Would you deplete an emergency fund? Having money on-hand for unexpected circumstances can bring you more peace of mind than having less debt.

Could that money be better invested to produce a better return? Paying down debt seems like a good strategy in the short-term. If you have the money to spare, check with a financial planner to see if you might better benefit in the long-term from investing in certain stocks and bonds instead.

Are you planning to stay in this home for a long time? If your plans for the near future are to upgrade to another home, there’s no real benefit to paying down your current mortgage any faster. Depending on the market, you could end up stuck in a house you’re trying to sell.

Does your annual budget rely on the tax credit you receive? Remember that your mortgage interest represents a tax deduction that slowly decreases as you pay off the debt. Depending on your financial situation, you might be better served by keeping the debt and the deduction, rather than removing the debt.

The answers to these questions will help you make the smartest decision when it comes to paying off your mortgage.

Word-of-mouth is possibly the best way to find an agent. The agents who build the most successful businesses, whether or not they’re part of a larger firm, are those who satisfy their clients. Their business thrives based on the referrals those clients give. If somebody you trust has recently purchased a new home, ask how they liked their experience. You can also check online listings, which may include customer reviews. These may be less reliable than a personal referral, but they can give you some insight. Finally, ask your mortgage broker or other professional about the people they prefer to work with…this can help you build a team that’s completely on the same page as you. I am more than happy to offer some options based on my 10 years of experience of working with the real estate community.

Some real estate agents advertise their specific expertise in a region or neighborhood—they may do a lot of business helping homebuyers purchase property in these areas. If you’re looking for a specific location, check listings online or in print to see if you can find an agent who focuses on that location. These “regional experts” will know the properties very well, and can often help save time by avoiding homes that they know will not interest you.

Windows and Doors – These are often the biggest culprits when it comes to losing heat or allowing cold air to come in. Inspect all external windows and doors for cracks or holes, and replace as needed. Use weather stripping around the edges and install storm windows if available.

Structure and Foundation – As the weather fluctuates throughout the year, cracks can occur in the foundation and walls. When winter arrives, mice and other pests will find these cracks, trying to escape the cold. Seal and tuck-point these cracks, and make sure that there are no food sources near the inside or outside of your home.

Roof and Gutters – Adding insulation to your attic and replacing old or worn shingles will help keep heat from escaping as it rises. Keeping the gutters clean will direct water away from your home before it starts to freeze.

Plumbing – Frozen water in pipes can cause costly damage. Make sure you know how to shut off your water main in the event of an emergency, insulate any pipes exposed to the outdoors, and drain other tubing such as hoses or air conditioner pipes.

Miscellaneous – If you have snow removal machines, or even just a shovel, make sure they’re in full working order. Since heat or fireplaces will be running more often, be sure that smoke and carbon monoxide detectors are functioning and have fresh batteries. Finally, winter storms can knock out power and other systems—have an emergency kit handy.

Underwriters review two different values to determine the debt-to-income ratio: a front-end percentage and a back-end percentage. The front-end refers to the amount of a prospective homebuyer’s income that goes towards their current housing costs (rent, current mortgage payments, condo assessments, and property insurance/taxes). The back-end refers to all debt payments for which the borrower is currently responsible, including the front-end percentage. These two percentages together create the borrower’s debt-to-income ratio, expressed as (front-end percentage) / (back-end percentage). By multiplying the borrower’s monthly income by each side of this ratio, the lender can determine what they can afford in a mortgage.

This ratio compared to the standard debt-to-income ratio. In the United States, the standard conforming loan ratio is 28/36 (signifying that the borrower should currently have 28% of their monthly income available for housing expenses and 36% for housing expense plus all other debt). For FHA-approved loans the ratio is 31/43, rural properties purchased with USDA loans are calculated with a debt-to-income ratio of 29/41, and Veterans Affairs loans are assessed on a single standard of 41 (meaning that the borrower must simply have 41% of their monthly income allowed towards all debt).

Although this ratio is a significant part of any mortgage application review, as with any application, the underwriter will be looking at the borrower’s entire financial situation. The general strategy for any hopeful borrower should be to reduce debt obligations and maintain a history of financial responsibility.

The rise and fall of gold prices is tied to a number of factors, but as with most goods, the basic market forces of supply and demand come into play. However, gold’s relationship with these forces is unique. The vast majority of gold that has been mined is still in existence in some form, meaning that consumption and supply shortage is less of a concern in terms of pricing. As a result, gold prices tend to be more heavily influenced by demand, which can range from anything including technological needs to simple sentiment. For example, in uncertain economic times or times of military conflict, consumers tend to worry that their standard paper currency may become devalued…and as such, they are more apt to hoard gold.

Specific prices for gold are set twice per business day via the “London gold fixing” meeting, which is a telephone conference between members of five British gold-trading firms within the London Bullion Market Association—an independent institution regulated in part by the Bank of England. The representatives in this meeting are currently rotated each year among LBMA members. Price-fixes are reported in three forms of international currency: the US dollar, the British pound sterling, and the euro, and the price is listed per “troy ounce” of gold—approximately 31 grams.

Although the gold standard is no longer a customary system of currency exchange, the metal itself remains precious, and commands value on the market. Gold prices hit a record high in August of 2011, and are likely to stay high for the near future—if you have any gold you’re willing to part with, now might be a good time to sell!

The price of the insurance is determined by several factors, including the size and condition of the home and its proximity to hazards. For example, a home that is located closer to hurricane-prone regions will require a higher premium paid to the insurer than a home in a more stable area. Also of note is that while typical homeowner’s insurance polices include a group of basic coverages, others, such as flood coverage, may require a separate policy or additional riders. A homeowner can also lower their premium by investing in home protection measures such as security systems and fire sprinklers.

Homeowners have a handful of options when choosing an insurance policy; the most widely used policy form is the HO3, or “Special Form” policy. The Special Form policy acts as a blanket coverage on the property with the exception of any named exclusions (such as earthquakes and flood). The HO1 “Basic Form” and HO2 “Broad Form” differ from the HO3 in that the specific coverages are named, rather than the exclusions. There is also the HO5 “Premier” policy that covers more than the HO3, the HO6 for condo owners, and the HO8 for older homes (in which the cost of replacing the home would be much higher than the home’s value on the market).

Insurance also classifies the property based on usage and structures. The four main property coverages, labeled A-D, are Dwelling (the house itself), Other Structures (such as a garage), Personal Property, and Loss of Use/Additional Living Expenses (covers expenses related to renting out part of the property). Additional coverages may be added for additional premium, as desired.

Secure the release. One of the most important pieces of mortgage paperwork you signed at the outset of your loan was the “deed of trust,” which certified that you had a mortgage on your particular property and were paying it off to your lender. This document was sent to the Recorder of Deeds for safekeeping. Once you have successfully paid off your loan, this document will need to be released from the official record, by submitting a “certificate of satisfaction.” In some cases, your lender will handle the release for a small fee. Other lenders, however, will simply return the promissory note you signed, indicating that the note has been paid and canceled, and it will then be your responsibility to secure the deed of trust release. (Regardless of whether you or your lender handles this release, make sure you have the promissory note returned.)

Rename the insurance beneficiary. While you had the mortgage, the beneficiary for your homeowner’s insurance has been your lender. Now that you own the property, make sure to inform your insurance company–in writing–that you should be the new beneficiary.

Take responsibility for tax bills. Your county tax collection authority will need to be notified that you should receive any tax bills related to your insurance or escrow.

Discontinue bank payments. For ease and peace of mind, you probably set up an automatic bank payment to be withdrawn from your account and paid to your lender each month. Make sure to tell your bank that this automatic payment can be canceled.

Taking care of these tasks not only frees you of the responsibilities associated with the mortgage once and for all, it also allows you to maintain a clear and official title that allows you to both prove your right to the property and your right to sell it, if you desire. Congratulations! You own your home!

Contrary to the standard methods of purchasing a home, going through a Treasury auction is strictly a cash-for-property deal. All bidders are required to place a minimum deposit in order to participate, which is returned if the bidder does not win the auction. If you place the winning bid for an auctioned property, you must pay this amount in full at the time of closing (within 30 days). There are no payment plans; any loans required should be secured before bidding takes place. An inability to pay for a property in full leads to the auction winner losing their deposit and all claim to the property.

All Treasury property auctions are public to both citizens and non-citizens of the United States, and are held on-site. In most instances, the Treasury also allows for a submission of written bids, sent in one day prior to the auction, and some properties may be bid on real-time via the Internet. Open houses are also held in advance of the auction, and interested bidders are strongly encouraged to examine the property beforehand…there will not be time allotted on the day of the auction and all property is auctioned off as-is.

Depending on the interest in the property and the savvy of the bidders, it’s very possible to find great deals at a Treasury auction. You can find a schedule of upcoming auctions, as well as terms of sale and registration information, by visiting The Department of Treasury website.

The underwriter’s primary job is to carefully scrutinize the potential borrower to assess whether they will be able to pay back the loan they receive within the time allotted. The clearest way to make this assessment is to review the borrower’s financial situation. Underwriters will examine:

- Debt obligations, including other loans, taxes owed, and credit cards. They will look at both the total amount owed and the current monthly payments being made.
- Monthly income, including all regular salaries, commissions, and self-employment income. This will also include money collected from investments, such as property.
- Funds available at closing; specifically, the amount that the borrower can contribute to the down payment from their own funds or from the sale of their current property.
- Credit rating, which gives a snapshot of how well the borrower has managed to maintain their debt in the past.
- Miscellaneous factors, such as job stability or responsible investment history, can also be considered in the final analysis.

Underwriters will render one of four decisions, based on the borrower’s request, history, and purported value of the home: they will either approve the loan, approve the loan with conditions, suspend judgment, or deny the loan. “Conditions” describe actions the borrower must complete prior to funding, such as completing and verifying the sale of their previous home.

Acceleration clause – This clause protects the lender, by triggering a legal demand for the full loan to be repaid at once, should conditions such as borrower default exist.

Due-on-sale clause – A variation of the acceleration clause, this allows the lender to ask for the full loan repayment if the property is sold or otherwise transferred to somebody else.

Assumption clause – In increasingly rare cases, a mortgage may be “assumable,” meaning that rather than the homebuyer receiving a new mortgage, they are allowed to simply take on the previous owner’s mortgage and monthly payments. This setup also allows the buyer to forgo settlement costs and loan application procedures, and possibly even assume the seller’s interest rate. Most current mortgages, however, provide the opposite clause on the mortgage—a “nonassumption” clause.

Conversion clause – A clause specific to ARM mortgages, this gives the borrower an option to convert the ARM to a fixed-rate mortgage (usually for a fee, and often only within a specific time-frame).

Insurance covenant – The mortgage lender may add this to the contract to ensure that the buyer protects the home with a reasonable amount of property insurance. The covenant often allows the lender to purchase coverage at the borrower’s expense, if the borrower does not take responsibility on their own to keep this coverage.

Although the prospect of reading your mortgage paperwork may seem daunting, in many cases, the clauses of a contract are simply common-sense statements included in the legal paperwork. Speak with your attorney and loan officer; they’ll help make sure you understand everything you’re signing!