My x and I split up a year ago, I moved out and my x stayed in the house. I've left my name on the mortgage (we weren't married so the house is the only thing legally binding us), but now I'd like to take it off. How does that work? Is it expensive? How long does it take? Our mortgage is through countrywide. How do I remove my name from the mortgage?
The only way is for your ex to refinance by himself, hopefully number one there is sufficient equity in the place to refinance and number two hopefully your ex has the right credit score to refinance if the answer is no toward anyone one of the conditions then only option is to sell the home if possible How do I remove my name from the mortgage?
You can remove your name on the Title of the property if you choose, by quit-claiming the deed to your x-husband. You still are responsible for the mortgage though and your name cannot be removed unless you either refinance using a different name or have your x-husband refinance only in his name.
If your x is still living at the property you will both need to hire a solicitor to arrange for your removal...this is done either by your x re-mortgaging the property in their sole name or asking permission from the bank/building society if you can be removed.
Call a solicitor and ask them how this is done. it doesn't cost must
Personally I would make him sell the house and give me my half and then he can do whatever he wants with his. If he gets ugly and stops paying or keeps paying late it is affecting your score also so I wouldnt even have let it go this long.
You cannot remove your name from the mortgage unless you pay it off. They need to refinance the property in their name only, then you will do a quitclaim deed to also remove your name from the title to the home.
Wednesday, November 23, 2011
What is the current disqualifying credit score that mortgage lenders have earmarked?
Let's say someone wants to get out of having to buy a new property they had put down a deposit for a couple years ago.
The only way I see to get that money back as stated in the contract is to disqualify for the loan per the developer's selected lender. How can I do that?
So I'm wondering how low do I have to get my credit score to ensure I won't qualify?!What is the current disqualifying credit score that mortgage lenders have earmarked?
Acceptable credit scores vary bank by bank. In many cases they are only one piece of the puzzle anyway.
Purposely screwing up your credit would be a very dumb thing to do. You would have to be losing a ton of money to make this worthwhile.What is the current disqualifying credit score that mortgage lenders have earmarked?
there is no set score.
depends on how money you put down, how money you make, if you've been at your job or career long enough etc.
The only way I see to get that money back as stated in the contract is to disqualify for the loan per the developer's selected lender. How can I do that?
So I'm wondering how low do I have to get my credit score to ensure I won't qualify?!What is the current disqualifying credit score that mortgage lenders have earmarked?
Acceptable credit scores vary bank by bank. In many cases they are only one piece of the puzzle anyway.
Purposely screwing up your credit would be a very dumb thing to do. You would have to be losing a ton of money to make this worthwhile.What is the current disqualifying credit score that mortgage lenders have earmarked?
there is no set score.
depends on how money you put down, how money you make, if you've been at your job or career long enough etc.
How do you start marketing effectively for a Mortgage company in Arizona?
I have been given the task of creating new Ideas to generate business in our (home, construction, lot, refinance and HELOC programs) What are some cheaper, more effective avenues that work?How do you start marketing effectively for a Mortgage company in Arizona?
nothing really cheap AND effective. ';best'; way is to produce some flyers detailing your most aggressive products that people will actually want. low rates, closing costs, etc etc. people get that crap all the time so there has to be something on there that catches their eye at least and makes them want to read on.How do you start marketing effectively for a Mortgage company in Arizona?
this article has some great business tips and much more that should help you out...
A few free resources 鈥?check out the sources box for links:
1) Create a blog pertaining to your field
2) Use Yahoo! Local %26amp; Yahoo! Groups 鈥?Be sure to read the TOS for each one!
3) Write articles pertaining to your field and/or expertise.
4) Advertise on Craiglist
Also, consider signing up for an affiliate program. These programs enable you to advertise on other's sites (your affiliates) and once a sale is made to you, your affiliates %26amp; the program are paid a commission.
I listed a few handy sites %26amp; articles relating to marketing, promotion %26amp; advertising. Here are some book titles that are relevant:
* 301 Do-It-Yourself Marketing Ideas: From America's Most Innovative Small Companies by Sam Decker
* Off The Wall Marketing Ideas: Jumpstart Your Sales without Busting Your Budget by Nancy Michaels, Debbi J. Karpowicz
* Guerrilla Marketing for Free: Dozens of No-Cost Tactics to Promote Your Business and Energize Your Profits by Jay Conrad Levinson
* Entrepreneur Magazine's Ultimate Small Business Marketing Guide: Over 1500 Great Marketing Tricks That Will Drive Your Business Through the Roof by James Stephenson
Hope that helps! I wish you much success %26amp; happiness in all your ventures!
nothing really cheap AND effective. ';best'; way is to produce some flyers detailing your most aggressive products that people will actually want. low rates, closing costs, etc etc. people get that crap all the time so there has to be something on there that catches their eye at least and makes them want to read on.How do you start marketing effectively for a Mortgage company in Arizona?
this article has some great business tips and much more that should help you out...
A few free resources 鈥?check out the sources box for links:
1) Create a blog pertaining to your field
2) Use Yahoo! Local %26amp; Yahoo! Groups 鈥?Be sure to read the TOS for each one!
3) Write articles pertaining to your field and/or expertise.
4) Advertise on Craiglist
Also, consider signing up for an affiliate program. These programs enable you to advertise on other's sites (your affiliates) and once a sale is made to you, your affiliates %26amp; the program are paid a commission.
I listed a few handy sites %26amp; articles relating to marketing, promotion %26amp; advertising. Here are some book titles that are relevant:
* 301 Do-It-Yourself Marketing Ideas: From America's Most Innovative Small Companies by Sam Decker
* Off The Wall Marketing Ideas: Jumpstart Your Sales without Busting Your Budget by Nancy Michaels, Debbi J. Karpowicz
* Guerrilla Marketing for Free: Dozens of No-Cost Tactics to Promote Your Business and Energize Your Profits by Jay Conrad Levinson
* Entrepreneur Magazine's Ultimate Small Business Marketing Guide: Over 1500 Great Marketing Tricks That Will Drive Your Business Through the Roof by James Stephenson
Hope that helps! I wish you much success %26amp; happiness in all your ventures!
What are the benefits of making an extra mortgage payment at the end of the year?
I am tring to sell my house. If I make an extra house payment on 12/31/08, will that benefit me?What are the benefits of making an extra mortgage payment at the end of the year?
If not selling your house, the benefit is years of saved interest expense.
If selling, don't do it. Keep your free cash in case things don't go exactly as planned - if the money is left over, put it down on the new house.What are the benefits of making an extra mortgage payment at the end of the year?
In addition to saving interest expense, you can write off more of the interest in your 2008 taxes when you file taxes in 2009.
If not selling your house, the benefit is years of saved interest expense.
If selling, don't do it. Keep your free cash in case things don't go exactly as planned - if the money is left over, put it down on the new house.What are the benefits of making an extra mortgage payment at the end of the year?
In addition to saving interest expense, you can write off more of the interest in your 2008 taxes when you file taxes in 2009.
What are mortgage interest rates based on and how do I estimate what my ARM rate will be when it adjusts?
My 5-1 ARM adjusted last year and went to 6.25%. It will adjust again this November. Are mortgage rates based on the feds fund rate? Or something else? How can I estimate what my new rate will be?What are mortgage interest rates based on and how do I estimate what my ARM rate will be when it adjusts?
There are multiple indices that are used by mortgage holders to adjust a mortgage rate. some are tied to t tresury bills, some are tied to the LIBOR rate.
You will need to check with the mortgage holder, (or just check your original mortgage contract) and find out what index your mortgage is tied to, and what the';spread'; is. (The spread is the additional % added to the index).What are mortgage interest rates based on and how do I estimate what my ARM rate will be when it adjusts?
As it was already mentioned, your rate could be based on any one of those indexes, however if it resets in November I am willing to bet that your rate is based on the Libor index. Check your paperwork and if you cant figure it out then call your Mortgage Representative for assistance. Last November the Libor was just over 3% and today it is just under 2% which means if it resets again this November your rate may actually be going down. If this is the case then your interest rate spread is 3% over the Libor, so come November 2009 your rate might drop to about 4.5% if the Libor stays the same between now and then. For more on basic finances visit Finance 101 located at www.honestbanker.blogspot.com
look at your loan agreement to see what your rate is tied. it will not be fed funds rate but some other index. those indexes are quoted daily in yahoo finance area.
be careful. 30 year rates are about 5%. your rate could be 10% in 3-4 years if inflation takes off like so many experts predict.
You need to check your contract - the index will be in there. It could be the prime rate, it could be a T-Bill rate, it could be the Fed Funds rate, it could be the LIBOR. Until you know what the index is, you can't calculate the new rate.
There are multiple indices that are used by mortgage holders to adjust a mortgage rate. some are tied to t tresury bills, some are tied to the LIBOR rate.
You will need to check with the mortgage holder, (or just check your original mortgage contract) and find out what index your mortgage is tied to, and what the';spread'; is. (The spread is the additional % added to the index).What are mortgage interest rates based on and how do I estimate what my ARM rate will be when it adjusts?
As it was already mentioned, your rate could be based on any one of those indexes, however if it resets in November I am willing to bet that your rate is based on the Libor index. Check your paperwork and if you cant figure it out then call your Mortgage Representative for assistance. Last November the Libor was just over 3% and today it is just under 2% which means if it resets again this November your rate may actually be going down. If this is the case then your interest rate spread is 3% over the Libor, so come November 2009 your rate might drop to about 4.5% if the Libor stays the same between now and then. For more on basic finances visit Finance 101 located at www.honestbanker.blogspot.com
look at your loan agreement to see what your rate is tied. it will not be fed funds rate but some other index. those indexes are quoted daily in yahoo finance area.
be careful. 30 year rates are about 5%. your rate could be 10% in 3-4 years if inflation takes off like so many experts predict.
You need to check your contract - the index will be in there. It could be the prime rate, it could be a T-Bill rate, it could be the Fed Funds rate, it could be the LIBOR. Until you know what the index is, you can't calculate the new rate.
What is the best source for an FHA mortgage in California? A large bank or a finance company?
I am interested in getting pre-approved for an FHA loan and have been talking to my bank and I want to know what my options are to keep my costs down and not get taken advantage of as a first-time home buyer. If you have resently had some experience with this in the Riverside County area any advise would be appreciated.What is the best source for an FHA mortgage in California? A large bank or a finance company?
Your state housing finance agency may have the best programs available for you if you can work within there restrictions with regard to purchase price and income.
Here is a link with more information:
http://www.calhfa.ca.gov/homebuyer/progr鈥?/a>
I think your bank may be the best source for you, but of course you can call around and get some quotes on FHA loans as they should be fairly easy to come by. Understand that there is an upfront fee of 1.5% that is paid to the FHA regardless of who you use. That fee can be financed.
Our base costs for an FHA loan are $1,400 plus title insurance and recording fees.
Our HFA program has a standard rate of 6.25% on a 30 year, but requires a 1% origination fee and there is really no rate competition.
For regular FHA loans, we could either charge an origination fee to offer a lower rate or not charge one at a slightly higher rate. For example, we could offer 6.75% with 0 points or 6.50% with 1% origination. These fees can vary according to loan size with management approval.
Of course, the FHA will allow the seller to pay closing costs and even provide down payment assistance if you need it (at least for the time being so you may want to move quickly if you need that kind of assistance as it may be going away as of 10/1/2008 as a result of HR3221) no matter who you choose to use. Just be sure that your Realtor understands what they need to ask for once you have your pre-approval worked out.
The bottom line is that you want to work with someone who is going to offer the best rate/cost combination. Then you want to be sure that they do what they said they would do and that they will ensure that you get to closing on time.
I hope something I have said will help you with your decision and I wish you the best of luck and happy house hunting.What is the best source for an FHA mortgage in California? A large bank or a finance company?
it depends on a few things, one timeframe. Almost everyone is going FHA now, so the big banks are pretty backed up in their FHA divisions. Generally a finance company can get a file completed much quicker. Next are your qualifications, meaning mostly your credit and income. The lower the credit and the tighter the income, your probably better off going to a finance company as they have fha lenders that specialize in that type of scenario, but going through a broker means paying certain items, such as origination and discount, but keep in mind that any FHA discount fee you pay should be tax deductible (see a tax professional) Bottom line is anyone can promise you the starts and the moon, work with who you trust the most, not who promises you something, if they promise or quote you something, demand it in writing, this should weed out the jokers, ask about time frames, when you can expect to close, how long does underwriting take, how long is my rate lock. Talk to a few people, but do not let them pull credit, that could drive down your score, see who you like and proceed from there, good luck
Try to get pre-approved with this Loan company. You can choose your own rate and term and how much you would like to pay for closing cost. They have several different option that you can choose from.
http://www.amerisave.com/partner/chongth鈥?/a>origins face mask
Your state housing finance agency may have the best programs available for you if you can work within there restrictions with regard to purchase price and income.
Here is a link with more information:
http://www.calhfa.ca.gov/homebuyer/progr鈥?/a>
I think your bank may be the best source for you, but of course you can call around and get some quotes on FHA loans as they should be fairly easy to come by. Understand that there is an upfront fee of 1.5% that is paid to the FHA regardless of who you use. That fee can be financed.
Our base costs for an FHA loan are $1,400 plus title insurance and recording fees.
Our HFA program has a standard rate of 6.25% on a 30 year, but requires a 1% origination fee and there is really no rate competition.
For regular FHA loans, we could either charge an origination fee to offer a lower rate or not charge one at a slightly higher rate. For example, we could offer 6.75% with 0 points or 6.50% with 1% origination. These fees can vary according to loan size with management approval.
Of course, the FHA will allow the seller to pay closing costs and even provide down payment assistance if you need it (at least for the time being so you may want to move quickly if you need that kind of assistance as it may be going away as of 10/1/2008 as a result of HR3221) no matter who you choose to use. Just be sure that your Realtor understands what they need to ask for once you have your pre-approval worked out.
The bottom line is that you want to work with someone who is going to offer the best rate/cost combination. Then you want to be sure that they do what they said they would do and that they will ensure that you get to closing on time.
I hope something I have said will help you with your decision and I wish you the best of luck and happy house hunting.What is the best source for an FHA mortgage in California? A large bank or a finance company?
it depends on a few things, one timeframe. Almost everyone is going FHA now, so the big banks are pretty backed up in their FHA divisions. Generally a finance company can get a file completed much quicker. Next are your qualifications, meaning mostly your credit and income. The lower the credit and the tighter the income, your probably better off going to a finance company as they have fha lenders that specialize in that type of scenario, but going through a broker means paying certain items, such as origination and discount, but keep in mind that any FHA discount fee you pay should be tax deductible (see a tax professional) Bottom line is anyone can promise you the starts and the moon, work with who you trust the most, not who promises you something, if they promise or quote you something, demand it in writing, this should weed out the jokers, ask about time frames, when you can expect to close, how long does underwriting take, how long is my rate lock. Talk to a few people, but do not let them pull credit, that could drive down your score, see who you like and proceed from there, good luck
Try to get pre-approved with this Loan company. You can choose your own rate and term and how much you would like to pay for closing cost. They have several different option that you can choose from.
http://www.amerisave.com/partner/chongth鈥?/a>
Is it possible to refinance your mortgage to get caught up on bills and late mortgage payments?
we have tried twice to refinance our house through a bank in order to get caught back up on the mortgage payments that we are behind and to do some home repairs, etc however we keep being told no because we are in fact behind several house payments. Is there anyone out there who will refinance you in a situation such as this?Is it possible to refinance your mortgage to get caught up on bills and late mortgage payments?
right now it is going to be extra hard to find some one to refinance your home -- i would rather see you gather all the family around the table and say for the next 12 months we are going to get out act together and get out finances in order and to do that we are going to down size -- we are just keeping what we need and nothing we want -- such as interent service -- cable tv -- cell phones -- and any other nice but not required items --- i am sure you could save enough to get your selves back on your feet!!!Is it possible to refinance your mortgage to get caught up on bills and late mortgage payments?
Since you're behind on your mortgage as well as your other bills, it's going to be rough to get financing. I suggest you call some mortgage brokers that work with hard to place financing. If that does not work, you might have to retain an bankruptcy atty in order to stop any actions. I could assure you you're not the only with this problem. Best of luck.
There isn't an easy answer to this question: it really depends on a lot of factors not addressed in your note. I'm a broker and in most cases I've been able to assist clients who were behind on mortgage payments. However there is a lot of other information that comes into play.
I'd strongly recomend talking to a good and honest broker - most of the time brokers have access to programs that banks can't offer you. Banks have a limited program menu, and if you don't fit their guidelines they can't lend to you. However a broker has access to many direct lenders that offer more specialized programs for specific clients.
For lack of a better analogy, when it comes to mortgages lending a bank might be like a Nike store and a broker like a athletic shoe store: if all you want it Nike, go to their store. But if you want a selection beyond Nike, go to the store with more of a selection. LoL - that's not perfect, but I hope you get my point.
Refinancing is still a loan that is going to require good credit and on time payments. If you are behind on your current mortgage and/or other bills, then you are probably NOT going to find anyone who will do a refinance for you. Sorry, but those are the facts.
wehn you refinance you are essentially applying for a new mortgage and lenders usually have restrictions on how many late mortgage payments you could have had in the past year, usually from 0 to 3. You should talk to a mortgage broker who can find a lender that allows more or unlimited late payments. Your rate will definitely not be the best or may not be good enough to refinance.
yes you can find lenders it looks like you need a foreclosure bailout. and some extra cash to pay off bills. here's aplace that can do this for you ASAPwww.directrlendg
Here are three options to explore:
1. - Can you borrow the money from somewhere to get yourself current on your mortgage? FHA will do a loan for you up to 85% LTV. However you must be able to show income to support the loan.
2. - If this is not an option your current lender will probably be willing to enter into a forberance agreement with you allowing you to spread what you are currently behind over a period of time, usualy 12-months. This might not be the answer for you as it sounds like you can't make the payments you have currently.
3. - Debt consolidation and restructuring may be the best alternative. If your current debt payments (non-mortgage) were cut in half could you afford to stay current then? If so speak to a reputable credit counselor to see if they can get you involved in a repayment program. It's going to wreak havoc on your credit but it sounds to me like you're past that point anyway.
What ever you decide to do be sure to communicate with your creditors. Ignoring the problem will only make it grow.
Go to a lawyer and get a Chapter13, this is a court action that will not be detrimental to your credit because it means you got yourself in a hole financially but you have all intent to pay. You end up paying the court a certain amount each month and that way you can keep your home and what you have and the bank you owe can't foreclose. Your not the only one in this situation a lot of lenders raised their rates and in doing so made payments impossible for people to keep up with its a bad situation but its the best way to get out of this one. Also understand you will have to pay the lawyer a couple of grand to file and you have to take a class online.
But once it is done you will feel a lot better!
Try out any bank
If you are late on mortgage payments, you are in a tough situation. Best get healthy on your back payments, then talk to the bank currently servicing your loan. They are most likely to work with you, but may have a higher interest rate.
right now it is going to be extra hard to find some one to refinance your home -- i would rather see you gather all the family around the table and say for the next 12 months we are going to get out act together and get out finances in order and to do that we are going to down size -- we are just keeping what we need and nothing we want -- such as interent service -- cable tv -- cell phones -- and any other nice but not required items --- i am sure you could save enough to get your selves back on your feet!!!Is it possible to refinance your mortgage to get caught up on bills and late mortgage payments?
Since you're behind on your mortgage as well as your other bills, it's going to be rough to get financing. I suggest you call some mortgage brokers that work with hard to place financing. If that does not work, you might have to retain an bankruptcy atty in order to stop any actions. I could assure you you're not the only with this problem. Best of luck.
There isn't an easy answer to this question: it really depends on a lot of factors not addressed in your note. I'm a broker and in most cases I've been able to assist clients who were behind on mortgage payments. However there is a lot of other information that comes into play.
I'd strongly recomend talking to a good and honest broker - most of the time brokers have access to programs that banks can't offer you. Banks have a limited program menu, and if you don't fit their guidelines they can't lend to you. However a broker has access to many direct lenders that offer more specialized programs for specific clients.
For lack of a better analogy, when it comes to mortgages lending a bank might be like a Nike store and a broker like a athletic shoe store: if all you want it Nike, go to their store. But if you want a selection beyond Nike, go to the store with more of a selection. LoL - that's not perfect, but I hope you get my point.
Refinancing is still a loan that is going to require good credit and on time payments. If you are behind on your current mortgage and/or other bills, then you are probably NOT going to find anyone who will do a refinance for you. Sorry, but those are the facts.
wehn you refinance you are essentially applying for a new mortgage and lenders usually have restrictions on how many late mortgage payments you could have had in the past year, usually from 0 to 3. You should talk to a mortgage broker who can find a lender that allows more or unlimited late payments. Your rate will definitely not be the best or may not be good enough to refinance.
yes you can find lenders it looks like you need a foreclosure bailout. and some extra cash to pay off bills. here's aplace that can do this for you ASAPwww.directrlendg
Here are three options to explore:
1. - Can you borrow the money from somewhere to get yourself current on your mortgage? FHA will do a loan for you up to 85% LTV. However you must be able to show income to support the loan.
2. - If this is not an option your current lender will probably be willing to enter into a forberance agreement with you allowing you to spread what you are currently behind over a period of time, usualy 12-months. This might not be the answer for you as it sounds like you can't make the payments you have currently.
3. - Debt consolidation and restructuring may be the best alternative. If your current debt payments (non-mortgage) were cut in half could you afford to stay current then? If so speak to a reputable credit counselor to see if they can get you involved in a repayment program. It's going to wreak havoc on your credit but it sounds to me like you're past that point anyway.
What ever you decide to do be sure to communicate with your creditors. Ignoring the problem will only make it grow.
Go to a lawyer and get a Chapter13, this is a court action that will not be detrimental to your credit because it means you got yourself in a hole financially but you have all intent to pay. You end up paying the court a certain amount each month and that way you can keep your home and what you have and the bank you owe can't foreclose. Your not the only one in this situation a lot of lenders raised their rates and in doing so made payments impossible for people to keep up with its a bad situation but its the best way to get out of this one. Also understand you will have to pay the lawyer a couple of grand to file and you have to take a class online.
But once it is done you will feel a lot better!
Try out any bank
If you are late on mortgage payments, you are in a tough situation. Best get healthy on your back payments, then talk to the bank currently servicing your loan. They are most likely to work with you, but may have a higher interest rate.
How much mortgage interest can I deduct on my primary residence?
You can deduct it all but the benefit is limited to the difference between the standard deduction and the total amount on Schedule A so most likely you won't see a 100% net tax benefit from the deduction unless you have other deductions on Schedule A, like charitable contributions or big medical expenses, etc.How much mortgage interest can I deduct on my primary residence?
Your lender should have sent you a report on the amount of interest you paid for the taxable year. You may deduct all that is on the form.
You may also deduct certain cost in connection with the purchase of your home,normally points paid toward getting your loan and a few other cost. Check with your CPA or tax adviser to find out which are deductible.
I hope this has been of some help to you, good luck.How much mortgage interest can I deduct on my primary residence?
All of it.
Rival
Your lender should have sent you a report on the amount of interest you paid for the taxable year. You may deduct all that is on the form.
You may also deduct certain cost in connection with the purchase of your home,normally points paid toward getting your loan and a few other cost. Check with your CPA or tax adviser to find out which are deductible.
I hope this has been of some help to you, good luck.How much mortgage interest can I deduct on my primary residence?
All of it.
Rival
What are the chances of me getting a mortgage for this house?
The house is listed at 88K. I have been out of college for 1 1/2 years. My credit score is around 630 and have been employed with the same company for over a year. My gross income from my full time and part time job is 51k a year. The only blemishes on my credit report are some unpaid medical bills from college. I also have a 14k car loan and student loans. My credit card debt is under a 1K. Please help. Im tired of renting and would love to purchase this house and gain some equity and make a profit off of it in two years. Also, if i have a roommate that pays rent does that help me or am i getting into tax problems with that situation?What are the chances of me getting a mortgage for this house?
How do you plan to make a profit on the house in two years? The days of flipping houses are mostly over for now. If you are going to live in the house and rent out a room you could use the extra income to purchase additional properties to rent out. I would try to pay off the medical bills before applying for a loan.What are the chances of me getting a mortgage for this house?
You should be approved for the mortgage with no problem.
You have to much dept and you are not employed long enough to get a loan.However you may try to find a house which is less expensive and give exact numbers to loan officer to figure it out putting about 20 % down or more would help as well.
Mortgage shouldn't be a problem. Roommates that pay rent do not help you qualify.
Why is your credit score so low if your credit report has no blemishes? 630 is not a very good score. You must have some late car payments and your medical bills DO screw up your score also along with school loans. I would pay the loans off first depending on the amount.
As far as your credit card... the debt of the card is not what matters, it's the amount of available credit on it and how much of it you used, you should never exceed 1/2 of what you have available. For instance, if you have a card with 2000.00 available credit, never ever use more than 1000.00 of it.
You could possibly get the mortgage but going on the very brief details you gave it's hard to say, there is alot more to it. I'd say you have about a 40% change of getting it. You also have to take into consideration the closing cost's, you have to have cash for that or ask the sellers to raise the price of the house so they can pay for your closing cost's, title insurance, land survey...etc.
There is a reason your credit score is only 630... thats not very good. I would pull a copyof your credit report and make sure everything is accurate!
630 is very low, but with your income and the fact that the house is not outrageously priced, you should still be able to get a loan. Medical bills do affect your credit score, but the mortgage company will also actually look at more than just the score, and medical bills weigh less on you when they make their decision than does running up a bunch on credit cards and not paying it. The more you put down it it, the better your chances of getting one, too, because the mortgage company is taking less of a risk.
It will be hard to make a profit off of a house in two years, even if it does go up in value. You will have costs associated with selling it. If you use an agent to sell it, you would have to sell it for around $95,000 just to break even. That's a 4% increase in value each year just to break even, and in the US, that's about average. So, to turn a profit in two years, you would need to be in a market that is still very strong.
If you have a roommate paying rent and you are not reporting it, you can get into tax problems. Instead of having them pay rent, have them pay a pre-agreed upon amount of the utilities. Then, you are not in a landlord/tenant situation and will have no problems. You just can't report it anywhere as ';income'; for you.
You should be able to get the loan. The part time job income may not count if you haven't had that job for more than a year as well, but it sounds like you make plenty of money and have few debts.
You don't really need a 20% down payment unless you're trying to get away from mortgage insurance.
It will probably take at least 2 years to break even from the costs of getting the loan.
If you're ok with staying put for at least 5 years or so, i'd say go for it.
How do you plan to make a profit on the house in two years? The days of flipping houses are mostly over for now. If you are going to live in the house and rent out a room you could use the extra income to purchase additional properties to rent out. I would try to pay off the medical bills before applying for a loan.What are the chances of me getting a mortgage for this house?
You should be approved for the mortgage with no problem.
You have to much dept and you are not employed long enough to get a loan.However you may try to find a house which is less expensive and give exact numbers to loan officer to figure it out putting about 20 % down or more would help as well.
Mortgage shouldn't be a problem. Roommates that pay rent do not help you qualify.
Why is your credit score so low if your credit report has no blemishes? 630 is not a very good score. You must have some late car payments and your medical bills DO screw up your score also along with school loans. I would pay the loans off first depending on the amount.
As far as your credit card... the debt of the card is not what matters, it's the amount of available credit on it and how much of it you used, you should never exceed 1/2 of what you have available. For instance, if you have a card with 2000.00 available credit, never ever use more than 1000.00 of it.
You could possibly get the mortgage but going on the very brief details you gave it's hard to say, there is alot more to it. I'd say you have about a 40% change of getting it. You also have to take into consideration the closing cost's, you have to have cash for that or ask the sellers to raise the price of the house so they can pay for your closing cost's, title insurance, land survey...etc.
There is a reason your credit score is only 630... thats not very good. I would pull a copyof your credit report and make sure everything is accurate!
630 is very low, but with your income and the fact that the house is not outrageously priced, you should still be able to get a loan. Medical bills do affect your credit score, but the mortgage company will also actually look at more than just the score, and medical bills weigh less on you when they make their decision than does running up a bunch on credit cards and not paying it. The more you put down it it, the better your chances of getting one, too, because the mortgage company is taking less of a risk.
It will be hard to make a profit off of a house in two years, even if it does go up in value. You will have costs associated with selling it. If you use an agent to sell it, you would have to sell it for around $95,000 just to break even. That's a 4% increase in value each year just to break even, and in the US, that's about average. So, to turn a profit in two years, you would need to be in a market that is still very strong.
If you have a roommate paying rent and you are not reporting it, you can get into tax problems. Instead of having them pay rent, have them pay a pre-agreed upon amount of the utilities. Then, you are not in a landlord/tenant situation and will have no problems. You just can't report it anywhere as ';income'; for you.
You should be able to get the loan. The part time job income may not count if you haven't had that job for more than a year as well, but it sounds like you make plenty of money and have few debts.
You don't really need a 20% down payment unless you're trying to get away from mortgage insurance.
It will probably take at least 2 years to break even from the costs of getting the loan.
If you're ok with staying put for at least 5 years or so, i'd say go for it.
What are the benefits of refinancing a reverse mortgage?
If someone has a reverse and wants to ';re-modify'; it at today's rates how can this help in today's crazy market?What are the benefits of refinancing a reverse mortgage?
It may not help because the borrower would have to re-pay the origination fees. And the amount that could be borrowed would likely be much less because the home's value will be less under the current market conditions.
I very much doubt whether the difference in interest rates could be made up after re-paying all the necessary fees to refinance a reverse mortgage.
It may not help because the borrower would have to re-pay the origination fees. And the amount that could be borrowed would likely be much less because the home's value will be less under the current market conditions.
I very much doubt whether the difference in interest rates could be made up after re-paying all the necessary fees to refinance a reverse mortgage.
What's it called when you basically stop mortgage payments and give your house back to the bank?
We have a mortgage, loaned from the bank, and we're considering just giving it back, because we can no longer make the payments. What's the official term for that?What's it called when you basically stop mortgage payments and give your house back to the bank?
The end result it is called a foreclosure no matter if you turn the house over to your lender or the lender actually foreclose on you because you fail to make the monthly mortgage payments .
You must be approved for a deed-in-lieu of foreclosure. This simply means that the lender or bank accepts the house from you, thus you are no longer obligated for the monthly mortgage payments nor the upkeep of the house.
If you contact your lender they might be able to work something out with you about your payments.
You should contact your lender's Loss Mitigation Department. Don't be thrown off the trail by some telephone answerer insist on speaking to a person from the Loss Mitigation Department and don't get off the telephone until you have spoken to someone from that department.
Ask if there are other programs available to you that can eliminate you from your existing situation.
I hope this has been of some use to you, good luck.
';FIGHT ON';What's it called when you basically stop mortgage payments and give your house back to the bank?
Foreclosure
If you can try to keep making payments or sell your house it would be best. Otherwise it's going to ruin your credit.
If you the borrower initiate then it is called deed in lieu of foreclosure. You still get a hit on your credit but it's not as bad as a foreclosure.
Keep in mind you might still have to pay deed tax on thecanceled debt which is considered as income. The tax is calculated on the basis of unpaid balance.
First try contacting your lenders loss mitigation dept. It may be hard to get to the right person. If you are 2 payments or more behind on your mortgage they can start the foreclosure process.
Time isnt on your side. Try working with a loss mitigation company that will work on your behalf with your lender to get an option that will keep you in your home. Foreclosurelight Loss Mitigation LLC helps many homeowners this way,
What ever you call it, it is not good. It will seriously damage your credit and put you on the street.
Of course you should start by contacting your servicer but before you abandon all hope, try contacting these folks to see if there is anything that could be done to find an affordable payment solution to keep you in your home.
http://hopenow.com/
I know it is tough out there and maybe there is nothing that can be done, but it is worth checking out all of your options.
Good luck.
Deed in lieu of foreclosure -- meaning you're giving the deed back instead of having the bank foreclose.
being a dead beat.
The end result it is called a foreclosure no matter if you turn the house over to your lender or the lender actually foreclose on you because you fail to make the monthly mortgage payments .
You must be approved for a deed-in-lieu of foreclosure. This simply means that the lender or bank accepts the house from you, thus you are no longer obligated for the monthly mortgage payments nor the upkeep of the house.
If you contact your lender they might be able to work something out with you about your payments.
You should contact your lender's Loss Mitigation Department. Don't be thrown off the trail by some telephone answerer insist on speaking to a person from the Loss Mitigation Department and don't get off the telephone until you have spoken to someone from that department.
Ask if there are other programs available to you that can eliminate you from your existing situation.
I hope this has been of some use to you, good luck.
';FIGHT ON';What's it called when you basically stop mortgage payments and give your house back to the bank?
Foreclosure
If you can try to keep making payments or sell your house it would be best. Otherwise it's going to ruin your credit.
If you the borrower initiate then it is called deed in lieu of foreclosure. You still get a hit on your credit but it's not as bad as a foreclosure.
Keep in mind you might still have to pay deed tax on thecanceled debt which is considered as income. The tax is calculated on the basis of unpaid balance.
First try contacting your lenders loss mitigation dept. It may be hard to get to the right person. If you are 2 payments or more behind on your mortgage they can start the foreclosure process.
Time isnt on your side. Try working with a loss mitigation company that will work on your behalf with your lender to get an option that will keep you in your home. Foreclosurelight Loss Mitigation LLC helps many homeowners this way,
What ever you call it, it is not good. It will seriously damage your credit and put you on the street.
Of course you should start by contacting your servicer but before you abandon all hope, try contacting these folks to see if there is anything that could be done to find an affordable payment solution to keep you in your home.
http://hopenow.com/
I know it is tough out there and maybe there is nothing that can be done, but it is worth checking out all of your options.
Good luck.
Deed in lieu of foreclosure -- meaning you're giving the deed back instead of having the bank foreclose.
being a dead beat.
Better to make extra principal payments or extra mortgage payments?
I am planning on paying down my mortgage early. Am I better off making an extra $500 principal payment or making an additional regular payment every other month? It seems that I pay more interest when I make extra payments, which helps on the taxes - but wondered what it would look like after a few years.Better to make extra principal payments or extra mortgage payments?
Apply it to the principal. Would you rather save a few thousand off of your AGI (reducing taxes by only a few hundred), or have tens of thousands more dollars in your pocket?
Even if you decide to move, paying down the principal gets you more equity in your home so you can take a bigger portion of the selling price.
Just because you can write off the taxes on your mortgage, does that really mean having one is better?Better to make extra principal payments or extra mortgage payments?
There are two things to consider:
Paying down your principal will reduce the amount of interest you pay over the life of your mortgage.
Making additional mortgage payments could effectively reduce your 30 Year Mortgage to a 20 Year Mortgage, and earn tax advantages.
If I were you, unless an expert chimes in on this subject, I'd ask your question of a mortgage banker. Look one up on the telephone and give them a call. You don't want ';amateur advice'; when it comes to something like this.
Good luck.
If you have an open end mortgage, you can pay down the mortgage any time. You should request an amortization from your mortgage co that will give a break down between interest/principle. On the first half on the life of a mortgage, you pay about 70% in interest. That's how they make their money.
If you have a 30 year mortgage and make an extra payment a year you will pay off your home in 20 years so in anwser to your question everthing you make extra on payment being $500 or a full extra payment everything will go to the principal. Good for you.
extra prinicpal payment because it knocks down the amount of interest you end up paying and reduce your total years of payments. you'll be able to pay off your house sooner and start saving your mortgage payments towards retirement or pay off other bills quick!
Why do you want to pay off your mortgage. Do you plan to live in the house for 30 years. If you do and don't want a house payment then pay of the interest. A 300k house will cost twice that over thirty years in interest. But I would advice not to pay it off, at some point sell it and downsize. you'll get killed in taxes each year.origins face mask
Apply it to the principal. Would you rather save a few thousand off of your AGI (reducing taxes by only a few hundred), or have tens of thousands more dollars in your pocket?
Even if you decide to move, paying down the principal gets you more equity in your home so you can take a bigger portion of the selling price.
Just because you can write off the taxes on your mortgage, does that really mean having one is better?Better to make extra principal payments or extra mortgage payments?
There are two things to consider:
Paying down your principal will reduce the amount of interest you pay over the life of your mortgage.
Making additional mortgage payments could effectively reduce your 30 Year Mortgage to a 20 Year Mortgage, and earn tax advantages.
If I were you, unless an expert chimes in on this subject, I'd ask your question of a mortgage banker. Look one up on the telephone and give them a call. You don't want ';amateur advice'; when it comes to something like this.
Good luck.
If you have an open end mortgage, you can pay down the mortgage any time. You should request an amortization from your mortgage co that will give a break down between interest/principle. On the first half on the life of a mortgage, you pay about 70% in interest. That's how they make their money.
If you have a 30 year mortgage and make an extra payment a year you will pay off your home in 20 years so in anwser to your question everthing you make extra on payment being $500 or a full extra payment everything will go to the principal. Good for you.
extra prinicpal payment because it knocks down the amount of interest you end up paying and reduce your total years of payments. you'll be able to pay off your house sooner and start saving your mortgage payments towards retirement or pay off other bills quick!
Why do you want to pay off your mortgage. Do you plan to live in the house for 30 years. If you do and don't want a house payment then pay of the interest. A 300k house will cost twice that over thirty years in interest. But I would advice not to pay it off, at some point sell it and downsize. you'll get killed in taxes each year.
Can your mortgage lender require PMI when your home value decreases?
Bought my home in 2007 with 20 % down. Never wanted to have to pay PMI. With current home values I may only have 10% equity now. Can the lender require PMI under these circumstances?Can your mortgage lender require PMI when your home value decreases?
Most mortgage contracts do not have a PMI clause for future equity changes. Furthermore, the mortgage holder doesnt have the time nor the money to order appraisals on mortgage inventories, to see if you need PMI.Can your mortgage lender require PMI when your home value decreases?
Generally they will not go back and modify the terms of the already closed loan, particularly if you are making your full payment on time. However, if you refinance, you may find yourself paying PMI because the loan will go through underwriting again.
So, just stay quiet and pay on time and you should be fine.
Yes, but only if the original loan contract specifies that PMI is required when the loan to value ratio goes above 80%.
Remember that equity has nothing to do with how much you put down or how much you've paid off of your loan. It only compares current value to loan amount. When values go down, equity goes down.
No. THe PMI was never contingent upon a ';future'; value of your house. It is not a part of your original contract with your lender..
I hold mortgages with several banks, none of them have even breached this topic. I do not think they can add it down the road, only at purchase.
Most mortgage contracts do not have a PMI clause for future equity changes. Furthermore, the mortgage holder doesnt have the time nor the money to order appraisals on mortgage inventories, to see if you need PMI.Can your mortgage lender require PMI when your home value decreases?
Generally they will not go back and modify the terms of the already closed loan, particularly if you are making your full payment on time. However, if you refinance, you may find yourself paying PMI because the loan will go through underwriting again.
So, just stay quiet and pay on time and you should be fine.
Yes, but only if the original loan contract specifies that PMI is required when the loan to value ratio goes above 80%.
Remember that equity has nothing to do with how much you put down or how much you've paid off of your loan. It only compares current value to loan amount. When values go down, equity goes down.
No. THe PMI was never contingent upon a ';future'; value of your house. It is not a part of your original contract with your lender..
I hold mortgages with several banks, none of them have even breached this topic. I do not think they can add it down the road, only at purchase.
What's it called when you basically stop mortgage payments and give your house back to the bank?
We have a mortgage, loaned from the bank, and we're considering just giving it back, because we can no longer make the payments. What's the official term for that?What's it called when you basically stop mortgage payments and give your house back to the bank?
The end result it is called a foreclosure no matter if you turn the house over to your lender or the lender actually foreclose on you because you fail to make the monthly mortgage payments .
You must be approved for a deed-in-lieu of foreclosure. This simply means that the lender or bank accepts the house from you, thus you are no longer obligated for the monthly mortgage payments nor the upkeep of the house.
If you contact your lender they might be able to work something out with you about your payments.
You should contact your lender's Loss Mitigation Department. Don't be thrown off the trail by some telephone answerer insist on speaking to a person from the Loss Mitigation Department and don't get off the telephone until you have spoken to someone from that department.
Ask if there are other programs available to you that can eliminate you from your existing situation.
I hope this has been of some use to you, good luck.
';FIGHT ON';What's it called when you basically stop mortgage payments and give your house back to the bank?
Foreclosure
If you can try to keep making payments or sell your house it would be best. Otherwise it's going to ruin your credit.
If you the borrower initiate then it is called deed in lieu of foreclosure. You still get a hit on your credit but it's not as bad as a foreclosure.
Keep in mind you might still have to pay deed tax on thecanceled debt which is considered as income. The tax is calculated on the basis of unpaid balance.
First try contacting your lenders loss mitigation dept. It may be hard to get to the right person. If you are 2 payments or more behind on your mortgage they can start the foreclosure process.
Time isnt on your side. Try working with a loss mitigation company that will work on your behalf with your lender to get an option that will keep you in your home. Foreclosurelight Loss Mitigation LLC helps many homeowners this way,
What ever you call it, it is not good. It will seriously damage your credit and put you on the street.
Of course you should start by contacting your servicer but before you abandon all hope, try contacting these folks to see if there is anything that could be done to find an affordable payment solution to keep you in your home.
http://hopenow.com/
I know it is tough out there and maybe there is nothing that can be done, but it is worth checking out all of your options.
Good luck.
Deed in lieu of foreclosure -- meaning you're giving the deed back instead of having the bank foreclose.
being a dead beat.
The end result it is called a foreclosure no matter if you turn the house over to your lender or the lender actually foreclose on you because you fail to make the monthly mortgage payments .
You must be approved for a deed-in-lieu of foreclosure. This simply means that the lender or bank accepts the house from you, thus you are no longer obligated for the monthly mortgage payments nor the upkeep of the house.
If you contact your lender they might be able to work something out with you about your payments.
You should contact your lender's Loss Mitigation Department. Don't be thrown off the trail by some telephone answerer insist on speaking to a person from the Loss Mitigation Department and don't get off the telephone until you have spoken to someone from that department.
Ask if there are other programs available to you that can eliminate you from your existing situation.
I hope this has been of some use to you, good luck.
';FIGHT ON';What's it called when you basically stop mortgage payments and give your house back to the bank?
Foreclosure
If you can try to keep making payments or sell your house it would be best. Otherwise it's going to ruin your credit.
If you the borrower initiate then it is called deed in lieu of foreclosure. You still get a hit on your credit but it's not as bad as a foreclosure.
Keep in mind you might still have to pay deed tax on thecanceled debt which is considered as income. The tax is calculated on the basis of unpaid balance.
First try contacting your lenders loss mitigation dept. It may be hard to get to the right person. If you are 2 payments or more behind on your mortgage they can start the foreclosure process.
Time isnt on your side. Try working with a loss mitigation company that will work on your behalf with your lender to get an option that will keep you in your home. Foreclosurelight Loss Mitigation LLC helps many homeowners this way,
What ever you call it, it is not good. It will seriously damage your credit and put you on the street.
Of course you should start by contacting your servicer but before you abandon all hope, try contacting these folks to see if there is anything that could be done to find an affordable payment solution to keep you in your home.
http://hopenow.com/
I know it is tough out there and maybe there is nothing that can be done, but it is worth checking out all of your options.
Good luck.
Deed in lieu of foreclosure -- meaning you're giving the deed back instead of having the bank foreclose.
being a dead beat.
Better to make extra principal payments or extra mortgage payments?
I am planning on paying down my mortgage early. Am I better off making an extra $500 principal payment or making an additional regular payment every other month? It seems that I pay more interest when I make extra payments, which helps on the taxes - but wondered what it would look like after a few years.Better to make extra principal payments or extra mortgage payments?
Apply it to the principal. Would you rather save a few thousand off of your AGI (reducing taxes by only a few hundred), or have tens of thousands more dollars in your pocket?
Even if you decide to move, paying down the principal gets you more equity in your home so you can take a bigger portion of the selling price.
Just because you can write off the taxes on your mortgage, does that really mean having one is better?Better to make extra principal payments or extra mortgage payments?
There are two things to consider:
Paying down your principal will reduce the amount of interest you pay over the life of your mortgage.
Making additional mortgage payments could effectively reduce your 30 Year Mortgage to a 20 Year Mortgage, and earn tax advantages.
If I were you, unless an expert chimes in on this subject, I'd ask your question of a mortgage banker. Look one up on the telephone and give them a call. You don't want ';amateur advice'; when it comes to something like this.
Good luck.
If you have an open end mortgage, you can pay down the mortgage any time. You should request an amortization from your mortgage co that will give a break down between interest/principle. On the first half on the life of a mortgage, you pay about 70% in interest. That's how they make their money.
If you have a 30 year mortgage and make an extra payment a year you will pay off your home in 20 years so in anwser to your question everthing you make extra on payment being $500 or a full extra payment everything will go to the principal. Good for you.
extra prinicpal payment because it knocks down the amount of interest you end up paying and reduce your total years of payments. you'll be able to pay off your house sooner and start saving your mortgage payments towards retirement or pay off other bills quick!
Why do you want to pay off your mortgage. Do you plan to live in the house for 30 years. If you do and don't want a house payment then pay of the interest. A 300k house will cost twice that over thirty years in interest. But I would advice not to pay it off, at some point sell it and downsize. you'll get killed in taxes each year.
Apply it to the principal. Would you rather save a few thousand off of your AGI (reducing taxes by only a few hundred), or have tens of thousands more dollars in your pocket?
Even if you decide to move, paying down the principal gets you more equity in your home so you can take a bigger portion of the selling price.
Just because you can write off the taxes on your mortgage, does that really mean having one is better?Better to make extra principal payments or extra mortgage payments?
There are two things to consider:
Paying down your principal will reduce the amount of interest you pay over the life of your mortgage.
Making additional mortgage payments could effectively reduce your 30 Year Mortgage to a 20 Year Mortgage, and earn tax advantages.
If I were you, unless an expert chimes in on this subject, I'd ask your question of a mortgage banker. Look one up on the telephone and give them a call. You don't want ';amateur advice'; when it comes to something like this.
Good luck.
If you have an open end mortgage, you can pay down the mortgage any time. You should request an amortization from your mortgage co that will give a break down between interest/principle. On the first half on the life of a mortgage, you pay about 70% in interest. That's how they make their money.
If you have a 30 year mortgage and make an extra payment a year you will pay off your home in 20 years so in anwser to your question everthing you make extra on payment being $500 or a full extra payment everything will go to the principal. Good for you.
extra prinicpal payment because it knocks down the amount of interest you end up paying and reduce your total years of payments. you'll be able to pay off your house sooner and start saving your mortgage payments towards retirement or pay off other bills quick!
Why do you want to pay off your mortgage. Do you plan to live in the house for 30 years. If you do and don't want a house payment then pay of the interest. A 300k house will cost twice that over thirty years in interest. But I would advice not to pay it off, at some point sell it and downsize. you'll get killed in taxes each year.
What are the benefits of refinancing a reverse mortgage?
If someone has a reverse and wants to ';re-modify'; it at today's rates how can this help in today's crazy market?What are the benefits of refinancing a reverse mortgage?
It may not help because the borrower would have to re-pay the origination fees. And the amount that could be borrowed would likely be much less because the home's value will be less under the current market conditions.
I very much doubt whether the difference in interest rates could be made up after re-paying all the necessary fees to refinance a reverse mortgage.
It may not help because the borrower would have to re-pay the origination fees. And the amount that could be borrowed would likely be much less because the home's value will be less under the current market conditions.
I very much doubt whether the difference in interest rates could be made up after re-paying all the necessary fees to refinance a reverse mortgage.
What are some tips on finding a good mortgage broker?
What are some tips on finding a good mortgage broker?What are some tips on finding a good mortgage broker?
the most basic thing is to have someone you have a decent amount of trust for. someone recommended by a friend etc.
the things you have to look for are:
1. top priority is seeing that the broker can actually get your loan on time. many deals fall through b/c the broker cannot get the deal through on time and has less control than the original lender
2. secondary priority is to see that they have access to competitive rates. not all brokers have access to all sources and rates, although most of them will be similar.
3. you need to see that the broker is someone you trust to get you the best rate regardless of how much money they make off the transaction.What are some tips on finding a good mortgage broker?
You can also use RMI to research and contact hundreds of brokers to see who can get you the best rates, etc.
You can quickly reference 100s of brokers at:
http://www.refinancingmortgageinfo.com/mortgage_broker.asp
Become a member of a credit union and get a loan through them it's your best bet of not getting screwed. I can find you a place if you need a realtor http://www.itsyoursale.com
Three most common ways to find a broker are A)referrals from friends or family, B) referrals from your realtor and C) through comparison shopping online.
If this is your first time buying a house, you want someone who is knowledgeable and patient. He/she should help you analyze your financial situation, explain to you differences between different mortgage options, and guide you through the entire process.
The broker should also be able to find you competitve rates. When comparing rates, you should take into consideration the points the broker take for himself/herself, not just the rate the bank is charging you.
Whenever possible, ask the broker for references. If someone is confident about his/her work, he/she should provide them.
Do your homework by comparing rates online first. That usually gives you a sense of what the range of mortgages you'll get.
Be careful about some of the online offerings though. Since you don't know the brokers or have local access to them, they can be slow to respond. If you're shooting for a tight timeline, shop for a backup broker.
Here are a couple good sites to start:
http://www.bankrate.com
http://www.homegain.com
the most basic thing is to have someone you have a decent amount of trust for. someone recommended by a friend etc.
the things you have to look for are:
1. top priority is seeing that the broker can actually get your loan on time. many deals fall through b/c the broker cannot get the deal through on time and has less control than the original lender
2. secondary priority is to see that they have access to competitive rates. not all brokers have access to all sources and rates, although most of them will be similar.
3. you need to see that the broker is someone you trust to get you the best rate regardless of how much money they make off the transaction.What are some tips on finding a good mortgage broker?
You can also use RMI to research and contact hundreds of brokers to see who can get you the best rates, etc.
You can quickly reference 100s of brokers at:
http://www.refinancingmortgageinfo.com/mortgage_broker.asp
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Become a member of a credit union and get a loan through them it's your best bet of not getting screwed. I can find you a place if you need a realtor http://www.itsyoursale.com
Report Abuse
Three most common ways to find a broker are A)referrals from friends or family, B) referrals from your realtor and C) through comparison shopping online.
If this is your first time buying a house, you want someone who is knowledgeable and patient. He/she should help you analyze your financial situation, explain to you differences between different mortgage options, and guide you through the entire process.
The broker should also be able to find you competitve rates. When comparing rates, you should take into consideration the points the broker take for himself/herself, not just the rate the bank is charging you.
Whenever possible, ask the broker for references. If someone is confident about his/her work, he/she should provide them.
Do your homework by comparing rates online first. That usually gives you a sense of what the range of mortgages you'll get.
Be careful about some of the online offerings though. Since you don't know the brokers or have local access to them, they can be slow to respond. If you're shooting for a tight timeline, shop for a backup broker.
Here are a couple good sites to start:
http://www.bankrate.com
http://www.homegain.com
Can our mortgage company require us to go with their insurance company?
We are in the process of trying to refinance with a new mortgage company. We currently have homeowner's insurance through Farm Bureau Insurance, as well as boat, automobile, and life insurance. The mortgage company we are refinancing with is saying that we must have and escrow account and pay their OWN homeowner's insurance, instead of Farm Bureau. I don't want to do this because we get a multi-line discount at Farm Bureau, and I like them. Can they do this?Can our mortgage company require us to go with their insurance company?
Absolutely not. Matter of fact, by law, they are required to have you sign an ';ainti-coersion'; disclosure. It states that they have NOT instructed you to, or required you to use a specific insurance company, to guarantee the closing of your loan. BIG no-no. The law was put in cto protect consumers from companies offering each other kick backs. ';send me business, and I'll send you business';. It is fraud. You are encouraged as a consumer to shop for the best deal. That applies to the insurance company, mortgage company, title company, etc. Kick backs and ';steering'; is seriously frowned upon by the Department of Banking and Regulations. They are risking their license.Can our mortgage company require us to go with their insurance company?
Listen to rob and all that said no!
They want the profits from the ins is all!!!
I would take a look at another lender as this one is trying to get paid for something they are not allowed to do. What is probably happening is the Loan Originator,Processor,Officer and Underwriter are getting a kickback from the insurance company. Please report them to HUD as they will investigate what the lender is doing. I'm sure if they are trying to persuade you they have done it many times before to others. You just happen to catch them at it.
I turned in a Major Lender years ago and they were suspended by HUD.
I never heard of it
I'm pretty sure they can't make you. I'm not certain though.
Why not check with your agent and see what he says. I think that this is in violation of some law but I don't know for sure, like restraint of trade?
No, you can have any insurance company you want providing the policy covers what is required by your mortgage company. Don't let them bully you into using their insurance co., they get HUUUUUUUUGE commissions which are built right into your premium (how convenient).
I have heard of this if you lose your insurance with your current company, but they usually charge you a ton!! I would be leary of this cause it just sounds like a monopoly.
You must have mis-understood..they may just asking you to set up an escrow account ..it does not mean you have to change insurance companies...escrow accounts are just extra money you pay and they save for the tax payments and insurance premiums..but you do not HAVE to make one. At least , I have never heard of any mortgage company REQUIRING one with their company.
No, it is illegal for them to require or steer you to use a certain mortgage company.
As far as the escrow account goes, they can require that. You may be able to not escrow your taxes and insurance, but it could cost you an additional 录 or more added to your interest rate (better to escrow).
If there is a possibility, just cancel the transaction with this company. If this problem is any indication, who knows what else that they are not truthful about.
I hope you are working with a LOCAL BANK or MORTGAGE BROKER.
A mortgage is going to be with you for a very long time and it could break you and your family鈥檚 future financial outlook. Don鈥檛 let anybody rush you into something that you do not fully understand.
Make sure to price out your loan with your LOCAL banks and mortgage brokers only.
A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can鈥檛 get to them within 1 hour don鈥檛 fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.
Remember Buddha's advice:
';Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense.'; You are the only ';expert'; you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is ';selling'; you something (its not advice, its advertising). Don't buy ';it.';origins face mask
Absolutely not. Matter of fact, by law, they are required to have you sign an ';ainti-coersion'; disclosure. It states that they have NOT instructed you to, or required you to use a specific insurance company, to guarantee the closing of your loan. BIG no-no. The law was put in cto protect consumers from companies offering each other kick backs. ';send me business, and I'll send you business';. It is fraud. You are encouraged as a consumer to shop for the best deal. That applies to the insurance company, mortgage company, title company, etc. Kick backs and ';steering'; is seriously frowned upon by the Department of Banking and Regulations. They are risking their license.Can our mortgage company require us to go with their insurance company?
Listen to rob and all that said no!
They want the profits from the ins is all!!!
I would take a look at another lender as this one is trying to get paid for something they are not allowed to do. What is probably happening is the Loan Originator,Processor,Officer and Underwriter are getting a kickback from the insurance company. Please report them to HUD as they will investigate what the lender is doing. I'm sure if they are trying to persuade you they have done it many times before to others. You just happen to catch them at it.
I turned in a Major Lender years ago and they were suspended by HUD.
I never heard of it
I'm pretty sure they can't make you. I'm not certain though.
Why not check with your agent and see what he says. I think that this is in violation of some law but I don't know for sure, like restraint of trade?
No, you can have any insurance company you want providing the policy covers what is required by your mortgage company. Don't let them bully you into using their insurance co., they get HUUUUUUUUGE commissions which are built right into your premium (how convenient).
I have heard of this if you lose your insurance with your current company, but they usually charge you a ton!! I would be leary of this cause it just sounds like a monopoly.
You must have mis-understood..they may just asking you to set up an escrow account ..it does not mean you have to change insurance companies...escrow accounts are just extra money you pay and they save for the tax payments and insurance premiums..but you do not HAVE to make one. At least , I have never heard of any mortgage company REQUIRING one with their company.
No, it is illegal for them to require or steer you to use a certain mortgage company.
As far as the escrow account goes, they can require that. You may be able to not escrow your taxes and insurance, but it could cost you an additional 录 or more added to your interest rate (better to escrow).
If there is a possibility, just cancel the transaction with this company. If this problem is any indication, who knows what else that they are not truthful about.
I hope you are working with a LOCAL BANK or MORTGAGE BROKER.
A mortgage is going to be with you for a very long time and it could break you and your family鈥檚 future financial outlook. Don鈥檛 let anybody rush you into something that you do not fully understand.
Make sure to price out your loan with your LOCAL banks and mortgage brokers only.
A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can鈥檛 get to them within 1 hour don鈥檛 fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.
Remember Buddha's advice:
';Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense.'; You are the only ';expert'; you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is ';selling'; you something (its not advice, its advertising). Don't buy ';it.';
How difficult is it to get a home mortgage loan?
I am looking to get a loan for a modular home and a piece of land. We would need about 250,000. My husband claimed bankruptcy in 2001 before we were married. I have good credit and make close to $60,000. However, I do have a few credit cards and a student loan to pay. He makes about 35,000, has limited credit cards and a car loan. For the most part we both pay our bills on time. Do you think the bank will even consider giving us a loan?How difficult is it to get a home mortgage loan?
Please take care - there are scammers on Y!A who actively seek out questions like yours and then offer loans but are scammers
Here are some tips for determining whether a loan is legitimate or a scam:
1) They don't use a free email address (yahoo, gmail, hotmail, etc)
2) They have a secure website you can go to to fill out their application (and no excuses about it being down at the moment)
3) They don't require ANY fees upfront (regardless of whatever excuse they use). Any fees will come out of proceeds of the loan (scammers want their fees via Western Union or Moneygram)
4) They have a REAL address (check it in the yellow pages) you can send mail to
5) They have a REAL phone number, not a cell phone
Often if you click on their profile you will find it is created in the last 24 hours - why? Because they are reported, profile closed down, but they simply create a new profile and start up again
Save yourself another headache and avoid them like the plague. The one from Lucky C (Rev. Peter White) above my post is a prime example of what I mean.... do not go anywhere near it.How difficult is it to get a home mortgage loan?
So you think that you're ready to buy your own home? Hopefully you've done a little research online to make your first home buying experience a good one. First of all you should contact a mortgage broker that will preapprove you for your new mortgage. This is now more important than ever%26lt;!--It's also important that once you receive a preapproval you get busy right away looking for your new home. The reasoning for this is that with the mortgage meltdown lenders are changing their lending programs as quickly as Paris Hilton changes her boyfriends. Scary, huh?
http://mortgages-finance.awardspace.com/First-Time-Home-Buyers-Loans.htm
http://badcreditloans.awardspace.com/
At this point you will let the mortgage broker now how much you would like to get preapproved for. The broker will then take a full mortgage--%26gt;loan application. The mortgage broker will also run your credit. With all this information in hand the mortgage broker will see if you have enough income for the price of the home that you would like to purchase.
Please take care - there are scammers on Y!A who actively seek out questions like yours and then offer loans but are scammers
Here are some tips for determining whether a loan is legitimate or a scam:
1) They don't use a free email address (yahoo, gmail, hotmail, etc)
2) They have a secure website you can go to to fill out their application (and no excuses about it being down at the moment)
3) They don't require ANY fees upfront (regardless of whatever excuse they use). Any fees will come out of proceeds of the loan (scammers want their fees via Western Union or Moneygram)
4) They have a REAL address (check it in the yellow pages) you can send mail to
5) They have a REAL phone number, not a cell phone
Often if you click on their profile you will find it is created in the last 24 hours - why? Because they are reported, profile closed down, but they simply create a new profile and start up again
Save yourself another headache and avoid them like the plague. The one from Lucky C (Rev. Peter White) above my post is a prime example of what I mean.... do not go anywhere near it.How difficult is it to get a home mortgage loan?
So you think that you're ready to buy your own home? Hopefully you've done a little research online to make your first home buying experience a good one. First of all you should contact a mortgage broker that will preapprove you for your new mortgage. This is now more important than ever%26lt;!--It's also important that once you receive a preapproval you get busy right away looking for your new home. The reasoning for this is that with the mortgage meltdown lenders are changing their lending programs as quickly as Paris Hilton changes her boyfriends. Scary, huh?
http://mortgages-finance.awardspace.com/First-Time-Home-Buyers-Loans.htm
http://badcreditloans.awardspace.com/
At this point you will let the mortgage broker now how much you would like to get preapproved for. The broker will then take a full mortgage--%26gt;loan application. The mortgage broker will also run your credit. With all this information in hand the mortgage broker will see if you have enough income for the price of the home that you would like to purchase.
What is the best way to get a mortgage loan modified?
I am barely able to pay the minimum payment( I have
a negative amortization loan) My credit is bad. Is it
better to try to get a modification when we start earning more money? My property is worth less than what I owe.What is the best way to get a mortgage loan modified?
Talk to your lender. With all of the mortgage problems in the nation, lenders are under pressure to fend off defaults. They may be willing to amend your mortgage rather than suffer another default.What is the best way to get a mortgage loan modified?
Go through a local mortgage broker and see if they can qualify you for a FHA Secure loan.
I think the only qualifying credit used in the approval decision is your mortgage history. And from what I heard they are allowing some recent late history.
Best of luck
a negative amortization loan) My credit is bad. Is it
better to try to get a modification when we start earning more money? My property is worth less than what I owe.What is the best way to get a mortgage loan modified?
Talk to your lender. With all of the mortgage problems in the nation, lenders are under pressure to fend off defaults. They may be willing to amend your mortgage rather than suffer another default.What is the best way to get a mortgage loan modified?
Go through a local mortgage broker and see if they can qualify you for a FHA Secure loan.
I think the only qualifying credit used in the approval decision is your mortgage history. And from what I heard they are allowing some recent late history.
Best of luck
Help me find the information on if a mortgage company can force you to insure your home to loan value?
I know there is a law that was passed that stops mortgage companies from forcing home owners to insure their homes to loan value instead of the appraised value. I used to have a copy of that document that I would use when I went up against the mortgage companies, but I can't find it. Can anyone help?Help me find the information on if a mortgage company can force you to insure your home to loan value?
I would check in your loan package and see the documents that you signed relating to the requirement to carry insurance. I trust that you are talking about about hazard (home owner's) insurance, rather than mortgage insurance. It is certainly typical that the lender wants you to have insurance to cover the amount of the loan. If the home is destroyed in a fire or other tragedy, they obviously want to have the amount that is owed to them paid by the insurance policy.
Best of luck!Help me find the information on if a mortgage company can force you to insure your home to loan value?
If you would have had 2o% downpayment, you would not have to had ins.
I would check in your loan package and see the documents that you signed relating to the requirement to carry insurance. I trust that you are talking about about hazard (home owner's) insurance, rather than mortgage insurance. It is certainly typical that the lender wants you to have insurance to cover the amount of the loan. If the home is destroyed in a fire or other tragedy, they obviously want to have the amount that is owed to them paid by the insurance policy.
Best of luck!Help me find the information on if a mortgage company can force you to insure your home to loan value?
If you would have had 2o% downpayment, you would not have to had ins.
What is best a fixed rate or tracker mortgage or going for a variable rate ?
Bearing in mind that most fixed rate or tracker deals are for 3 or 5 years only and incur a considerable arrangement fee which you have to pay each time you start a new deal.What is best a fixed rate or tracker mortgage or going for a variable rate ?
who knows -- with the crisis we are going through who knows -- you best bet is hang tough for a month and let things settle down a little and then them about getting a loan!!!
who knows -- with the crisis we are going through who knows -- you best bet is hang tough for a month and let things settle down a little and then them about getting a loan!!!
Can a mortgage company force me to pay for their home owners insurance?
ING threatens every year to charge me the $4,000 annual premium if I do not provide proof of insurance (for which I pay $1,000) by their deadline. Can they do this just because I have not provided them the proof by their deadline, even though I do have insurance?Can a mortgage company force me to pay for their home owners insurance?
Home insurance covers lots of different things. I don't understand all the fine print of my policy, but my home insurance agent is always a phone call away. Try calling your agent or a agent in your area. http://www.easyhomeinsuranceguide.com They should be able to help you.Can a mortgage company force me to pay for their home owners insurance?
Most homeowners insurance companies provide the documentation to the mortgagee without any effort on the part of the insured. The information should specify that the coverage is in effect until the mortgage company receives written notice of cancellation. There are a few lenders that seem to have some difficulty understanding these provisions. Perhaps ING is one such lender.
I would recommend that your agent contact them and ask to speak to a supervisor so that you do not have this situation occur every year. Otherwise, you can ask your agent to provide the required documentation each year for you. Your agent does work for you, so he should be willing to assist you as needed.
Great question! Yes, you absolutely have to show proof of insurance. The mortgage on your home is an investment for the mortgage company and they need proof that their investment is protected. This clause is most assuredly in paperwork you've signed to secure the mortgage.
However, in most cases the insurance company will just communicate directly with your mortgage company and you won't have to get involved. I would suggest contacting your insurance provider and making sure they're acting on your behalf to help you out with this.
YES. It is in your paperwork that you signed (whether you read it or not) that you will provide proof of insurance. If you don't, then they have to assume you don't have it. That means they have to get it or else their collateral is at risk, b/c really, if the house burned down without insurance, how or why would you pay the loan back and exactly what would they foreclose on? You agreed that they could do that (Trust me - you probably didn't read that part, nobody does).
BTW - it's immensely stupid not to have insurance. It's a very easy thing to ask your insurance carrier to fax it to your mortgage company. This should not be an issue.
They can. So, why not just do it the easy way and furnish them proof you have insurance. That's all they want!! What's so difficult about it?? Insurance companies see requests like this all the time. Call your ins company, they will take care of it in a minute.
Yep they can.
Read the loan documents you signed.
Since they ask for Proof of Insurance every year - when your policy renews - just go ahead and send them the documentation they need.
~~Yes, as long as they hold the loan they will force you into their insurance coverage unless you show proof of your own.
Your insurance company needs to send them proof of insurance certificate, and they won't hassle any longer.~~
Yes, you AGREED to it, when you took out the mortgage. It's in the contract. They need an actual copy of the declarations, naming them as mortgagee.
Well, yes... But you can easily check lower home ins quotes in internet, for example here: homeinsurance.awardspace.us
Sure, they are only protecting their interest. Provide them the proof and let it go.
Home insurance covers lots of different things. I don't understand all the fine print of my policy, but my home insurance agent is always a phone call away. Try calling your agent or a agent in your area. http://www.easyhomeinsuranceguide.com They should be able to help you.Can a mortgage company force me to pay for their home owners insurance?
Most homeowners insurance companies provide the documentation to the mortgagee without any effort on the part of the insured. The information should specify that the coverage is in effect until the mortgage company receives written notice of cancellation. There are a few lenders that seem to have some difficulty understanding these provisions. Perhaps ING is one such lender.
I would recommend that your agent contact them and ask to speak to a supervisor so that you do not have this situation occur every year. Otherwise, you can ask your agent to provide the required documentation each year for you. Your agent does work for you, so he should be willing to assist you as needed.
Great question! Yes, you absolutely have to show proof of insurance. The mortgage on your home is an investment for the mortgage company and they need proof that their investment is protected. This clause is most assuredly in paperwork you've signed to secure the mortgage.
However, in most cases the insurance company will just communicate directly with your mortgage company and you won't have to get involved. I would suggest contacting your insurance provider and making sure they're acting on your behalf to help you out with this.
YES. It is in your paperwork that you signed (whether you read it or not) that you will provide proof of insurance. If you don't, then they have to assume you don't have it. That means they have to get it or else their collateral is at risk, b/c really, if the house burned down without insurance, how or why would you pay the loan back and exactly what would they foreclose on? You agreed that they could do that (Trust me - you probably didn't read that part, nobody does).
BTW - it's immensely stupid not to have insurance. It's a very easy thing to ask your insurance carrier to fax it to your mortgage company. This should not be an issue.
They can. So, why not just do it the easy way and furnish them proof you have insurance. That's all they want!! What's so difficult about it?? Insurance companies see requests like this all the time. Call your ins company, they will take care of it in a minute.
Yep they can.
Read the loan documents you signed.
Since they ask for Proof of Insurance every year - when your policy renews - just go ahead and send them the documentation they need.
~~Yes, as long as they hold the loan they will force you into their insurance coverage unless you show proof of your own.
Your insurance company needs to send them proof of insurance certificate, and they won't hassle any longer.~~
Yes, you AGREED to it, when you took out the mortgage. It's in the contract. They need an actual copy of the declarations, naming them as mortgagee.
Well, yes... But you can easily check lower home ins quotes in internet, for example here: homeinsurance.awardspace.us
Sure, they are only protecting their interest. Provide them the proof and let it go.
Do you figure mortgage payments for a 2nd mortgage the same as for a 1st mortgage?
We're about to close on a house and we have a 1st mortgage, and then a 2nd to pay some of the down payment. This avoids PMI.
If I plug the numbers into a mortgage payment calculator, the 1st mortgage payment is the same as the one on the TIL the lender provided. But the 2nd payment isn't - the calculators all say it's less than what the lender is saying.
Is there a different mortgage payment calculator for a 2nd?Do you figure mortgage payments for a 2nd mortgage the same as for a 1st mortgage?
No. First mortgage loans are for a much greater amount and you generally will get better terms than on a second - that is if your credit is good.
The payments are calculated by the lending institution by the type of loan you choose. Say B of A is your lender, and the loan you have chosen is for a period of 30 years on a fixed rate. So lets say ...interest is 7.00% and over a period of 30 years on a ';fixed'; schedule. You would pay the same monthly amount for a period of 30 years.
A second is more than likely different terms. Say
20 thousand at 4.75% (to start) for 10 years at a ';Variable'; rate. This payment would adjust to different amounts periodically. Watch out for the BALLOON clause...(This is a lump sum that could be due after the 10 years is reached) You would have to read your paperwork to determine if it is a variable interest note and for how long and how often the rate would adjust ';Upward';. If you had a Line of Credit, this too would have a set of terms.
You should gain knowledge on the the ';Fixed'; type of loan and the ';Adjustable'; term note... and types of mortages provided as well as lines of credit and private money.
Good luck-prior home owner and borrowerDo you figure mortgage payments for a 2nd mortgage the same as for a 1st mortgage?
Seconds are usually (but not always) amortized over a 30 year period. Look at the final TIL before you close as the one supplied before is really just an estimate.
Afraid so.
It should be the same....what is the term of your second? Maybe that's where you are encountering your problem. Not all seconds will have the same term is the first.
Plus, are you plugging in the correct interest rate on the second? Seconds always have a higher rate than the first.
That will depend on whether your 2nd is a fixed rate loan or a Home Equity Line of Credit.
If it is a fixed rate 2nd it may be either amortized over 30 years but due in 15, or it may be amortized over 20 years.
If it a Home Equity Line of Credit the payments are interest only.
2nd mortgage rate are usually higher due to the risk factor and sometimes have bonus payments built into them or even a broker's fee. Read the fine print again maybe with your lawyer this time.
Same calculations.
You should verify:
1. Loan amount
2. Rate
3. Term (15yrs? 30yrs?)
Check with the lender and see which of these are off.
Your P/I is based on 10.00 for every 100.00 dollars. Did you guys pay closing cost? What percent did you close at? What is you intrest rate based on? What is your Debt -to - income ratio?origins face mask
If I plug the numbers into a mortgage payment calculator, the 1st mortgage payment is the same as the one on the TIL the lender provided. But the 2nd payment isn't - the calculators all say it's less than what the lender is saying.
Is there a different mortgage payment calculator for a 2nd?Do you figure mortgage payments for a 2nd mortgage the same as for a 1st mortgage?
No. First mortgage loans are for a much greater amount and you generally will get better terms than on a second - that is if your credit is good.
The payments are calculated by the lending institution by the type of loan you choose. Say B of A is your lender, and the loan you have chosen is for a period of 30 years on a fixed rate. So lets say ...interest is 7.00% and over a period of 30 years on a ';fixed'; schedule. You would pay the same monthly amount for a period of 30 years.
A second is more than likely different terms. Say
20 thousand at 4.75% (to start) for 10 years at a ';Variable'; rate. This payment would adjust to different amounts periodically. Watch out for the BALLOON clause...(This is a lump sum that could be due after the 10 years is reached) You would have to read your paperwork to determine if it is a variable interest note and for how long and how often the rate would adjust ';Upward';. If you had a Line of Credit, this too would have a set of terms.
You should gain knowledge on the the ';Fixed'; type of loan and the ';Adjustable'; term note... and types of mortages provided as well as lines of credit and private money.
Good luck-prior home owner and borrowerDo you figure mortgage payments for a 2nd mortgage the same as for a 1st mortgage?
Seconds are usually (but not always) amortized over a 30 year period. Look at the final TIL before you close as the one supplied before is really just an estimate.
Afraid so.
It should be the same....what is the term of your second? Maybe that's where you are encountering your problem. Not all seconds will have the same term is the first.
Plus, are you plugging in the correct interest rate on the second? Seconds always have a higher rate than the first.
That will depend on whether your 2nd is a fixed rate loan or a Home Equity Line of Credit.
If it is a fixed rate 2nd it may be either amortized over 30 years but due in 15, or it may be amortized over 20 years.
If it a Home Equity Line of Credit the payments are interest only.
2nd mortgage rate are usually higher due to the risk factor and sometimes have bonus payments built into them or even a broker's fee. Read the fine print again maybe with your lawyer this time.
Same calculations.
You should verify:
1. Loan amount
2. Rate
3. Term (15yrs? 30yrs?)
Check with the lender and see which of these are off.
Your P/I is based on 10.00 for every 100.00 dollars. Did you guys pay closing cost? What percent did you close at? What is you intrest rate based on? What is your Debt -to - income ratio?
How do mortgage brokers come up with your one credit score?
I know my three credit scores. But how do mortgage brokers come up with the one score? The only thing that I have heard is that they average out the three. That doesn't seem right. Need to know.How do mortgage brokers come up with your one credit score?
They throw out the high and low and use the one in the middle!How do mortgage brokers come up with your one credit score?
There are three credit reporting company's. The mortgage brokers get it from them. if you want to know who these credit reporting company's are why don't you ask your banker,thy should be able to tell you. hope that helps some.
Your credit scores between all the reporting agencies cannot vary to any great degree, so averaging is proper.
From past experience, they use the middle one.
They throw out the high and low and use the one in the middle!How do mortgage brokers come up with your one credit score?
There are three credit reporting company's. The mortgage brokers get it from them. if you want to know who these credit reporting company's are why don't you ask your banker,thy should be able to tell you. hope that helps some.
Your credit scores between all the reporting agencies cannot vary to any great degree, so averaging is proper.
From past experience, they use the middle one.
Can I deduct start up cost for my mortgage insurance premiums?
The govt. recently changed the laws on this. You can still deduct your mortgage interest, but you can not deduct any of your mortgage insurance, including start up costs.
How long after writing down subprimes will the mortgage companies basically be forced to sell stocks for cash?
To pay for their expenses. If they sell large quantities of their investments and you have money in the stock market in those securities that they have to sell, won't your stocks lose value rather quickly? With all these companies claiming subprime losses, is it a wonder to you that people stay invested at all?
The uncertainty is terrible.How long after writing down subprimes will the mortgage companies basically be forced to sell stocks for cash?
Any time soon according to what I'm hearing here in London.
If you want to keep tabs on what's happening in the money markets, go to these people and sign up,it's free and they'll send you a daily e-mail.
Money Morning
Money Morning is the leading source of investment research on the global markets. ... ... http://www.moneymorning.com/2007/12/28/ ...
http://www.moneymorning.com/
Here in UK the value of properties is far greater than the outstanding money owed on mortgages. People should realise this and stop worrying. Major mortgage brokers are already talking property prices up here in UK.
Where I live in London, the economy is separate from the rest of UK and we're just booming. Just don't even think of asking why, who cares, just grab your share while it's going. London since Roman times has always been a law unto itself. Mad and dangerous but wonderful too.How long after writing down subprimes will the mortgage companies basically be forced to sell stocks for cash?
uncertainty indeed. Ulimately they do not need to sell additional capital if their capital base is firm. The problem is that the write downs keep depleting their capital and they need to shore them up to continue making investments. Remember that a write down (mark to market) is not a cashflow event. The sale for a loss is a real event. tba.
The uncertainty is terrible.How long after writing down subprimes will the mortgage companies basically be forced to sell stocks for cash?
Any time soon according to what I'm hearing here in London.
If you want to keep tabs on what's happening in the money markets, go to these people and sign up,it's free and they'll send you a daily e-mail.
Money Morning
Money Morning is the leading source of investment research on the global markets. ... ... http://www.moneymorning.com/2007/12/28/ ...
http://www.moneymorning.com/
Here in UK the value of properties is far greater than the outstanding money owed on mortgages. People should realise this and stop worrying. Major mortgage brokers are already talking property prices up here in UK.
Where I live in London, the economy is separate from the rest of UK and we're just booming. Just don't even think of asking why, who cares, just grab your share while it's going. London since Roman times has always been a law unto itself. Mad and dangerous but wonderful too.How long after writing down subprimes will the mortgage companies basically be forced to sell stocks for cash?
uncertainty indeed. Ulimately they do not need to sell additional capital if their capital base is firm. The problem is that the write downs keep depleting their capital and they need to shore them up to continue making investments. Remember that a write down (mark to market) is not a cashflow event. The sale for a loss is a real event. tba.
How do mortgage lenders verify school deferment letters?
Do the lenders normally contact the school to verify information on the letter, or do they take the letter as proof.How do mortgage lenders verify school deferment letters?
Because of the high level of forgery, they don't take the letters as proof.
The school does not give the deferrment...the lender who issues the student loan does.
They call the number that is listed on the letter.
So before you even think about forging a letter, understand that:
1. It's a felony.
2. Loan processors call these lenders over and over again...so if someone picks up directly and says, ';Sallie Mae';....they'll know it's not the number of Sallie Mae.How do mortgage lenders verify school deferment letters?
They double and sometimes triple check everything. They usually check everything including your job and such again just before closing.
Because of the high level of forgery, they don't take the letters as proof.
The school does not give the deferrment...the lender who issues the student loan does.
They call the number that is listed on the letter.
So before you even think about forging a letter, understand that:
1. It's a felony.
2. Loan processors call these lenders over and over again...so if someone picks up directly and says, ';Sallie Mae';....they'll know it's not the number of Sallie Mae.How do mortgage lenders verify school deferment letters?
They double and sometimes triple check everything. They usually check everything including your job and such again just before closing.
Can a mortgage loan be for more than the purchase price of the home?
If a person wanted to make some changes or remodel a room, could the loan be for more than the house to allow for that?Can a mortgage loan be for more than the purchase price of the home?
Not anymore ..
It works like this .. you borrow money (Mortgage) against the value of the property (House). If you fail to pay the loan, they seize the property and sel it at auction to get their money back.
In the 'old days' that value of the property was going up ... so lenders were prepared to lend against the 'future value' of the house .. and you could get the famous ';110% Mortgages';
Now the value is going down. Most lenders will only lend 90% of 'today's' value (some even less) because they expect the value to be drop ..
If you want to borrow to make changes that would significantly increase the value of the house, they may well agree = say, for example, you need say 拢20,000 for an Extension that would add 拢30,000 to the value of the House, I'm sure they will consider your application.
However 拢20,000 is usually the 'minimium' amount they will be willing to lend (anything less than this and the cost of administration etc make it not worth their while) - and a simple 'remodeling'; of a room is unlikely to add significantly to the value of the house ..
Indeed, some people who get 90% Mortgages on a 'special deal' 2 or 3 years ago and who are now trying to re-mortgage with another lender's 'special deal' have discovered that the value of their house is LESS than their Mortgage (this is known as 'Negative Equity') ..
As a result no other lender will touch them .. so they are stuck with their existing lenders 'standard variable rate' (which means in some cases their payments go up by 50%).Can a mortgage loan be for more than the purchase price of the home?
There's a lot more to know than that. Go talk to your bank, then go talk to another lender, go talk to an attorney and see if they have anyone lending money (especially an attorney that deals in real estate), just keep asking questions until you have a good understanding of what you are doing. Do not let anyone talk you into anything until you have the loan process and all the different types of loans and all the deals that are being offered-like for first time home buyers, and be sure you understand the difference of how much more you end up paying when you have a longer mortgage like a 30 year compared to a 20 year. There is a loan out there for everyone and there is always someone that will want to loan you money. If you need more than the price of the house, you don't have the $ to buy and not lose out. . .but trust me someone will be willing to give it to you and hope you go under and they get the house back and the money you paid. Only fools borrow more than they can afford. That's what's happened to a lot of folks these days and then interest rates went up, values went down and poof, they are losing their house. It one of the biggest investments and biggest loan you will ever make. You need to do it wisely.
Not anymore ..
It works like this .. you borrow money (Mortgage) against the value of the property (House). If you fail to pay the loan, they seize the property and sel it at auction to get their money back.
In the 'old days' that value of the property was going up ... so lenders were prepared to lend against the 'future value' of the house .. and you could get the famous ';110% Mortgages';
Now the value is going down. Most lenders will only lend 90% of 'today's' value (some even less) because they expect the value to be drop ..
If you want to borrow to make changes that would significantly increase the value of the house, they may well agree = say, for example, you need say 拢20,000 for an Extension that would add 拢30,000 to the value of the House, I'm sure they will consider your application.
However 拢20,000 is usually the 'minimium' amount they will be willing to lend (anything less than this and the cost of administration etc make it not worth their while) - and a simple 'remodeling'; of a room is unlikely to add significantly to the value of the house ..
Indeed, some people who get 90% Mortgages on a 'special deal' 2 or 3 years ago and who are now trying to re-mortgage with another lender's 'special deal' have discovered that the value of their house is LESS than their Mortgage (this is known as 'Negative Equity') ..
As a result no other lender will touch them .. so they are stuck with their existing lenders 'standard variable rate' (which means in some cases their payments go up by 50%).Can a mortgage loan be for more than the purchase price of the home?
There's a lot more to know than that. Go talk to your bank, then go talk to another lender, go talk to an attorney and see if they have anyone lending money (especially an attorney that deals in real estate), just keep asking questions until you have a good understanding of what you are doing. Do not let anyone talk you into anything until you have the loan process and all the different types of loans and all the deals that are being offered-like for first time home buyers, and be sure you understand the difference of how much more you end up paying when you have a longer mortgage like a 30 year compared to a 20 year. There is a loan out there for everyone and there is always someone that will want to loan you money. If you need more than the price of the house, you don't have the $ to buy and not lose out. . .but trust me someone will be willing to give it to you and hope you go under and they get the house back and the money you paid. Only fools borrow more than they can afford. That's what's happened to a lot of folks these days and then interest rates went up, values went down and poof, they are losing their house. It one of the biggest investments and biggest loan you will ever make. You need to do it wisely.
Why do mortgage rates keep going up after the Fed lowers their interest rate?
We're in the market for a house, and it would seem that the lowering Fed rate would trickle down to the mortgage business. Instead, those rates keep going UP! How do they expect people to help out the economy by buying homes when they keep making it so unattainable and unattractive?Why do mortgage rates keep going up after the Fed lowers their interest rate?
Mortgage rates are not driven by fed rates. They are driven by the bond market, which competes with mortgage backed securities for capital. Investors need to buy the mortgages from the originators, and the rates are determined by their pricing models.
As a previous poster noted, mortgage rates follow the 10 year treasury most closely. The spread between the 10 year and mortgage rates has been increasing due to increased fears of inflation (which the fed cuts make even worse) and the general perceived riskiness in the mortgage market (forclosure rate?). As such, investors are saying they'd rather invest in other securities because the rates are not paying them enough for the risk they are taking. That is why rates sometimes go up when the fed cuts.Why do mortgage rates keep going up after the Fed lowers their interest rate?
So you still believe in the 'trickle down' theory, huh? You must have voted for Bush. The banks are sticking the extra profits in their pockets. That's what corporations do. Do you think they give a crap about you? Hahahaha!
Bank have gotten hit hard by people that have walked away from their homes and they are having to sell these homes they forclose on for less than is owed. So the banks are keeping the extra differnce in rates to increase their profits and make back some of that money they have lost in the last year.
Government is actually pretty pissed about this, but the banks want their money back.
Lowering the Fed rate primarily effects the amount of interest banks and financial institutions charge each other when they borrow money from each other and from the Fed. In checking recently, mortgage rates are holding pretty steady, not going up or down. If the rates that you are being quoted are going up, you might want to check your credit score. If you have good credit and good debt to income ratio, you should be able to get a mortgage between 5.5 and 6% right now and frankly those are great rates.
Its going to take A LONG TIME - MONTHS - before the general public feels the effects of any rate cut.
Those rates are for the transactions between
A] banks
B] and the banks to the Fed
C] and/or the Fed to the banks.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
Mortgage rates are more closely tied to the 10-Year Treasury Note and *not* to the Federal Funds Rate. Due to the AVAILABILITY of credit, mortgages have not dropped as much as they have in the past. The spread between mortgage rates and the 10yr Treasury is about 1/2% larger than normal.
Ronald Reagan's ';trickle-down economic theory'; (actually Arthur Laffer's) reminds me of what my middle school social studies teacher said back in the 70s about slavery. He told graphic stories of the conditions slaves faced on the boats to America. The slaves were shackled to different ';shelves'; in the hull of the boat and all their urine and feces would trickle down from the top to the poor schmucks below. That graphic story paints Trickle Down Economics in a whole new light.origins face mask
Mortgage rates are not driven by fed rates. They are driven by the bond market, which competes with mortgage backed securities for capital. Investors need to buy the mortgages from the originators, and the rates are determined by their pricing models.
As a previous poster noted, mortgage rates follow the 10 year treasury most closely. The spread between the 10 year and mortgage rates has been increasing due to increased fears of inflation (which the fed cuts make even worse) and the general perceived riskiness in the mortgage market (forclosure rate?). As such, investors are saying they'd rather invest in other securities because the rates are not paying them enough for the risk they are taking. That is why rates sometimes go up when the fed cuts.Why do mortgage rates keep going up after the Fed lowers their interest rate?
So you still believe in the 'trickle down' theory, huh? You must have voted for Bush. The banks are sticking the extra profits in their pockets. That's what corporations do. Do you think they give a crap about you? Hahahaha!
Bank have gotten hit hard by people that have walked away from their homes and they are having to sell these homes they forclose on for less than is owed. So the banks are keeping the extra differnce in rates to increase their profits and make back some of that money they have lost in the last year.
Government is actually pretty pissed about this, but the banks want their money back.
Lowering the Fed rate primarily effects the amount of interest banks and financial institutions charge each other when they borrow money from each other and from the Fed. In checking recently, mortgage rates are holding pretty steady, not going up or down. If the rates that you are being quoted are going up, you might want to check your credit score. If you have good credit and good debt to income ratio, you should be able to get a mortgage between 5.5 and 6% right now and frankly those are great rates.
Its going to take A LONG TIME - MONTHS - before the general public feels the effects of any rate cut.
Those rates are for the transactions between
A] banks
B] and the banks to the Fed
C] and/or the Fed to the banks.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
Mortgage rates are more closely tied to the 10-Year Treasury Note and *not* to the Federal Funds Rate. Due to the AVAILABILITY of credit, mortgages have not dropped as much as they have in the past. The spread between mortgage rates and the 10yr Treasury is about 1/2% larger than normal.
Ronald Reagan's ';trickle-down economic theory'; (actually Arthur Laffer's) reminds me of what my middle school social studies teacher said back in the 70s about slavery. He told graphic stories of the conditions slaves faced on the boats to America. The slaves were shackled to different ';shelves'; in the hull of the boat and all their urine and feces would trickle down from the top to the poor schmucks below. That graphic story paints Trickle Down Economics in a whole new light.
Does a mortgage loan have to be a minimum amount when purchasing a house?
I'm looking for a house in the Ft Wayne IN area, probably in the less than $20,000 range. I am a first-time home buyer. Is it possible to get a mortgage for an amount this low, assuming the property is of course assessed for at least the amount of the loan? Why kind of down payment and closing costs should I expect to pay? Thanks for any help!Does a mortgage loan have to be a minimum amount when purchasing a house?
for some mortgage companies- yes, they do have minimums and will offer a better rate when borrowing the average amount currently around $200,000. Others will charge extra large origination (closing) fees to start up the loan since they will not be making as much money off it in the long run. Also the smaller banks especially will not be able to offer a loan of that amount. You might want to try country wide- i recommended them to a couple freinds borrowing around 20-50k and they had luck with getting a approval for a decent price as where they were not hanving luck with the local banks. g luckDoes a mortgage loan have to be a minimum amount when purchasing a house?
Most lenders do have a $40,000 min. for mortgages. You don't necessarily need a down payment, it would depend on your loan product (check with a mortgage consultant). Closing costs are a much about 1-3% of the purchase price. With only $20,000 you may be able to qualify for a personal loan intead but the interest rate may not be as competetive. Good luck
All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrower%26lt;!--and even for those with more experience! Here, we will discuss the different types of loan options, and how they work.
http://mortgages-finance.awardspace.com/
First, there are two main broad categories of mortgage loans: government loans (FHA, VA, and RHS, or Rural Housing Service loans) and conventional loans (all other loans). In general, government loans have low or no down payment requirements for the purchaser--%26gt;and are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.
As a first time home buyer your best bet is probably a FHA loan, however, I'm not sure if they will loan for that small amount. Why not just get pre-qualified and hat way you'll not only know what you can afford but how much you can borrow.
Check the site below for additional answers.
Good luck.
for some mortgage companies- yes, they do have minimums and will offer a better rate when borrowing the average amount currently around $200,000. Others will charge extra large origination (closing) fees to start up the loan since they will not be making as much money off it in the long run. Also the smaller banks especially will not be able to offer a loan of that amount. You might want to try country wide- i recommended them to a couple freinds borrowing around 20-50k and they had luck with getting a approval for a decent price as where they were not hanving luck with the local banks. g luckDoes a mortgage loan have to be a minimum amount when purchasing a house?
Most lenders do have a $40,000 min. for mortgages. You don't necessarily need a down payment, it would depend on your loan product (check with a mortgage consultant). Closing costs are a much about 1-3% of the purchase price. With only $20,000 you may be able to qualify for a personal loan intead but the interest rate may not be as competetive. Good luck
All mortgage loans are not created equal. If you are looking for a loan, you have probably discovered the array of loan types and options. It can be confusing forthe first-time borrower%26lt;!--and even for those with more experience! Here, we will discuss the different types of loan options, and how they work.
http://mortgages-finance.awardspace.com/
First, there are two main broad categories of mortgage loans: government loans (FHA, VA, and RHS, or Rural Housing Service loans) and conventional loans (all other loans). In general, government loans have low or no down payment requirements for the purchaser--%26gt;and are easier to qualify for than conventional loans. They are also guaranteed to the lender, which allows the borrower to obtain more favorable loan terms.
As a first time home buyer your best bet is probably a FHA loan, however, I'm not sure if they will loan for that small amount. Why not just get pre-qualified and hat way you'll not only know what you can afford but how much you can borrow.
Check the site below for additional answers.
Good luck.
How much are the fees to refinance a mortgage?
I have a 30yr mortgage that i have had for 3 years. I want to start over with the 30 years. What would the fees be to do this?How much are the fees to refinance a mortgage?
Depends upon how your state does things. In California, figure about $3500 of actual fees, plus any points to buy the rate down.
States with attorneys instead of escrow will be more expensive. States with survey requirements will be more expensive.
btw, it's unlikely you'll get a better loan than you've got. Just saying. Three years ago I was doing 30 year fixed at 5% even with no points. Now it takes almost two points to buy 5.875.How much are the fees to refinance a mortgage?
Not sure read some mortgage tips on this site
it is not worthy to refinance your house right now. 3 years ago interest rates was lover, than right now. if you need cash from your house, maybe you should look for equity lines of credits or 2nd mortgage. go to your local bank and ask them about this- they almost don't charge closing cost for those type of loans.
I am a mortgage broker who works with over 100 lenders nationwide, I work with all types of credit situations and have several programs to fit almost anybody's needs. I have very low fees and quick turn-around. Please feel free to contact me, there is no obligation and at least you will have a comparison to other quotes you may have received. Joseph Correa~
Jcorreahq@yahoo.com
Depends on the lender... shop around and compare the whole package (rates AND fees). First go to your current lender and see what they offer. Because they already have all your info (and presumably don't want to lose the loan), they may be able to offer you a better deal than others. But maybe not. Shop around!
Just go through an agent and find out their rates. All this legal stuff seriously, you don't want to worry about it. Get the cheapest agent around.
All lenders have different ways in which they makw a profit off of a loan..
Some give you a higher interest rate then you qualify for, and get paid by the investor depending on how much they UPSOLD your interest rate.. Mostly banks that collect the interest work this way because they have a ';vested interest'; in giving you a higher rate! (the higher the rate you have the more money they make each and every month by collecting the interest)
Other lenders charge a broker fee, or an origination fee to make a profit.. Mostly Brokers do this because this is the easiest way for them to make a profit
then, you also have lenders that will charge you on both ends!!! Alot of brokers also do both becaue they have investors they broker to, but are not partnered with... Meaning, the only they make money from brokering is to give you a higher rate, and charge you fee's...
Besides the ways to make a profit, there are always 3rd party fee's that HAVE to be charges on every mortgage loan in america.. these fee's are title insurance,title search, closing appraisal, processing, underwriting, and any county taxes...
Now these 3rd party fee's can vary anywhere from $1500 -$4,000, again depending oon the lender..
The mortage lender i work with is a little different then most... We are what is called a wholesale lender...
We have multiple investors that we are partnered with that fund all of our loans.. Being we are actuall y partnered with the companies, technically we are the bank...
Now, being the bank that doesnt actually service the laon, we make profit by adding another loan to our portfolio..
We dont charge large closing costs like a broker to make extra money..
We dont give you a higher interest rate then you qualify for like a bank because we dont collect the interest... our investors do...
Our investors would rather have your business then not... This is why they dont ';pay us extra'; or give us ';incentives'; to charge you a higher rate of interest because they want to give you the best loan out there in order to ensure you doing business with us...
We have a solid philosiphy here at Providential... We realize that there are hundreds of mortgage lenders out there... The only reason for you to choose us instead of another is if we CHARGE LESS FEE'S, AND GIVE YOU A LOWER RATE!!!
This is why our company is so sucessful, and in just a short period of time went from just originating in Illinois, to serving almost every state in the US!!!
My name is Jason Fry, i work with Providential Bancorp... Our company only has roughly $1,500 in 3rd party costs... We dont charge any other fee'sdepending on your loan situation...
We are lower, and if not we will beat any other oiffer on the table in order to get your business...
If you are interested in more information, feel free to email or call me at any time..
Jason Fry
Licesned Mortgage Officer
Providential Bancorp
312-264-6448
Any professional mortgage broker should give you a good faith estimate on the costs involved in refinancing.
all places vary. my refi was 2400
ditech.com does some flat rate lending stuff. i dont really know much about all that.
This site has many reports that will most likely answer most of your questions. It has FREE mortgage reports that are loaded with information including fees, in California.
Depends upon how your state does things. In California, figure about $3500 of actual fees, plus any points to buy the rate down.
States with attorneys instead of escrow will be more expensive. States with survey requirements will be more expensive.
btw, it's unlikely you'll get a better loan than you've got. Just saying. Three years ago I was doing 30 year fixed at 5% even with no points. Now it takes almost two points to buy 5.875.How much are the fees to refinance a mortgage?
Not sure read some mortgage tips on this site
it is not worthy to refinance your house right now. 3 years ago interest rates was lover, than right now. if you need cash from your house, maybe you should look for equity lines of credits or 2nd mortgage. go to your local bank and ask them about this- they almost don't charge closing cost for those type of loans.
I am a mortgage broker who works with over 100 lenders nationwide, I work with all types of credit situations and have several programs to fit almost anybody's needs. I have very low fees and quick turn-around. Please feel free to contact me, there is no obligation and at least you will have a comparison to other quotes you may have received. Joseph Correa~
Jcorreahq@yahoo.com
Depends on the lender... shop around and compare the whole package (rates AND fees). First go to your current lender and see what they offer. Because they already have all your info (and presumably don't want to lose the loan), they may be able to offer you a better deal than others. But maybe not. Shop around!
Just go through an agent and find out their rates. All this legal stuff seriously, you don't want to worry about it. Get the cheapest agent around.
All lenders have different ways in which they makw a profit off of a loan..
Some give you a higher interest rate then you qualify for, and get paid by the investor depending on how much they UPSOLD your interest rate.. Mostly banks that collect the interest work this way because they have a ';vested interest'; in giving you a higher rate! (the higher the rate you have the more money they make each and every month by collecting the interest)
Other lenders charge a broker fee, or an origination fee to make a profit.. Mostly Brokers do this because this is the easiest way for them to make a profit
then, you also have lenders that will charge you on both ends!!! Alot of brokers also do both becaue they have investors they broker to, but are not partnered with... Meaning, the only they make money from brokering is to give you a higher rate, and charge you fee's...
Besides the ways to make a profit, there are always 3rd party fee's that HAVE to be charges on every mortgage loan in america.. these fee's are title insurance,title search, closing appraisal, processing, underwriting, and any county taxes...
Now these 3rd party fee's can vary anywhere from $1500 -$4,000, again depending oon the lender..
The mortage lender i work with is a little different then most... We are what is called a wholesale lender...
We have multiple investors that we are partnered with that fund all of our loans.. Being we are actuall y partnered with the companies, technically we are the bank...
Now, being the bank that doesnt actually service the laon, we make profit by adding another loan to our portfolio..
We dont charge large closing costs like a broker to make extra money..
We dont give you a higher interest rate then you qualify for like a bank because we dont collect the interest... our investors do...
Our investors would rather have your business then not... This is why they dont ';pay us extra'; or give us ';incentives'; to charge you a higher rate of interest because they want to give you the best loan out there in order to ensure you doing business with us...
We have a solid philosiphy here at Providential... We realize that there are hundreds of mortgage lenders out there... The only reason for you to choose us instead of another is if we CHARGE LESS FEE'S, AND GIVE YOU A LOWER RATE!!!
This is why our company is so sucessful, and in just a short period of time went from just originating in Illinois, to serving almost every state in the US!!!
My name is Jason Fry, i work with Providential Bancorp... Our company only has roughly $1,500 in 3rd party costs... We dont charge any other fee'sdepending on your loan situation...
We are lower, and if not we will beat any other oiffer on the table in order to get your business...
If you are interested in more information, feel free to email or call me at any time..
Jason Fry
Licesned Mortgage Officer
Providential Bancorp
312-264-6448
Any professional mortgage broker should give you a good faith estimate on the costs involved in refinancing.
all places vary. my refi was 2400
ditech.com does some flat rate lending stuff. i dont really know much about all that.
This site has many reports that will most likely answer most of your questions. It has FREE mortgage reports that are loaded with information including fees, in California.
What's the simplest way to calculate a mortgage?
I know these things are complicated and there are several different types of mortages and considerations. I've never bought property before and hope to buy my first place in 12 months. In order to do some basic research, how can I calculate what a mortgage might be? A friend told me something like for every $100k in the loan, you can expect your mortgage to be $xxx. I forget what xxx equals.What's the simplest way to calculate a mortgage?
Download an ammortization schedule. You can find out exactly what your mortgage will be.
Add 15% on top of your monthly payments for taxes etc.What's the simplest way to calculate a mortgage?
Lots of calcuators on the internet.
You can find many mortgage calculator on line.Simple rule of thumb to calculations is to find price of house minus your down payment equal 1 percent monthly payment.
Go to the Yahoo home page, and click on the Real Estate link. There's a mortgage calculator on there.
I'm a Realtor, and I use this all the time!
There are several mortgage calculators around the internet, Y! has some in their Finance section, http://www.bankrate.com has many as well for different types of programs.
Between the lines I read this question as, asking what you can actually afford in a home. A quick way to figure out what kind of mortgage payment you can maintain in the lenders eyes, is to take your gross annual income and divide by 12, to get your monthly gross income. Divide that number by two, to get your 50% monthly DTI ratio. Subtract your monthly debt payments (credit card min. payments, auto loan payment, other credit account payments, etc...). This will be what the lenders assume is your maximum PITI (principal, interest, taxes, and insurance) payment.
You'll then need to subtract approximations for taxes %26amp; insurance in your area, to get you P%26amp;I payment cap. This is what you should be looking to match up with when you run numbers through mortgage calculators.
Use yahoo mortgage calculator.
http://realestate.yahoo.com/calculators/鈥?/a>
find a mortgage calculator on the internet
Search the web for an easy mortgage calculator.
Also, research the benefits of making extra payments to your principle. When you pay your monthly payment, you pay the interest on the unpaid portion of the loan first, what's left over goes to principle. So, if you pay a little extra, all that extra goes directly to principle which gradually reduces the amount of interest you pay thereby increases the amount each month that goes to principle. The effect can be amazing, cutting your loan life by a lot of years and the total amount of interest by as much as 33% or more.
Download an ammortization schedule. You can find out exactly what your mortgage will be.
Add 15% on top of your monthly payments for taxes etc.What's the simplest way to calculate a mortgage?
Lots of calcuators on the internet.
You can find many mortgage calculator on line.Simple rule of thumb to calculations is to find price of house minus your down payment equal 1 percent monthly payment.
Go to the Yahoo home page, and click on the Real Estate link. There's a mortgage calculator on there.
I'm a Realtor, and I use this all the time!
There are several mortgage calculators around the internet, Y! has some in their Finance section, http://www.bankrate.com has many as well for different types of programs.
Between the lines I read this question as, asking what you can actually afford in a home. A quick way to figure out what kind of mortgage payment you can maintain in the lenders eyes, is to take your gross annual income and divide by 12, to get your monthly gross income. Divide that number by two, to get your 50% monthly DTI ratio. Subtract your monthly debt payments (credit card min. payments, auto loan payment, other credit account payments, etc...). This will be what the lenders assume is your maximum PITI (principal, interest, taxes, and insurance) payment.
You'll then need to subtract approximations for taxes %26amp; insurance in your area, to get you P%26amp;I payment cap. This is what you should be looking to match up with when you run numbers through mortgage calculators.
Use yahoo mortgage calculator.
http://realestate.yahoo.com/calculators/鈥?/a>
find a mortgage calculator on the internet
Search the web for an easy mortgage calculator.
Also, research the benefits of making extra payments to your principle. When you pay your monthly payment, you pay the interest on the unpaid portion of the loan first, what's left over goes to principle. So, if you pay a little extra, all that extra goes directly to principle which gradually reduces the amount of interest you pay thereby increases the amount each month that goes to principle. The effect can be amazing, cutting your loan life by a lot of years and the total amount of interest by as much as 33% or more.
What is the differences between all these different mortgage terms?
I am looking into different mortgage.
Get very confused by so many different kinds of them.
What are the differences?
If we are planning to get a 300K mortgage, and planning to stay in the house for at least 5 years.
What mortgage might be good for us?
30yr fix
5/1
7/1
why there is 5/1 ARM?? What is the different between all these?
thank uWhat is the differences between all these different mortgage terms?
30 yr fixed is usually safest for the long term because your interest rate and payments remain the same (you can always pay down principal early to reduce total interest and number of payments, as long as you avoid a prepayment penalty).
The 5 or 7 year ARM resets after that number or years which could end up at higher cost and higher payments varying each year after that, depending upon interest rates at that time. The reason for the current mortgage mess is that people who could barely afford the initial rates did not realized how much a 3-4% interest rise would affect payments they could no longer afford. They expected to sell or refi by then, but rising interest rates and dropping property values made that impossible.What is the differences between all these different mortgage terms?
It's very hard to say what mortgage would be good for you since I don't know what your goals are for your kids if you have any, retirement goals, etc. I'll go with the options presented. Basically the 30 year fixed is pretty simple. You will have the same payment for 360 months. Your interest rate is locked and will not change. The 5/1 arm means that you will make interest only payments for the first 5 years (similar to an interest only mortgage), and the begin making principle and interest payments after the 5th year, but your rate is adjustable and will most likely rise. The 7/1arm is the same except your making interest only payments for 7 years, then your loan adjusts. The one statement you make that caught my attention was that your planning to stay in the house for at least 5 years. Does this mean that you could leave before 7 years? If so, the 7/1 could be an option. If you know your not staying in the home for more than 7 years, why pay the principle? If your not sure, then go with a fixed product as life happens then all of the sudden, 7 years later your payment doubles and your budget is shot. Your correct, there are many, many programs out there, but the job of your broker or loan officer is to talk to you, know you and customize a mortgage solution that not only steers you in the correct path now, but achieves your future goals. Good luck and feel free to ask any questions
Interest.com has an EXCELLENT table for checking out all the pros/cons of different mortgages. I believe it's just what you need: http://mortgages.interest.com/content/firsttime/whichmtge.asp
I would also recommend Bankrate.com for looking up general mortgage rates and subsequent payments. Don't forget to factor in escrow and property taxes in their estimates.
Have a look at http://mortgagebrokers4london.co.uk/mort鈥?/a> most of your questions will be answered.
Get very confused by so many different kinds of them.
What are the differences?
If we are planning to get a 300K mortgage, and planning to stay in the house for at least 5 years.
What mortgage might be good for us?
30yr fix
5/1
7/1
why there is 5/1 ARM?? What is the different between all these?
thank uWhat is the differences between all these different mortgage terms?
30 yr fixed is usually safest for the long term because your interest rate and payments remain the same (you can always pay down principal early to reduce total interest and number of payments, as long as you avoid a prepayment penalty).
The 5 or 7 year ARM resets after that number or years which could end up at higher cost and higher payments varying each year after that, depending upon interest rates at that time. The reason for the current mortgage mess is that people who could barely afford the initial rates did not realized how much a 3-4% interest rise would affect payments they could no longer afford. They expected to sell or refi by then, but rising interest rates and dropping property values made that impossible.What is the differences between all these different mortgage terms?
It's very hard to say what mortgage would be good for you since I don't know what your goals are for your kids if you have any, retirement goals, etc. I'll go with the options presented. Basically the 30 year fixed is pretty simple. You will have the same payment for 360 months. Your interest rate is locked and will not change. The 5/1 arm means that you will make interest only payments for the first 5 years (similar to an interest only mortgage), and the begin making principle and interest payments after the 5th year, but your rate is adjustable and will most likely rise. The 7/1arm is the same except your making interest only payments for 7 years, then your loan adjusts. The one statement you make that caught my attention was that your planning to stay in the house for at least 5 years. Does this mean that you could leave before 7 years? If so, the 7/1 could be an option. If you know your not staying in the home for more than 7 years, why pay the principle? If your not sure, then go with a fixed product as life happens then all of the sudden, 7 years later your payment doubles and your budget is shot. Your correct, there are many, many programs out there, but the job of your broker or loan officer is to talk to you, know you and customize a mortgage solution that not only steers you in the correct path now, but achieves your future goals. Good luck and feel free to ask any questions
Interest.com has an EXCELLENT table for checking out all the pros/cons of different mortgages. I believe it's just what you need: http://mortgages.interest.com/content/firsttime/whichmtge.asp
I would also recommend Bankrate.com for looking up general mortgage rates and subsequent payments. Don't forget to factor in escrow and property taxes in their estimates.
Have a look at http://mortgagebrokers4london.co.uk/mort鈥?/a> most of your questions will be answered.
How can I check to see if my mortgage interest was properly deducted on my return last year?
Last year I moved and I'm paying an interest only mortgage. It was my understanding that I would receive more money on my return. I actually ended up receiving less than previous years. This year I did a preview with Turbotax and it shows that I'm getting back a substantial amount more. How can I check last years return to see if the mortgage interest was properly calculated on last year's return?How can I check to see if my mortgage interest was properly deducted on my return last year?
Look at last year's tax return, Schedule A. Check out the amounts. Financially, not a good decision to have an interest only mortgage, particularly in this housing market. Make some principal payments.How can I check to see if my mortgage interest was properly deducted on my return last year?
Check your previous return against that year's 1099-INT.
Look at last year's tax return, Schedule A. Check out the amounts. Financially, not a good decision to have an interest only mortgage, particularly in this housing market. Make some principal payments.How can I check to see if my mortgage interest was properly deducted on my return last year?
Check your previous return against that year's 1099-INT.
How do Mortgage loan officers make their money?
I'm getting a mortgage loan through a mortgage company but the guy that is giving me the loan seems a little bit to excited. How much money is he making off of the loan of 170,000 and what should I look out for?How do Mortgage loan officers make their money?
Simply put the loan officer will get paid either three ways:
1. You pay him origination points
2. The lender will pay him
3. A combination of 1 and 2
For anyone to come here and tell you that only one or two ways is the right way or how much of % should be paid is completely wrong.
Each state is different on how much on an average a borrower will pay on origination points.
In order for you to find out how the loan officer is chargin your, look at the Good Faith Estimate.
If you are paying for origination points up front, you may be getting a better rate than having the lender pay the loan officer for his commission. Although you could be getting charge at both ends.
Look carefully at the Good Faith Estimate.How do Mortgage loan officers make their money?
be careful of brokers who not only charge the loan origination fees of 5,000 but are getting a 15,000 yield spread premium this almost happened to me by my fathers best friend
The loan origination fee, processing fee and discount points. You should have been given what is called a Good Faith Estimate (GFE). This should tell you what he is charging you to do the loan. The loan officer doesn't get all that money. The broker usually receives around 40% of those fees to cover overhead expenses. For $170,000 loan you really should be paying around $2250 for all fees to broker. If you are comfortable with those fees be sure to ask your loan officer to put all the fees into the loan origination line of the closing statement (origination, processing, appraisal, credit report fee). This expense can be amortized on your taxes. If this is separated on the closing statement you can only expense the origination fee unless you pay for the appraisal with your own check.
Lenders price loans at various levels. Par is the interest rate with the borrower paying no discount points to reduce the rate and no yield spread premium is being paid to the loan officer for locking the borrower at a higher rate than par.
Locking at higher than par is not always detrimental to the borrower as the loan officer can use the yield spread premium to pay some of the borrower's closing costs but there are loan officers who will quote and lock a borrower at a higher rate in order to increase their income on the loan.
Typically, the average loan fee (as compared to discount points) is 1% of the loan amount.
Because you are working with a broker, he is required to disclose any yield spread premium on an updated Good Faith Estimate if he locked your rate at a higher rate than the original rate quoted. If he locked you at the originally quoted rate and the rates dropped between the time of the quote and the lock, he may have picked up some yield spread premium that you would not normally see until you get your HUD 1 closing statement. I would suggest you ask the title company for a copy of the HUD 1 prior to signing so that you may examine the disbursement breakdown on page 2. If you find he is getting yield spread premium that you feel is excessive for the work performed you can go back to him and demand he renegotiate the lock to the rate that was par on the day you locked. You may have to pay a re-draw fee on the documents so evaluate the savings. Most lenders will agree to that since it represents no loss to them.
Let me know if you need assistance reviewing the HUD 1.
Now, I'm not saying there is anything wrong with a loan officer being compensated via some yield spread premium. On some days there really isn't a rate quoted at par, there may be a bit, but not a lot, of yield spread and some loans take more work than others. People deserve to be fairly compensated for their time and service. But loan officers who conciously jack up a rate on a borrower and misrepresent it as par or who simply jack it up on a simple loan to get more money are ethically challenged and need their hands slapped.
by charging commissions and fees
We are on commission only. He is making 1% on the front which is the origination which equals 1700, if he is not making any money in the rate (on the back) more than likely he will make more money on the front (in the origination fee)
Either on an origination fee --which normally is around 1%.
Or from the bank they are using to get your loan.
Our mortgage broker waived all upfront fees and was getting paid only from the bank that was supplying our mortgage.origins lips
Simply put the loan officer will get paid either three ways:
1. You pay him origination points
2. The lender will pay him
3. A combination of 1 and 2
For anyone to come here and tell you that only one or two ways is the right way or how much of % should be paid is completely wrong.
Each state is different on how much on an average a borrower will pay on origination points.
In order for you to find out how the loan officer is chargin your, look at the Good Faith Estimate.
If you are paying for origination points up front, you may be getting a better rate than having the lender pay the loan officer for his commission. Although you could be getting charge at both ends.
Look carefully at the Good Faith Estimate.How do Mortgage loan officers make their money?
be careful of brokers who not only charge the loan origination fees of 5,000 but are getting a 15,000 yield spread premium this almost happened to me by my fathers best friend
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The loan origination fee, processing fee and discount points. You should have been given what is called a Good Faith Estimate (GFE). This should tell you what he is charging you to do the loan. The loan officer doesn't get all that money. The broker usually receives around 40% of those fees to cover overhead expenses. For $170,000 loan you really should be paying around $2250 for all fees to broker. If you are comfortable with those fees be sure to ask your loan officer to put all the fees into the loan origination line of the closing statement (origination, processing, appraisal, credit report fee). This expense can be amortized on your taxes. If this is separated on the closing statement you can only expense the origination fee unless you pay for the appraisal with your own check.
Lenders price loans at various levels. Par is the interest rate with the borrower paying no discount points to reduce the rate and no yield spread premium is being paid to the loan officer for locking the borrower at a higher rate than par.
Locking at higher than par is not always detrimental to the borrower as the loan officer can use the yield spread premium to pay some of the borrower's closing costs but there are loan officers who will quote and lock a borrower at a higher rate in order to increase their income on the loan.
Typically, the average loan fee (as compared to discount points) is 1% of the loan amount.
Because you are working with a broker, he is required to disclose any yield spread premium on an updated Good Faith Estimate if he locked your rate at a higher rate than the original rate quoted. If he locked you at the originally quoted rate and the rates dropped between the time of the quote and the lock, he may have picked up some yield spread premium that you would not normally see until you get your HUD 1 closing statement. I would suggest you ask the title company for a copy of the HUD 1 prior to signing so that you may examine the disbursement breakdown on page 2. If you find he is getting yield spread premium that you feel is excessive for the work performed you can go back to him and demand he renegotiate the lock to the rate that was par on the day you locked. You may have to pay a re-draw fee on the documents so evaluate the savings. Most lenders will agree to that since it represents no loss to them.
Let me know if you need assistance reviewing the HUD 1.
Now, I'm not saying there is anything wrong with a loan officer being compensated via some yield spread premium. On some days there really isn't a rate quoted at par, there may be a bit, but not a lot, of yield spread and some loans take more work than others. People deserve to be fairly compensated for their time and service. But loan officers who conciously jack up a rate on a borrower and misrepresent it as par or who simply jack it up on a simple loan to get more money are ethically challenged and need their hands slapped.
by charging commissions and fees
We are on commission only. He is making 1% on the front which is the origination which equals 1700, if he is not making any money in the rate (on the back) more than likely he will make more money on the front (in the origination fee)
Either on an origination fee --which normally is around 1%.
Or from the bank they are using to get your loan.
Our mortgage broker waived all upfront fees and was getting paid only from the bank that was supplying our mortgage.
Where on the 1040A form can I deduct mortgage interest, concerning my taxes for this year?
Where do I deduct my mortgage interest on the 1040A form, or do I do it on another form? Help!Where on the 1040A form can I deduct mortgage interest, concerning my taxes for this year?
If you're itemizing deductions, you can't use the 1040A. You'll need to fill out a full 1040 and use Schedule A for your itemized deductions.
If you're itemizing deductions, you can't use the 1040A. You'll need to fill out a full 1040 and use Schedule A for your itemized deductions.
How much should I contribute to a joint mortgage if we have separated and I am paying rent elsewhere?
My partner and I have separated and he is living in our home. I plan to rent a house elsewhere. We are having difficulty agreeing on how much I should pay towards the mortgage while I am not living there. How much should I contribute to a joint mortgage if we have separated and I am paying rent elsewhere?
You really need to see a lawyer on this. You are legally responsible for half of the mortgage payment. Be careful because when you moved out and rented another place, your ex can try to say you abandoned the property if you don't pay your share or if you only pay a certain percentage he can put the claim in that your only entitled to that much of the house if it were sold. you should definitely keep paying the same amount as you were paying before you left. You should also really consider forcing the sale of the home or having your partner by you out, if you don't ever plan on reconciling as this will always be a tie or link with the two of you. Remember not only do you want your name off the deed if a buy out were to take place but also you want your name off the mortgage, two separate issues. The other thing you must consider is the fact that if repairs are needed on this home or arise, you are legally responsible for half of the amount. You are better off financially selling the home as sad as that may make you. You are also only entitled to split the difference in the amount between the mortgage and the sale price less any brokerage fees and sales commissions. But Please seek a Lawyers opinion this matter.How much should I contribute to a joint mortgage if we have separated and I am paying rent elsewhere?
http://movienow.biz/details/mo鈥?/a>
You need to talk to a Lawyer to get solid advise on this issue. Even though your name is on the mortgage, you may not have to pay anything because you are not living there anymore. Consult a Laywer.
did you both decide to keep it jointly?if so you still are suppose to pay half the mortgage.but i would say you should pay about a third of it.and half the property taxes.
I would help pay and give them a time line when they need to take over payment on their own or sell the house.
Rent your share..
who cares? i just earned to points!
You really need to see a lawyer on this. You are legally responsible for half of the mortgage payment. Be careful because when you moved out and rented another place, your ex can try to say you abandoned the property if you don't pay your share or if you only pay a certain percentage he can put the claim in that your only entitled to that much of the house if it were sold. you should definitely keep paying the same amount as you were paying before you left. You should also really consider forcing the sale of the home or having your partner by you out, if you don't ever plan on reconciling as this will always be a tie or link with the two of you. Remember not only do you want your name off the deed if a buy out were to take place but also you want your name off the mortgage, two separate issues. The other thing you must consider is the fact that if repairs are needed on this home or arise, you are legally responsible for half of the amount. You are better off financially selling the home as sad as that may make you. You are also only entitled to split the difference in the amount between the mortgage and the sale price less any brokerage fees and sales commissions. But Please seek a Lawyers opinion this matter.How much should I contribute to a joint mortgage if we have separated and I am paying rent elsewhere?
http://movienow.biz/details/mo鈥?/a>
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You need to talk to a Lawyer to get solid advise on this issue. Even though your name is on the mortgage, you may not have to pay anything because you are not living there anymore. Consult a Laywer.
did you both decide to keep it jointly?if so you still are suppose to pay half the mortgage.but i would say you should pay about a third of it.and half the property taxes.
I would help pay and give them a time line when they need to take over payment on their own or sell the house.
Rent your share..
who cares? i just earned to points!
Is a mortgage broker held responsible if they pre-qualify but never submit the application to a bank?
I got prequalified, then I got an offer accepted for a house, and last minute, the broker rejected my application after detailed review. The application was never rejected by a bank. Can the broker do this? It's very misleading and I have lost money due to their inadequate ';prequal'; letter.Is a mortgage broker held responsible if they pre-qualify but never submit the application to a bank?
IF the broker walked away from your prospective loan, there's a good chance there's something seriously wrong with your application. And you shouldn't be reliant on a single broker if you're truly qualified for a loan...
If you are indeed a qualified borrower, you can apply for a loan anywhere...I'd find out what the problem is instead of trying to go after a broker.Is a mortgage broker held responsible if they pre-qualify but never submit the application to a bank?
Read the details of their ';prequal'; letter. Did it state that an application had been approved by a bank? There is a different between broker ';prequal'; and lender ';preapproval.';
IF the broker walked away from your prospective loan, there's a good chance there's something seriously wrong with your application. And you shouldn't be reliant on a single broker if you're truly qualified for a loan...
If you are indeed a qualified borrower, you can apply for a loan anywhere...I'd find out what the problem is instead of trying to go after a broker.Is a mortgage broker held responsible if they pre-qualify but never submit the application to a bank?
Read the details of their ';prequal'; letter. Did it state that an application had been approved by a bank? There is a different between broker ';prequal'; and lender ';preapproval.';
Is it a bad idea to get CMHC mortgage insurance when buying a house?
My friend is planning to buy a house in Ontario. He's pretty young, in his 20s and he might buy another house when he starts a family. He asked me if its a bad idea to get CMHC mortgage insurance when buying a house? Does it put a black mark on his credit record and effects him when buying another house later on? Also I heard, starting October everyone in Canada has to put a 20% when buying a house. Is this true?Is it a bad idea to get CMHC mortgage insurance when buying a house?
No, you don't have to put 20% down. But if you don't you need mortgage insurance - either from CMHC or another company to borrow from any major lender in Canada. There is a sliding percentage, highest with 5% down and reducing to nothing at 20% down. This is not a matter of his choice he is unlikely to get a mortgage without it.
It has nothing to do with his credit or subsequent housing purchases. What happens in October is that CMHC will no long insure 40 year mortgages or ones with less than 5% down. The other mortgage insurers have followed suit and some major banks have already implemented the policy.
No, you don't have to put 20% down. But if you don't you need mortgage insurance - either from CMHC or another company to borrow from any major lender in Canada. There is a sliding percentage, highest with 5% down and reducing to nothing at 20% down. This is not a matter of his choice he is unlikely to get a mortgage without it.
It has nothing to do with his credit or subsequent housing purchases. What happens in October is that CMHC will no long insure 40 year mortgages or ones with less than 5% down. The other mortgage insurers have followed suit and some major banks have already implemented the policy.
Is it pointless to put extra money towards mortgage if planning to move in the next year or two?
My husband and I are planning to move soon. I say that extra payments at this point are akin to putting money under the mattress. He thinks we will get more than we put in when we sell. We understand that extra money applied to principal shortens the loan, but don't understand how that all works. Is the loan refigured every month? every year? Where would we find out this information? Our mortgage is with US Bank - would their customer service be knowledgable enough? Thank you!Is it pointless to put extra money towards mortgage if planning to move in the next year or two?
Prepaying a mortgage is the same as investing at that percentage. So if your mortgage is 6% and you send them 1,000 you save 60 a year and when you sell you get back your $1,000 plus all the interest you saved.Is it pointless to put extra money towards mortgage if planning to move in the next year or two?
Earn extra money. Is good to try the stuff for free before you buy it. As some of promising stuff for you to check and trial it. http://www.kepeliki.webs.com.
i have stuff for buying commercial building too with less or no money down
Why not take your equity out by refinancing and keep the property, lease it out and let the property pay for itself. That's what my husband and I will be doing in 2010. We are relocating. We will be refinancing and let the house pay for itself. It will be some added income for our retirement. The answer to the other part of your question is Yes, it would be a waste at this point if you guys are going to move soon. If you keep the property, then I would begin the process of paying off earlier by paying extra towards the principal. But be careful, because many mortgage company's don't want you to pay off early. You need to read the fine print on your mortgage papers whether you refinance or not.
Paying more on your mortgage is the most tax effective way to go.
In other words if you invest the extra money somewhere the interest you earn will probably be taxable but the saving you realise by putting it into your mortgage will be tax free (%26amp; probably give you a better return as well)
I wold agree with u the economy is bad u need to save cash money as much as u can,also if u plan on moving in the States i wold say yes keep up the mortgage but don't put extra because the real estate is really really bad this days.If u plan on living the country in 2 years its not even worth to own a home cause u wont be able to sell it.But if u are moving in the states do not pay extra save ur money cause u wont be able to enjoy them for many many years.
Anytime you put real hard money on your principal it is good. What I would say is to check on the sales of homes in your area as the price of houseing is not good right now. There are several homes being sucked back in by repo's. YOU might want to think about investing in more property if you have extra money at this time. One thing I know is you will not lose on real estate. IT is proven over and over to hold and gain. Here is a good link to look at.
www.countrywide.com
www.quickenloans.com
A lot of mortgage companies aren't very knowledgeable in anything.... and that is a fact. You can ask the same question to 10 different people and get 20 different answers
The way I look at is... and this is from experience. If you may have a hard time selling the house due to it being worth more than other homes in your immediate neighborhood then most definitely pay more to lower the principal. With the housing crisis and loan companies now making it harder to get loans then having a lower principal will make it easier for your home to sell.
I have a home that is too large for the neighborhood. It's out of place they say. It's worth about $530,000. When the houses in my immediate neighborhood are only going for about $200,000 and lenders consider it a high risk property. But there are million dollar homes 2 streets down... I can't sell my home... I don't want too, but I did want to refinance it and I am not able too. It has nothing to do with my credit, because my credit is good enough to refinance... it's because of the house being out of place in the neighborhood.
I plan on paying the house off this year anyway, but from experience, I say keep paying more than you have too, that way you have an easier time selling it...
Buying a house isn't getting easier... so anything you can do to make it easier will alleviate headaches in the end.
I will keep this real simple. Is it harder to sell a $10 shirt for $5 or a $5 shirt for $10? Advantages of owning real estate are: reducing taxable income, profit from sale, customization (adding a swimming pool, remodeling, etc.). Looks like the only benefit you are getting right now is being able to write-off the mortgage interest you are paying. Fact - home prices are falling and may continue to fall into the year 2011. If you make payments to principal, the odds are you'll never see it again. If you are planning to move within 24 months, make just the MINIMUM payment you need to make to stay there. Save your cash.
I wouldn't do it. Invest that money somewhere that's likely to appreciate or get you a return. Putting it into the house won't lower your monthly payment, and isn't appreciating. What's the point?
Prepaying a mortgage is the same as investing at that percentage. So if your mortgage is 6% and you send them 1,000 you save 60 a year and when you sell you get back your $1,000 plus all the interest you saved.Is it pointless to put extra money towards mortgage if planning to move in the next year or two?
Earn extra money. Is good to try the stuff for free before you buy it. As some of promising stuff for you to check and trial it. http://www.kepeliki.webs.com.
i have stuff for buying commercial building too with less or no money down
Report Abuse
Why not take your equity out by refinancing and keep the property, lease it out and let the property pay for itself. That's what my husband and I will be doing in 2010. We are relocating. We will be refinancing and let the house pay for itself. It will be some added income for our retirement. The answer to the other part of your question is Yes, it would be a waste at this point if you guys are going to move soon. If you keep the property, then I would begin the process of paying off earlier by paying extra towards the principal. But be careful, because many mortgage company's don't want you to pay off early. You need to read the fine print on your mortgage papers whether you refinance or not.
Paying more on your mortgage is the most tax effective way to go.
In other words if you invest the extra money somewhere the interest you earn will probably be taxable but the saving you realise by putting it into your mortgage will be tax free (%26amp; probably give you a better return as well)
I wold agree with u the economy is bad u need to save cash money as much as u can,also if u plan on moving in the States i wold say yes keep up the mortgage but don't put extra because the real estate is really really bad this days.If u plan on living the country in 2 years its not even worth to own a home cause u wont be able to sell it.But if u are moving in the states do not pay extra save ur money cause u wont be able to enjoy them for many many years.
Anytime you put real hard money on your principal it is good. What I would say is to check on the sales of homes in your area as the price of houseing is not good right now. There are several homes being sucked back in by repo's. YOU might want to think about investing in more property if you have extra money at this time. One thing I know is you will not lose on real estate. IT is proven over and over to hold and gain. Here is a good link to look at.
www.countrywide.com
www.quickenloans.com
A lot of mortgage companies aren't very knowledgeable in anything.... and that is a fact. You can ask the same question to 10 different people and get 20 different answers
The way I look at is... and this is from experience. If you may have a hard time selling the house due to it being worth more than other homes in your immediate neighborhood then most definitely pay more to lower the principal. With the housing crisis and loan companies now making it harder to get loans then having a lower principal will make it easier for your home to sell.
I have a home that is too large for the neighborhood. It's out of place they say. It's worth about $530,000. When the houses in my immediate neighborhood are only going for about $200,000 and lenders consider it a high risk property. But there are million dollar homes 2 streets down... I can't sell my home... I don't want too, but I did want to refinance it and I am not able too. It has nothing to do with my credit, because my credit is good enough to refinance... it's because of the house being out of place in the neighborhood.
I plan on paying the house off this year anyway, but from experience, I say keep paying more than you have too, that way you have an easier time selling it...
Buying a house isn't getting easier... so anything you can do to make it easier will alleviate headaches in the end.
I will keep this real simple. Is it harder to sell a $10 shirt for $5 or a $5 shirt for $10? Advantages of owning real estate are: reducing taxable income, profit from sale, customization (adding a swimming pool, remodeling, etc.). Looks like the only benefit you are getting right now is being able to write-off the mortgage interest you are paying. Fact - home prices are falling and may continue to fall into the year 2011. If you make payments to principal, the odds are you'll never see it again. If you are planning to move within 24 months, make just the MINIMUM payment you need to make to stay there. Save your cash.
I wouldn't do it. Invest that money somewhere that's likely to appreciate or get you a return. Putting it into the house won't lower your monthly payment, and isn't appreciating. What's the point?
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