How can i get a mortgage to buid my first home?

How do I remove my name from the mortgage?

2011-11-23T02:19:00.003-08:00

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.

What is the current disqualifying credit score that mortgage lenders have earmarked?

2011-11-23T02:19:00.002-08:00

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.

How do you start marketing effectively for a Mortgage company in Arizona?

2011-11-23T02:19:00.001-08:00

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!

What are the benefits of making an extra mortgage payment at the end of the year?

2011-11-23T02:19:00.000-08:00

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.

What are mortgage interest rates based on and how do I estimate what my ARM rate will be when it adjusts?

2011-11-23T02:18:00.009-08:00

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.

What is the best source for an FHA mortgage in California? A large bank or a finance company?

2011-11-23T02:18:00.008-08:00

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

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Is it possible to refinance your mortgage to get caught up on bills and late mortgage payments?

2011-11-23T02:18:00.007-08:00

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.

How much mortgage interest can I deduct on my primary residence?

2011-11-23T02:18:00.006-08:00

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

What are the chances of me getting a mortgage for this house?

2011-11-23T02:18:00.005-08:00

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.

What are the benefits of refinancing a reverse mortgage?

2011-11-23T02:18:00.004-08:00

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.

What's it called when you basically stop mortgage payments and give your house back to the bank?

2011-11-23T02:18:00.003-08:00

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.

Better to make extra principal payments or extra mortgage payments?

2011-11-23T02:18:00.002-08:00

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

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Can your mortgage lender require PMI when your home value decreases?

2011-11-23T02:18:00.001-08:00

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.

What's it called when you basically stop mortgage payments and give your house back to the bank?

2011-11-23T02:18:00.000-08:00

Better to make extra principal payments or extra mortgage payments?

2011-11-23T02:17:00.010-08:00

What are the benefits of refinancing a reverse mortgage?

2011-11-23T02:17:00.009-08:00

What are some tips on finding a good mortgage broker?

2011-11-23T02:17:00.008-08:00

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

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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

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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?

2011-11-23T02:17:00.007-08:00

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.';

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How difficult is it to get a home mortgage loan?

2011-11-23T02:17:00.006-08:00

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.

What is the best way to get a mortgage loan modified?

2011-11-23T02:17:00.005-08:00

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

Help me find the information on if a mortgage company can force you to insure your home to loan value?

2011-11-23T02:17:00.004-08:00

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.

What is best a fixed rate or tracker mortgage or going for a variable rate ?

2011-11-23T02:17:00.003-08:00

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!!!

Can a mortgage company force me to pay for their home owners insurance?

2011-11-23T02:17:00.002-08:00

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.

Do you figure mortgage payments for a 2nd mortgage the same as for a 1st mortgage?

2011-11-23T02:17:00.001-08:00

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?

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How do mortgage brokers come up with your one credit score?

2011-11-23T02:17:00.000-08:00

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.

Can I deduct start up cost for my mortgage insurance premiums?

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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?

2011-11-23T02:16:00.008-08:00

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.

How do mortgage lenders verify school deferment letters?

2011-11-23T02:16:00.007-08:00

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.

Can a mortgage loan be for more than the purchase price of the home?

2011-11-23T02:16:00.006-08:00

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.

Why do mortgage rates keep going up after the Fed lowers their interest rate?

2011-11-23T02:16:00.005-08:00

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.

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Does a mortgage loan have to be a minimum amount when purchasing a house?

2011-11-23T02:16:00.004-08:00

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.

How much are the fees to refinance a mortgage?

2011-11-23T02:16:00.003-08:00

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.

What's the simplest way to calculate a mortgage?

2011-11-23T02:16:00.002-08:00

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.

What is the differences between all these different mortgage terms?

2011-11-23T02:16:00.001-08:00

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.

How can I check to see if my mortgage interest was properly deducted on my return last year?

2011-11-23T02:16:00.000-08:00

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.

How do Mortgage loan officers make their money?

2011-11-23T02:15:00.009-08:00

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

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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.

origins

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Where on the 1040A form can I deduct mortgage interest, concerning my taxes for this year?

2011-11-23T02:15:00.008-08:00

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.

How much should I contribute to a joint mortgage if we have separated and I am paying rent elsewhere?

2011-11-23T02:15:00.007-08:00

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>

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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?

2011-11-23T02:15:00.006-08:00

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.';

Is it a bad idea to get CMHC mortgage insurance when buying a house?

2011-11-23T02:15:00.005-08:00

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.

Is it pointless to put extra money towards mortgage if planning to move in the next year or two?

2011-11-23T02:15:00.004-08:00

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

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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?

How can I apply for a federal government mortgage?

2011-11-23T02:15:00.003-08:00

I keep hearing of these mortgages that congress is offering as a resut of the housing market crash. But where do you go to apply for one? That's the problem with alot of these government programs. They're there, but most people dont' know how to access them.

Thanks!How can I apply for a federal government mortgage?
I'm not sure where you heard that Congress authorized mortgages. It did not, to my knowledge.

You can always apply for a FHA loan, VA loan, or similar, but those have been around a long time.How can I apply for a federal government mortgage?
There are no such things as a federal government mortgage. The federal gov't does not engage in direct lending.

There are mortgages that are insured by FHA and if you are a veteran, by the VA.

I would start there. Any reputable bank would have access to these.
Go to HUD.org and down load the application. And chose from the foreclosures.
There are government backed programs, but the government is not in the business of lending money.

Contact a reputable lender in your area who can review your options.

engine oil

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How can I change a typo on my mortgage that I filed with the county records department?

2011-11-23T02:15:00.002-08:00

I switched the names for the mortgagor and the mortgagee. The records department is telling me I need to get an attorney involved and a title company that there is no ';easy fix.'; Can't I just rerecord my mortgage the correct information?How can I change a typo on my mortgage that I filed with the county records department?
the title agent as a course of doing business has you sign a document that allows them to make these changes if there are errors in any document. So just call them and request the change be made and they will do it. Now just so you know they will need the file number off your settlement statement so have that at the ready when you call them.

I am a mortgage banker in Tn %26amp; KYHow can I change a typo on my mortgage that I filed with the county records department?
I am not clear on why you are recording your own mortgage and not having a title company do it, but assuming arguendo that you are responsible for it, then yes, I'd rerecord and make a clear statement in the new document that it is being re-recorded to correct the error in the original mortgage.
You would file a ';corrected'; deed of trust. The County Recorder has the guidelines. Usually you don't need an attorney for a typo like this.

Or you re-do the entire mortgage and have a notary handy. The new mortgage would have an explanation of why it was replacing the ';old'; one..

What percentage of your income goes towards your mortgage payments?

2011-11-23T02:15:00.001-08:00

If you don't mind my asking, I'm trying to figure out what a reasonable percent of my income is to be going towards a mortgage payment. My partner and I make around $6500 gross monthly, and I'm wondering what percent of that we could reasonably spend on a mortgage without getting in over our heads. We have no other debt, but have normal bills like utilities and car insurance. If you don't mind could you please give me an idea of what you earn and what you put towards your mortgage? Or what percent of your gross income goes towards your mortgage payments?

Thanks so much!What percentage of your income goes towards your mortgage payments?
we are at a little less than 1/3.What percentage of your income goes towards your mortgage payments?
The 30% should include mortgage, taxes, fees, insurance, and maintenance of the property. Utilities do not count as part of the 30%.
The rule of thumb is 30% of your take home, or 40% of your gross. Remember that the interest and proprty taxes (most of your payment in the first years) is tax deductible.

Ethics and Mortgage Lending: What do you think is important?

2011-11-23T02:15:00.000-08:00

If you had a chance to tell mortgage brokers, originators, lenders, and other professionals what you consider unethical, what would you tell them?

I am preparing a class on Ethics that will be offered to mortgage professionals throughout the country, and would like some additional input. We have the framework of the class, but I'd like to hear what ideas customers and other lending professionals might have that could be included.

Is there anything you want them to be sure to hear and discuss? Any specific examples of ethical or unethical behavior? Anything else you think should be covered?Ethics and Mortgage Lending: What do you think is important?
They are obliged by morality to treat each case individually. Quite often, due to the rigid evaluation process of credit worthiness of the borrower, many good people are rejected. They may have full intention, and a strong sense of commitment, when they go to a bank to borrow for their home but quite often they are left out in the cold. No consideration is given to them simply because they may fail to meet one or two simple and minor requirements. The lenders have that ethical obligation to re-evaluate such hardship cases and make exceptions. This can only happen when they apply the human touch to lending practise instead of behaving like robots, who are too quick to cover their butt, rather than help build communities.

Can a mortgage company freeze the borrower's bankaccounts besides foreclosing their house?

2011-11-23T02:14:00.000-08:00

My friend is faced with a potencial foreclosure. But with today's housing market, she could still owed the bank up to $100,000 after foreclosure. She is worried about her other assets such as savings accounts. Can the bank touch those assets?Can a mortgage company freeze the borrower's bankaccounts besides foreclosing their house?
No freezing, only seizing.

She has no right to rip them off of 100K when she has it available to repay the loan.

Why should she be able to screw them out of that much when she has money in savings?

You friend is a real winner there.Can a mortgage company freeze the borrower's bankaccounts besides foreclosing their house?
Legally, she is responsible for any balance left after the foreclosed house is sold. The bank may choose not to pursue her for the balance. If the bank forgives the balance it will be considered taxable income and she will owe tax on it. If the bank pursues her for it, it will sue her to obtain a judgment which would allow it to garnish her wages and seize her personal and financial assets. Her only solution would probably be a bankruptcy.
When the foreclosure proceedings occur, the bank's lawyers will meet up with the owner (and hopefully his attorney) to hash out what all assets the owner has and then come to an agreement as to what else the owner will have to give up upon foreclosure. If they don't come to an agreement, the bank will take the owner to court, where the court will decide what the settlement will be. And, the court could decide that the owner has to forfeit other assets or have the bank place liens on those assets such that, when they are sold, the bank gets paid first.
No! work with your bank and they will work with you to either approve a short sale, refinance your loan or deed in lieu, foreclosure will not cause them to freeze your bank account, only the feds can if you engage in illegal activities.
Yes they can. They can also put a lien on her car/other property as well as garnish her wages and seize her IRS returns.
They sure can. And will.

How will a foreclosure work with a second mortgage?

2010-08-24T02:22:00.002-07:00

Mortgage company put us into foreclosure on the 1st because of being behind in the escrow but there is a second on the house, with the same company. How does that work?How will a foreclosure work with a second mortgage?
That's rotten eggs ... you're saying you're in foreclosure for not paying your escrow (taxes and insurance)?

Have you talked to the company to find out if they are willing to restructure everything?How will a foreclosure work with a second mortgage?
Missi, the second mortgage will always get wiped out by the first mortgage. The process in foreclosures is whatever the sales price is all the proceeds are given to the first mortgage and then whatever left is given to the second. Here are a few examples that might help explain better.

First mortgage 150,000 Second Mortgage 30,000 Foreclosure sells for 160,000. In this situation the first mortgage is paid off and 10,000 will go to the second.

Another example is 150,000 Second Mortgage 30,000 Foreclosure sells for 90,000. First mortgage gets 90,000 second gets 0.

Even though they are with the same company the second will get handled the same
Completed Foreclosure of First mortgage wipes out second and other junior liens. TALK to lender on First and try to cure your default. IT's EXTREMELY rare for lender nowadays to put you in foreclosure for being behind on escrow. This is curable situation. It may be an opportunity to do a loan modification on first or second mortgage, changing to lower interest rate. This is most likely if you have some equity in home, have adequate income and good payment history.
The first mortgage is probably non-recourse. The second is probably recourse.

Recourse means they can sue you for the difference and even if they cancel the debt, it may be taxable income to you.

See IRS pub 4681.
Give the bank the key and RUN !!!!!!!

Does the Mortgage Foregiveness Debt Act say the foregiven amount is completely wiped clean?

2010-08-24T02:22:00.001-07:00

I understand the Act says you do not have to claim the foregiven amount as income, but does this mean it is wiped clean? If someone owes $500k on a home that is sold in short sale for $400k, the lender is foregiving $100k. Prior law required that $100k to be claimed as income. Is the new law saying you know longer claim it as income AND you are no longer held responsible for the amount?Does the Mortgage Foregiveness Debt Act say the foregiven amount is completely wiped clean?
Not at all. The recent federal action only indicates that you will no longer have to claim such shortfalls as federally taxable income. It says NOTHING about lender forgiveness of the indebtness.

Frankly, since the 'act' was passed, I've seen an upsurge in lenders pursuing legal actions for deficiency judgments.Does the Mortgage Foregiveness Debt Act say the foregiven amount is completely wiped clean?
The act says you won't be taxed.

It is 100% up to the lender to decide to sue you or not.

Banks are losing billions on ';short sales'; and defaults. They HAVE to start trying to collect the money they have lost.

If you have a decent income and few other debts, the odds of being sued go up a lot.

With the 2005 Bankrupty Reform Act, the bank has a really good shot at collecting at least a portion of their losses back.

Good luck to you.
that's correct.
Either you're not asking the question incorrectly, or you are confused of the process.

The mortgage forgiveness does not come from the act passed by the government, the forgiveness comes from the lender. They are the ones to decide if they will come after you for the balance due.

In your example above you state that the lender is forgiving the debt but then you say the new law is stating you are no longer held liable. That's not the law. The law is simply that if the lender decides to forgive the debt you no longer need to pay taxes on it as income. Before this law was passed, you would owe taxes on the $100,000 that the lender forgave. For a debt that size, it could be somewhere around 30% ($30,000).

If the lender does not forgive the debt, then you still owe it to them. The government does not get involved.

As you can see, the ball is really in the lender's court on this to decide how they want to proceed.

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Do I have to itemize deductions to deduct mortgage interest on a house?

2010-08-24T02:22:00.000-07:00

I am planning to buy a house in the state of washington in year 2010. Since I don't have mortgage, I take the standard deduction now and I am wondering if I can keep doing it next year and still deduct my mortgage interest payments.Do I have to itemize deductions to deduct mortgage interest on a house?
Only if you itemize deductions. Property taxes are also deductible.Do I have to itemize deductions to deduct mortgage interest on a house?
You must itemize to claim the mortgage interest deduction. You should figure it both ways and go with whichever way results in the lowest total tax liability.
when you buy the house you will probably have enough to itemize, thereby utilizing other deductions you didn't consider when you file standard deduction
If you live in the house, then you must itemize deductions to deduct mortgage interest and cannot take both the standard deduction and the mortgage interest deductions. If it is an investment property that you rent out to someone else, then I am not sure.
Yes, it is itemized deduction.

You can also deduct Mortgage insurance premiums with respect to mortgage insurance contracts on line 13 of schedule A. This deduction is available from year 2007 through year 2010. Box 4 of Form 1098 may show the amount of premium you paid in 2009.
No

You either take the standard, or itemize to take the property tax and interest. Whichever is higher. And since you are itemizing, you can put down your dental, medical (not covered by insurance), charity, etc and see how that works for you.

What are the chances of getting a 2nd mortgage for a trailer near the ocean in a camping ground?

2010-08-24T02:21:00.002-07:00

I've asked this question before about campers, trailers, permanent sites at a camping ground in South Carolina.

I am doing alot of research here and many of my feedbacks have been negative about any bank or financial institute even considering a 2nd mortgage or loan to purchase one of these so called trailers in a campground.

I also am getting negative feedbacks on the resale value on these structures.

Anyone know, or how to go about looking for a reputable lender in South Carolina? I am in North Carolina and my broker does not know anyone nor does he have any advice for me on this situation. He told me to check in South Carolina.

So, here I am asking you.

Any help will be greatly appreciated.What are the chances of getting a 2nd mortgage for a trailer near the ocean in a camping ground?
Yes, most of your feedbacks will be negative about banks and financial institutions considering a loan for a trailer, because of the huge risk factor.

You might be able to take out a second mortgage on your current home for the purchase of the trailer. That is a possibility depending on the equity in your current home.

As far as looking for a reputable lending in SC, I would contact the campground where this trailer is and ask them in the office who the lenders are for the majority of trailer owners. Chances are that you will find they have a particular lender or lenders that owners of trailer in that campground use.

How bad does a short sale on the mortgage effect your credit?

2010-08-24T02:21:00.001-07:00

Any one know how bad a short sale effects your personal credit? I talked with a gentleman who specializes in short sales and says it only effects your credit for about a year and up to 40 points. I have excellent credit, so that doesn't worry me too much. I'm more worried that he is just telling me this to get my business. Thanks!How bad does a short sale on the mortgage effect your credit?
He's just telling you this to get your business. A short sale is going to slam your credit file nearly as bad as a foreclosure will hit it. Furthermore, you may well receive a Form 1099 from the lender at the end of the year for the deficiency amount, and will have to claim that on your income as ordinary taxable income. Use caution before you proceed.How bad does a short sale on the mortgage effect your credit?
Hey, even though you got your question answered, i thouhgt you might find this information useful.

http://www.shortsalecomplete.com/?utm_source=blog%26amp;utm_medium=blog%26amp;utm_campaign=shortsalecomplete

check it out!

Report Abuse

I help people in foreclosure for a living. The first two responses are incorrect. Your credit gets affected in three ways:

1. The mortgage lates will show on your credit report

2. The short sale will show up as a charge off/settled account. It's the same as if you had a $5000 credit card debt and paid them $2500 to call it even and close the account.

3. If this is a judicial foreclosure (or a non-purchase money loan on an investment property in a trust deed foreclosure), and a deficiency judgment was not waived, then the judgment will show on your credit.

That said, it is still better than having a foreclosure on your records and having all three above as well.

As far as the number of points that will be affected, I don't think anyone in the business knows how it would be affected. Maybe you should consult the credit bureaus.

Also, I am not a lawyer, you should consult one for any legal advice pertaining to your particular situation.

Regards...
short sale or foreclosure same thing on your credit report.

once the foreclosure proceedings start....they put an M-9 on your credit report.

40 points ? maybe more like 100 at least...

i seen ppl drop to about 150-200 average.

they will put foreclosure on your credit report...if they havent already.

if there is a deficiency...then they will tag that on you credit report as a collection item (varies with state laws)

What will happen to our economy if the mortgage industry crashes?

2010-08-24T02:21:00.000-07:00

Would we be looking at another great depression?What will happen to our economy if the mortgage industry crashes?
Yes, it would be very bad if it happened. However, it appears as if the necessary liquidity has already been restored to avoid this.

Lenders very badly want to make loans right now - provided your loan can meet a few elementary guidelines. The days of loan approval as soon as the mirror gets a little cloudy are gone.

I talk about this in depth here

http://www.danmelson.com/2007/10/full-ci鈥?/a>What will happen to our economy if the mortgage industry crashes?
will it ? even though in the 80s interest rates soared up to 18 /19 % people still bought and sold, mainly because we all have to live in houses even if we rent or buy we all need some where to live
Banks and credit companies will act more responsibly and start checking who they lend to. And banks will ditch crappy mortgages such as Adjustable Rate Mortgages (ARMS), and Interest Only loans. Borrowers will think twice before they buy something they can't afford.

Let's hope the government (i.e taxpayer) doesn't bale out these businesses or people.

How many times can you ask for a mortgage quote?

2010-08-24T02:20:00.003-07:00

As I understand, normally before you shop around for the properties, you have to get a Mortgage Agreement in Principle. You'll bring this to the house agents and the buying procedures can begin.

However, a friend of mine said that I should be careful. Apparently, you should only get a morgage quote from ONE lender only. The more you go to different lenders, the worse your credit score will be. Is it true?

After I hear about this, I have been hesitant to go to a lender, because I think I need time to search for the best deals available.How many times can you ask for a mortgage quote?
I don't think this is true. You can get as many quotes as you like.

I would recommend you use the advice of an IFA (independant financial advisor)

You can find an IFA in the yellow pages or http://www.yell.com

Their advice is usually free and can arrange your mortgage %26amp; insurances for free.

IFA's make their money on a commision basis upon the products that they sell to you.

Ask other people that you know to see if they can recommend and IFA that they have used.How many times can you ask for a mortgage quote?
As often as you like
Yes it is true what your friend says, therefore i would do your homework or go to a mortgage adviser rather than a bank as they are able to find the best deal on the whole market whereas banks will only ofer you their mortgages!!!!!! Good Luck xx
You can ask for a quote as many times as you like. the quote is only what the morgage firm says what amount they will be prepared to lend you. Only if you sign up to a morgage agreement will it affect you.
You can obtain quotes from lenders but once you apply for a n agreement in principle the lenders will have normaly done a credit search and to many credit searches can effect your credit score. You are better off talking to an independent mortgage adviser who would go through everything with you and advise which is the best deal and lender for you. You do not have to get an agreement in principle to put offers on a house. If you did that and then it took 4 months to find a house it would have to ben done again and couold then be refused. Drop me an email and I can recommend someone who I trust with giving my family advice
Just getting quotes will not affect your credit rating at all. There is something called a 'footprint' put onto your credit file everytime a full search is done. Lenders can only carry out a full search if you carry on with a full application with them. This rule changed in the past few years so go ahead with your quotes without worrying!!.
IT IS BEST TO GET PRE-APPROVED BY A MORTGAGE BROKER..THEY HAVE ACCESS TO MANY COMPANIES AND CAN GIVE YOU THE BEST PRICE...THIS IS ALL THE FIXED PRICES SO YOU WILL KNOW APPROXIMATELY HOW MUCH MONEY YOU WILL NEED TO BRING TO THE TABLE AND HOW MUCH YOU CAN AFFORD ACCORDING TO YOUR INCOME AND EXPENSES....YOU CAN GET AS MANY QUOTES AS YOU LIKE, BUT IF THEY RUN YOUR CREDIT IT WILL BRING DOWN YOUR SCORE....IT IS BEST TO TALK TO PEOPLE WHO HAVE PURCHASED OR REFINACED THEIR HOME AND SEE WHO THEY USED AND IF THEY WERE SATISFIED WITH THEM....ALSO, COST CAN VERY GREATLY SO ASK WHAT THEIR FIXED COSTS ARE....ITS A GOOD INDICATOR ON IF THEY ARE FAIR OR NOT.
Most lenders require a full credit report in order to even quote an accurate rate. Credit scores do allow for some comparison shopping but this can be misunderstood.

If a borrower has other inquiries (credit cards, cars, etc) in addition to mortgage inquiries the score can be affected adversely (how much is never quite clear).

2 different mortgage inquiries will usually not affect the score as the bureaus understand that comparison shopping is wise. However, multiple inquiries that result in NO MORTGAGE has an adverse affect. It appears you were declined.

If possible, use a referral from someone you respect. That cuts down the field quite a bit. If there is nobody that fits the bill you are still better off trying to find 1 guy that seems to make sense and authorize only that 1 guy to check the credit, and remember this...A good mortgage broker will be able to clearly explain all fees on a GOOD FAITH ESTIMATE and should have access to enough lending products to find the right loan for you. They can shop the application to multiple banks on 1 credit report.
yes and no its true!

you can go to mortgage companies and see how much they would lend you off your wage as many times and as many companies as you like, but everytime you allow them to do the full credit check on you it leaves a mark on your credit history. So if you went to ten places and got a credit check at each one you would have ten marks on you credit history, and all this wud do to say the 11th company u went to is say to them no we wont lend this person money. It wont say why just the fact you got a lot of marks on you credit. They wont know that you havent taken out all the mortgages or loans etc you were checked out for and even if you told them it wouldnt be enough for them to lend you the money. However you can get these marks taken off your credit history, but it will cost you money and possibly take somtime. My advice wud be to go and ask howmuch you can lend but not allow them to do a credit check until you are ready and happey with there offer. I have been to see about a mortgage to many places and i found Nationwide the most helpful as what im telling you now they explained to me. Yous ee every time you go for a loan, credit card, etc wethere you take it out or not it leaves a mark on your credit history and if you get too many marks in a short period of time it gives u bad credit ratings.

If you wanna know more then ask a mortgage lender or i can possibly ekplain it better if you wanna contact me!
You can ask as many lenders as you want for a quote. You just need to make it clear that its a quote you're after - and not an application/decision. A quote only tells you how much a particular mortgage will cost - it doesn't constitute an offer. In fact, most lenders have mortgage calculators on their site and since you don't input any personal information - theres no way they can make an application.

What your friend was referring to was making an application. If you get a quote you like, then you will make an application for a decision in principle. This involves making a check on your credit history. When someone makes a check on your credit history, the search itself is recorded. If you make too many applications during a short period of time, it looks like you are desperate or may raise suspicions that something fraudulent is taking place.
In essence yes. Each time someone accesses the credit bureau on your behalf there is a record. When lending institutions check your credit they see these and count it against you. You should seek out at least 3 lenders, pick the one that has the programs to suit your needs and have them due a full credit check, and give you a Pre-qualifying letter. In today's world, most sellers will require a formal letter from your lender before they will consider your offer. It's show you can afford to buy. Oh and by the way, working with a Realtor will save you ton's of time and money in the long run. Find your Realtor first, they can help you find the right lender and property.
don,t listen 2 other. think positive and go forward..........

read the documents carefully and always use a magnifing glass to check it .always read the small messsage at the bottom of the forms...

take u time no rush ....its a appartment not a happy meal........
The more that companies have to credit check you it does make you credit score go down.I was advised of this by a mortgage broker.

What is Obama going to change in the mortgage and banking areas?

2010-08-24T02:20:00.002-07:00

I am just kinda confused. I was having a discussion with some people and want some smarter outside opinions and the mainstream news is definitely not the best source...

From what i understand he is planning on tightening down on government regulation of certain industries including banks and/or lenders?...whats going to happen with that?What is Obama going to change in the mortgage and banking areas?
In the mortgage area, advocating mortgage modifications for people in danger of foreclosure, and lowering the interest rates, length of the loan, and the ratio of income to payment. 31-36% max.

Banks that have taken advantage of bailouts are directed to do everything possible to help prevent foreclosures, but it isn't mandatory. So it depends on the banking institution. There are HUD approved counselors and a website.What is Obama going to change in the mortgage and banking areas?
If he is tightening rescrictions, he is letting the private sector determine the lending requirements, which means less government intervention. That would be basically undoing what was done during the Clinton administration when they forced Fannie Mae and Freddy Mac to loan money to unqualified home buyers. Which led to this scenario.

If you aren't aware of the reasons for the current situation, you should turn into South Park tonight, this episode covers the issue and is entertaining!
For an accurate answer to that, take a look at GM and Chrysler. Complete government control and extreme regulations. It's common sense, see it for yourself. You don't need talking heads talking at you to figure that out.
Probably taking it over so that no one ever wants to buy a house because they know he'll tax them to death.
It would be good for your country if he addressed these issues.

BAILOUT MONEY

In the United States, four large banks control over 90 percent of the derivatives market:

JPMorgan Chase %26amp; Co

Bank of America Corp

Citigroup Inc

Goldman Sachs Group Inc

All have received taxpayer aid.

All of these banks belong to or are being run by the BILDERBURG Group

David Rockefeller, Former Chairman, Chase Manhattan Bank

Giulio Tremonti, Chairman, Goldman Sachs International

both are current BILDERBURG MEMBERS

Walter Wriston (1964, 1966), former Chairman, Citibank,is a BILDERBURG MEMBER

Council of Foreign Relations (CFR)

BELOW the immediate American Government is the CFR....

Many Are BILDERBURG Group MEMBERS

Citigroup

Bank of America

JPMorgan Chase

all have representatives on the CFR

ITA, Elkann, John, Vice Chairman, Fiat S.p.A ,who has just taken over CHRYSLER is a BILDERBURG MEMBER

OBAMA GOVERNMENT.......................... BILDERBURG MEMBERS

MINISTRY OF PROPAGANDA

STATE DEPARTMENT ENVOY......................HENRY KISSINGER

STATE DEPARTMENT SPECIAL ENVOY....RICHARD.M.HAAAS

STATE DEPARTMENT SPECIAL ENVOY...RICHARD.C.HOLBROOKE

MINISTRY OF WAR

SECRETARY OF DEFENCE.........................ROBERT GATES

NATIONAL SECURITY ADVISOR....GENERAL JAMES.L.JONES

DIRECTOR OF NATIONAL SECURITY....ADMIRAL DENNIS.C.BLAIR

MINISTRY OF MONEY

PRESIDENTIAL ADVISOR.............................ALAN GREENSPAN

SECRETARY OF TREASURY.......................TIMOTHY GIETTNER

CHAIRMAN,ECONONMIC RECOVERY COMMISSION.....PAUL VOLKER

MINISTRY OF CONTROL

SECRETARY OF STATE.........................HILLARY CLINTON

DEPUTY SECRETARY OF STATE..........JAMES STIENBURG

Why can AMERICANS see what is right in front of them.

Obama is a BILDERBURG GROUP puppet

BILDERBURG GROUP is running your country and is responsible for your economic dissaster,helped by your government.

Obama seeks to block release of abuse photos

';This is not a situation in which the Pentagon has concealed or sought to justify inappropriate action,'; Obama said of the photos.

abruptly reversing his position

makes a mockery of President Obama's promise of transparency and accountability,'; said ACLU attorney Amrit Singh,

Human Rights Watch called the decision a blow to transparency and accountability

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Can a Mortgage Company hold your insurance check for the repair of your building?

2010-08-24T02:20:00.001-07:00

My building suffered damage with a hail storm. The insurance company sent me a check made out to the mortgage company and to me. Now the Mortgage company is holding the funds and I can't finish the repairs needed. My mortgage payments are up to date.Can a Mortgage Company hold your insurance check for the repair of your building?
Ask the mortgage company if they'll release the funds directly to your contractor.

OTOH, MOST contractors will do the work, and THEN let you pay . . .

But yes, they can do that.Can a Mortgage Company hold your insurance check for the repair of your building?
Yes, they can do that. They are holding the funds to insure that your building (THEIR collateral) is repaired as needed. You should be able to get a contractor with a letter from the mortgage firm indicating that the funds are available and will be released to the contractor and you when the work is completed as needed.

What is the best way to restructure a mortgage?

2010-08-24T02:20:00.000-07:00

I am helping my dad restructure 2 mortgages which are both 2-3 mo's late. What is the best way to do this? He tried himself in the past, but feels now that he is late, it is best to let a professional handle and negotiate for him. However, the co's all seem to charge fees upfront. He seems to think this is OK, however i am cautious. Does anyone know of a good site or co? Should we call a mortgage broker? Thanks for any advice.What is the best way to restructure a mortgage?
The odds of you lowering your principle are close to hell freezing over. It is not like interest, it is cold hard cash you had in your pocket. You are asking to keep it without earning it, free money. It isn't going to happen, so stop asking.

Concentrate on lowing the interest and increasing the term, they can do this without a loss of capital. You will have an easier time.

Also, each time you try you have to start all over. The every first thing you have to do when you talk to a work out rep is tell them you do not qualify for the Obama plan. Some of the banks computers close your request as soon as the conclusion of rejection is reached.

Another tip, learned from much frustration, is to keep your package together at all times. The banks tend to loose things in shuffling, or over look them, or whatever. Anyway, it is REALLY common for them to ask you to resend a document. It helps to send that document as page 1, but include all of the other ones too. This trick reallly helped me shorten the amount of time it takes to get this done.

Additionally, once you talk to someone who seems to know their a@@ from a hole in the ground get their name, and direct number. Kiss that a@@, becaue if they like you they will tend to help you. They are mostly young people, very susetptible to flttery. ';Oh it is so great to find someone who really knows how to get this done. I am so tired of talking to confused people. I am so glad to finally get ahold of you.'; blah blah blah. Sometimes you have to swallow your pride.What is the best way to restructure a mortgage?
Try again to DIY before calling a co. to do it for you.

Call the mortgage companies directly, explain your situation and let them provide some alternatives. If at all possible, speak to the same person at the mortgage company everytime.

If both mortgages are with the same bank, it'll be easier to work out something.

As screwy as it sounds, now that he's late, he has a better chance at modifying his notes than if he was on time.
There is nothing those loan modification companies can do for you that you cannot do yourself. It is certainly not too late. Start a dialogue with the lenders, KEEP NOTES of who you talked to, when, what was discussed, what you faxed and to what number, etc., etc., etc.. But definately start with the company(ies) that hold these notes.
When I did my modification I went through a company who worked very well with me. I was able to reduce my payment 300 a month and get caught up to date. There is a formula that needs to be used in order to get the approval If you have any more questions please feel free to contact me

What financial indicators are used to determine future mortgage interest rates?

2010-08-24T02:19:00.003-07:00

I want to know if the rates are going to go down and if so prove it!What financial indicators are used to determine future mortgage interest rates?
Watch the 10 year US Treasury Bond and LIBOR rate.

Most mortgages are tied to one of these two. As bond prices change daily, so do interest rates.

Daily Treasury Yield Curve Rates

http://www.ustreas.gov/offices/domestic-鈥?/a>

LIBOR

http://www.bankrate.com/rates/interest-r鈥?/a>

What is LIBOR

http://www.investopedia.com/terms/l/libo鈥?/a>

How Do Bonds Affect Mortgage Interest Rates?

http://useconomy.about.com/od/bondsfaq/f鈥?/a>

Mortgage Rates Jump: 6 Things You Need to Know

http://www.usnews.com/blogs/the-home-fro鈥?/a>

edit:

Note the FED does NOT lend money to the Federal gov. The US gov sells US Treasuries in the public market to borrow money.

About the FED

http://www.federalreserve.gov/pf/pf.htmWhat financial indicators are used to determine future mortgage interest rates?
Based on the rates charged by the Federal Reserve Bank to the Federal Government for all the money printed and loaned to them.

The more money printed, the less value of the dollar and they increase interest in order to make up the loss in value.

If the dollar buys less today than it did yesterday, interest increases enough to to cover the difference.

It's like asking for a raise because living cost increased. If you don't get the raise, you have to live on less.

The Federal Reserve Bank doesn't do that. They have the power to get their raise.

Mortgage Interest has risen by 1% since a year ago.

I expect it to increase as government spending increases.

How do I dissolve debt or get my mortgage payment lowered with a poor credit score to avoid bankruptcy?

2010-08-24T02:19:00.002-07:00

My husband's employer of 17 years chose to restructure the company. He is now pursuing a new trade entirely. Is there any grants or other money available for his new business and our family finances during this transition? Our debt to income is totally out of whack and we need help!How do I dissolve debt or get my mortgage payment lowered with a poor credit score to avoid bankruptcy?
Your Husband should look into an SBA Loan (Small Business Administration). If you have a house to use as collateral, that might make getting a loan easier, but he will have to draft a business plan. Have him speak with a loan officer at a local bank about his options.

Why does mortgage prepayment at a lower rate carry a prepayment risk for the lender?

2010-08-24T02:19:00.001-07:00

I understand that the principal prepaid must be reinvested at a lower rate. Does this mean that the borrower can refinance his debt at a lower cost and hence pays off his more expensive debt?Why does mortgage prepayment at a lower rate carry a prepayment risk for the lender?
Not sure what your question is here, so here's an illustration of the prepayment risk situation. We'll oversimplify this a little, but this should get the point across:

Suppose I lent you $250,000 at an 8% interest rate to buy a house. Next week, interest rates go down to something like 5%, and you have an unpaid balance of $225,000 on your house. You go borrow $225,000 from someone else at a rate of 5% and use the money to clear out our loan. The money I thought I had locked in at 8% is returned to me immediately and I have to go out and look for someplace else to invest it, probably at around 5% this time.Why does mortgage prepayment at a lower rate carry a prepayment risk for the lender?
also any cc debt u rollover can be used as a tax ded
Hi,

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How can I get out of my home mortgage loan?

2010-08-24T02:19:00.000-07:00

Me and my fiance bought a home, now his family is residing with us temporarily. It has been a year, the loan is in both our names. How can I get out of it? I has been only 3 months since we bought the home.How can I get out of my home mortgage loan?
You can't 'get out of a mortgage'. You agreed to a contract with a lender, and you are expected to honor the contract.

The only solution is sale of the property to terminate the mortgage, or refinance without YOUR name on it. This will take the cooperation of your fiance, of course.How can I get out of my home mortgage loan?
If you rec the loan based on your credit score, there's no getting out of it short of selling the home to someone else or having the loan rewritten by the bank formally to remove your name.

key word is formally
He would have to refinance the house under his name only. Otherwise, you are legally obligated to pay the mortgage.

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What is the procedure for taking over a mortgage after a quit claim?

2010-08-24T02:18:00.003-07:00

A relative going through a bad divorce just needs to get out from under the property. I'm ignorant on the subject and need to do something quickly.What is the procedure for taking over a mortgage after a quit claim?
get a solicitor to draw up the required paperworkWhat is the procedure for taking over a mortgage after a quit claim?
The mortgage usually has a due on sale clause that will be triggered here. You can't just take over a mortgage unless it is assumable.

Best thing to do is get a change of address form and have it sent to you, start making payments with money orders and wait for the letter that says the full amount is due if you don't want to tell them. Work on qualifying for another loan if this is your plan of action, they will find out eventually most likely, although getting the money is of course their number one goal.

If you do want to tell them then call them up and see if you can qualify to assume it. Just because its not assumable doesnt mean they can't let you. It's their loan, they can do whatever they want. They may just want you to sign papers for a new loan in which case you will pay closing costs again and might be better off shopping around for the best deal.

You probably want to contact a lawyer for the best method and a cpa for tax advice for your particular situation. They will answer a few questions for free before they start charging you.

What do mortgage lenders look at when deciding to qualify you?

2010-08-24T02:18:00.002-07:00

We want to start taking the steps to first time home ownership but I'm curious, what do mortgage lenders look at when deciding to qualify you for a mortgage. I just want to make sure we get ourselves in order so that when its time to go to the bank we will be prepared and maybe improve our chances of getting a loan.What do mortgage lenders look at when deciding to qualify you?
1) your total debt payments / your total income before taxes

2) delinquent and past due account balances on credit report

3) cash balances in your checking, savings and investment accounts

4) FICO score

5) Collateral value of property you are buying (they get it appraised)

6) last year W-2's from your employersWhat do mortgage lenders look at when deciding to qualify you?
How do you buy delinquent mortgages ? I am not asking about how to buy real estate in foreclosure . I am asking as to whether there is a way to invest on buying the delinquent

mortgages . Thank you

for more info visit our website mortgage brokers, hard money lenders
Credit score

Debt-to-income ratio

Stable income/jobs

Down payment cannot be a gift (they will check your bank statements).

How does your credit rating affect getting a mortgage?

2010-08-24T02:18:00.001-07:00

My husband already has a mortgage and although his isnt great its better than mine, I have a very poor credit score with a ccj and a few defaults. I f we were to apply for a joint mortgage how would this affect the result?How does your credit rating affect getting a mortgage?
If you've got very poor credit, chances are you won't be approved. If you do, it will be with very unfavorable terms, high rate, etc.How does your credit rating affect getting a mortgage?
Because your questions is incomplete no one can really give you any sound advice without minimally the following questions answered;

Why do you want a new mortgage?

Why is his credit not great?

Will it be for a primary residence?

Has his present mortgage payments been on time for the past 12 months?

What type of mortgage does he have now?

Can you prove your income?
Emmas is right you will need 20% down.

Also with 20% you will avoid that nasty PMI, which can cost thousands a year that is not tax deductible, and does not apply towards principal or interest.

If you are buying a home you want it under both of your names. If he finds a ho 10 years down the road it will be easier to say the home is 1/2 yours.

/
I think you have put at least 20% down now, so even you have a credit rating you still have put down 20% of property's value as the banks aren't lending! Thanks to their monumental stupidity in causing this financial fiasco!

Good luckxx
don,t ------ keep as you are,high premiums,and probably would get turned down straight away.

What documents do I need to apply for mortgage restructure from my bank?

2010-08-24T02:18:00.000-07:00

I am in the process of preparing to take advantage of the $400B home owner rescue package that will be signed by President soon. I need to apply to my mortgage company for restructure of my mortgage to lower my payments. What documents do I need to prepare? I hear of a budget that needs to be prepared. What details must this budget include?What documents do I need to apply for mortgage restructure from my bank?
I have been getting help with that quesiton at loansafe.org

The site has information on what you need to do as well as contacts to different banks/mortgage companies. They are with you when ever you have a question and there are success stories there and people are willing to help and answer questions and point you in the right direction.

Hope this helps I am in the process of trying to do a loan modification as we speak. Been at it a week now but sometimes it takes longer. They say you have to be patient.

But get your hardship letter ready (sample are on that site)

Financial budget. With 150 to 200 left. Pay stubs, bank statements etc. Good luck

How do I write a letter to a mortgage loan company explaining bad credit and late payments?

2010-08-24T02:17:00.002-07:00

I am trying to apply for a mortgage loan to get a house. I just got out of the military and was deployed for 3 of the 4 years and sometimes I didn't pay bills. How do I explain that. I have already started to pay bills off and fix my credit. How do I write a letter to a mortgage loan company explaining bad credit and late payments?
I don't know if it will help to give them reasons you didn't always pay. If you think it will help explain that you couldn't get your mail out due to being in a war. If you didn't have a support system at home like parents that could handle your accounts while you were deployed explain why.

You may have to wait to buy a home until you have good credit and are out of debt.How do I write a letter to a mortgage loan company explaining bad credit and late payments?
It will not help. They look at the credit report and score and go from that. The best thing you can do is get caught up on everything and join a credit union. In a couple of years, you should be in a position to get a mortgage.
Explain you were deployed when all of the late payments took place. Whether or not this will help I don't know, but that is your best course of action.

What are the penalities for lying on a mortgage application?

2010-08-24T02:17:00.001-07:00

I'd like to get a mortgage but I owned a rattlesnake once. What kind of trouble will I get in for lying on a mortgage application to cover this fact up?? Might it be okay if I say I owned one before I was 22 if they can't prove when I had the snake?What are the penalities for lying on a mortgage application?
YOU NEED TO CALL THIS TELEPHONE NUMBER 1-800-GET-OFFCRACKWhat are the penalities for lying on a mortgage application?
that's real smart,,,,,,good impression of yourself
Why is a mortgage app asking you abou rattlesnakes? This isn't even a relevant question!

engine oil

lips

Can a mortgage company add contingencies after a loan commitment is signed?

2010-08-24T02:17:00.000-07:00

I have a signed loan commitment from the bank with a contingency addendum - can the bank add to that addendum after the commitment papers have been signed?Can a mortgage company add contingencies after a loan commitment is signed?
';Loan committment'; is not what it sounds. The only ';committment'; will be the NOTE and DEED. These are the ';docs'; when the lender has agreed to lend you the $ on certain terms.

If the lender is changing the terms (more $ down, lots of documentation, letters of explanation, etc) you don't fit that loan program's guidelines.

There are lots of loan programs, and lenders. They each have their own rules, so that is why it is valuable to use a mortgage broker... who can shop your scenario with lots of lenders to find the right fit.

It might be time to move on to another lender... there are lots of houses out there too! Maybe you can get a better deal elsewhere.

Best of luck!Can a mortgage company add contingencies after a loan commitment is signed?
Yes. Banks have standard practices and, if they accidentally left it out of yours, they can come back later and add an addendum.

Sellers can do that, too. I put an offer on a condo that was accepted. And, the next day, my agent informed me that the selling agent had an addendum stating that, while they would pay for a termite inspection, they would not do any of the required type 1 repairs. These are repairs to the exterior of the building caused by wood destroying pests or dryrot. Since this is a condo, that's the responsibility of the HOA, anyway. So, I agreed to the addendum, because it was just something that was standard for a condo sale that they overlooked on the sales contract.

At this point, you have the option of either signing the addendum or going with a different lender. But, another lender might put the addendum stipulations in the original contract anyway, depending on what they are.
Sometimes conditions make conditions. Maybe they said they needed a bank statement. You gave them the bank statement %26amp; there were NSF's on there or not enough money to close. That would precipitate another condition.
It depends....what are the contingencies? Do you mean things like ';you can get the loan but to get the loan you need to pay off X credit card';? If so, yes they can.

Can the mortgage banking industry regain its good reputation in the near future?

2010-08-24T02:16:00.003-07:00

Can confidence and trust be restored quickly after millions of foreclosures and ruining the credit of so many? Maybe people should not accept loans they cannot afford and learn it doesn't help to be sore losers.Can the mortgage banking industry regain its good reputation in the near future?
Depends on the type of reputation you are looking for. Either they really tighten up and make it very hard to borrow money and have a reputation of being really mean and only lending to the rich but being profitable and making good loans. or having a reputation of been great to work with and easy to get money loaned to you but having everyone defaulting and getting forclosed on and needing to be bailed out by the government. Think we just got done with the second senario... get ready for the first.... hope you all already have a house!Can the mortgage banking industry regain its good reputation in the near future?
For those that are affected, the mortage industry could do a better job of trying to help those in trouble. As it is, they dont. Loss mitigation can help those looking to save their homes. Not much in the news about it though.

Is it good to use a Mortgage broker Vs calling banks directly for a mortgage loan ?

2010-08-24T02:16:00.002-07:00

I am searching for best interest rate for home i am buying.

1) Is it always good to go with a mortgage broker ? or just call the banks directly ?

2) Will i save some money if i go with a bank directly instead of a broker ?

Any advice ?Is it good to use a Mortgage broker Vs calling banks directly for a mortgage loan ?
If you are looking for an REO (foreclosure), it's quite likely there will be some requirements of by whom a potential buyer must be pre-approved. They tend to frown on mortgage brokers and prefer a direct bank. It's not unusual to see a requirement that the buyer be pre-approved with ';Joe Smith'; from ';Wells Fargo'; at (phone number) or the offer will not be considered on a particular REO. If you are trying to go FHA, you need to work with an FHA-approved lender--of which Countrywide is one.

So end result -- depending on what you intend to buy and what type of program you need, it may be wiser to go with a big name bank. There's nothing wrong with a mortgage broker--in fact that's all I have used myself! You can be pre-approved by more than one entity though it will hit your credit each time, so don't shop the field too freely or it will impact your credit score.Is it good to use a Mortgage broker Vs calling banks directly for a mortgage loan ?
It takes more work and diligence to do it yourself, but it will usually turn out cheaper for you to do it yourself, since the mortgage broker gets paid out of the proceeds from the loan origination fee, which can usually be avoided by working directly with the bank. You need to make sure that if you do it yourself, you set aside a day to call the banks so you compare their rates in almost real time. Waiting a day may see a rate change that skews your results (if you call a bank one day and they quote say 5% and then another bank the next day and they quote 4.75%, if there was a rate drop overnight, you can't compare the 5% to the 4.75, you'd have to call the first bank back).
Call me biased, but I would say use a mortgage broker...but make sure you get a Good Faith Estimate. I have seen other posts where people have said ';Don't use a Mortgage Broker because you have to pay an origination fee';. That is not always the case. In fact, I am a licensed Mortgage Broker in four states and I do not charge an origination fee. I only charge a $225 processing fee and $175 Admin. Fee....no origination, no buydown points. A bank can, and typically does charge an origination fee AND offers you an interest rate that you have to pay extra money to get (buydown points). Again, it is a case by case situation. Know what you want and know what to demand when you walk into a Broker's office. If they will not do what you want, go to someone else. Going to a retail office like Wells Fargo or Countrywide is fine and dandy, but I guarantee you will have to pay some origination or buydown points and your rate will be higher BECAUSE it is retail, not wholesale rates (which is what a Mortgage Broker gets). Also, Mortgage Brokers must be licensed and when you go to places like Countrywide or Wells Fargo (just as an example), which are most likely retail branches, you deal with a Loan Originator who has no licensing nor are required to pass any state exams or have to go to Mortgage Broker school like a Licensed Mortgage Broker has to.

How are mortgage loans the root cause of the rising number of bank failures.?

2010-08-24T02:16:00.001-07:00

I don't understand! If a bank lends the home buyer money to purchase a home and the purchaser makes payments for some period of time but ultimately has to default on the loan, doesn't the bank make money? It receives the payments, forecloses on the home and can then resell the home to another buyer. If the market is depressed, can't the bank retain the home as an asset until the market returns to normal? So, if these statements are true, how can the bank blame loan defaults as the cause of the failure?How are mortgage loans the root cause of the rising number of bank failures.?
Since your statements are NOT true, your whole premise falls apart.

If the bank lends $80,000 on a home and the buyer makes payments for a few years, no they haven't paid back anywhere near the amount they borrowed, so the bank loses money if they can't sell the home for what's still owed and that's often the case. And the bank's business is lending money, not holding real estate for years hoping it will go back up to what someone owed on it when they quit paying. And you're forgetting that for that time the bank would have their money tied up in that house.

On some foreclosures the bank might make money, but in the falling housing market the last few years, typically it's been a loss. Many loans were given to people who couldn't afford them in the first place. This is partially the fault of the buyers, partially the lenders who should have known better than to make these loans, and partially the fault of the government who strongly encouraged the lenders to make marginal loans.

What happens if they company you have a mortgage through goes bankrupt?

2010-08-24T02:16:00.000-07:00

If you have a loan in good standing, is there any possible concern if the lending company goes belly up?What happens if they company you have a mortgage through goes bankrupt?
no if a mortgage co goes out of business they sell their loans to another lender so you will receive info from the new lending institutionWhat happens if they company you have a mortgage through goes bankrupt?
Your loan will be sold to someone else.
That's a good question. It depends who the loan servicer was/is. Read the link below about one lender who has no idea who owns 490,000 loans sitting in a warehouse.

http://www.bloggingstocks.com/2008/02/11鈥?/a>
Mortgages are still valuable so they will be bundled up and sold off to another company.

What should be the ratio of income to mortgage loan amount to make sure I am approved?

2010-08-24T02:15:00.003-07:00

I am looking at buying a property for 180,000. This is my first home and I can put down only 5-10%. My salary is 55,000 per year and I have a small business online that generates 20,000 per year. The property is a 5 unit apartment complex with all units currently rented and producing 2380 in monthly income currently. The total costs involved in the property if I were to own it would be 2000 per month. Should I get approved for the loan?

I have good credit but I am not sure what the rule of thumb is for a mortgage loan amount and its ratio to my income. Anybody with home buying experience that can give me some insight?What should be the ratio of income to mortgage loan amount to make sure I am approved?
Typically lenders want to see your mortgage payment no more than 28% of gross income and total debt service of less than 35% of gross income. Generally a lender will look at a 5-unit building as an investment, not a home, even if you are living there. This will tend to tighten the lending criteria and raise the interest rates a bit.

Self-employment income generally isn't considered until you can prove 2 or more years of regular income from the business.What should be the ratio of income to mortgage loan amount to make sure I am approved?
hello, here's an easy

link with info and offers on mortgages:

http://finance.ebookorama.com/

also perhaps here:

http://credit.ebookorama.com

http://credit-repair.ebookorama.com

http://credit-cards.ebookorama.com

if you get any luck please don't forget about me lol, hope it helped you, thanks!
depends on the type of loan you are getting, Va, Conventional, FHA
the ratio is 70/30. only 30 percent of your income can be going out in bills.
Well if your under 40% DTI which is debt to income then well your pritty much set but if your not its ok it realy depends on the type of loan your going to qualify for. If you dont have the income there plenty of other ways of qualifying for a loan. You could go stated or stated/stated. Well then if you have any other questions go ahead and email me at banconeroman2@yahoo.com
Getting approval on loan give you a good guideline on how much you can afford. Personally, I would like to get approval from a bank as well as a mortgage broker. You will be surprised the difference between the 2 loan amount approved.

30/70 is a good ratio to use, but it still come down to how comfortable you are with the monthly payment. Because of an increased the variety of loan available, borrower can now assume a much bigger loan then before.

Hope this helps.

engine oil

lips

Can a mortgage company take your tax returns?

2010-08-24T02:15:00.002-07:00

I had to move from one state to another. I have been trying to sell my old house for about a year. Finally I am going to have to do a short sell (I have a couple offers to pay less than what I owe on the home). I should probably get some money back on my tax returns and would like to use it to pay off the large credit card balances I have acquired over this period of time. Can the mortgage company seize any returns I may get because I am having to do a short sell?Can a mortgage company take your tax returns?
No, I do short sales for a living. They cannot take their tax refunds.

Also, because of the holidays I have not read up on it completely, but President Bush just signed a law taking away the tax burden on the balance owed after the sale. Make sure you do your sale in such a way as to comply with this law.Can a mortgage company take your tax returns?
No, but the government can for back taxes owed on the property.
They can't take your refund directly thru the IRS, but if they get a judgement against you for the balance, they could grab the money out of your checking account once it hits there.
No. If the lender agrees to a short payoff, and does not, for some reason, agree to waive the remainder of the note balance (say such as the loan NOT being a non-recourse loan), then they would have to proceed with a civil lawsuit to get a judgment in court for the shortfall, and only after they obtained such a court judgment could they execute the judgment and seize other assets, such as a tax refund.
I don't think he's necessarily going to qualify for the Bush relief plan.

Foreclosure after 1/1/2007 (yes)

Amount owed less than $1M (probably yes)

Amount owed was the original mortgage (probably yes)

Primary residence...maybe yes, maybe no.

The reference for primary residence is section 121--which is the live in it for 2 years of last 5 years ending on date of sale.
The mortgage company cant exactly seize your return. If you default on your mortgage and they get a judgement against you they can look to seize your assets. If you place your refund in a bank acount, its fair game for them to attach. They way around this would be to cash the refund check and pay the credit cards with money orders.
No they can't seize your tax return. Call the lender and see if you can negotiate with them to settle for a lower payoff. At best let them know the situation and maybe they'll agree to work out low rate, payment plan for the balance.
Tax refunds cannot be offset for private debts. Federal and state taxes owed, back child support, and defaulted student loans are the only things tax refunds can be offset for.

Where can I find information about the russian mortgage market?

2010-08-24T02:15:00.001-07:00

Stuff like the market attractiveness, size, growth rates and what is making it grow.Where can I find information about the russian mortgage market?
The Russian Federation is at the present time 12 years into a radical process of privatization and democratization, begun in 1991 following the collapse of the Soviet Union. The process has had many challenges, as might be expected, in no small part due to a lack of prior history with private property and democracy. The Russian government remains today deeply committed to this process, despite setbacks that include the default on government bonds in 1998.

A central component to this process of privatization is the development of a private housing market supported by a private mortgage market. President Putin has a goal of doubling the Russian GDP in ten years, and is on the way to achieving this, with GDP growth at five to seven per cent per year for the last several years. Housing is a central part of the plan for economic growth, as well as critical to meeting the severe housing shortage in the country. An active mortgage market is a key component of a growing private housing industry. For this reason, the Russian Chamber of Accounts (a new government department filling the role played in the U.S. of the Congressional Budget Office and the General Accounting Office) requested the U.S. Treasury, as part of its program of technical assistance, to send a delegation to Moscow to train federal, regional and local officials on the U.S. housing finance system. There was particular interest in how the U.S. government supports, intervenes in, and oversees this market, and in the U.S. secondary mortgage market.

Prior to 1991, virtually all housing in the Soviet Union was built, managed and owned by Gostroi, a department of the Soviet Government roughly equivalent to the U.S. Department of Housing and Development, but with far more scope and power. Virtually all housing built by Gostroi was high-rise concrete apartments, generally in urban areas. Families were allocated the right to occupy units for minimal rent, but with no rights of ownership (although many families in cities like Moscow effectively owned small dachas in the countryside). Following the collapse of the Soviet Union, the new government of the Russian Federation transferred ';ownership'; of most of these apartments to the current residents of each unit. The word ';ownership'; is in quotations because the concept of private property, and the legal structure to support this, is still evolving in Russia. One result of this transfer is that the rate of homeownership in Russia today is 68 percent, roughly the same as in the U.S. As one senior government official joked, ';At last we have caught up to the U.S. in something!';

Despite this high rate of ownership, housing is in short supply in Russia, and the existing housing suffers from years of deferred maintenance. Gostroi, the governments of various oblasts or regions, and district and local municipal governments are still developing and financing much of what new housing is being built at this time. There is, however, a small though growing group of private developers partnering with different government entities to develop private housing. Overall housing production, though increasing, remains slow. As a result, prices for apartments in Moscow and other major cities are rising rapidly. This is putting intense pressure on affordability, and only a small percentage of Russian citizens can afford new housing without heavy subsidies.

There was, of course, no mortgage market in Soviet times, as all housing was financed by the government and provided virtually free of charge. The Russian Federation, therefore, has had to build the entire infrastructure for mortgage finance from the ground up. They have studied the U.S. housing finance system as a successful model (with the assistance of a number of U.S. advisors representing the public and private sector.) The Russians, however, neither wish to nor can they copy the U.S. system exactly.

Many new laws have been adopted since, including such basics as the right to own property, the right to sell it, and the right to pledge it as security for a mortgage. In the last several years, the Federal Mortgage Agency has been created, along with mortgage agencies in a number of the oblasts, and mortgage or housing agencies at the district and municipal levels. Delta Credit, a private Russian/U.S. joint venture, has also begun creating a private mortgage market. Both the government agencies and Delta Credit work with a few private Russian banks, and some of the government agencies also issue mortgages directly.

Though mortgage money is still scarce in Russia, which is limiting housing construction, mortgages terms are evolving rapidly. In just a few years, the maximum length of a mortgage has been extended from five years to 20, and interest rates have fallen from the mid 20s to 15 percent. Other terms are also moving toward world standards, though loan-to-value ratios are still in the 50-percent range, requiring large cash downpayments. Mortgages have begun to be sold out of the primary market into a secondary market that is less than two years old. This process is hampered by a number of factors, including the absence of credit reporting agencies; and a lack of uniformity in documents, information gathering and reporting, and underwriting standards. It is impossible, therefore, for investors to assess the quality of the pools of mortgages being offered through the secondary market. This has limited investment in these pools, whether directly or through the purchase of mortgage-backed securities (MBSs) to government entities.

Plans are underway to allow government pension funds to invest in MBSs, which will greatly expand funds available for the mortgage system. There are also plans to create a federal guarantee of mortgages and/or mortgage pools, which will do much to make these pools attractive investments for private capital.

The private banking system is, at the present time, still struggling from the aftermath of the 1998 government default. Most Russian banks failed then, and with no deposit insurance, depositors lost all their savings. Deposit insurance is being considered but has not been created yet, and so few Russians are putting funds into Russian banks. This has limited the role of private banks to acting as mortgage brokers, forcing them to await the recent creation of a secondary market to issue mortgages.

Russia, always a country of profound contrasts, is climbing out of 70 years of economic devastation - what is euphemistically referred to as the Soviet ';experiment.'; Conditions are very difficult for many people, but in Moscow there is a growing and vibrant middle class full of young entrepreneurs and dedicated government employees. There is a hunger to join the world economic system, and enjoy the full benefits of a capitalistic system, even though many among the older or more rural populations are being cruelly left behind.

The hand of the Soviet past is everywhere to be seen, not least in the fears many have of private property and its implications. For instance, a critical aspect of a mortgage is the ability to foreclose in the event of non-payment, and to evict鈥攆orcibly if necessary鈥攖he former owners. The new land code passed last year now for the first time does make such evictions legal鈥攁 family could not be evicted from their apartment in Soviet times鈥攂ut, and this is still a big ';but,'; there is as yet no mechanism by which to enforce an eviction. In fact, as plans for a return visit to the U.S. were discussed, Russian officials specifically requested to meet with the U.S. Marshall Service to understand how evictions are conducted in the U.S.

Despite the challenges ahead for the Russian housing and mortgage system, an extraordinary amount of progress has been made. In only 12 years, the Russians have put in place the basics of a system that took the U.S. 50 years to develop. Given the energy being put into the continuing development of this system, it could be only a few more years before Russia has a world-class mortgage finance system. Then, if the Russian economy continues its rapid growth鈥攚hich, given the vast natural resources Russia holds, is a reasonable prospect鈥攖he housing system itself will also expand. Nothing is certain in Russia, but the opportunities are great, and it is a market worth watching closely in the years ahead.

What is the formula to calculate my monthly mortgage payment?

2010-08-24T02:15:00.000-07:00

I would like to show a table with all my months and the amount due.

Loan = 138000

Interest 5.5

Months 360

Thanks very much!What is the formula to calculate my monthly mortgage payment?
It's $783.55 a month. Here's a mortgage calculator to play with: http://www.mortgage-net.com/calculators/鈥?/a>What is the formula to calculate my monthly mortgage payment?
If this is Interest Only, then the formula for the monthly payments is simple:

Loan / 12 / 100 X Interest

Breaking down Capital and Interest is more complicated, and you need a mortgage Key Facts Illustration (KFI), or a specialised calculator to work out the payments.

As it happens, I'm a mortgage advisor, and using my special resources ;), I can tell you the repayment option would cost you 拢783.55 a month.
$783 a month. This does not include taxes, homeowners insurance or possible PMI%26gt;
http://www.mortgage-calc.com/mortgage/si鈥?/a>

Would my mortgage holder be more willing to work with a loan modification if home is valued less than owed?

2010-08-24T02:14:00.003-07:00

My homes value has dropped significantly with all the foreclosures in my area. Appraised at just 68,000! I owe 178,000! Would my mortgage company be more willing to help me stay in my home buy making my payments more affordable than to add one more forclosure to the LONG list in my area? To me...It would benefit them to help me stay in a home I have been living in for that last 13 years.Would my mortgage holder be more willing to work with a loan modification if home is valued less than owed?
No. It makes them less likely and less able to help you. Loan modifications only reduce payments, they don't change the principal owed. Since you are so far underwater, they know that you are more likely to default than other people they could help.

Plus your mortgage payment will have to exceed 31% of your gross monthly income for them to even talk to you.

good luck!Would my mortgage holder be more willing to work with a loan modification if home is valued less than owed?
At a 5,000 foot level I agree with you. Loan modifications also are based on payment history and ability to continue paying. Banks are more willing to work with folks who are struggling than folks who look like they have given up. If you have been making payments or attempting to and you have a decent cash flow, they should be very encouraged to work with you on a modification.

Just know, that the owed amount will increase even if your payments decrease. Can you live with that? If so, give it a go.
Of course they are better off working it out than taking that kind of loss, but it comes down to figuring out what the problem is and whether or not a modification can result in a long term affordable solution for you.

On the other hand, for some lenders foreclosure is just a cost of doing business.

Contact your servicer to discuss your options.
you will not know until you ask. Prepare your case to present to the lender with comps and stats from your immediate area.

Getting a mortgage after foreclosure takes three years, but from what date does that start?

2010-08-24T02:14:00.002-07:00

Do the mortgage companies want to see three years from the sheriff sale date or from when the sixth month redemption period ends. I live in Michigan.Getting a mortgage after foreclosure takes three years, but from what date does that start?
The day the bank took ownership of the home.Getting a mortgage after foreclosure takes three years, but from what date does that start?
It really depends on whether you have recovered enough to make a decent and large sum downpayment.

If you are talking about normal mortgages wherein you have 20% or less downpayment, the date starts ticking when the foreclosure is finalized (account is closed out, house is sold). Your credit rating must also recover by making sure you make payments on time with your other credit instruments like credit cards, etc. For more information on foreclosures, I highly suggest reading a book (see reference material below).
AT LEAST THREE YEARS.

From foreclosure date.

But you will need Excellent Credit, Low Debt ratio, stable employment, adequate income, and sufficient down payment. Because of your past history, they want to be sure you have CHANGED your ways and are a better money manager than you were. There are NO more 100% mortgages, so you need 3.5-5% FHA, 10%conventional, Minimums, down payment. So the higher your down payment and the higher your credit rating, the better your chances of obtaining a mortgage after at least 3 years (often 5 yrs).

You can make plans for your future and make this happen!
It does depend on the lenders. There is lenders out their that will deal with you days after a foreclosure. They will require a larger down payment and a higher interest rate but it does give you that option to prove yourself once again.

Hope this helps

Good Luck in your Search
There is no 'firm time limit' as you seem to assume. Depending on the mortgage lender, the time frame can vary from ABOUT three years (on the low side) to five years or more. When you hear that can you buy a house in three years after a foreclosure, that's nothing but a guess.
I would be more than happy to help you obtain your mortgage.

I am a mortgage broker. Email me, and let's discuss your loan options!

MSmith@PrecisionFundingUSA.com

M

I am on line now!

Can a homeowner cancel interest on a 30yr mortgage and Pay off a 30yr in 10yrs?

2010-08-24T02:14:00.001-07:00

Can the average (';Bear';) person reverse the banks interest? (the banks interest is your monie$) Can you Build equity with creative financing?Can a homeowner cancel interest on a 30yr mortgage and Pay off a 30yr in 10yrs?
1. Get an amortization schedule from your lender. If the payments are monthly then the schedule should have 360 lines to it.

2. Make sure the mortgage doesn't have a prepayment penalty.

3. Each line is broken down by Principal, Interest, anything else.

4. Let's assume you are going to make the very first payment on the mortgage. Write out a check for the first payment (PITI).

Go to the second payment line and look at the principal amount only. Write a check for

the principal portion of the monthly payment. In the memo section of your check write ';principal reduction';. record the check#'s on the respective lines of the amortization schedule. Mail the payments. The reason for writing ';principal reduction'; on the check is to tell the lender the extra payment is NOT for tax escrow.

You can make as many principal reductions as you feel comfortable with. However a regular monthly payment(PITI) is still due. If this was done regularly a 30 year loan could be paid off in 15 years. If 2 extra principal payments were made a 30 year loan would be paid off in 10 years.Can a homeowner cancel interest on a 30yr mortgage and Pay off a 30yr in 10yrs?
I've seen several people pay of their 30 yr. mortgage in half the time without re-fi or bi-weekly. They didn't even send in hundreds of extra dollars. They kept the same monthly mortgage payment.

http://moneymergeaccount.com/getinfo

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If you have an open end mortgage, you can pay it down any time , The best way to keep record how much extra you're paying monthly is to request an amortization from your mortgage co. On the first half of a 30 year mortgage you usually pay 70% in interest. That's how they make their money.
No and no.
I know you can pay your mortgage company bi-weekly instead of monthly and shave off about 15 years. So if your monthly payment is $1,000 send them 500.00 every two weeks. Make sure your mortgage company allows this, or the extra money will be taken off interest instead of principle. Research this on the internet to explain.

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How do you shop around for the best mortgage rates?

2010-08-24T02:14:00.000-07:00

Our realtor suggested we speak with the woman in her office who does mortgages. Other people are telling me to shop around. How can we do this without it effecting our credit scores? Won't our scores drop if we apply with several banks and they need to check our information?

Also, how do we know what lenders to seek out for the best rates?How do you shop around for the best mortgage rates?
You don't need to apply to different banks to find out their rates. If you know your credit score, then you can get a fair idea before they do any kind of credit check.

Look at sites like bankrate.com. lendingtree.com to get comparisons.

ETA: I was always told that having 3 or 4 credit inquiries in a short space of time wouldn't really hurt you. Although your score might drop a few points, the companies expect you to be shopping around for the best deal, so it's not like you are applying for 20 credit cards at once, or anything like that.How do you shop around for the best mortgage rates?
You can shop around without applying for a loan. Supposedly, any credit checks within about 2 weeks for the same purpose, such as a mortgage or auto loan, doesn't affect your score much. I am not sure that is accurate from personal experience. But that is the what they tell us. I would pull your own credit report and score. Based upon what is on your file I would start calling mortgage companies. You may want to contact a mortgage broker and let them shop your loan. Sometimes they can find a better deal than you could do on your own. You could still shop around. One thing to check are the points and add on's that these lenders can charge. Most lenders who make a loan will turn around and sell it to another bank or mortgage company.
Don't forget to check your credit unions.

You can also go to federal credit unions or military unions.

It seems like they carry the very best rates.

The realtor is making a referral commision. Don't trust the realtor too much. She does not have your best interest at heart.

Do all your applications in a 3 week window - I read somewhere that they will be lumped together and not affect your score.

/
Get a lawyer to help with the mortgage and interest Right now interest is 4.75. The rate should be going down because of the economy

What differences are there between a regular mortgage loan and a contruction loan?

2010-08-24T02:13:00.002-07:00

For example, are the interest rates comparable? Would it be harder to get a construction loan?What differences are there between a regular mortgage loan and a contruction loan?
ok a construction loan is different because you only pay on the interest on the money that is out in other words for the first few months they are slowly taking out money to build the house so you dont get charged for the full amount until the house is completed. the loan on a construction loan once complete and a certificate for occupancy has been issued after final inspection by county building inspectors. once you sign final paperwork your loan converts to a mortgage for whatever terms you agreed to.

a regular mortgage once you sing final paperwork at closing you are paying interest on the full amount of the loan.What differences are there between a regular mortgage loan and a contruction loan?
Usually it's building contractors who get 'construction loans' with their contract with the client as collateral. Often these are sought for each phase of a big project as it progresses. A mortgage loan is generally what you get when you purchase an already built house, and the house is the collateral. In both cases, if the contractor or homeowner defaults on a loan, the lender gets either the house [the built one] or the in-progress project for whatever they can take of it. Interest rates vary by region, by type of loan, what the down-payment was, who the borrower is and what their credit record is like, what their income is from employment, and in the case of building contractors, what their business reputation has been [prior loans paid off, size of projects worked, etc.]. Hope this helps...?
A regular mortgage would be a lump sum on an existing home that is already constructed. A construction loan is a large line of credit to where you can write out checks to contractors as the home is being constructed. Once you complete building, you will have to convert the construction loan into a permanant loan. Rates are usually a little higher on construction loans because they are not designed to be long term.

How can I learn the mortgage broker business without working for a mortgage company ?

2010-08-24T02:13:00.001-07:00

I am interested in obtaining a mortgage broker license and would like to start a business from home. I would like to find someone who can teach me the business or find out how I can learn the business, so that I don't have to work for a mortgage company.How can I learn the mortgage broker business without working for a mortgage company ?
I belong to a company thatwrites loans in 47 states. I am an indepemdent loan officer. You can view my site at

http://www.nlcofhollywood.com/jgottschal鈥?/a>

It sounds as though this may be what yur looking for.

Good LuckHow can I learn the mortgage broker business without working for a mortgage company ?
Just go for www.basetrader.com .It provides an excellent advice
I AM HEAR DEAR

If mortgage loan payments are discharged in a chapter 7 bankruptcy are they still allowed to bill you?

2010-08-24T02:13:00.000-07:00

We filed bankruptcy and the trustee discharged everything. We were not in forclosure when we filed, we were told we could keep our home and now the bank is demanding 20,000.00 in arears which is not even correct and filed a notice of default on our property. Is there anything we can do to stop this?If mortgage loan payments are discharged in a chapter 7 bankruptcy are they still allowed to bill you?
I am very sorry to hear that you are in your current unfortunate situation.

When you filed Chapter 7 bankruptcy, while you are allowed to keep your property, you do have to remain current. You are given the option to either reaffirm the debt, remain current, or surrender the property. A Chapter 7 discharge can make your secured debt liability go away, however not if you plan to keep the property.

If you move out of your home, because your home's debt was included in bankruptcy, your lender cannot come after you legally for the money that you ';owe'; them. However, you are still in the home. Because you have retained secured property, the lender does have the legal right to enforce their lien and enforce their rights up to and including foreclosure.

Because you did not reaffirm the debt you can walk away and owe nothing. Your Statement of Intent most likely stated that you would remain current, which you have not done. Therefore, at this time you do owe the lender whatever amount they are claiming you are in arrears to avoid foreclosure. You will need to pay this or refinance your home.

Another option is your attorney does have the ability to reopen your bankruptcy case. Your attorney could reopen your case and convert the case to a Chapter 13. This would then make you liable for the unsecured debt that you discharged in the Chapter 7 and you would need to work with the attorney to draft an acceptable three to five year repayment plan.

Best of luck!If mortgage loan payments are discharged in a chapter 7 bankruptcy are they still allowed to bill you?
You need to get a copy of the final order of the court and review it. I don't believe your mortgage just went away and you kept the house.
We did 7 bankrupcy just before they changed the laws so I am not sure how they are now... but 4 years ago we had to resign our loan on the house (reaffirm our debt) with the mortgage company --- or give it up. And through out our whole bankrupcy procedure we had to keep making payments on the house through out the whole process.
It takes three to five months for a debtor to be completely discharged. Has it been that long?
A chapter 7 will not get rid of your mortgage payments at all. When you file a chapter 7, you have to be current on your mortgage payments, or the mortgage company will not reaffirm your loan. Then, you have to continue making your payments.

Will mortgage companies come after the lender in the event of a foreclosure?

2010-08-24T02:12:00.003-07:00

If I foreclose on rental properties, will the lender always come after me? Due to the downturn in the marketplace, I am struggling to make payments. What are my options?Will mortgage companies come after the lender in the event of a foreclosure?
Your question is confusing.

Let's get the players straight.

The mortgage company is the lender. If you borrow $100,000 to buy a house, you're borrowing from the lender. That's the mortgage company. For example: Washington Mutual or Countrywide. They lend/lent money.

The person who receives the money is the borrower. If the borrower fails to repay the mortgage, then the mortgage company forecloses on the borrower.

And, yes, in the event of a foreclosure, the lender/mortgage company comes after the borrower.

The only way you could foreclose on properties is if you'd lent other people money. Maybe you owned properties, and you sold them, taking back the financing. If the people you sold the properties to didn't repay, then you'd foreclose on them. You'd be going after the borrowers.

If you're having difficulty making payments, you can ask the lender to restructure your loan. Or you can ask for forebearance. If those don't work, you can attempt to sell the properties. If you're ';upside down,'; owing more than the properties are worth, you can attempt a short sale. You can ask the lender if they'll accept the deed in lieu of foreclosure. (Some will. Most won't.) If that doesn't work, you might be able to postpone the inevitable by filing for bankruptcy. The final step is foreclosure.

Check with a good lawyer for more details.Will mortgage companies come after the lender in the event of a foreclosure?
Without any doubt, your leder can take your property for faiure of payment.

Depending on your state laws, you may have additional options. In some states, the lender can repossess your property with a simple overnight. In other states a foreclosure court hearing and sheriff sale would take place.

If you are having problems making payments on a retal property, sounds like you are having some tenant issues. I can not say what that may be, but your resolution may be as simple as increasing rents to at least cover your mortgage payments.

Foreclosure is always a touchy subject, and stopping foreclosure should be your main concern; but it sounds like you are already on top of that :)

If rasing monthly rental prices does not solve the matter, you may want to turn to the lender. Depending on how upside down your mortgage is (how many payments you have missed), you may not be in the best of positins.

If you have not missed any payments, you lender may not even talk to you about any options to modify your loan. Reason being,that you are current on payments, so there is nothing to talk about.

By NO means should you stop paying your mortgage, I highly suggest consulting an attorney as well as calling you lender asap to see what you can do.

If you have no interest in being a landlord or simply just want to unload the property, there are tons of investors like myself who would be more than happy to help you stop foreclosure. If you are looking to avoid foreclosure and want to sell the propert, you can read up on my company at www.psusallc.com

There are many options out there to help you, but it really is a case-by-case situation.

Remember, if you do nothing to stop the foreclosure, nothing will change. Depending on how far into the foreclosure process you are, there may be time to stop the foreclosure.

Best of Luck!!!!
The Wall Street Journal had an article on this. The lenders have the right to come after you for any loss. None of the banks have done this. Too much time and effort and very little chance of getting any money from you.

But the banks are suffering and they think they might be able to recoup some money from court action. There is rumbling that they will come after you. So far it is still all talk and very little action..

Why are the Banks and mortgage companies crying about loses when all the home loans have mortgage insurance?

2010-08-24T02:12:00.002-07:00

I dont see why they have loses, its the insurance companies that are losing. The Bank collects on the default loan and have the houses too!Why are the Banks and mortgage companies crying about loses when all the home loans have mortgage insurance?
Actually, insurance companies have insurance. Ever hear of reinsurance? I know, it pissed me off to learn that as well. None of them are really losing which is why they keep getting richer. Did you know insurance takes about 12% of your net income? Auto, health, dental, life, unemployment, etc.

Also, the properties that don't have PMI are the ones where there is 20% I believe already paid up. That's why the PMI goes away since there is enough to recover from factoring in the house, insurance, etc., etc. It's a whole numbers game, but don't believe that the banks lose out. They've been practicing the art of banking for hundreds of years, you've been doing it for like ten? Whoever thinks the banks will lose on more than a tiny fraction of deals is in la la land.Why are the Banks and mortgage companies crying about loses when all the home loans have mortgage insurance?
Thats not true.
Many companies don't do PMI (private mortgage insurance) unless the borrower is an exceptionally bad risk.
I don't believe you have a clear picture of how mortgages work. Not all mortgages have PMI. The bank uses the property as collateral for the loan. When the property value goes down, it is possible that the loan amount exceeds the collateral value. There are costs involved in REO (bank owned) properties too.
That isn't true, which is why the insurance companies are not folding.
They have a house which has a mortgage on it that is more than what they can sell it for. This could be a 20, 30, 40,000 loss... Believe me, it's not a gold mine the lenders have. It's not profitable for them and they'd rather you make your payments so they can make the interest. http://www.choicefinance.net/
Many banks insure their own mortgages.

They make you pay for mortgage insurance, and add it to the bottom line.

When homes are going up in value, this is pure profit as no one in their right mind would let a home go back to the bank that just went up $50,000.

Hope this helps.

Terry S.

http://www.Welcome2Arizona.com

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Can I place the remaining mortgage payment on my existing home towards a mortgage on a new home?

2010-08-24T02:12:00.001-07:00

Amidst this struggling economy, I'm looking to sell my townhouse and purchase a single-family home. I know I will not sell the house for more than I originally purchased it for, but will I be able to transfer the remaining balance of the mortgage after I sell the townhouse to the mortgage on the new single-family home? Excuse my limited knowledge on the rules and regs regarding mortgages. Thank you!Can I place the remaining mortgage payment on my existing home towards a mortgage on a new home?
No, you can't transfer anything. When you sell the townhouse, you have to pay off the mortgage on the townhouse. You should talk to your realtor and/or mortgage rep about this.

Good luck.Can I place the remaining mortgage payment on my existing home towards a mortgage on a new home?
Your loan is sold as a security bond...secured by that specific residence. The owner of that bond is not the bank, it's some guy in china who wants all the money that his bond is worth. You will actually not be able to sell (transfer title) to new ownership till the previous mortgage holder is paid in full, so transferring the remaining mortgage balance to a new subject property is only shifting the debt...you still owe that bank the remaining balance.

It also wont work because your new purchase loan (best case scenario 97% LTV),of lets say 194K is secured by a home worth 200K...if you were to transfer a balance of even 10K that would bring the loan amount greater than the property securing it. Even if you only transferred a measly 2K to the new loan...a loan amount of 196K violates the guidelines restricting loan amounts to exceed our 97% FHA loan.

Use the down paymenmt you were gonna use, and pay off the remaining balance if possible then get a high LTV purchase loan via FHA to purchase the new home.
The only way you can use money from the sale of your current home is to sell it above and beyond what the payoff is including Real Estate commission and all closing cost. If in fact you clear more than your payoff and all closing cost you can use those monies for a down payment on the new home. FHA home loans only require a 3.5% down payment and the seller can pay up to 6% of your closing cost.

Hope this helps
No. Your current Mortgage must be paid in full so that ownership passes to the buyer and his lender.

You then have to apply for an entirely new mortgage for the new home.

What is the loan modification with your mortgage while in Chapter 13 bankruptcty?

2010-08-24T02:12:00.000-07:00

After filing Chapter 13 bankruptcy (mortgage included -fixed rate) my husband became unemployed, so we are now 6 months behind on our mortgage and our attorneys are submitting for a loan modification, what is the process? Is a loan modification always granted?What is the loan modification with your mortgage while in Chapter 13 bankruptcty?
no not always. If the lender and the trustee believe that you cannot honor the payment plan then they will take the home out of the bankruptcy filing by a motion from the lenders attorney and foreclose on your home. The worst thing is that he lost his job so how can you even pay the trustee the required payments unless you were on a short schedule and modify it to the full 5 yearsWhat is the loan modification with your mortgage while in Chapter 13 bankruptcty?
If the home is part of the Bankrupcty itself, the lender will be unable to modify as the home will be protected by the Bankruptcy court. It must be removed from the BK or the note reaffirmed. Learn more: www.cdalawcenter.com

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The most common ';modification'; is for the bank to allow you to miss 6 payments with no penalty. That money is added on to the balance of the loan..

What are the benefits of seeing a mortgage adviser?

2010-08-24T02:11:00.003-07:00

Should i just speak to my bank?What are the benefits of seeing a mortgage adviser?
Independent Mortgage advisers can offer deals from the whole of the market place. But be sure to ask if the cover the whole market or just a selection of lenders .

Choosing a mortgage is one of the most important financial decisions you'll ever make, with the wrong decision potentially costing you thousands of pounds.

A good mortgage adviser will guide you through the thousands of mortgages there are available, and recommend the best deal for you based on a thorough exploration of your needs.

In addition to clarifying your needs, a good adviser will provide and explain all this information, thoroughly check whether you can afford the mortgage you want to take on, fully explain the different deals and repayment methods available, and advise you which is the most suitable.

Disclaimer:

The answers above are for guidance only and should not be acted upon without you receiving professional mortgage advice relevant to your circumstances. To find an independent mortgage adviser please go to http://www.unbiased.co.ukWhat are the benefits of seeing a mortgage adviser?
Well worth seeking advise from a mortgage adviser, as they have access to all products and will advise you of the most competitive mortgage lenders out there. At the end of the day, they will find you the best deal out there for you. Remember to ask them if they charge you additional extras for their service. By seeing your bank I presume they will only offer you their deals. By all means seek advise from both a mortgage adviser and you bank and compare the two. We have always gone through mortgage advisers when we first got our mortgage as well as re-newing when our deal was up.
An independent mortgage adviser should offer you the best deal to fit your plans.

A bank will simply offer their limited range of products which might not be best for you.

There are a lot a different rates out there and you need to decide not only on the best interest rate, but which is suitable for your needs; interest only, tracker, discounted for a period, whatever.

Best to go to an independent..... or try two different ones to be sure.
a mortgage adviser will go thro which mortgage type would be best for you , he will run thro many different company's to see who can give you the best deal , its worth a try , but some advisers do charge alot of money try on line and see if you can do it your self x
A mortgage advisor will not be tied to a particular bank's products..
They will search wider than just 1 bank.

Wakovia Bank gives mortgages to illegal immigrants?

2010-08-24T02:11:00.002-07:00

Most banks do now.

http://money.cnn.com/2005/08/08/news/eco鈥?/a>Wakovia Bank gives mortgages to illegal immigrants?
And we wonder why we have such a problem with illegal immigrents.Wakovia Bank gives mortgages to illegal immigrants?
Bank of America is even worse though.

And you wonder why the housing market is suffering...lol.
That is not a bad idea as long as the information is used to locate them and ship them back to the country they came from.

Do you have to get mortgage insurance when buying a house. not house insurance, mortgage insurance?

2010-08-24T02:11:00.001-07:00

isn't mortgage insurance for if you die, the loan will be paid off? if so wouldn't life insurance do the same, so why is mortgage insurance needed. Must you have it or is it just a option?Do you have to get mortgage insurance when buying a house. not house insurance, mortgage insurance?
You have to have PMI; it's to protect the lender, not you.

Most, but not all, lenders will remove their PMI requirements if:

1. The loan to value ratio on your loan is 80% or less. (Some require 75% or another LTV).

2. You have made your payments on time for two years.Do you have to get mortgage insurance when buying a house. not house insurance, mortgage insurance?
You do not have to get it, but it is a good idea.
you dont have to get mortgage insurance but it is a good saftey precaution, i have and my other family members have it too. when my father passed away suddenly a few years ago, that insurance paid off the mortgage and saved my mother a heartache of having a healthy mortgage to deal with, trust me, its a very worthwhile minimal expense added to your mortgage payment
Not mandatory. Life insurance will suffice if one wants it to be used for that purpose.

In most cases mortgage ins. is more costly than

Term Life, although they pitch payment coverage in case of illness.

Same with credit cards.

High profit.
If the lender perceives you as high risk, it may be a requirement to get the loan. One way around it is to have a second mortgage instead (instead of $300 on one mortgage, you could have $200 on one, and $100 on the second). Avoid PMI if you can.
Sometimes you are required to take out mort ins if your ratios are not good (loan to value, income or very large jumbo mortgages).
Mortgage insurance is rerquired fo first time buyers and or FHA approved buyers. It protects lender from default. Once your credit history is established with prompt, not late mortgage payments for a period of 1 to 2 years, you may discontinue it with lender approval. Lender will not tell you this as they receive a percentage of payment. Check it out at your bank or Federal Housing Authority. Much Luck!

In addition, you must have home owners insurance for house damage protection
No, you are actually thinking about ';title insurance';. Title insurance insures the buyer of the home that the land and home have good marketable title. Title problems can arise in real estate and cause a new home owner/buyer hundreds or thousands of dollars in court costs. There are two kinds of policys. Mortgagees policys for the lender/bank. And owners policy for the new owner. These policys will cover you if anyone ever comes out of the woodwork (examples: previous lenders, previous owners, heirs of previous owners, errors in previous deeds, unknown easements, etc.) and claims an interest in the land upon which your home sets. This use to be refered to as abstracting. Its now Title Insurance. It has nothing to do with home insurance. If Title problems arising after the buy your home then the underwriter who issued your title insurance policy will have to cover all court costs for you. They will have to provide you with information on easements, set-back lines, property restrictions, etc. A good website to go to is Southern Title Insurance.com. Hope this helps. If you have any more questions then please e-mail me at stephanierudder@yahoo.com. I am an agent.
maybe if u happen to lose ur job (GOD forbid) then they'll take over ur monthly payment. it's a sweet deal if it's avaible especially if one is a seasonal worker or if the company closes down or an illness.

as for life insurance, i guess they would take over only after the insured person passes away.

How can you be approved for a mortgage and then denied right before closing?

2010-08-24T02:11:00.000-07:00

We applied and were approved for a refinance on our mortgage. The day before closing the underwriter says that the expenses we claimed in our tax return last year(approx $20k) were to be deducted from the income and therefore the ratio was off. I've never heard of this. I assumed that this

would have been looked at before approving the loan. Does this make sense? So I faxed the broker the last paycheck stub for 2006 that showed the total expenses reimbursed for the year were $9300. Shouldn't that be considered and offset the expenses paid out. Does anyone know what to do in this case?How can you be approved for a mortgage and then denied right before closing?
Due to the high level of recent foreclosures, banks/lending institutions have tightened their lending criteria. It is also possible that the loan officers accounts were audited by a manager and the oversight was seen.How can you be approved for a mortgage and then denied right before closing?
Did you have a written commitment or just a preapproval? Sometimes what borrowers consider as income is not the same as what the lender does. Maybe the loan officer made a mistake and is now trying to cop out. You can complain to his regulator.
There are lots of innept people that work in this industry. If you like, I can go through your information and see what's really going on.

You're correct, this issue should have been found within a week of you delivering your paperwork to your loan officer. Once he forwards it to an underwriter it may take them a couple of days to verify it, but your loan officer should have the skills to see any problems before they come up.

you can email me casey.x.casperson@chase.com or visit my website caseycasperson.com for my contact information.

I can usually turn deals within 2 weeks. I hope that will work for you. By the way, I work for Chase and am licensed nationwide.

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How do you go about refinancing your mortgage?

2010-08-24T02:10:00.001-07:00

I have a 5 year interest only mortgage and just closed on my condo 4 months ago. It appears rates are lower. How do I go about refinancing and what are the advantages? If it's lower should I autmoatically do it?How do you go about refinancing your mortgage?
Hi, This is Greg Darlin with Choice Finance in Rockville, Maryland. 301-881-8900, ext. 106. I am the most Sr. Mortgage Broker with my company. Now for your answer . . .

It depends on your current interest rate, how long you intend on keeping your property, the current rates today and your closing costs. Sounds like a mouthful but those are the considerations.

Go to my website, www.choicefinance.net then e-mail me at: greg@choicefinance.net.

Sincerely,

Greg DarlinHow do you go about refinancing your mortgage?
Refinancing can be good, and it can be difficult. I am a licensed mortgage specialist, so I can do refinances. If it's going to save you money, and you think it's worth your time, go for it! If it's going to cost you more in closing costs and time than it's going to save you in interest, I wouldn't worry. I know that I try my best to make it so you won't have to go back and resign your mortgage for another 30 years, I try to make it so you'll only have the same amount of years left as you would have had you not refinanced.
A good starting point would be to compare the market rates. Here is a free online tool for doing that.

http://goaddr.com/8rt
Remember there are closing costs, usually a couple thousand dollars worth, so just because the rate is lower doesn't mean you should do it. It will take years to recoup the refinancing closing costs so you have to consider how long you plan to keep the house. There are a ton of refinancing calculators used to help decision making - just google it.

If you find you want to refinance, you go through the same process as you did for securing your original loan, and tell them you are refinancing. They will walk you through the process.

The advantages are obviouslsy a lower interest rate and related interest charges. If you have PMI and your house has appreciated, it may be a way to get rid of PMI.
It is a good question, I need more info to properly answer it. Ask yourself these questions? How much lower? How much will you save by refinancing? How much will it cost you? And finally how long do you think you will live there? A good example would be if say rates were .50 lower than when you purchased. Great you can save $100 per month and it will cost you say $1,800 to refinance. And you know you are going to live there at least 3-5 years. Then the answer is obvious, you should refinance, skip the payment and save money for years to come. Use this model to determine what you should do. If you only save $25 per month and it still costs you $1800 to refinance then you are wasting time and money. Of course you could always count on skipping that payment which could put some cash in your pocket around the holidays. Contact an HONEST loan officer who will put it in writing and explain the pros and cons like I did. And yes I am a loan officer. Email me if you like for more information.

Thanks,
Well im kinda going thru the same thing. But even though rates are lower is your credit score higher. Thats the question. J O may answer your question and he can help you. Another thing is do you have a pre-payment penalty.
That is a great question, and depends on what your last loan looked like. What is your rate? How much did you pay in total cost to do the last loan? You have to divide how much your monthly savings are into how much you paid on your last loan, and how much your new one will cost. That will give you a break-even period. You should be able to break even with in a reasonable amount of time. Work with an expert who will honestly tell you whether it makes sense or not, stay away from those ';hungry'; bankers who just want to do a loan for you for their benefit...
The first question that I would have is how much lower have the rates dropped? What is the amount of your mortgage? There are many factors to consider when thinking about refinancing your mortgage. Just because rates have fallen doesn't always mean that it would be a win to refinance. First of all most banks today want to see at least six months and some up to a year of seasoning on a new mortgage. What this means is that you have had the loan for that period of time. In some cases banks will make an exception, but it would not be considered the norm. Second consideration have the rates dropped enough to justify spending money on closing cost and typically adding to the amount of the loan? Remember on a 5 year interest only ARM your rate is fixed for five years and you have the option of only paying the interest. Five years in the financial world is a long enough time for anything to happen. In the case where rates have dropped a point or more it may be worth considering. Always do your homework and stay away from the hype; what makes sense for someone else doesn't always make good financial sense for you. Good luck...
If you need a lower payment because of financial stress, then yes, just do it. If you want to see if it makes sense over the long term, do an analysis. here is a calculator to help with that:

http://www.choicefinance.net/calculators鈥?/a>

and some more insight on refinancing:

http://www.choicefinance.net/faq/refinan鈥?/a>
Every time you refinance, you pay fees and it will added to your loan. Interest has come down recently, but, if you are trying to sell your property within 5 years, I would say, just stay with what you have until you sell. If you want to own it for longer term, you may want to look into more traditional 30 year mortgage since those are the cheapest right now. Try the current lender and compare with some others in the area for the best rate. Again, it really depends on your future plan.
Its a pretty simple process...

After having a licensed morgage officer analyze your credit, you can choose the program option best suited for you...

From there, your appraisal can be re-certified (if you have a copy) and your loan will be processed...

Usually takes anywhere from 15-20 days to complete a mortgage refinance...

Being you have only been there for 4 months, you will have to use the purchse price to determine your LTV...

Did you put a down payment on the house when you purchased it?

Or did you do a 80/20 loan?

Either way you can still qualify...

Now, as for the advantages...

There can be many.. If you do qualify for a lower rate, it can substantially decrease the amount of money you pay over a 30 year period...

The key is to find a company with minimal closing costs...

I work with Providential Bancorp, .we are a nationwide motgage lender... Being we are a direct lender that only focuses on mortgage loans, we are able to originate mortgages at very LOW costs...

So, there will always be a benefit if you can lower your rate being your costs are recouped almost immediately....

What you need to do is have someone pull your credit, and go over your options that you qualify for...

From there you can make a more informed decision...

Feel free to call or email me at any time.. I would be happy to assist you in a refinance...

Look forward to assisting you!

Jason Fry

Licensed Mortgage Loan Officer

Providential Bancorp

jasonf@providential.com

312-264-6448
Although rates have dropped you should do some math on how much you will actually save. Let's say for example that the condo was originally purchased for $200,000 interest only (IO) loan at 8% even if rates have dropped a full point (questionable depending on credit) to 7% you would save 167 dollars a month by doing a refi. That is a significant amount and unless you are being raped on fees by your mortgage guy is probably worth it (should pay itself off in 10 months). But if the rate for you has only dropped half a point to 7.5% you save $83 dollars a month, nothing to sneeze at but that would take you almost two years to save. You must ask yourself if you will be there that long. Also remember that interest on a mortgage is tax deductible so the actual difference is only 2/3 the amount of what I posted. I'm sure this is a bit confusing and not the most eloquent thing to read, feel free to email me if you have any questions, I have a couple referrals already from Yahoo people.

What is the best way to combine mortgage payments for 2 houses?

2010-08-24T02:10:00.000-07:00

After getting married, we now have 2 house payments, and are having a tough time selling my wife's former residence. Short of renting, what is a smart way to handle making this house payment? Refinance?What is the best way to combine mortgage payments for 2 houses?
Well how much is owed?

What's the value of the home you'rel living in?

Have you considered dropping the price just to move the house?

IF you had sufficient equity in your home you might be able to refi it all into your home, or use a HELOC from your home to pay it off, then when it sells pay off the HELOC.

If the two loans are large enough you might be able to apply for a jumbo loan (but these a big hit at the end of last year, so you might have trouble getting one). Since now you only have one large loan it's only one payment. You might have troubles arrise when you sell the second home.

I would suggest this more if you were going to rent out the second home. That way their rent pays a large part of the monthly payment.What is the best way to combine mortgage payments for 2 houses?
What would be the sense of re-financing? Lower the price of the second house.

2nd mortgage Foreclosure: How long is the delay to put it on your credit?

2010-08-22T03:19:00.002-07:00

We paid off a 2nd mortgageforeclosure before it went through. We continued to pay on our first mortgage with no problem. The attempted forclosure was not on our credit report until we refinanced with a new mortgage company. Is this fair? It looks suspicious that it only appeared on our credit after we refinanced with a new company. We understand that business is business but it seems that they were fine with everything until we pulled our mortgage from them and went with another company.2nd mortgage Foreclosure: How long is the delay to put it on your credit?
Well, you were late, so the info is accurate.

It is probably just a coincidence... sometimes it takes time to get stuff posted onto a credit report.2nd mortgage Foreclosure: How long is the delay to put it on your credit?
If your loan is held by Freddie or Fannie, you might qualify for a refi or loan mod.

First, find out if your loan is held by Fannie or Freddie. Contact them here to find out. They give you the phone number to call Fannie and Freddie directly to see if your loan is held by one:

http://www.financ

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It sounds like we are pretty much in the same boat. I'd be very interested in talking to you about your rifi and credit issue. We are having all kinds of trouble with ours.. I'm just wondering if maybe its the same company....email me if you dont mind talking about it at jvallery@hotmail.com
Best Answer - Chosen by Voters

http://www.realestate-investment-solutions.com is the best resource for mortgage information. With over 10,000 posts it is the most comprehensive site of its kind anywhere online.
They can post it on your credit on the 31st day once it becomes late

What is the best way to combine mortgage payments for 2 houses?

2010-08-22T03:19:00.001-07:00

2nd mortgage Foreclosure: How long is the delay to put it on your credit?

2010-08-22T03:19:00.000-07:00

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How would I go about holding a mortgage for someone who buys my house?

2010-08-22T03:18:00.003-07:00

House is free and clear, I am consider selling and have been asked if I would hold the mortgage. I am confident in the character of these people. Who do I see, what do I do? New York State.How would I go about holding a mortgage for someone who buys my house?
Very risky - regardless of your assessment of their ';character.'; Why do you think they're asking you to hold the note instead of getting a normal loan through a bank?How would I go about holding a mortgage for someone who buys my house?
Check out the following link for more info on how to execute a seller mortgage (and help on doing it if you want to proceed):

http://www.virginmoneyus.com/RealEstateL鈥?/a>

I agree with many of the other comments - this can be a risky proposition. My question is what do you hope to gain from receiving installment payments vs. the lump sum? Keep in mind the time value of money - the money you receive later may be worth less than the money you can receive by investing the lump sum now. Plus, depending on how much profit you expect to receive, you can qualify for limited capital gains tax on the sale of your personal residence which is very significant.

Now if you REALLY want to offer a decent mortgage, you can try to do a simultaneous close where you sell your mortgage at closing (at a discount, so you'll want to increase your sale price) to someone else looking to buy a note. You can also do split notes, meaning instead of one $400k note, you have 4 $100k notes which makes it easier to sell a portion of your total mortgage for cash later.

Lots of options, but REALLY consider if you want to put this money at risk.

maybe you should ask then why they dont go through a savings and loan association? do they have bad credit? if they do, I dont think is a good idea that you will lend them your money...

Now the interest rate is very good, why not ask a bank?

Personaly I'll not carry the note myself, you never know what could

happen later on... and you will be the loser.
Have the loan documents drawn up by an attorney. You really should run a credit check but there is no legal obligation to do so. But you need a lawyer to handle the closing. That's how it's done in New York.
You see a real estate lawyer to construct an iron-clad contract for you.
in one sentence, don't do it! way way too many ';what ifs'; in this situation.
You first get an attorney and you get the CPA who does your taxes. Regardless of what you think you know about the character of these people, that doesn't mean you won't get screwed 5 or 10 years down the road. What if they divorce? That could mess up your holding the paper. What if one or both of them die?

There are a LOT of factors that have to go into the wording of a mortgage contract to protect YOU. Don't even think about writing this without a lawyer.

You also need the person who does your taxes because you have to have an amortization schedule. The buyers have to know how much interest they pay each year so they can deduct it from their income tax return, and you have to know how much interest you received from them because it's taxable income to you.

If this home has been your primary home, there are tax implications with both income taxes and capital gains taxes when you sell. If you don't buy another primary residence within the IRS' time limit (it was 3 years the last time I looked), you get hit with some hefty taxes. And if you're holding the mortgage, are you getting enough of a down payment to be able to buy another house or condo?

So there you go. You need real estate, legal/financial, and legal/taxation information and representation before you even think about holding a mortgage.

engine oil

lips

How do banks figure interest on a mortgage?

2010-08-22T03:18:00.002-07:00

I know that interest accures over a period of time. Say my loan is due on the first of every month but I pay it on the tenth instead. It's not late but interest has built up a little more because I didn't pay on the first.

What is the formula for figuring this out?How do banks figure interest on a mortgage?
It will be slightly different for each month you calculate it because the balance is always different when you make the payments.

Lets make the following assumptions for the calculation:

loan balance: $200,000

loan rate: 7%

of course we are not factoring in insurance %26amp; tax for this.

200,000 x .07 = $14,000 interest for the year simple interest. Remember you will have to adjust the balance each time you do it because it will be different every month

$14,000/365= $38.36 daily interest. That is the amount you are charged everyday that your balance is $200,000.

$38.36x 10=$383.60. That is your 10 day interest payment.

I am sure there are probably other calculations to use %26amp; different techniques to find that I am off by dime or so, but that is pretty much the jist of it.How do banks figure interest on a mortgage?
If the payment is due on the 1st, a payment made on the 10th IS late, there may not be a late fee, but the payment IS late. There is NEVER a formula for determining ANY companies policy. You could calculate the daily interest and compare that to the portion of your payment actually applied to interest. Calling and asking would probably be easiest.
Sorry, but I don't know. You may want to ask a bank loan officer.
Many people have a vague idea that monthly rent could be equal to or sometimes higher than mortgage payments, and that it may be preferable to buy a home. But they are put off by the complicated calculations involved. Even if someone else does the computing and gives the answers, prudence demands a countercheck of the figures.

Then, after deciding to acquire a house on mortgage, several details must be studied before the final go-ahead. There are diverse types of mortgages, interest rates, repayment schemes, timeframes for paying off the liability and so on. It is also necessary to consider the borrower's repayment capacity. All these appear to be daunting because of the details and effort involved. Actually it is a simple task, and you don't even need a hand-held calculator!

Many websites dealing with the subject of mortgages offer free calculators online. The format is organized and easy to use. All that one has to do is to enter

the appropriate data in the given slots, like filling in a form. The results are just a click away.

There are different types of calculators available online. The mortgage payment calculator computes monthly mortgage payments for loans of various types, amounts, interest rates, and periods. To find out how much can be comfortably spent on a house, use an affordability calculator. Amortization calculators present details of the principal amount and interest, and help one to choose from among the various options. In case a comparison is required between renting a place and getting a home on mortgage, use the special calculator. Even rate searches are simplified with the tools presented.

These calculators are so versatile and easy to operate that one may wonder how such jobs were done before this facility was made available online.
man idk just go to da bank and ask them about it

What happens after you make your final mortgage payment?

2010-08-22T03:18:00.001-07:00

How can you prove that you own the house? The mortgage company will have no interest in helping you as you are not a customer any more.What happens after you make your final mortgage payment?
The lender should issue and record a release of the mortgage lien on the property.

After the ';mortgage burning'; party, you might want to purchase a dumpster or an industrial shredder to handle the ton of junk mail offers you'll receive from lenders trying to get you back in debt again.What happens after you make your final mortgage payment?
You need to keep a ';title'; certificate in your safe deposit box. You probably already have one, but it lists the fact that the house has a mortgage. Once the mortgge is paid off, get a new title issued.

And, you can invite your friends and family over for a ';mortgage-burning party';, where you celebrate the fact that you no longer have a mortgage. The centerpiece of the party is literally to burn up your mortgage papers.
What!! Did you get to the end of your mortgage?? And if so, congrats. Now go to the county court house and get yourself a deed - a copy of the deed maybe. Put it in your safe - frame it - hang it on the wall.

I've noticed in these last few years that you don't just get a deed anymore when you pay off your house. It's weird. I had to put in for them at the county court house and I got some sort of certified copy.

But mostly, you'll never be asked to prove you own the house. And if you are there's plenty of time to get a deed made up. But get one anyway.
As Jeff indicated have a mortgage burning party!

Congrats on paying off your home.

You will have a deed of trust under your name alone. The cost of filling is minimal. You go down to the recorders office with your payoff papers and transfer the deed into your name alone...Thats GREAT!
The deed is a recorded document. You get a full reconveyance, a document which you keep in your safe. The lender should do this for you, and if they don't, call them up and ask for one.

How does the tax deduction work for mortgage interest payments?

2010-08-22T03:18:00.000-07:00

Is this the correct formula for the tax deduction:

Tax rate of 38.5% times all the mortgage interest I paid in the past year?

Also, If I owe $100 in taxes but my deduction is $125 (based on formula above) does that mean the govt. will send me a check for $25?How does the tax deduction work for mortgage interest payments?
mortgage interest gets deducted on Schedule A, assuming you itemize your deductions and do not use the standard deduction. the actual amount of the tax benefit depends on your tax bracket.

no, you wouldnt get a refund if your deduction is in excess of your tax liability. the deduction would reduce your liability to zero. you would not get a refund unless you made payments.How does the tax deduction work for mortgage interest payments?
No to your last question. You get your interest payment from your mortgage company in January. Then that number goes in your Schedule B under interest deductions for your itemized deductions. It eventually does reduce your taxes but not as simple as you deduced.
The top tax rate in the US is 35%, so I'm not sure where you're getting the 38.5%. And the 35% rate doesn't kick in for either single or married filing separately until your taxable income is $336,500 - if your income is really that high, you'll probably get hit with the alternative minimum tax which would wipe out some of your deductions.

To figure what you're really saving by itemizing, take your total itemized deductions and subtract your standard deduction of $5150 if filing single, $10,300 if married filing joint, and multiply the difference by your tax bracket, which is something less that .385.

This assumes that you are not subject to the AMT in which case your savings would be less.

To figure your refund, subtract your total tax from your total payments, which is usually your withholding amount unless you made quarterly payments.
The mortgage interests you paid are deducted in your schedule A, Itemized deductions. So it will make any difference only if the total itemized deductions are more than the std deduction for your filing status. You can find more detailed discussion on this topic here. http://findtaxservice.com/component/opti鈥?/a>

Again, if you want to see how much tax you can save from the mortgage payments you can use this calculator.

http://findtaxservice.com/taxcalculator/鈥?/a>
I'm not sure where you got that formula. I've never heard of it. Let me tell you what I know. Mortgage interest is 100% deductible, meaning all of it is subtracted from your income and you don't pay tax on it. However, if your standard deduction is MORE than what you paid in mortgage interest (plus any other deductions), then it wouldn't make sense to itemize. You see, when it comes to taxes, you have a choice. You can itemize (meaning you can deduct mortgage interest amongst other things), or you can take your standard decuction. One or the other. You can't do both. Whatever is most beneficial for you. The standard deduction for a single person is $5,150. The standard deduction for married filing joint is $10,300. For head of household it's $7,150 (or somewhere near that amount). If you didn't pay at least that much in mortgage interest (plus other itemizable dedutions), it wouldn't make sense to itemize. Does that make sense? Good luck!
no, not exactly. see the tax tables on irs.gov

Is mortgage interest deductible if the interest is added to the principal instead of paid?

2010-08-22T03:17:00.003-07:00

I have a loan that allows me to make a payment that is less than the monthly interest owed. I have never taken this option, but if I did would the interest that is charged but added to the principal instead of actually paid still be deductible on my taxes?Is mortgage interest deductible if the interest is added to the principal instead of paid?
Good, first, NEVER pay less than the the monthly interest owed, you'll end up in a negative amoritization of your loan, and owe more on your house than it is worth.

However, to answer your question, your interest that is charged is never added to the principal, because the amount of your principal loan will always stay the same, what changes is interest. Interest and principal are not used interchangably, they are different. If you paid only the interest payments on your loan, the principal would NEVER decrease.

That being said, the interest compounds, which is still deductible on your taxes, but if you are not paying it to begin with, how could you deduct it in the first place?

I hate to answer a question, with a question, but I hope you see my point.

-EmIs mortgage interest deductible if the interest is added to the principal instead of paid?
No, only interest that is paid is deductible.

If your lender adds unpaid interest to the principal, you have not paid it, therefore it is not deductible.
Whatever amount you pay towards interest (not principal) becomes tax deductible. To answer your question, I believe it's tax deductible and would be captured by your lender as such on your 1098.

At the end of the year, you'll receive the 1098 telling you the amount of interest that you paid. You cannot deduct amounts paid towards principal - the tax deduction is for mortgage INTEREST....and your real estate taxes too.