Tag Archives: Massachusetts

Money When You Need It

26 Jul

Metro®Boston, Publication Date: July 13, 2011

By Attorney George Warshaw

I’ve always relied on a simple lending principle: banks will gladly loan you money when you don’t need it; but not necessarily when you really need it.

That’s why home equity loans are a key financing planning tool.

A home equity loan (often called a HELOC) is a loan against the equity in your house or condo. The interest rate is typically based on the prime rate and can float or change monthly as the prime changes. It functions like a credit card.

I spoke with William Schulz, a banker at Citibank (617-725-0104, william.h.schulz@citi.com), a specialist in home equity loans.

“Because interest is often (i.e. not always) deductible on your taxes, many people use it for their children’s college education, home remodeling, medical expenses, or to have money available should they need it,” he said.

“The process is simple. It costs the borrower nothing in fees, and nothing if you don’t use it. Once you provide the necessary paperwork, it’s usually 30 days to closing.”

Since interest paid on a credit card is often not deductible, a HELOC can be a sensible way of making major purchases – but be careful: like any mortgage loan, it has to be repaid!

© 2011 George Warshaw. All rights reserved.

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George Warshaw is a real estate attorney and legal author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at george.warshaw@warshawlaw.com.

Legal Advice: Laws, and court decisions interpreting them, change frequently and this article is not updated as laws change. The content and information contained in this article is neither intended as legal advice nor shall establish an attorney-client relationship. Before making any legal decision, consult an attorney to see how the foregoing may apply to your circumstances.

Mistakes Home Buyers Make in the Offer

9 May

Metro® Boston, Publication Date: May 11, 2011

By Attorney George Warshaw

You’ve searched MLS (Multiple Listing Service) for a condo or house for sale in Massachusetts, acquired a real estate agent along the way, and now you’re ready to make an offer to purchase your new home.

Here’s a few things, often overlooked, that you may want to include or change in your offer: 

  • Make your purchase conditional on an appraisal that is no less than the purchase price
  • Don’t choose Friday or the last day of the month as your closing date. These are the busiest real estate days and your deed might not get recorded that day (i.e. you could be prevented from moving into your new home when you expect)
  • Make your offer conditional on all systems and appliances being in good working order on the day of closing
  • Be wary of the preprinted “inspection contingency.” These often limit your right to cancel solely to “serious structural or mechanical defects” that may exist in the house or condominium. Change it to an “inspection that is satisfactory to you.”
  • If you’ve also listed your home for sale, don’t try to buy the same day as you sell.

More on this to come. © 2011 George Warshaw. 

The foregoing is not intended as legal advice. Consult an attorney to see how or if the information may apply to you.

George Warshaw is a real estate attorney and author. He represents buyers and sellers of homes and condos in Massachusetts, and prepares wills, trusts, and estate plans. George welcomes new clients and questions at george.warshaw@warshawlaw.com