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.
Wednesday, November 23, 2011
What are the benefits of refinancing a reverse mortgage?
If someone has a reverse and wants to ';re-modify'; it at today's rates how can this help in today's crazy market?What are the benefits of refinancing a reverse mortgage?
It may not help because the borrower would have to re-pay the origination fees. And the amount that could be borrowed would likely be much less because the home's value will be less under the current market conditions.
I very much doubt whether the difference in interest rates could be made up after re-paying all the necessary fees to refinance a reverse mortgage.
It may not help because the borrower would have to re-pay the origination fees. And the amount that could be borrowed would likely be much less because the home's value will be less under the current market conditions.
I very much doubt whether the difference in interest rates could be made up after re-paying all the necessary fees to refinance a reverse mortgage.
What are some tips on finding a good mortgage broker?
What are some tips on finding a good mortgage broker?What are some tips on finding a good mortgage broker?
the most basic thing is to have someone you have a decent amount of trust for. someone recommended by a friend etc.
the things you have to look for are:
1. top priority is seeing that the broker can actually get your loan on time. many deals fall through b/c the broker cannot get the deal through on time and has less control than the original lender
2. secondary priority is to see that they have access to competitive rates. not all brokers have access to all sources and rates, although most of them will be similar.
3. you need to see that the broker is someone you trust to get you the best rate regardless of how much money they make off the transaction.What are some tips on finding a good mortgage broker?
You can also use RMI to research and contact hundreds of brokers to see who can get you the best rates, etc.
You can quickly reference 100s of brokers at:
http://www.refinancingmortgageinfo.com/mortgage_broker.asp
Become a member of a credit union and get a loan through them it's your best bet of not getting screwed. I can find you a place if you need a realtor http://www.itsyoursale.com
Three most common ways to find a broker are A)referrals from friends or family, B) referrals from your realtor and C) through comparison shopping online.
If this is your first time buying a house, you want someone who is knowledgeable and patient. He/she should help you analyze your financial situation, explain to you differences between different mortgage options, and guide you through the entire process.
The broker should also be able to find you competitve rates. When comparing rates, you should take into consideration the points the broker take for himself/herself, not just the rate the bank is charging you.
Whenever possible, ask the broker for references. If someone is confident about his/her work, he/she should provide them.
Do your homework by comparing rates online first. That usually gives you a sense of what the range of mortgages you'll get.
Be careful about some of the online offerings though. Since you don't know the brokers or have local access to them, they can be slow to respond. If you're shooting for a tight timeline, shop for a backup broker.
Here are a couple good sites to start:
http://www.bankrate.com
http://www.homegain.com
the most basic thing is to have someone you have a decent amount of trust for. someone recommended by a friend etc.
the things you have to look for are:
1. top priority is seeing that the broker can actually get your loan on time. many deals fall through b/c the broker cannot get the deal through on time and has less control than the original lender
2. secondary priority is to see that they have access to competitive rates. not all brokers have access to all sources and rates, although most of them will be similar.
3. you need to see that the broker is someone you trust to get you the best rate regardless of how much money they make off the transaction.What are some tips on finding a good mortgage broker?
You can also use RMI to research and contact hundreds of brokers to see who can get you the best rates, etc.
You can quickly reference 100s of brokers at:
http://www.refinancingmortgageinfo.com/mortgage_broker.asp
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Become a member of a credit union and get a loan through them it's your best bet of not getting screwed. I can find you a place if you need a realtor http://www.itsyoursale.com
Report Abuse
Three most common ways to find a broker are A)referrals from friends or family, B) referrals from your realtor and C) through comparison shopping online.
If this is your first time buying a house, you want someone who is knowledgeable and patient. He/she should help you analyze your financial situation, explain to you differences between different mortgage options, and guide you through the entire process.
The broker should also be able to find you competitve rates. When comparing rates, you should take into consideration the points the broker take for himself/herself, not just the rate the bank is charging you.
Whenever possible, ask the broker for references. If someone is confident about his/her work, he/she should provide them.
Do your homework by comparing rates online first. That usually gives you a sense of what the range of mortgages you'll get.
Be careful about some of the online offerings though. Since you don't know the brokers or have local access to them, they can be slow to respond. If you're shooting for a tight timeline, shop for a backup broker.
Here are a couple good sites to start:
http://www.bankrate.com
http://www.homegain.com
Can our mortgage company require us to go with their insurance company?
We are in the process of trying to refinance with a new mortgage company. We currently have homeowner's insurance through Farm Bureau Insurance, as well as boat, automobile, and life insurance. The mortgage company we are refinancing with is saying that we must have and escrow account and pay their OWN homeowner's insurance, instead of Farm Bureau. I don't want to do this because we get a multi-line discount at Farm Bureau, and I like them. Can they do this?Can our mortgage company require us to go with their insurance company?
Absolutely not. Matter of fact, by law, they are required to have you sign an ';ainti-coersion'; disclosure. It states that they have NOT instructed you to, or required you to use a specific insurance company, to guarantee the closing of your loan. BIG no-no. The law was put in cto protect consumers from companies offering each other kick backs. ';send me business, and I'll send you business';. It is fraud. You are encouraged as a consumer to shop for the best deal. That applies to the insurance company, mortgage company, title company, etc. Kick backs and ';steering'; is seriously frowned upon by the Department of Banking and Regulations. They are risking their license.Can our mortgage company require us to go with their insurance company?
Listen to rob and all that said no!
They want the profits from the ins is all!!!
I would take a look at another lender as this one is trying to get paid for something they are not allowed to do. What is probably happening is the Loan Originator,Processor,Officer and Underwriter are getting a kickback from the insurance company. Please report them to HUD as they will investigate what the lender is doing. I'm sure if they are trying to persuade you they have done it many times before to others. You just happen to catch them at it.
I turned in a Major Lender years ago and they were suspended by HUD.
I never heard of it
I'm pretty sure they can't make you. I'm not certain though.
Why not check with your agent and see what he says. I think that this is in violation of some law but I don't know for sure, like restraint of trade?
No, you can have any insurance company you want providing the policy covers what is required by your mortgage company. Don't let them bully you into using their insurance co., they get HUUUUUUUUGE commissions which are built right into your premium (how convenient).
I have heard of this if you lose your insurance with your current company, but they usually charge you a ton!! I would be leary of this cause it just sounds like a monopoly.
You must have mis-understood..they may just asking you to set up an escrow account ..it does not mean you have to change insurance companies...escrow accounts are just extra money you pay and they save for the tax payments and insurance premiums..but you do not HAVE to make one. At least , I have never heard of any mortgage company REQUIRING one with their company.
No, it is illegal for them to require or steer you to use a certain mortgage company.
As far as the escrow account goes, they can require that. You may be able to not escrow your taxes and insurance, but it could cost you an additional 录 or more added to your interest rate (better to escrow).
If there is a possibility, just cancel the transaction with this company. If this problem is any indication, who knows what else that they are not truthful about.
I hope you are working with a LOCAL BANK or MORTGAGE BROKER.
A mortgage is going to be with you for a very long time and it could break you and your family鈥檚 future financial outlook. Don鈥檛 let anybody rush you into something that you do not fully understand.
Make sure to price out your loan with your LOCAL banks and mortgage brokers only.
A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can鈥檛 get to them within 1 hour don鈥檛 fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.
Remember Buddha's advice:
';Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense.'; You are the only ';expert'; you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is ';selling'; you something (its not advice, its advertising). Don't buy ';it.';origins face mask
Absolutely not. Matter of fact, by law, they are required to have you sign an ';ainti-coersion'; disclosure. It states that they have NOT instructed you to, or required you to use a specific insurance company, to guarantee the closing of your loan. BIG no-no. The law was put in cto protect consumers from companies offering each other kick backs. ';send me business, and I'll send you business';. It is fraud. You are encouraged as a consumer to shop for the best deal. That applies to the insurance company, mortgage company, title company, etc. Kick backs and ';steering'; is seriously frowned upon by the Department of Banking and Regulations. They are risking their license.Can our mortgage company require us to go with their insurance company?
Listen to rob and all that said no!
They want the profits from the ins is all!!!
I would take a look at another lender as this one is trying to get paid for something they are not allowed to do. What is probably happening is the Loan Originator,Processor,Officer and Underwriter are getting a kickback from the insurance company. Please report them to HUD as they will investigate what the lender is doing. I'm sure if they are trying to persuade you they have done it many times before to others. You just happen to catch them at it.
I turned in a Major Lender years ago and they were suspended by HUD.
I never heard of it
I'm pretty sure they can't make you. I'm not certain though.
Why not check with your agent and see what he says. I think that this is in violation of some law but I don't know for sure, like restraint of trade?
No, you can have any insurance company you want providing the policy covers what is required by your mortgage company. Don't let them bully you into using their insurance co., they get HUUUUUUUUGE commissions which are built right into your premium (how convenient).
I have heard of this if you lose your insurance with your current company, but they usually charge you a ton!! I would be leary of this cause it just sounds like a monopoly.
You must have mis-understood..they may just asking you to set up an escrow account ..it does not mean you have to change insurance companies...escrow accounts are just extra money you pay and they save for the tax payments and insurance premiums..but you do not HAVE to make one. At least , I have never heard of any mortgage company REQUIRING one with their company.
No, it is illegal for them to require or steer you to use a certain mortgage company.
As far as the escrow account goes, they can require that. You may be able to not escrow your taxes and insurance, but it could cost you an additional 录 or more added to your interest rate (better to escrow).
If there is a possibility, just cancel the transaction with this company. If this problem is any indication, who knows what else that they are not truthful about.
I hope you are working with a LOCAL BANK or MORTGAGE BROKER.
A mortgage is going to be with you for a very long time and it could break you and your family鈥檚 future financial outlook. Don鈥檛 let anybody rush you into something that you do not fully understand.
Make sure to price out your loan with your LOCAL banks and mortgage brokers only.
A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can鈥檛 get to them within 1 hour don鈥檛 fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.
Remember Buddha's advice:
';Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense.'; You are the only ';expert'; you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is ';selling'; you something (its not advice, its advertising). Don't buy ';it.';
How difficult is it to get a home mortgage loan?
I am looking to get a loan for a modular home and a piece of land. We would need about 250,000. My husband claimed bankruptcy in 2001 before we were married. I have good credit and make close to $60,000. However, I do have a few credit cards and a student loan to pay. He makes about 35,000, has limited credit cards and a car loan. For the most part we both pay our bills on time. Do you think the bank will even consider giving us a loan?How difficult is it to get a home mortgage loan?
Please take care - there are scammers on Y!A who actively seek out questions like yours and then offer loans but are scammers
Here are some tips for determining whether a loan is legitimate or a scam:
1) They don't use a free email address (yahoo, gmail, hotmail, etc)
2) They have a secure website you can go to to fill out their application (and no excuses about it being down at the moment)
3) They don't require ANY fees upfront (regardless of whatever excuse they use). Any fees will come out of proceeds of the loan (scammers want their fees via Western Union or Moneygram)
4) They have a REAL address (check it in the yellow pages) you can send mail to
5) They have a REAL phone number, not a cell phone
Often if you click on their profile you will find it is created in the last 24 hours - why? Because they are reported, profile closed down, but they simply create a new profile and start up again
Save yourself another headache and avoid them like the plague. The one from Lucky C (Rev. Peter White) above my post is a prime example of what I mean.... do not go anywhere near it.How difficult is it to get a home mortgage loan?
So you think that you're ready to buy your own home? Hopefully you've done a little research online to make your first home buying experience a good one. First of all you should contact a mortgage broker that will preapprove you for your new mortgage. This is now more important than ever%26lt;!--It's also important that once you receive a preapproval you get busy right away looking for your new home. The reasoning for this is that with the mortgage meltdown lenders are changing their lending programs as quickly as Paris Hilton changes her boyfriends. Scary, huh?
http://mortgages-finance.awardspace.com/First-Time-Home-Buyers-Loans.htm
http://badcreditloans.awardspace.com/
At this point you will let the mortgage broker now how much you would like to get preapproved for. The broker will then take a full mortgage--%26gt;loan application. The mortgage broker will also run your credit. With all this information in hand the mortgage broker will see if you have enough income for the price of the home that you would like to purchase.
Please take care - there are scammers on Y!A who actively seek out questions like yours and then offer loans but are scammers
Here are some tips for determining whether a loan is legitimate or a scam:
1) They don't use a free email address (yahoo, gmail, hotmail, etc)
2) They have a secure website you can go to to fill out their application (and no excuses about it being down at the moment)
3) They don't require ANY fees upfront (regardless of whatever excuse they use). Any fees will come out of proceeds of the loan (scammers want their fees via Western Union or Moneygram)
4) They have a REAL address (check it in the yellow pages) you can send mail to
5) They have a REAL phone number, not a cell phone
Often if you click on their profile you will find it is created in the last 24 hours - why? Because they are reported, profile closed down, but they simply create a new profile and start up again
Save yourself another headache and avoid them like the plague. The one from Lucky C (Rev. Peter White) above my post is a prime example of what I mean.... do not go anywhere near it.How difficult is it to get a home mortgage loan?
So you think that you're ready to buy your own home? Hopefully you've done a little research online to make your first home buying experience a good one. First of all you should contact a mortgage broker that will preapprove you for your new mortgage. This is now more important than ever%26lt;!--It's also important that once you receive a preapproval you get busy right away looking for your new home. The reasoning for this is that with the mortgage meltdown lenders are changing their lending programs as quickly as Paris Hilton changes her boyfriends. Scary, huh?
http://mortgages-finance.awardspace.com/First-Time-Home-Buyers-Loans.htm
http://badcreditloans.awardspace.com/
At this point you will let the mortgage broker now how much you would like to get preapproved for. The broker will then take a full mortgage--%26gt;loan application. The mortgage broker will also run your credit. With all this information in hand the mortgage broker will see if you have enough income for the price of the home that you would like to purchase.
What is the best way to get a mortgage loan modified?
I am barely able to pay the minimum payment( I have
a negative amortization loan) My credit is bad. Is it
better to try to get a modification when we start earning more money? My property is worth less than what I owe.What is the best way to get a mortgage loan modified?
Talk to your lender. With all of the mortgage problems in the nation, lenders are under pressure to fend off defaults. They may be willing to amend your mortgage rather than suffer another default.What is the best way to get a mortgage loan modified?
Go through a local mortgage broker and see if they can qualify you for a FHA Secure loan.
I think the only qualifying credit used in the approval decision is your mortgage history. And from what I heard they are allowing some recent late history.
Best of luck
a negative amortization loan) My credit is bad. Is it
better to try to get a modification when we start earning more money? My property is worth less than what I owe.What is the best way to get a mortgage loan modified?
Talk to your lender. With all of the mortgage problems in the nation, lenders are under pressure to fend off defaults. They may be willing to amend your mortgage rather than suffer another default.What is the best way to get a mortgage loan modified?
Go through a local mortgage broker and see if they can qualify you for a FHA Secure loan.
I think the only qualifying credit used in the approval decision is your mortgage history. And from what I heard they are allowing some recent late history.
Best of luck
Help me find the information on if a mortgage company can force you to insure your home to loan value?
I know there is a law that was passed that stops mortgage companies from forcing home owners to insure their homes to loan value instead of the appraised value. I used to have a copy of that document that I would use when I went up against the mortgage companies, but I can't find it. Can anyone help?Help me find the information on if a mortgage company can force you to insure your home to loan value?
I would check in your loan package and see the documents that you signed relating to the requirement to carry insurance. I trust that you are talking about about hazard (home owner's) insurance, rather than mortgage insurance. It is certainly typical that the lender wants you to have insurance to cover the amount of the loan. If the home is destroyed in a fire or other tragedy, they obviously want to have the amount that is owed to them paid by the insurance policy.
Best of luck!Help me find the information on if a mortgage company can force you to insure your home to loan value?
If you would have had 2o% downpayment, you would not have to had ins.
I would check in your loan package and see the documents that you signed relating to the requirement to carry insurance. I trust that you are talking about about hazard (home owner's) insurance, rather than mortgage insurance. It is certainly typical that the lender wants you to have insurance to cover the amount of the loan. If the home is destroyed in a fire or other tragedy, they obviously want to have the amount that is owed to them paid by the insurance policy.
Best of luck!Help me find the information on if a mortgage company can force you to insure your home to loan value?
If you would have had 2o% downpayment, you would not have to had ins.
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