We are in the middle of applying for a mortgage with a mortgage company. We have submitted documents and has signed paperworks but we want to switch to another mortgage company. Can we still do it and since they have worked on our papers already , are we going to pay a fee?Can I withdraw my mortgage application from a mortgage company without paying a fee?
Normally you can change mortgage companies without penalties, but you are one of the reasons that mortgage bankers or brokers want to charge an upfront fee for their services.
There are many clients that without reason decide to cancel their application because some other mortgage banker or broker give them the line that they can offer a better rate or for a few less points.
If you were offered a better rate or fewer points and fees perhaps you should speak with your current mortgage banker or broker to see if they can match your other offer.
But that is your choice and normally there is no cancellation fee.
You will be required to complete another application and start a fresh.
I hope this has been of some benefit to you, good luck.
';FIGHT ON';Can I withdraw my mortgage application from a mortgage company without paying a fee?
Of course you can switch Brokers. The question about fees, cannot be answered with the information you provided. You may have signed an agreement which allows the Broker to charge you a penalty. It is unlikely however that you will be charged anything, unless you are within days of closing. Make it easy on yourself, and let your new Broker handle these questions. He/She will look at your documentation, and determine if you owe anything, they can do this before you sign any agreement with them. They can even help to clear up any issues with your old broker. Insist that they answer your questions before you sign anything.
Now to other fees. If your original broker has already selected a title agent, done a home inspection, survey, or has commissioned any other actions to be taken by third parties, you can be held liable for these services. A title agency will likely just cut their losses, and expect nothing further from you, but you can save yourself time by using the same agency. Surveyors and home inspectors can sue you if they don't get paid. It is unlikely that they will, but since you will likely need these services anyhow, you may as well use the same companies.
Again, these are all issues that are to be resolved by your broker. While you should make absolutely certain that he/she understands your concerns, and takes care of these issues, you have little to worry about.
Seriously if you gonna pay both upfront fees anyway, then I would let it follow through, see who approves you first. You could cancel with one company and have the new company deny you, then you gotta start all over again.
You shouldn't have to pay for anything other than your appraisal, which you may not be able to use with another company depending on their policy.
If you paid an upfront application fee then you will simply forfeit that
I would call your mortgage company immediately and say that you want to cancel your application. Depending on far in you are into the process, you should be able to get out of it without any fee. However you need to do this as soon as possible. If they still want you to pay the fee, I would negotiate and try to get it knocked down (it never hurts to try).
No fee is required. The only fee that you could be on the hook for is the appraisal if that's already been done.
As soon as you pay for the appraisal that appraisal is yours. You can take it your next mortgage company. It is good for 6 months.
Ethically, you do need to stop the process with your current mortgage company though.
Friday, August 20, 2010
Main house in Canada, is the mortgage interest deductible?
I work in US, but my family is in Canada, and we bought house in Canada (no house in US). Wonder whether the mortgage interest paid in 2008 is tax deductible. Thanks.Main house in Canada, is the mortgage interest deductible?
Yes it is. However, you should talk to a professional as there could be a requirement for you to withhold 30% of the payment and then the bank would have to claim this back from the government. As no bank would want to do this, they would just increase your payment by enough to cover the withholding, which you would not want. So, talk to an expert first.Main house in Canada, is the mortgage interest deductible?
No it is not. The revenue canada site and irs.gov has info on this the house in canada and therefore cannot be used as a tax deduction in the us. call revenue canada and the irs as well.
If you are referring to Canadian tax, no. In Canada capital gains on your primary residence are exempt from tax, but not mortgage interest.
This gives Canadians the incentive to get their mortgage paid off asap unless they are renting the home to someone else.
Yes, if it's your primary residence you can deduct the mortgage interest on your US return, even though the property is outside the US.
Yes it is. However, you should talk to a professional as there could be a requirement for you to withhold 30% of the payment and then the bank would have to claim this back from the government. As no bank would want to do this, they would just increase your payment by enough to cover the withholding, which you would not want. So, talk to an expert first.Main house in Canada, is the mortgage interest deductible?
No it is not. The revenue canada site and irs.gov has info on this the house in canada and therefore cannot be used as a tax deduction in the us. call revenue canada and the irs as well.
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If you are referring to Canadian tax, no. In Canada capital gains on your primary residence are exempt from tax, but not mortgage interest.
This gives Canadians the incentive to get their mortgage paid off asap unless they are renting the home to someone else.
Yes, if it's your primary residence you can deduct the mortgage interest on your US return, even though the property is outside the US.
How can you predict whether the mortgage interest rate will go up or down?
If the rate is 5.5, should you grab it or wait? What economic indicators would tell you that it is going to go down further or going to go up?How can you predict whether the mortgage interest rate will go up or down?
There's a few key reports you can follow that will help you monitor mortgage rates - GDP, retail sales, Employment reports, CPI, PPI. They're all released at different times, but do have an affect on rates. No one thing affects them more or less - mortgage rates are truly dependent upon a variety of factors at all times.
Also, something like the Fed funds rate release like today will likely have an effect. Up or down? Unsure.
Check out the link - it explains all the reports and is all about predicting rates. How can you predict whether the mortgage interest rate will go up or down?
I agree that for the most part it is a gamble. There are factors that can predict the liklihood of rates to go up or down however at the moment the economy is so volatile that the indicators can change in as little as a month.
In Australia the major indicator is inflation. When inflation is higher than 3% than rates are likely to go up and when inflation is below 2% or there is slow growth / recession then rates tend to go down.
My best bet would be to read reputable economic reporters articles in newspapers such as the Sydney Morning Herald. Ignore all the emotional hype articles, they have a lot of these as well.
Note that most people predict rates to continue to trend downward for sometime, although nobody is sure
Mortgage rates are always hard to predict but because we are in a credit crisis it is extra hard right now. Mortgage rates are usually just 1 or 2% higher than long term savings rates but right now it is higher than that. The reason is because since house values are constantly changing, it's hard for a lender to determine the amount of risk so they have been charging more lately.
What all that means is that mortgage rates MAY go down a little bit as the credit crisis softens. But nobody can tell you when or how much.
The main thing is if you are comfortable with the payment and the loan is fixed at 5.5 take it. Even if the rate drops a little, you really won't be saving that much after taxes. Besides, 5.5 is about as low as it has been in the last 25 years. If you hold out for lower, you may lose your chance.
You should grab a 5.5% interest rate (as long as the rate is fixed). It is incredibly good and has never been much lower (if any) than that. History makes it abundantly clear that it can not go much lower than that.
Back to the original question. You might as well be asking how to predict the winner of a horse race. God knows everything including the future but we mortals can not predict the future.
You can't if it a fixed rate loan. If it is a fixed rate loan, 5.5% is a great rat. Grab it now.
If it is an adjustable rate loan it will go up. Leave it alone and go for a fixed rate loan.
If one could accurately predict it, one would be a millionaire or billionaire. It's your best guess, inform yourself of the economy, of business climate, of stock market, and Guess.
Subscribe to the Mortgage Bankers Association newspaper. They have reporters who do the predictions for the rates..
Nobody knows, its a waiting game I am afraid.
There's a few key reports you can follow that will help you monitor mortgage rates - GDP, retail sales, Employment reports, CPI, PPI. They're all released at different times, but do have an affect on rates. No one thing affects them more or less - mortgage rates are truly dependent upon a variety of factors at all times.
Also, something like the Fed funds rate release like today will likely have an effect. Up or down? Unsure.
Check out the link - it explains all the reports and is all about predicting rates. How can you predict whether the mortgage interest rate will go up or down?
I agree that for the most part it is a gamble. There are factors that can predict the liklihood of rates to go up or down however at the moment the economy is so volatile that the indicators can change in as little as a month.
In Australia the major indicator is inflation. When inflation is higher than 3% than rates are likely to go up and when inflation is below 2% or there is slow growth / recession then rates tend to go down.
My best bet would be to read reputable economic reporters articles in newspapers such as the Sydney Morning Herald. Ignore all the emotional hype articles, they have a lot of these as well.
Note that most people predict rates to continue to trend downward for sometime, although nobody is sure
Mortgage rates are always hard to predict but because we are in a credit crisis it is extra hard right now. Mortgage rates are usually just 1 or 2% higher than long term savings rates but right now it is higher than that. The reason is because since house values are constantly changing, it's hard for a lender to determine the amount of risk so they have been charging more lately.
What all that means is that mortgage rates MAY go down a little bit as the credit crisis softens. But nobody can tell you when or how much.
The main thing is if you are comfortable with the payment and the loan is fixed at 5.5 take it. Even if the rate drops a little, you really won't be saving that much after taxes. Besides, 5.5 is about as low as it has been in the last 25 years. If you hold out for lower, you may lose your chance.
You should grab a 5.5% interest rate (as long as the rate is fixed). It is incredibly good and has never been much lower (if any) than that. History makes it abundantly clear that it can not go much lower than that.
Back to the original question. You might as well be asking how to predict the winner of a horse race. God knows everything including the future but we mortals can not predict the future.
You can't if it a fixed rate loan. If it is a fixed rate loan, 5.5% is a great rat. Grab it now.
If it is an adjustable rate loan it will go up. Leave it alone and go for a fixed rate loan.
If one could accurately predict it, one would be a millionaire or billionaire. It's your best guess, inform yourself of the economy, of business climate, of stock market, and Guess.
Subscribe to the Mortgage Bankers Association newspaper. They have reporters who do the predictions for the rates..
Nobody knows, its a waiting game I am afraid.
How do you calculate a monthly mortgage payment by hand?
I know there are online payment calculators but I am trying to make an excel spreadsheet calculator and I need to know the equations used to get the results. For example, calculate the monthly payment on a $220,000 loan over 30 years at 5.5% interest.How do you calculate a monthly mortgage payment by hand?
This link shows the formula to amortize a loan ';by hand'; http://www.frickcpa.com/tvom/TVOM_Amort.鈥?/a>
Microsoft has ';templates'; you can download for free so you don't have to reinvent the wheel. There are 33 available online at Microsoft through this link http://office.microsoft.com/en-us/templa鈥?/a>
This link shows the formula to amortize a loan ';by hand'; http://www.frickcpa.com/tvom/TVOM_Amort.鈥?/a>
Microsoft has ';templates'; you can download for free so you don't have to reinvent the wheel. There are 33 available online at Microsoft through this link http://office.microsoft.com/en-us/templa鈥?/a>
How can I buy these risky mortgage backed securities I keep hearing about?
Supposedly, investors who invested in these mortage backed securities are taking a bath, and the securities have declined big time, right?
Well, these securities must have some value, I mean not every loan is defaulting, and even the ones that are are backed by homes with some real value.
So I figure since everyone is freaking out about these securities, they must be really cheap now. How can I invest in them at today's sale prices?How can I buy these risky mortgage backed securities I keep hearing about?
These MBS trade in units of several million dollars. You can't invest $10,000.
Also, it requires a significant amount of back office support to track each individual mortgage in the portfolio and account for payments, prepayments, pay offs, etc.How can I buy these risky mortgage backed securities I keep hearing about?
They are sold in 'packages' of (at least) a few million $$'s at a time ..... there MAY be some specialist Funds that invest in this type of security .. however you might do better to simply buy Bank shares or property funds direct :-)
go to any commercial bank or brokerage house...open a account///////////// tell them what you want to buy and do it...........makeup companies wet eyeshadow
Well, these securities must have some value, I mean not every loan is defaulting, and even the ones that are are backed by homes with some real value.
So I figure since everyone is freaking out about these securities, they must be really cheap now. How can I invest in them at today's sale prices?How can I buy these risky mortgage backed securities I keep hearing about?
These MBS trade in units of several million dollars. You can't invest $10,000.
Also, it requires a significant amount of back office support to track each individual mortgage in the portfolio and account for payments, prepayments, pay offs, etc.How can I buy these risky mortgage backed securities I keep hearing about?
They are sold in 'packages' of (at least) a few million $$'s at a time ..... there MAY be some specialist Funds that invest in this type of security .. however you might do better to simply buy Bank shares or property funds direct :-)
go to any commercial bank or brokerage house...open a account///////////// tell them what you want to buy and do it...........
What are good indicators for future mortgage loan interest rates?
Looking to lock a interest rate in the next week. I can lock at just under 5% today, but could have locked at 4 7/8% one day last week.What are good indicators for future mortgage loan interest rates?
I worked in the mortgage industry for many years. Rates this week are great. The 10 year T-Bill, which the 30 year mortgage rate is at historic lows. 30 Year mortgages are not going to get much better.
Since you are quoting a 5% rate, I would think you are looking at a 1 year ARM and not a long term fix loan. The long terms loans will probably drop a bit more since they are tied to the federal funds rates (ie short term rates). The fed seems prepared to lower the rates.
With that said, you have a really rate and Im not sure it is worth the gamble for it to drop much more.What are good indicators for future mortgage loan interest rates?
It's all a guessing game, but in my opinion...
They're not going to go down. As the economy gets worse, they'll increase. During the last recession, inflation went up and rates were in the double digits.
I worked in the mortgage industry for many years. Rates this week are great. The 10 year T-Bill, which the 30 year mortgage rate is at historic lows. 30 Year mortgages are not going to get much better.
Since you are quoting a 5% rate, I would think you are looking at a 1 year ARM and not a long term fix loan. The long terms loans will probably drop a bit more since they are tied to the federal funds rates (ie short term rates). The fed seems prepared to lower the rates.
With that said, you have a really rate and Im not sure it is worth the gamble for it to drop much more.What are good indicators for future mortgage loan interest rates?
It's all a guessing game, but in my opinion...
They're not going to go down. As the economy gets worse, they'll increase. During the last recession, inflation went up and rates were in the double digits.
Is the monthly interest on my mortgage computed from the due date or the actual date of payment?
It's usually computed on average monthly balance (i.e. balance each day divided by 30). So, it's usually better to pay early and thus lower the average balance.Is the monthly interest on my mortgage computed from the due date or the actual date of payment?
I think it depends on the lender. On a 1st mortgage, you make regular installment payments that are principal and interest. Whether you pay early, on the due date or within the grace period the payment will probably be allocated to the interest first and then the principal. If you pay early, you are reducing the principal balance early and that will affect the interest computations over time. The affect would be more pronounced if you were making an extra payment each year if you made it in January rather than December.
I have noticed though on my 2nd mortgage when I made a 2nd payment, which I intended to go against the principal, they applied it first to the accrued interest and then principal. The affect was that when the next payment was applied, the bulk of it was applied to principal.
Interest is only so much each year. When it is paid doesn't have anything to do with the amount of interest that is paid. Only the principal balance used to calculate the interest charges per period will affect the amount of interest. Therefore, the sooner principal reductions are made during the life of the loan, the more the interest charges will be reduced over the life of the loan.
Does that make sense? I hope so.Is the monthly interest on my mortgage computed from the due date or the actual date of payment?
If you have a simple interest loan, If the payment is due on the first of each month, it must be received on or before the first. If you go past that date, you are charged add'l interest every day until paid. It's called per-diem. You should request an amortization that will give you a break down between interest/principal.
I think it depends on the lender. On a 1st mortgage, you make regular installment payments that are principal and interest. Whether you pay early, on the due date or within the grace period the payment will probably be allocated to the interest first and then the principal. If you pay early, you are reducing the principal balance early and that will affect the interest computations over time. The affect would be more pronounced if you were making an extra payment each year if you made it in January rather than December.
I have noticed though on my 2nd mortgage when I made a 2nd payment, which I intended to go against the principal, they applied it first to the accrued interest and then principal. The affect was that when the next payment was applied, the bulk of it was applied to principal.
Interest is only so much each year. When it is paid doesn't have anything to do with the amount of interest that is paid. Only the principal balance used to calculate the interest charges per period will affect the amount of interest. Therefore, the sooner principal reductions are made during the life of the loan, the more the interest charges will be reduced over the life of the loan.
Does that make sense? I hope so.Is the monthly interest on my mortgage computed from the due date or the actual date of payment?
If you have a simple interest loan, If the payment is due on the first of each month, it must be received on or before the first. If you go past that date, you are charged add'l interest every day until paid. It's called per-diem. You should request an amortization that will give you a break down between interest/principal.
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