civilization. In legal terminology it is defined …
Working with a borrower all day today. Truly ugly situation because he doesn’t have a long history of credit, and this is the major obstacle to getting the loan done. He actually makes the money, and has a sufficient history of making the money to justify the loan “full documentation”. But: He only has one …
Continue reading “Improving your Credit Score and Tradelines”
Most people don’t stay in their first house their whole life. At some point, they want to move to a different home. There are several ways to approach the transaction, but you have to decide which way fits you. You can approach it with an idea to maximizing profit, maximizing cash flow, maximizing speed, minimizing …
Continue reading “Buying One Property While Selling Another”
