Are you more likely to be approved for a mortgage with at least a 50% down payment with a less than perfect credit rating?Are you more likely to be approved for a mortgage with a large down payment?
Not necessarily, there are various programs that are designed for buyers that don't have enough assets for a conventional down payment on a loan (20% of purchase price).
Most of the determinants considered for a mortgage applicant are centered around income-to-debt ratio, credit score, and assets available. This doesn't mean that you'll have to put much down to get financing.
There are various programs that are sponsored by the government to get people into homes with little or no money down. If you are located in a rural area, there is a program with the USDA that will allow you finance up to 102% of the appraised value. If you have stable income and decent credit there are many options available to you.
I hope that is helpful.Are you more likely to be approved for a mortgage with a large down payment?
YES. The larger the down payment and the better your credit, the more likely to get a loan at a great rate. When your credit isn't perfect, having a larger down payment can help. Your past history of poor financial decisions is catching up to you. You can improve your credit month by month by paying all bills in full, paying everything on time, paying off delinquencies, payind down credit balances, etc.
Only if that large downpayment makes the amount borrowed manageable for you to repay. Meaning you cannot buy a house for 500k, put 250k down, borrow 250k with an income of 30k a year.
I have been told by plenty of mortgage loan companies in the past (more than 2 years ago) that if you have poor credit the only way to buy a house is with 20% down. However, I think things are changing.
for sure, the larger your down payment the less risky the loan will be to the bank. They know you are serious about keeping the house and are less likely to walk away from it.
no. the bank usually only cares about your source of income. i tried this once and they did not care only wanted paystubs and tax returns. otherwise drug dealers could just go around buying nice houses...
Everything else being equal, yes.
Tuesday, August 24, 2010
I am upside down on my investment property and I cannot rent it for what the mortgage payment is. what to do?
I am also in financial hardship and am in high credit card debt. What should I do? Die trying to hold onto a house to keep my credit score decent or just let it go?I am upside down on my investment property and I cannot rent it for what the mortgage payment is. what to do?
Talk to your tax preparer. You may be able to take a tax deduction for your losses in your investment property.
Talk to him about the advantages of selling and taking a loss vs. holding on to it and getting deeper and deeper in debt.I am upside down on my investment property and I cannot rent it for what the mortgage payment is. what to do?
As an investment property you likely can take use the loss to your advantage on your taxes which should ease your pain somewhat. If you are implying to ';just let it go'; to foreclosure, that is not really an option because the bank will likely come after you for the difference of what they are able to liquidate the property for plus all the fees you will accumulate as a result of a foreclosure (like another $20k). I suggest you try to short sell the property next year (to take advantage of the present year tax advantage and spread the loss to the following tax year.
Talk to your tax preparer. You may be able to take a tax deduction for your losses in your investment property.
Talk to him about the advantages of selling and taking a loss vs. holding on to it and getting deeper and deeper in debt.I am upside down on my investment property and I cannot rent it for what the mortgage payment is. what to do?
As an investment property you likely can take use the loss to your advantage on your taxes which should ease your pain somewhat. If you are implying to ';just let it go'; to foreclosure, that is not really an option because the bank will likely come after you for the difference of what they are able to liquidate the property for plus all the fees you will accumulate as a result of a foreclosure (like another $20k). I suggest you try to short sell the property next year (to take advantage of the present year tax advantage and spread the loss to the following tax year.
How does a mortgage assumption work?
The seller debt (mortgage) is reassigned to you and remains in first priority as a lien against the property. Any further financing (junior financing) is considered a second on the property. If the current note (mortgage) is at a good rate, assumption can be a good thing. The bank already knows the property is worth the risk.scary mask buy make up
Short Sale with 2 mortgages?
I am trying to buy a home and it has 2 mortgages, we are waiting on the 2nd bank to negotiate. Does anyone know how the process works? My last update was that they were in a level 2 phase. Why doesn't the 2nd bank just accept what the 1st bank is offering? It is either they get some or nothing.Short Sale with 2 mortgages?
dont worry about all that stuff. make your offer to the owner of the property, and the title company will insure there are no other debts against it. It is out of your hands whether the 2nd bank will accept the money or notShort Sale with 2 mortgages?
if you were a bank how much loss would you like to take? NONE! so the second bank is doing the math and they will either say yes or no. They may have a better chance of recovering in a foreclosure
When multiple parties must sign off on a short sale the less of a chance of a successful short sale,
The second may require the seller to sign a promissory note on the difference even if it鈥檚 a non-recourse loan, thereby killing the deal
Also another trend that is emerging is the PMI refusal to agree to the short sale so even if the second comes around you are not in the clear, the PMI could reject the short sale even if all other lenders have agreed since they are the ones who have to pay out
Level 2 (also called phase 2) negotiator is on the first lender when the loan is with Countrywide. I never heard of a level 2 negotiator on the second lender. They usually have one negotiator that responds quickly (usually within 30 days).
You are right. You would think that the 2nd lender will just take whatever the 1st lender gives as they will get wiped out at the auction (assuming the value of the house is under the first loan amount). However, that is not the case. The first usually wants to give 1k-5k and the 2nd wants 10% of the loan balance. BofA as a 2nd lender wants 5% of the purchase price! It is at this point that most short sales fail as most agents are not aware on how to bypass this issue. If you get to this point where the 2nd wants more than what the first wants, post a question on Yahoo! and I will answer. You might need to give me a heads up so I know you asked a question.
The following link shows you how to buy short sales. It is within Yahoo! Answers guidelines as it answers the question and is not a solicitation for business:
http://activerain.com/blogsview/1070569/鈥?/a>
uh...because YOU are on the hook here; not them. If they aren't happy, YOU get tagged with a deficency balance.
If they nuke the sale.....they get whatever they can...from you.
dont worry about all that stuff. make your offer to the owner of the property, and the title company will insure there are no other debts against it. It is out of your hands whether the 2nd bank will accept the money or notShort Sale with 2 mortgages?
if you were a bank how much loss would you like to take? NONE! so the second bank is doing the math and they will either say yes or no. They may have a better chance of recovering in a foreclosure
When multiple parties must sign off on a short sale the less of a chance of a successful short sale,
The second may require the seller to sign a promissory note on the difference even if it鈥檚 a non-recourse loan, thereby killing the deal
Also another trend that is emerging is the PMI refusal to agree to the short sale so even if the second comes around you are not in the clear, the PMI could reject the short sale even if all other lenders have agreed since they are the ones who have to pay out
Level 2 (also called phase 2) negotiator is on the first lender when the loan is with Countrywide. I never heard of a level 2 negotiator on the second lender. They usually have one negotiator that responds quickly (usually within 30 days).
You are right. You would think that the 2nd lender will just take whatever the 1st lender gives as they will get wiped out at the auction (assuming the value of the house is under the first loan amount). However, that is not the case. The first usually wants to give 1k-5k and the 2nd wants 10% of the loan balance. BofA as a 2nd lender wants 5% of the purchase price! It is at this point that most short sales fail as most agents are not aware on how to bypass this issue. If you get to this point where the 2nd wants more than what the first wants, post a question on Yahoo! and I will answer. You might need to give me a heads up so I know you asked a question.
The following link shows you how to buy short sales. It is within Yahoo! Answers guidelines as it answers the question and is not a solicitation for business:
http://activerain.com/blogsview/1070569/鈥?/a>
uh...because YOU are on the hook here; not them. If they aren't happy, YOU get tagged with a deficency balance.
If they nuke the sale.....they get whatever they can...from you.
Is there an ethical code of conduct that every mortgage broker has to follow?
I'm looking for any type of Federal Law that spells out an ethical guideline or code of conduct that every mortgage broker is subject to. and/or a state one (Michigan)Is there an ethical code of conduct that every mortgage broker has to follow?
There are federal regulations about stock transactions but ethics is not necessarily a legal requirement. If they tell you ';this stock is sure to go up'; then that might be unethical but not necessarily illegal since it is only ';advice'; Trust is everything in dealing with money matters.. somehow you have to deal with someone who will treat you honestly.
If they intend to cheat you then all the ethics will not stop them and the laws will only make it more difficult for them. Lots of luck...Is there an ethical code of conduct that every mortgage broker has to follow?
Ethics wise I don't think so, but there are a set of disclosure documents which they have to give you when your applying for a mortgage. One of which is a truth in lending form. These tell you what you are applying for, the locked in rate and points, approx monthly payment things like that.
These days you should only look at 2 types of mortgages, Fixed if you are staying a while. Adjustable if you KNOW you are only staying for a certain number of years. I stick with 30 fixed.
laws don;t specify ethics, professional organizations do.
google is your friend.
There is, but they don't follow it.
There are federal regulations about stock transactions but ethics is not necessarily a legal requirement. If they tell you ';this stock is sure to go up'; then that might be unethical but not necessarily illegal since it is only ';advice'; Trust is everything in dealing with money matters.. somehow you have to deal with someone who will treat you honestly.
If they intend to cheat you then all the ethics will not stop them and the laws will only make it more difficult for them. Lots of luck...Is there an ethical code of conduct that every mortgage broker has to follow?
Ethics wise I don't think so, but there are a set of disclosure documents which they have to give you when your applying for a mortgage. One of which is a truth in lending form. These tell you what you are applying for, the locked in rate and points, approx monthly payment things like that.
These days you should only look at 2 types of mortgages, Fixed if you are staying a while. Adjustable if you KNOW you are only staying for a certain number of years. I stick with 30 fixed.
laws don;t specify ethics, professional organizations do.
google is your friend.
There is, but they don't follow it.
Indian Society and House mortgages?
a)How is Indian Society materialisc?
b) How does house mortgages represent materialismIndian Society and House mortgages?
I don't understand the question. If you would like to talk about materialism here is not the place, there are a lot of Marxist forums.
b) How does house mortgages represent materialismIndian Society and House mortgages?
I don't understand the question. If you would like to talk about materialism here is not the place, there are a lot of Marxist forums.
Have we hanged those involved in the sub-prime mortgage scandal yet?
If not, why not? The have caused the worst financial crisis since the last one.Have we hanged those involved in the sub-prime mortgage scandal yet?
You mean the greedy little mortgage mongers, or the greedy little house buyers. Karl Marx is somewhere laughing his head off. Have we hanged those involved in the sub-prime mortgage scandal yet?
No, of course not. But that's why so many in congress, Dem and GOP, were so happy to get Obama in the White House.
The KNEW that with Obama there, instead of McCain and Palin, that there would be NO investigation into the congressional connection to this. And we can start with 1 - Chris Dodd, 2 - Barney Frank. Both of these Democrats should be facing prison time.
Eh, wot? Yes, I'm certain it is most terrible, young man. Flivers, will you kindly escort this gentleman from the club?
Boy, it sure would keep them from doing it again.
No, we punished them severely by giving them more money,,,, that'll teach em.
NO WE BAILED THEM OUT......lol
You mean the greedy little mortgage mongers, or the greedy little house buyers. Karl Marx is somewhere laughing his head off. Have we hanged those involved in the sub-prime mortgage scandal yet?
No, of course not. But that's why so many in congress, Dem and GOP, were so happy to get Obama in the White House.
The KNEW that with Obama there, instead of McCain and Palin, that there would be NO investigation into the congressional connection to this. And we can start with 1 - Chris Dodd, 2 - Barney Frank. Both of these Democrats should be facing prison time.
Eh, wot? Yes, I'm certain it is most terrible, young man. Flivers, will you kindly escort this gentleman from the club?
Boy, it sure would keep them from doing it again.
No, we punished them severely by giving them more money,,,, that'll teach em.
NO WE BAILED THEM OUT......lol
My parents in law granted a deed to us as a gift. There is still a mortgage balance on the property.?
Are we going to be taxed on the property that was gifted to us. Can we apply for refinancing right away on the property.My parents in law granted a deed to us as a gift. There is still a mortgage balance on the property.?
Gifts are never taxable to the person receiving the gift. If you were gifted 100% of the property you can do what you want with it even refinanceMy parents in law granted a deed to us as a gift. There is still a mortgage balance on the property.?
It depends upon the worth of the property. If the property minus the mortgage balance is more than the annual taxable gift amount then yes you will be taxed on the property. But you will not have to pay taxes in excess of you federal income tax percentage. Now because there are two of you it is easier for the gift amount to be higher. For example if both parents were property owners then they can each give each of you up to $12,000 each in non taxable gift. Meaning between the two of them they can give the two of you a total of $48,000 in gift that would be non taxable (ie: Mom gives you $12,000. Dad gives you $12,000 Mom give spouse $12,000 Dad gives spouse $12,000) Now after the property is valued you would deduct the 48,000 and whatever the balance is on the mortgage. That would be your taxable amount. BUT if you take out a mortgage of your own for the balance on the property you will also be able to deduct any FEES charged for refinancing.
I STRONGLY suggest you consult a CPA to ensure that the gift amounts are properly documented along with the balance on the property so that your inlaws do not end up being taxed on the capital gains of the property and to ensure you get all your fees and gift properly documented in order to ensure everyone is protected and received the full deductions allowed by law. The CPA may even be able to recommend a good mortgage company for whatever your circumstances. It shouldn't be a problem to refinance right away, you might even be able to include what you will owe in income taxes so that it isn't a burden. A CPA can handle the whole transaction along with the title company and everyone will be happy then you can relax and enjoy this wonderful gift from your inlaws!
You probably will pay tax, and yes if the deed is in your name and your credit history is good, then no worries you will be able to take a loan/mortgage out on the property.
Gifts are never taxable to the person receiving the gift. If you were gifted 100% of the property you can do what you want with it even refinanceMy parents in law granted a deed to us as a gift. There is still a mortgage balance on the property.?
It depends upon the worth of the property. If the property minus the mortgage balance is more than the annual taxable gift amount then yes you will be taxed on the property. But you will not have to pay taxes in excess of you federal income tax percentage. Now because there are two of you it is easier for the gift amount to be higher. For example if both parents were property owners then they can each give each of you up to $12,000 each in non taxable gift. Meaning between the two of them they can give the two of you a total of $48,000 in gift that would be non taxable (ie: Mom gives you $12,000. Dad gives you $12,000 Mom give spouse $12,000 Dad gives spouse $12,000) Now after the property is valued you would deduct the 48,000 and whatever the balance is on the mortgage. That would be your taxable amount. BUT if you take out a mortgage of your own for the balance on the property you will also be able to deduct any FEES charged for refinancing.
I STRONGLY suggest you consult a CPA to ensure that the gift amounts are properly documented along with the balance on the property so that your inlaws do not end up being taxed on the capital gains of the property and to ensure you get all your fees and gift properly documented in order to ensure everyone is protected and received the full deductions allowed by law. The CPA may even be able to recommend a good mortgage company for whatever your circumstances. It shouldn't be a problem to refinance right away, you might even be able to include what you will owe in income taxes so that it isn't a burden. A CPA can handle the whole transaction along with the title company and everyone will be happy then you can relax and enjoy this wonderful gift from your inlaws!
You probably will pay tax, and yes if the deed is in your name and your credit history is good, then no worries you will be able to take a loan/mortgage out on the property.
Is it still possible for me to get a mortgage with no money down?
It looks like I will be facing a divorce in the next few months and I'm curious to find out if it's possible for me to get a mortgage. There are some properties that are so cheap that between mortgage, taxes, and insurance (including PMI) my monthly payment would be a couple of hundred dollars cheaper than if I rented. My credit score is really high and I have never been delinquent on any loan I've had.Is it still possible for me to get a mortgage with no money down?
100% financing is no more. Save some money, take out a personal loan if it makes sense (if you have a good income and the places you are buying are cheap then it makes sense, if not it may hurt you getting a mortgage so be careful), borrow from friends and family (better really... FHA also allows a portion of your downpayment to be from gifts) or get a settlement from your divorce. For example, give up the miles and other things for what you'll need as downpayment or get a lawyer that can get you what you need. You should have at least 3% (better if 5% to 20%) of the purchase price. Also, you may not want to bring this up during divorce. There have been cases were things you acquire after the divorce can be grounds to amend the court orders. For example, you may no longer be qualified for spousal support (this is just an example and warning to check with your lawyer).
Good luck with your quest.Is it still possible for me to get a mortgage with no money down?
Get a lump sum from divorce settlement to use as down payment. Need 3.5% minimum for FHA. Those 0% down schemes were a BAD idea and the reason you see so many foreclosed, short sale, and cheap properties, as the owner had NO equity in property. Borrow from parents, then amend your taxes and pay them back with the $8000 credit IF you're a first-time homebuyer.
It sounds like you live in The States.I'm not familiar with how mortgages work exactly over there, as I've only ever bought property outright, but I couldn't imagine they'd be that much different to here. So, in short, no. 100% mortgages are a thing of the past unfortunately.
All lenders these days are requiring a down payment. The days of 100% financing are gone so you'll have to save some money before you can purchase.
see if the 50/50 project is still operation, as at local council officesscary mask buy make up
100% financing is no more. Save some money, take out a personal loan if it makes sense (if you have a good income and the places you are buying are cheap then it makes sense, if not it may hurt you getting a mortgage so be careful), borrow from friends and family (better really... FHA also allows a portion of your downpayment to be from gifts) or get a settlement from your divorce. For example, give up the miles and other things for what you'll need as downpayment or get a lawyer that can get you what you need. You should have at least 3% (better if 5% to 20%) of the purchase price. Also, you may not want to bring this up during divorce. There have been cases were things you acquire after the divorce can be grounds to amend the court orders. For example, you may no longer be qualified for spousal support (this is just an example and warning to check with your lawyer).
Good luck with your quest.Is it still possible for me to get a mortgage with no money down?
Get a lump sum from divorce settlement to use as down payment. Need 3.5% minimum for FHA. Those 0% down schemes were a BAD idea and the reason you see so many foreclosed, short sale, and cheap properties, as the owner had NO equity in property. Borrow from parents, then amend your taxes and pay them back with the $8000 credit IF you're a first-time homebuyer.
It sounds like you live in The States.I'm not familiar with how mortgages work exactly over there, as I've only ever bought property outright, but I couldn't imagine they'd be that much different to here. So, in short, no. 100% mortgages are a thing of the past unfortunately.
All lenders these days are requiring a down payment. The days of 100% financing are gone so you'll have to save some money before you can purchase.
see if the 50/50 project is still operation, as at local council offices
Is it still possible for me to get a mortgage with no money down?
It looks like I will be facing a divorce in the next few months and I'm curious to find out if it's possible for me to get a mortgage. There are some properties that are so cheap that between mortgage, taxes, and insurance (including PMI) my monthly payment would be a couple of hundred dollars cheaper than if I rented. My credit score is really high and I have never been delinquent on any loan I've had.Is it still possible for me to get a mortgage with no money down?
100% financing is no more. Save some money, take out a personal loan if it makes sense (if you have a good income and the places you are buying are cheap then it makes sense, if not it may hurt you getting a mortgage so be careful), borrow from friends and family (better really... FHA also allows a portion of your downpayment to be from gifts) or get a settlement from your divorce. For example, give up the miles and other things for what you'll need as downpayment or get a lawyer that can get you what you need. You should have at least 3% (better if 5% to 20%) of the purchase price. Also, you may not want to bring this up during divorce. There have been cases were things you acquire after the divorce can be grounds to amend the court orders. For example, you may no longer be qualified for spousal support (this is just an example and warning to check with your lawyer).
Good luck with your quest.Is it still possible for me to get a mortgage with no money down?
Get a lump sum from divorce settlement to use as down payment. Need 3.5% minimum for FHA. Those 0% down schemes were a BAD idea and the reason you see so many foreclosed, short sale, and cheap properties, as the owner had NO equity in property. Borrow from parents, then amend your taxes and pay them back with the $8000 credit IF you're a first-time homebuyer.
It sounds like you live in The States.I'm not familiar with how mortgages work exactly over there, as I've only ever bought property outright, but I couldn't imagine they'd be that much different to here. So, in short, no. 100% mortgages are a thing of the past unfortunately.
All lenders these days are requiring a down payment. The days of 100% financing are gone so you'll have to save some money before you can purchase.
see if the 50/50 project is still operation, as at local council offices
100% financing is no more. Save some money, take out a personal loan if it makes sense (if you have a good income and the places you are buying are cheap then it makes sense, if not it may hurt you getting a mortgage so be careful), borrow from friends and family (better really... FHA also allows a portion of your downpayment to be from gifts) or get a settlement from your divorce. For example, give up the miles and other things for what you'll need as downpayment or get a lawyer that can get you what you need. You should have at least 3% (better if 5% to 20%) of the purchase price. Also, you may not want to bring this up during divorce. There have been cases were things you acquire after the divorce can be grounds to amend the court orders. For example, you may no longer be qualified for spousal support (this is just an example and warning to check with your lawyer).
Good luck with your quest.Is it still possible for me to get a mortgage with no money down?
Get a lump sum from divorce settlement to use as down payment. Need 3.5% minimum for FHA. Those 0% down schemes were a BAD idea and the reason you see so many foreclosed, short sale, and cheap properties, as the owner had NO equity in property. Borrow from parents, then amend your taxes and pay them back with the $8000 credit IF you're a first-time homebuyer.
It sounds like you live in The States.I'm not familiar with how mortgages work exactly over there, as I've only ever bought property outright, but I couldn't imagine they'd be that much different to here. So, in short, no. 100% mortgages are a thing of the past unfortunately.
All lenders these days are requiring a down payment. The days of 100% financing are gone so you'll have to save some money before you can purchase.
see if the 50/50 project is still operation, as at local council offices
Can I get away signing up to a residential mortgage for a property that I intend to rent out (UK)?
Hi,
Can I get away signing up to a residential mortgage for a property that I intend to rent out as Buy to Let? This is intended for the UK.
To simply put it, the rates for standard residential mortgages are better than those that are buy to let.
The big question is, is it easy to get away with!
Any help would be appreciated.
Thanks
SQM.Can I get away signing up to a residential mortgage for a property that I intend to rent out (UK)?
The operative words here are ';get away with it';. If your intention is to rent this out with no intention to occupy the property what you are proposing is fraud. By committing fraud, not only can they come after you for the money (mainly the difference between what you will be paying in interest and what you should have paid) they can also put you in jail.
Can you get away with it? Maybe. If you don't and the prison you end up in has internet access, please let us know how your little sheme worked.Can I get away signing up to a residential mortgage for a property that I intend to rent out (UK)?
As others have mentioned, if you already own a home and don't plan on selling it- then you won't be able to finance this home as an owner occupied property in the first place.
If you rent currently and plan on buying this property only to rent it-then like the others said-you would basically be committing fraud-and you may either be penalized or the lender may call the loan due and payable. However, right now, banks, if they are collecting monthly mortgage checks- don't care if you are running a meth lab out of your house- as long as you are not foreclosing. If they called the loan due and payable and you can't pay it- guess what- they have fun foreclosure on their books- and certainly a loss when they try and sell the place. So you may be ok.
Plenty of people buy homes live and them- move into a nicer place- and rent their current place. Nothing illegal about it. There loan is not called - and they are free to rent it out. So there is always that.
Alternatively, if you can put a little more down, finance the property as an investment, and your rate won't be all that different.
You may get away for a little while, but as soon as they find out, not only will they call the loan due immediately, they may also charge you with mortgage fraud, in which case the Government will pay your rent for some time. ( In jail)
if you already own a house that you live in, you may have to prove you have a buyer for that or they won;t believe you
Can I get away signing up to a residential mortgage for a property that I intend to rent out as Buy to Let? This is intended for the UK.
To simply put it, the rates for standard residential mortgages are better than those that are buy to let.
The big question is, is it easy to get away with!
Any help would be appreciated.
Thanks
SQM.Can I get away signing up to a residential mortgage for a property that I intend to rent out (UK)?
The operative words here are ';get away with it';. If your intention is to rent this out with no intention to occupy the property what you are proposing is fraud. By committing fraud, not only can they come after you for the money (mainly the difference between what you will be paying in interest and what you should have paid) they can also put you in jail.
Can you get away with it? Maybe. If you don't and the prison you end up in has internet access, please let us know how your little sheme worked.Can I get away signing up to a residential mortgage for a property that I intend to rent out (UK)?
As others have mentioned, if you already own a home and don't plan on selling it- then you won't be able to finance this home as an owner occupied property in the first place.
If you rent currently and plan on buying this property only to rent it-then like the others said-you would basically be committing fraud-and you may either be penalized or the lender may call the loan due and payable. However, right now, banks, if they are collecting monthly mortgage checks- don't care if you are running a meth lab out of your house- as long as you are not foreclosing. If they called the loan due and payable and you can't pay it- guess what- they have fun foreclosure on their books- and certainly a loss when they try and sell the place. So you may be ok.
Plenty of people buy homes live and them- move into a nicer place- and rent their current place. Nothing illegal about it. There loan is not called - and they are free to rent it out. So there is always that.
Alternatively, if you can put a little more down, finance the property as an investment, and your rate won't be all that different.
You may get away for a little while, but as soon as they find out, not only will they call the loan due immediately, they may also charge you with mortgage fraud, in which case the Government will pay your rent for some time. ( In jail)
if you already own a house that you live in, you may have to prove you have a buyer for that or they won;t believe you
Why do people say they own their own home before they have fully paid off their mortgage?
Surely until that happens you are really just renting from the bank/mortgage lender given that if you do not pay on time they will repossess??Why do people say they own their own home before they have fully paid off their mortgage?
It's the same as if you got a loan from the bank and purchased a car with the money - the car would be yours wouldn't it!!Why do people say they own their own home before they have fully paid off their mortgage?
The bank does not own it. The bank cannot paint your house a different color, come inside without your permission or even kick you out unless you don't default. Even then it takes a lot of paperwork to foreclose. When you purchase clothes on a credit card, the credit card company does not own the clothes, you do.
No, you are not renting, it is ownership.
You take title as a ';freehold estate'; that means complete ownership. The bank cannot tell you when to sell it, what to do with the property (as long as you don't destroy it), when to remodel it, or make improvements.
If you want to paint the outside purple and decrease the value, no bank will stop you.
If you want to leave trash in the yard and let the house go to hell, no bank will stop you.
The bank doesn't get the tax writeoff, you do on the interest you pay.
The bank has the right of reposession b/c when YOU didn't have the hundreds of thousands to put down on it...they did, and loaned you the money with the PROMISE to pay it back.
Why shouldn't they have it back if you don't pay off the loan?
Your name is on the title deeds....
Because it gives us a sense of stability.....
The person on the deed owns the house. No ifs ands or buts.
They owe money to a lender for the cash to buy it.
we like to delude ourselves hun
let us have our dreams eh?
You would come accross as being slightly anal if you said each time that you were 36% through paying off the mortgage on my house etc.
In any case could you not also argue that you are borrowing the money to pay for the house so in essence the bank own the money that you borrowed, they never actually purchased the house itself and thus it is not theirs in any form. They may have the right to seize it should you not make the payments but even that would imply that they have not had ownership of it up until that point.
Because we all need a degree of optimism in our lives.
It's the same as if you got a loan from the bank and purchased a car with the money - the car would be yours wouldn't it!!Why do people say they own their own home before they have fully paid off their mortgage?
The bank does not own it. The bank cannot paint your house a different color, come inside without your permission or even kick you out unless you don't default. Even then it takes a lot of paperwork to foreclose. When you purchase clothes on a credit card, the credit card company does not own the clothes, you do.
No, you are not renting, it is ownership.
You take title as a ';freehold estate'; that means complete ownership. The bank cannot tell you when to sell it, what to do with the property (as long as you don't destroy it), when to remodel it, or make improvements.
If you want to paint the outside purple and decrease the value, no bank will stop you.
If you want to leave trash in the yard and let the house go to hell, no bank will stop you.
The bank doesn't get the tax writeoff, you do on the interest you pay.
The bank has the right of reposession b/c when YOU didn't have the hundreds of thousands to put down on it...they did, and loaned you the money with the PROMISE to pay it back.
Why shouldn't they have it back if you don't pay off the loan?
Your name is on the title deeds....
Because it gives us a sense of stability.....
The person on the deed owns the house. No ifs ands or buts.
They owe money to a lender for the cash to buy it.
we like to delude ourselves hun
let us have our dreams eh?
You would come accross as being slightly anal if you said each time that you were 36% through paying off the mortgage on my house etc.
In any case could you not also argue that you are borrowing the money to pay for the house so in essence the bank own the money that you borrowed, they never actually purchased the house itself and thus it is not theirs in any form. They may have the right to seize it should you not make the payments but even that would imply that they have not had ownership of it up until that point.
Because we all need a degree of optimism in our lives.
Does having a roommate effect the amount of a mortgage?
I am looking into buying a condo. I will have a roommate who will be paying half of the bills and I am wondering if this would effect the amount of the loan I can get or would they look at my financial information only? The mortgage would be in my name only.Does having a roommate effect the amount of a mortgage?
The mortgage amount is determined by the the down payment, the interest rate and the amount financed.. Ones roommate has no bearing on the loan.Does having a roommate effect the amount of a mortgage?
If the mortgage is in your name only, I would assume that they would only look at your income and financial info. However, there is a place on most loan applications where you can list other sources of income - ie rent from a roommate - and they will take that into consideration. However, I wouldn't count on that helping you too much as a roommate could move out or fail to pay his bills - it's not like court ordered child support or something.
The mortgage amount is determined by the the down payment, the interest rate and the amount financed.. Ones roommate has no bearing on the loan.Does having a roommate effect the amount of a mortgage?
If the mortgage is in your name only, I would assume that they would only look at your income and financial info. However, there is a place on most loan applications where you can list other sources of income - ie rent from a roommate - and they will take that into consideration. However, I wouldn't count on that helping you too much as a roommate could move out or fail to pay his bills - it's not like court ordered child support or something.
How did the mortgage collapse actually happen?
I am only 15 years old, but the way I understand it is that there was spike in house prices due to increasing demand for houses, and the demand made the prices go up making people want to have them as investments. And when the prices got so high the investors were unable to sell their houses and not able to pay their mortgages and had forclosure.
Anyways this is how I understand it but I want a clearer picture because I dont think I understand it right. Could someone who knows more about this tell me.How did the mortgage collapse actually happen?
you're actually pretty close.
what you're missing in the rise in the cost of food, gasoline, and nearly everything else.
that made it hard for families to cover all their expenses.
add to that, many mortgages had the interest rate fixed for a few years, but after that, it could rise.
the idea was that house prices would rise forever, and if you couldn't afford it at some point, you could sell the house and make a lot of money.
with higher family expenses, and an increase in mortgage interest, people couldn't afford them any more, but since this happened to lots of folks, house prices didn't rise, and nobody wanted to buy the house.
mortgage lenders got paid by selling a mortgage, regardless of whether the buyer could afford it or not.
didn't make any difference to them whether or not the buyer was really able to make the payments, after the first one.
wall street saw all this easy money floating around -- maybe a batch of 1,000 mortgages, that were making 5% this year, but would increase to 7% in a couple of years, and bought them, giving the banks who sold them a bunch of money.
everyone thought they would be rich.
and didn't think about the house of cards that would bring the whole mess down.
10 years ago, it was the .com industry, and the nasdaq.
30 years ago, it was gold.
interesting what greed does to people.How did the mortgage collapse actually happen?
Purely and simply, Browns inability to deal with what needn't have become a crisis. If stamp duty had been lifted to a realistic standing, then the housing market would have still been buoyant. Like so many things this government could of averted, they choose to sit on their hands instead.
You are right, actually.
I can try to explain this in a parable. Baseball players get paid a lot of money, right? Let's say they make on average 5 million dollar per year.
Now, let's say for some reason, people stop going to baseball games in mass droves. For example, parent's can't afford to take their kids to game anymore because they need money for food, clothes, etc.
So, this sets off a chain reaction. General managers of the baseball teams then have to pay their players less becuase they have less revenue. So, because people stopped going to the games, the playes now only make $300,000 per year instead of 2 million.
The houses are the baseball players. it's supply and demand.
I collected baseball cards when I was a kid. I'm 29 now. I remember getting 3 Mark McGwire rookie cards in a pack of baseball cards in 1987. I looked them up in my baseball price guide and it said they worth $5 apiece. Amazed, I went to my friends to show them my newfound wealth. To my disappointment, each of my friends also had 3 Mark McGwire rookie cards.
My point is, just because someone said my card was worth $3, doesn't mean it is. There has to be someone out there willing to buy it for $3. If there is too much of something, no one is going to want to buy it. That's why rare things are worth more money.
The answer to your question is really the collective opinion of many people who think they know the answer. I think you are right up to a point that speculators that wanted to ';flip'; houses for a quick profit were part of the problem because their plans did not involve actually paying for the property over a long period of time but simply reselling it quickly and thus they really did not really care too much about the price they were paying. Add in the buyers that wanted to buy with little money down that thought they could refinance a few years later and use their built up equity from price appreciation as a down payment to get a cheaper mortgage that was more affordable than the one they had agreed to that was shortly going to reset to a higher rate and much higher payments. These two groups of people normally would not be buying real estate. Add them to the group that would normally be buying and the scene is set for strong price increases that can not be sustained.
Also add to the mix the lenders that were greedy and kept promoting easier mortgage terms so more people had the illusion that could afford to buy the now over priced real estate and you have the makings of a bubble. It formed and then it burst. You now see the results.
Anyways this is how I understand it but I want a clearer picture because I dont think I understand it right. Could someone who knows more about this tell me.How did the mortgage collapse actually happen?
you're actually pretty close.
what you're missing in the rise in the cost of food, gasoline, and nearly everything else.
that made it hard for families to cover all their expenses.
add to that, many mortgages had the interest rate fixed for a few years, but after that, it could rise.
the idea was that house prices would rise forever, and if you couldn't afford it at some point, you could sell the house and make a lot of money.
with higher family expenses, and an increase in mortgage interest, people couldn't afford them any more, but since this happened to lots of folks, house prices didn't rise, and nobody wanted to buy the house.
mortgage lenders got paid by selling a mortgage, regardless of whether the buyer could afford it or not.
didn't make any difference to them whether or not the buyer was really able to make the payments, after the first one.
wall street saw all this easy money floating around -- maybe a batch of 1,000 mortgages, that were making 5% this year, but would increase to 7% in a couple of years, and bought them, giving the banks who sold them a bunch of money.
everyone thought they would be rich.
and didn't think about the house of cards that would bring the whole mess down.
10 years ago, it was the .com industry, and the nasdaq.
30 years ago, it was gold.
interesting what greed does to people.How did the mortgage collapse actually happen?
Purely and simply, Browns inability to deal with what needn't have become a crisis. If stamp duty had been lifted to a realistic standing, then the housing market would have still been buoyant. Like so many things this government could of averted, they choose to sit on their hands instead.
You are right, actually.
I can try to explain this in a parable. Baseball players get paid a lot of money, right? Let's say they make on average 5 million dollar per year.
Now, let's say for some reason, people stop going to baseball games in mass droves. For example, parent's can't afford to take their kids to game anymore because they need money for food, clothes, etc.
So, this sets off a chain reaction. General managers of the baseball teams then have to pay their players less becuase they have less revenue. So, because people stopped going to the games, the playes now only make $300,000 per year instead of 2 million.
The houses are the baseball players. it's supply and demand.
I collected baseball cards when I was a kid. I'm 29 now. I remember getting 3 Mark McGwire rookie cards in a pack of baseball cards in 1987. I looked them up in my baseball price guide and it said they worth $5 apiece. Amazed, I went to my friends to show them my newfound wealth. To my disappointment, each of my friends also had 3 Mark McGwire rookie cards.
My point is, just because someone said my card was worth $3, doesn't mean it is. There has to be someone out there willing to buy it for $3. If there is too much of something, no one is going to want to buy it. That's why rare things are worth more money.
The answer to your question is really the collective opinion of many people who think they know the answer. I think you are right up to a point that speculators that wanted to ';flip'; houses for a quick profit were part of the problem because their plans did not involve actually paying for the property over a long period of time but simply reselling it quickly and thus they really did not really care too much about the price they were paying. Add in the buyers that wanted to buy with little money down that thought they could refinance a few years later and use their built up equity from price appreciation as a down payment to get a cheaper mortgage that was more affordable than the one they had agreed to that was shortly going to reset to a higher rate and much higher payments. These two groups of people normally would not be buying real estate. Add them to the group that would normally be buying and the scene is set for strong price increases that can not be sustained.
Also add to the mix the lenders that were greedy and kept promoting easier mortgage terms so more people had the illusion that could afford to buy the now over priced real estate and you have the makings of a bubble. It formed and then it burst. You now see the results.
I hold the original deed to my MORTGAGED house, am I stil liable to my new mortgage company?
When I bought my house in 2003 I was given the original deeds to the house. I re-mortgaged in 2008 and am now wondering if the money was lent without them legally being able to do so. If this is the case, would I have a case for not having to re pay the mortgage?I hold the original deed to my MORTGAGED house, am I stil liable to my new mortgage company?
Nice try, no.I hold the original deed to my MORTGAGED house, am I stil liable to my new mortgage company?
Even if you have the deed they have a lien against it and can take it if you do not pay.
The promissory note will allow them to collect the money they are owed.scary mask buy make up
Nice try, no.I hold the original deed to my MORTGAGED house, am I stil liable to my new mortgage company?
Even if you have the deed they have a lien against it and can take it if you do not pay.
The promissory note will allow them to collect the money they are owed.
How does a mortgage work?
OK, im looking at buying a house and though I have a vague understanding of what a mortgage is, its still pretty confusing. Can someone explain to me how it works, what i am paying, etc...
Thanx in advanceHow does a mortgage work?
Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok - It greatly depends if you need help with closing cost, if you have money to bring into the table - so you do not have to borrow the full 100 percent. Rates are still in the 6's but they are getting higher - ok. If your credit is in the 500's to low 600's than the rate would be higher - lots of factors to consider.
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a ';hard'; pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down
Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.
Some companies want you to escrow you taxes and insurance. Other's may not require it...Some companies add a .25 to the interest rate if you want to escrow waver...FHA loans have to escrow (at least they used to)
Just a reminder, you will get a 1099 INT form, for interest you paid each year at tax time, you can take that off if you go 1040 long form. Sign up for your Mortgage exception and Homestead exception and any other exceptions at your local court house 1 month after you close on your loan. This will LOWER your PROPERTY TAXES. Your Broker should mention it to you, or your closer at the closing.
Lenders look at the middle score to qualify a person - and if your credit is low, than you will be going SUB-Prime, and any amount over 80 percent does not have MI - There are alot of companies I underwrite for that does NOT charge MI - normally the rate is slightly higher. Say you got qualified and your rate was 8.50 at par (Par, means that is what rate the lender quotes you, with no addon's to the rate for the lender to make pts on the back - some Lo';s add pts on the rate to make their money - instead of charging it up front). The 8.50 does not have MI included. (Rates are estimates only, since I do not know what your credit is like, your rate could be lower, this is just a estimate - ok)
FHA loans have MI included, Conforming A+ borrower's loans have MI included, but the rates are better starting in the mid to high 6's (with rates going up.) The more money you borrow - the higher the rate normally. There are alot of factors involved.
Go to these websites:
1. http://www.nehemiahcorp.org/
http://www.fanniemaefoundation.org/...
http://www.fha-home-loans.com/
http://www.freddiemac.com/
The Government websites has a First Time Home Buyer Booklet - you can download and print off.
Also - It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??
Good Luck to you, and happy house hunting. Check out my web site for more helpful information.How does a mortgage work?
The best thing to do is to see a financial adviser. I'm in exactly the same position where I don't understand all the Jargon and don't know what type of mortgage is the best suited to me, so I asked a similar question and that's what I was recomended to do. Good Luck
A mortgage is like a loan that a bank or building society would give you to buy a house with. You then pay back a certain amount of money a month with interest. You would probably find it easier to save a deposit first of all and these are usually around 5% of the value of the property. A mortagge can only be awarded to you if you are on a nough money to support the monthly repayments. Its probably best talking to a mortgage advisor who would give you free advice on affordability and current interest rates around the market.
Simple answer - The same as you being a tenant. The differance is that as a tenant you rent from a landlord with the house never being yours. A mortgage - you rent from the lender who in returns offers you a chance to pay it off, so becoming your home. Never believe anyone who says they own there own home until they have no mortgage on it. If they stop payments to the lender then you can see who is evicted - the person who does not own it!!!! Need any help contact me
It is basically another word for a loan on your home. Mortgages have different terms, and qualifications.
There is a repayment period, interest rate, and some interest rates change over time. As your interest rate goes up, so does your payment.
A good rule of thumb when you are trying to figure out your monthly payment is P.I.T.I., Principal, Interest, Taxes and Insurance. These are things that you will have to pay for every month. Some home builders will also have Association Fees, or Special Assessments.
I have my first motgage and this is how it works - with a repayment mortgage you pay back the amount you borrow plus intrest every month, so each year you repay the interest due plus part of the capital amount until the full amount is paid back - could be about 25 years.
Interest only mortgage means you only pay the interest on the mortgage, not the capital you borrow - this can be in conjunction with a savings or investment policy to help pay the capital when the time is due.
Speak to the building societies as they will be able to give you more information,.
A mortage is a loan, there rest works from there. You borrow the money and pay back the money borrowed at an agreed interest. Beyond that there are two types of mortage:
- endowment mortage, where the bank lends you the money on the basis of the expected value of the loan over the period, so for example if the money is lent when the stock markets are doing really well, you can get a smaller loan. The disadvantage is that they get it wrong, so you end up with smaller payments, but found out at the end of the 25 years that you still owe thousands of pounds because the expected value doesn't add up to the real value
Safer is a repayment mortgage where you pay back the initial sum against some agreed conditions (interest rates) with the bank. Payments may be higher but there are no suprises at the end.
Afterwards you choose between fixed and variable. Fixed is surer, variable means you might pay less, but then again you might pay more.
Beyond that, most mortages are renegotiable fairly quickly in, if you just threaten to change and take the mortgage elsewhere. I have had a mortage for 10 years, and the ease of switching or renegotiating seems to be higher now - we have pretty much always been able to get a better deal than the standard rate.
This is kind of tough to explain quickly. The best advice I can give you is to buy the David Bach's ';Automatic Millionaire Homeowner.'; It is meant for 1st time home owners. I just bought my home a few months ago, so I can totally relate. I found this book incredibly helpful. It's easy to understand.
Edit: In case it's helpful, here's a ';quick overview.'; Your mortgage is basically a function of 3 things: The cost of the house, the interest rate you secure and the downpayment you make. The standard/starting point mortgage is 30 year fixed (but there a many variations from that). Typical down payment is 20%, but again, many variations from that (e.g. I only paid 10%).
To figure out the monthly payment you would make take the remaining mortgage (the total price - downpayment) and the interest rate. You can use below link that has a mortgage calculator.
Also, would recommend that you speak to someone live about this (e.g. someone from a bank) who can explain to you how it works and give you some sample rates.
Good luck! I know it feels really confusing and intimidating. But, once you get your head wrapped around it, it will make a lot more sense.
A mortgage is the loan that you get to buy a house. It is usally set up for 15 or 30 years. That is the term. Each month you will make a payment that consists of interest and principal. Interest is what you owe the mortgage company for advancing you the money and the principal is the actual amount applied to your loan balance. You may also have to pay PMI and an escrow account. PMI is personal mortgage insurance. It is an insurance you pay to help secure your loan until you have paid off more than 20% of your loan. Escrow is money you pay ahead to cover property taxes and home insurance. It is part of what you pay in each month and then your mortgage company pays those bills for you. Typically you have to be at least 3 months ahead on these. A downpayment will be required. This is an amount of money that you pay at the very beginning of the loan.
Not to add to the confusion ... lol
A mortgage is a loan in which you pay the bank interest for using their money. Interest is only charged on the principal amount. So for instance, if your payments are (hypothetical!) $2,500 ... $2,300 goes to interest and $200 goes to principal. The next month it would be $2,250 goes to interest and $250 to principal .. because your principal goes down in small incriments, your interest goes down a little each month. The actual payment amount stays the same, the amount to interest and principal changes over time.
Payments are always in arrears, meaning if your payment is due Aug. 1, the payment you make will be for July, so you're only paying UP TO Aug 1st. It's not like rent where you pay ahead. Mortgage loans you pay for the month behind.
Depending on your credit, loan program and the loan to value ratio (% of sales price you finance) you may have to pay impounds (also called an escrow account in some areas). They figure out how much your property taxes and hazard insurance will be per year and break it up into 12 month incriments and add it to your loan payment. If you lender doesn't require it, you can choose to do it as well.
Personally, I think impounds are a great idea, especially for a first time buyer. You don't have to worry about coming up with huge sums of money when the property taxes are due, you've already put some away via the lender to pay them.
Hope some of this helps :)
Good luck :)
Thanx in advanceHow does a mortgage work?
Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok - It greatly depends if you need help with closing cost, if you have money to bring into the table - so you do not have to borrow the full 100 percent. Rates are still in the 6's but they are getting higher - ok. If your credit is in the 500's to low 600's than the rate would be higher - lots of factors to consider.
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a ';hard'; pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down
Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.
Some companies want you to escrow you taxes and insurance. Other's may not require it...Some companies add a .25 to the interest rate if you want to escrow waver...FHA loans have to escrow (at least they used to)
Just a reminder, you will get a 1099 INT form, for interest you paid each year at tax time, you can take that off if you go 1040 long form. Sign up for your Mortgage exception and Homestead exception and any other exceptions at your local court house 1 month after you close on your loan. This will LOWER your PROPERTY TAXES. Your Broker should mention it to you, or your closer at the closing.
Lenders look at the middle score to qualify a person - and if your credit is low, than you will be going SUB-Prime, and any amount over 80 percent does not have MI - There are alot of companies I underwrite for that does NOT charge MI - normally the rate is slightly higher. Say you got qualified and your rate was 8.50 at par (Par, means that is what rate the lender quotes you, with no addon's to the rate for the lender to make pts on the back - some Lo';s add pts on the rate to make their money - instead of charging it up front). The 8.50 does not have MI included. (Rates are estimates only, since I do not know what your credit is like, your rate could be lower, this is just a estimate - ok)
FHA loans have MI included, Conforming A+ borrower's loans have MI included, but the rates are better starting in the mid to high 6's (with rates going up.) The more money you borrow - the higher the rate normally. There are alot of factors involved.
Go to these websites:
1. http://www.nehemiahcorp.org/
http://www.fanniemaefoundation.org/...
http://www.fha-home-loans.com/
http://www.freddiemac.com/
The Government websites has a First Time Home Buyer Booklet - you can download and print off.
Also - It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??
Good Luck to you, and happy house hunting. Check out my web site for more helpful information.How does a mortgage work?
The best thing to do is to see a financial adviser. I'm in exactly the same position where I don't understand all the Jargon and don't know what type of mortgage is the best suited to me, so I asked a similar question and that's what I was recomended to do. Good Luck
A mortgage is like a loan that a bank or building society would give you to buy a house with. You then pay back a certain amount of money a month with interest. You would probably find it easier to save a deposit first of all and these are usually around 5% of the value of the property. A mortagge can only be awarded to you if you are on a nough money to support the monthly repayments. Its probably best talking to a mortgage advisor who would give you free advice on affordability and current interest rates around the market.
Simple answer - The same as you being a tenant. The differance is that as a tenant you rent from a landlord with the house never being yours. A mortgage - you rent from the lender who in returns offers you a chance to pay it off, so becoming your home. Never believe anyone who says they own there own home until they have no mortgage on it. If they stop payments to the lender then you can see who is evicted - the person who does not own it!!!! Need any help contact me
It is basically another word for a loan on your home. Mortgages have different terms, and qualifications.
There is a repayment period, interest rate, and some interest rates change over time. As your interest rate goes up, so does your payment.
A good rule of thumb when you are trying to figure out your monthly payment is P.I.T.I., Principal, Interest, Taxes and Insurance. These are things that you will have to pay for every month. Some home builders will also have Association Fees, or Special Assessments.
I have my first motgage and this is how it works - with a repayment mortgage you pay back the amount you borrow plus intrest every month, so each year you repay the interest due plus part of the capital amount until the full amount is paid back - could be about 25 years.
Interest only mortgage means you only pay the interest on the mortgage, not the capital you borrow - this can be in conjunction with a savings or investment policy to help pay the capital when the time is due.
Speak to the building societies as they will be able to give you more information,.
A mortage is a loan, there rest works from there. You borrow the money and pay back the money borrowed at an agreed interest. Beyond that there are two types of mortage:
- endowment mortage, where the bank lends you the money on the basis of the expected value of the loan over the period, so for example if the money is lent when the stock markets are doing really well, you can get a smaller loan. The disadvantage is that they get it wrong, so you end up with smaller payments, but found out at the end of the 25 years that you still owe thousands of pounds because the expected value doesn't add up to the real value
Safer is a repayment mortgage where you pay back the initial sum against some agreed conditions (interest rates) with the bank. Payments may be higher but there are no suprises at the end.
Afterwards you choose between fixed and variable. Fixed is surer, variable means you might pay less, but then again you might pay more.
Beyond that, most mortages are renegotiable fairly quickly in, if you just threaten to change and take the mortgage elsewhere. I have had a mortage for 10 years, and the ease of switching or renegotiating seems to be higher now - we have pretty much always been able to get a better deal than the standard rate.
This is kind of tough to explain quickly. The best advice I can give you is to buy the David Bach's ';Automatic Millionaire Homeowner.'; It is meant for 1st time home owners. I just bought my home a few months ago, so I can totally relate. I found this book incredibly helpful. It's easy to understand.
Edit: In case it's helpful, here's a ';quick overview.'; Your mortgage is basically a function of 3 things: The cost of the house, the interest rate you secure and the downpayment you make. The standard/starting point mortgage is 30 year fixed (but there a many variations from that). Typical down payment is 20%, but again, many variations from that (e.g. I only paid 10%).
To figure out the monthly payment you would make take the remaining mortgage (the total price - downpayment) and the interest rate. You can use below link that has a mortgage calculator.
Also, would recommend that you speak to someone live about this (e.g. someone from a bank) who can explain to you how it works and give you some sample rates.
Good luck! I know it feels really confusing and intimidating. But, once you get your head wrapped around it, it will make a lot more sense.
A mortgage is the loan that you get to buy a house. It is usally set up for 15 or 30 years. That is the term. Each month you will make a payment that consists of interest and principal. Interest is what you owe the mortgage company for advancing you the money and the principal is the actual amount applied to your loan balance. You may also have to pay PMI and an escrow account. PMI is personal mortgage insurance. It is an insurance you pay to help secure your loan until you have paid off more than 20% of your loan. Escrow is money you pay ahead to cover property taxes and home insurance. It is part of what you pay in each month and then your mortgage company pays those bills for you. Typically you have to be at least 3 months ahead on these. A downpayment will be required. This is an amount of money that you pay at the very beginning of the loan.
Not to add to the confusion ... lol
A mortgage is a loan in which you pay the bank interest for using their money. Interest is only charged on the principal amount. So for instance, if your payments are (hypothetical!) $2,500 ... $2,300 goes to interest and $200 goes to principal. The next month it would be $2,250 goes to interest and $250 to principal .. because your principal goes down in small incriments, your interest goes down a little each month. The actual payment amount stays the same, the amount to interest and principal changes over time.
Payments are always in arrears, meaning if your payment is due Aug. 1, the payment you make will be for July, so you're only paying UP TO Aug 1st. It's not like rent where you pay ahead. Mortgage loans you pay for the month behind.
Depending on your credit, loan program and the loan to value ratio (% of sales price you finance) you may have to pay impounds (also called an escrow account in some areas). They figure out how much your property taxes and hazard insurance will be per year and break it up into 12 month incriments and add it to your loan payment. If you lender doesn't require it, you can choose to do it as well.
Personally, I think impounds are a great idea, especially for a first time buyer. You don't have to worry about coming up with huge sums of money when the property taxes are due, you've already put some away via the lender to pay them.
Hope some of this helps :)
Good luck :)
Is there a statute of limitations concerning when a mortgage lender can refute an appraisal report?
There is a possibility that I will be sued over an appraisal that was performed 2-and-a-half years ago? I am an appraiser in Indiana and have never experienced this dilemna.Is there a statute of limitations concerning when a mortgage lender can refute an appraisal report?
It depends on what they sue your for. Presumably, they are claiming your appraisal was no good and they suffered loss as a result. If they say you breached a representation in a contract, it arguably could fall under the rules for contracts, which vary. If it is fraud, it is 6 years from the alleged fraud. For negligence, it is 2 years from the discovery of the negligence. Personally, my money is on the negligence, since they'll likely claim you failed to perform your appraisal consistently with your professional duty. Your insurance should cover it, and you should read your policy about your duty to notify them of possible claims.
It depends on what they sue your for. Presumably, they are claiming your appraisal was no good and they suffered loss as a result. If they say you breached a representation in a contract, it arguably could fall under the rules for contracts, which vary. If it is fraud, it is 6 years from the alleged fraud. For negligence, it is 2 years from the discovery of the negligence. Personally, my money is on the negligence, since they'll likely claim you failed to perform your appraisal consistently with your professional duty. Your insurance should cover it, and you should read your policy about your duty to notify them of possible claims.
Can I take out my overpayments on my flexible mortgage ?
It is part reypayment (拢12k) part interest only (拢21K)
I have overpaid by 拢10.5K, and want to pay off the mortgage early. What might be the restrictions ? EGG say I cannot withdraw the 拢10K but I am awaiting them to tell me what the befit of my overpayment has been.Can I take out my overpayments on my flexible mortgage ?
The main benefit from paying off a mortgage early is less interest you pay on the Principal amount borrowed. Thus this reduces the effective interest rate since interest = Principal X time X Trate use of the money. The other thing is you will own your home much sooner and can invest like no other for your future. What else would you like to know?Can I take out my overpayments on my flexible mortgage ?
Without seeing the conditions of your mortgage it is difficult to answer, as a starting point go and see a local mortgage advisor (take your mortgage docs with you) and he/she will be in a position to advise you, if you feel you are being unfairly treated or have been mislead in some way by your lender contact the Financial Services Authority. Good Luck
You have asked two different questions there - firstly most good banks would in fact allow you to draw back out any overpayment that you had made, subject to a minimum withdrawal amount. Egg are therefore being very inflexible in not allowing you to do that. The benefit however is that hopefully they have been charging you a reduced amount of interest on the smaller balance that the overpayment should have left you with. With regards to paying it off early, you should be able to do this as long as you are not tied into a product such as a fixed rate - however again i wouldnt be surprised if Egg had some other nasty policy up their sleeve!
I have overpaid by 拢10.5K, and want to pay off the mortgage early. What might be the restrictions ? EGG say I cannot withdraw the 拢10K but I am awaiting them to tell me what the befit of my overpayment has been.Can I take out my overpayments on my flexible mortgage ?
The main benefit from paying off a mortgage early is less interest you pay on the Principal amount borrowed. Thus this reduces the effective interest rate since interest = Principal X time X Trate use of the money. The other thing is you will own your home much sooner and can invest like no other for your future. What else would you like to know?Can I take out my overpayments on my flexible mortgage ?
Without seeing the conditions of your mortgage it is difficult to answer, as a starting point go and see a local mortgage advisor (take your mortgage docs with you) and he/she will be in a position to advise you, if you feel you are being unfairly treated or have been mislead in some way by your lender contact the Financial Services Authority. Good Luck
You have asked two different questions there - firstly most good banks would in fact allow you to draw back out any overpayment that you had made, subject to a minimum withdrawal amount. Egg are therefore being very inflexible in not allowing you to do that. The benefit however is that hopefully they have been charging you a reduced amount of interest on the smaller balance that the overpayment should have left you with. With regards to paying it off early, you should be able to do this as long as you are not tied into a product such as a fixed rate - however again i wouldnt be surprised if Egg had some other nasty policy up their sleeve!
Are there any mortgage companies willing to REFINANCE someone with a great credit score?
We own a plum commercial building in the middle of the best part of the downtown area of a small town. I have top credit---over 800. My sister has about 780. We want to refinance. Our interest rate is 8.5%. Are there any reputable companies that will refinance for a much better rate??Are there any mortgage companies willing to REFINANCE someone with a great credit score?
call first and then visit mortgage brokers; ask if they do
commercial. Agree to pay no front fees whatever; no
app fees, no appraisal fees, credit check fees.
none; all of those should come of the new loanAre there any mortgage companies willing to REFINANCE someone with a great credit score?
Yeah, as long as you have enough equity to refinance you certainly can get 5.0%-5.5%. If you have an FHA/VA loan you can even have negative 5% equity and still refinance.
Maybe, but the commercial real estate market has tanked and you probably don't have enough equity to cover your loan amount.
Suggest you start with the local, independent banks
Yes, but credit scores are not the only factor.
call first and then visit mortgage brokers; ask if they do
commercial. Agree to pay no front fees whatever; no
app fees, no appraisal fees, credit check fees.
none; all of those should come of the new loanAre there any mortgage companies willing to REFINANCE someone with a great credit score?
Yeah, as long as you have enough equity to refinance you certainly can get 5.0%-5.5%. If you have an FHA/VA loan you can even have negative 5% equity and still refinance.
Maybe, but the commercial real estate market has tanked and you probably don't have enough equity to cover your loan amount.
Suggest you start with the local, independent banks
Yes, but credit scores are not the only factor.
Have any senior citizens ever taken out a reverse mortgage?How did it work out?Are you glad you did it?
I am considering getting one.I think everything has a down side,but I haven't found one yet in that program.Have any senior citizens ever taken out a reverse mortgage?How did it work out?Are you glad you did it?
The most popular Reverse Mortgage is the Home Equity Conversion Mortgage (HECM) which account for over 90% of Reverse Mortgages done to date. The HECM is Federally regulated and insured (FHA---HUD) They set the rules and regulations. AARP just released a study
(12-12-2007) here's the web address that will link you directly to the report on AARP website...
http://www.aarp.org/research/credit-debt鈥?/a>
You can also go directly to www.HUD.gov to research Reverse Mortgages. Seeing it's their program why not go right to the source. Part of the Reverse Mortgage process is that you have to talk to an independent HUD approved third party counselor to make sure you understand the program and that it was explained to you correctly. (government safeguard). There is no charge for this and you can do this anytime you want. Just another avenue to answer your questions. I hope these resources help in your decision making. If I can be of any other assistance let me know. For disclosure purposes......I have been in the Reverse Mortgage business for over 2 years and I am a Reverse Mortgage Consultant for EverBank Reverse Mortgage.
Regards,
StephenHave any senior citizens ever taken out a reverse mortgage?How did it work out?Are you glad you did it?
I don't quite understand it, but I know what a mortgage is. Wouldn't everything be in reverse? I mean, you would get money back, but wouldn't they tell you after awhile that your house is no longer your's? Seems to me whoever is working with you, giving you money would be buying your House! Maybe it doesn't work like that.
Not my cup of tea -- think it's about 4 steps below declaring backrupcy (just another bank rip off in my opinion).
Good question, you beat me to it, I was going to ask so a star for you !
It is good to know the details and laws/rules/regulations concerning this topic...
http://en.wikipedia.org/wiki/Reverse_mor鈥?/a>
A reverse mortgage can often be a life saver for seniors...as long as they and their family members receive full training and are fully infomed and knowledgeable...
Reverse mortgages are not a device to make private lenders rich or to defraud and are regulated by the Fed.
Glad you asked because we've been curious too! Going to save this page for future reference.
Not a good idea, there are some up front fees that need to be paid. Also you only get a portion of the value of your home, so lets say on a $300,000 (hypothetical) house you might be lucky to come out with a monthy amount of around $1,000 or less You also of course have to be 62 years or older to qualify. I went on line once and figured it out based on a higher amount with no mortgage and came up with $1,000. Thats not much considering. If you should decide to sell down the road any mortgage amount still owing would still have to be paid, as well as the amount lent from the reverse mortage. Same as when you die.
Why don't you sell it, then you at least can take the capital gains of $250,000 if single or $500,000 if married exemption Use that money to rent and with SS. that would give you a nest egg to retire on, along with any other retirement income you may have. Do not know how much your house is worth, or what your financial needs are at this time, so that is up to you to decide.
I would't touch a reverse mortgage with a ten foot pole.
I read an article in AARP about reverse mortgage. They have excellent information on their web site.
http://www.aarp.org/
Mom was 83 when she did this. She is 92 now an just went to assisted living. Sold the house no problems.
I don't think it's a good idea. It seems like another scheme, or advertising ploy of the mortgage companies. There's nothing clever or brilliant about it; only a way to decrease equity in your home that should REMAIN THERE.
The most popular Reverse Mortgage is the Home Equity Conversion Mortgage (HECM) which account for over 90% of Reverse Mortgages done to date. The HECM is Federally regulated and insured (FHA---HUD) They set the rules and regulations. AARP just released a study
(12-12-2007) here's the web address that will link you directly to the report on AARP website...
http://www.aarp.org/research/credit-debt鈥?/a>
You can also go directly to www.HUD.gov to research Reverse Mortgages. Seeing it's their program why not go right to the source. Part of the Reverse Mortgage process is that you have to talk to an independent HUD approved third party counselor to make sure you understand the program and that it was explained to you correctly. (government safeguard). There is no charge for this and you can do this anytime you want. Just another avenue to answer your questions. I hope these resources help in your decision making. If I can be of any other assistance let me know. For disclosure purposes......I have been in the Reverse Mortgage business for over 2 years and I am a Reverse Mortgage Consultant for EverBank Reverse Mortgage.
Regards,
StephenHave any senior citizens ever taken out a reverse mortgage?How did it work out?Are you glad you did it?
I don't quite understand it, but I know what a mortgage is. Wouldn't everything be in reverse? I mean, you would get money back, but wouldn't they tell you after awhile that your house is no longer your's? Seems to me whoever is working with you, giving you money would be buying your House! Maybe it doesn't work like that.
Not my cup of tea -- think it's about 4 steps below declaring backrupcy (just another bank rip off in my opinion).
Good question, you beat me to it, I was going to ask so a star for you !
It is good to know the details and laws/rules/regulations concerning this topic...
http://en.wikipedia.org/wiki/Reverse_mor鈥?/a>
A reverse mortgage can often be a life saver for seniors...as long as they and their family members receive full training and are fully infomed and knowledgeable...
Reverse mortgages are not a device to make private lenders rich or to defraud and are regulated by the Fed.
Glad you asked because we've been curious too! Going to save this page for future reference.
Not a good idea, there are some up front fees that need to be paid. Also you only get a portion of the value of your home, so lets say on a $300,000 (hypothetical) house you might be lucky to come out with a monthy amount of around $1,000 or less You also of course have to be 62 years or older to qualify. I went on line once and figured it out based on a higher amount with no mortgage and came up with $1,000. Thats not much considering. If you should decide to sell down the road any mortgage amount still owing would still have to be paid, as well as the amount lent from the reverse mortage. Same as when you die.
Why don't you sell it, then you at least can take the capital gains of $250,000 if single or $500,000 if married exemption Use that money to rent and with SS. that would give you a nest egg to retire on, along with any other retirement income you may have. Do not know how much your house is worth, or what your financial needs are at this time, so that is up to you to decide.
I would't touch a reverse mortgage with a ten foot pole.
I read an article in AARP about reverse mortgage. They have excellent information on their web site.
http://www.aarp.org/
Mom was 83 when she did this. She is 92 now an just went to assisted living. Sold the house no problems.
I don't think it's a good idea. It seems like another scheme, or advertising ploy of the mortgage companies. There's nothing clever or brilliant about it; only a way to decrease equity in your home that should REMAIN THERE.
Adding a name to deed for Florida property under Mortgage?
I am seeking to add my father to my deed for my townhouse in Florida. The property is still under mortgage. And I am out of the country. I just want to understand the process and if there is anyway I could get the documents mailed to me and I will notarize them where I am. Help is much appreciated!Adding a name to deed for Florida property under Mortgage?
You need to call the company you pay your mortgage payments to and they will instruct you further.Adding a name to deed for Florida property under Mortgage?
You do not need to contact your mortgage company, that's a waste of your and their time. They don't care who's in title as long as your making the payments. I would have your father go to a title company or real estate attorney to get a quit claim deed prepared and overnighted to you, but here's where the fun begins so PLEASE pay attention. Fla counties are goofy, some require 1 witness signature, some require 2. You will need a witness signature at the time of execution. Also, DO NOT JUST GET THIS NOTARIZED, it may not be recorded. You must go to a us consulate or embassy to sign and get the document notarized, do not get this notarized by any other entity. Foreign notarizations most likely will not be recogized by the county clerks office and you will have to do this again. I had a deal in fla and we asked the county directly if they would accept a foreign notaization, they said sure. Well the deed got rejected, a new one had to be prepared and shipped to germany again. Take out the x factor and go the an embassy or consulate to make sure you do this correctly, good luck
You need to speak with a real estate attorney and with the lender. Since you don't explain why you want to do this the services of an attorney are very important because you may be able to achieve your purpose by some means other than putting your father's name on the property.scary mask buy make up
You need to call the company you pay your mortgage payments to and they will instruct you further.Adding a name to deed for Florida property under Mortgage?
You do not need to contact your mortgage company, that's a waste of your and their time. They don't care who's in title as long as your making the payments. I would have your father go to a title company or real estate attorney to get a quit claim deed prepared and overnighted to you, but here's where the fun begins so PLEASE pay attention. Fla counties are goofy, some require 1 witness signature, some require 2. You will need a witness signature at the time of execution. Also, DO NOT JUST GET THIS NOTARIZED, it may not be recorded. You must go to a us consulate or embassy to sign and get the document notarized, do not get this notarized by any other entity. Foreign notarizations most likely will not be recogized by the county clerks office and you will have to do this again. I had a deal in fla and we asked the county directly if they would accept a foreign notaization, they said sure. Well the deed got rejected, a new one had to be prepared and shipped to germany again. Take out the x factor and go the an embassy or consulate to make sure you do this correctly, good luck
You need to speak with a real estate attorney and with the lender. Since you don't explain why you want to do this the services of an attorney are very important because you may be able to achieve your purpose by some means other than putting your father's name on the property.
What is the profile of the average person who defaulted on his loan in the subprime mortgage fiasco?
Greedy, thinking of making some fast money flipping realestate, highly over extended.
What am I liable for if I have a ';mortgage loan'; and am not on title?
My employer bought a home for my family and I to live in, then issued me a ';mortgage loan'; for 50% of the purchase price. I am not on the title, but pay 50% of all costs and taxes. They have a clause that states I am in default if I choose to voluntarily quit within 3 years from the inception of the contract. Can they do this? What if I decide to walk away? They treat me horribly now that they have something to hold over my head. Can I actually be held liable for a mortgage payment on a property do not own? I have never received any money from the transaction.What am I liable for if I have a ';mortgage loan'; and am not on title?
You don't have a mortgage if your name isn't not on it. Sound like you didn't sign a mortgage. You signed a contract that for the amount you are expected to pay while living in the companies house. You are only in default of your contract with them. So you will have to move if you quit.What am I liable for if I have a ';mortgage loan'; and am not on title?
To whom are you making the payments? What proof, if you are paying him directly, that that money is being applied to any mortgage he may have ont he property?
Yes you can be held liable if you sgned a promissory note. You agreed to the terms of the loan when you wanted the house.
Your liability is that if you walk away he may be able to sue you on the basis of the promissory note.
You need a Real Estate lawyer.
yes they can hold you liable...and you can pay that loan for the rest of your life...or when it's fully paid for.
if you FULLY pay for it...then they were be sole beneficiary's
Until a property is completely paid off you never truly own it. That is why there are so many people in foreclosure now. the banks that paid the money for the houses are taking them back because the people ';walked away'; or stopped paying their loans. the same thing will happen here.
You knew what you were signing when you signed it. If you do not like the terms of the mortgage now, you can most likely go to a bank to refinance the property and pay off the employer.
Actually, if you are only paying 50% of all costs and mortgage you are getting a lot. this is doubly true if you are also getting a salary. Basically you are drawing a salary plus benefits of 50% of the mortgage payment. I would hope that all this extra compensation is being reported to the IRS correctly or both you and the company can get in a world of hurt if they decide to audit.
Good luck, it is not a situation I would want to be in.
You don't have a mortgage if your name isn't not on it. Sound like you didn't sign a mortgage. You signed a contract that for the amount you are expected to pay while living in the companies house. You are only in default of your contract with them. So you will have to move if you quit.What am I liable for if I have a ';mortgage loan'; and am not on title?
To whom are you making the payments? What proof, if you are paying him directly, that that money is being applied to any mortgage he may have ont he property?
Yes you can be held liable if you sgned a promissory note. You agreed to the terms of the loan when you wanted the house.
Your liability is that if you walk away he may be able to sue you on the basis of the promissory note.
You need a Real Estate lawyer.
yes they can hold you liable...and you can pay that loan for the rest of your life...or when it's fully paid for.
if you FULLY pay for it...then they were be sole beneficiary's
Until a property is completely paid off you never truly own it. That is why there are so many people in foreclosure now. the banks that paid the money for the houses are taking them back because the people ';walked away'; or stopped paying their loans. the same thing will happen here.
You knew what you were signing when you signed it. If you do not like the terms of the mortgage now, you can most likely go to a bank to refinance the property and pay off the employer.
Actually, if you are only paying 50% of all costs and mortgage you are getting a lot. this is doubly true if you are also getting a salary. Basically you are drawing a salary plus benefits of 50% of the mortgage payment. I would hope that all this extra compensation is being reported to the IRS correctly or both you and the company can get in a world of hurt if they decide to audit.
Good luck, it is not a situation I would want to be in.
Can I deduct mortgage interest on a house that I lived in for the first half of the year?
I moved out of my house on 6/1/08 and began renting it at that time? I was under the impression that I would be able to deduct the mortgage interest on it since I lived in the house on 1/1/08,but turbo tax isn't letting me. Any help would be appreciated.Can I deduct mortgage interest on a house that I lived in for the first half of the year?
For rental period portion, you will report on schedule E along with rent received. You must also deduct depreciation for this period.
For home use portion, you can take itemized deduction on scheduled A.
You will take deduction only if your itemized deductions are more than your standard deduction. Read: http://taxipay.blogspot.com/2008/05/item鈥?/a>Can I deduct mortgage interest on a house that I lived in for the first half of the year?
You prorate it.
5/12 is deductible on Schedule A
7/12 is deductible on Schedule E
For rental period portion, you will report on schedule E along with rent received. You must also deduct depreciation for this period.
For home use portion, you can take itemized deduction on scheduled A.
You will take deduction only if your itemized deductions are more than your standard deduction. Read: http://taxipay.blogspot.com/2008/05/item鈥?/a>Can I deduct mortgage interest on a house that I lived in for the first half of the year?
You prorate it.
5/12 is deductible on Schedule A
7/12 is deductible on Schedule E
What is causing mortgage rates to drop?
I would like to hear your take on why this is happening . For 3 straight weeks, interest rates have been dropping on 30yr mortgages. My rationale : I think they are falling because the mortgage lenders do not have enough demand but an over-abundence of capital from foreign countrys as the USA keeps buying more imports than selling the world stuff, and its causing another imbalance where the countrys are running out of places to invest.I also think it's further proof the housing bubble has popped.....I suppose many here will say it's going to be good for housing as there is no 'bubble'. I'd still like to hear from you.What is causing mortgage rates to drop?
On a very fundamental basis, it is that mortgage demand has dropped. Rates can only decrease if the mortgage lenders (1) have access to cheaper funds (2) willing to squeeze their margins.
Regardless of the trade imbalance we currently have, mortgage lenders have money to invest in mortgages and are lowering rates to do it.
It is a further sign that a recession is right around the corner. When the yield curve inverts (longer rates are lower than short term rates), a recession is coming. Just in time for the 2006 elections!What is causing mortgage rates to drop?
I agree that supply of money and weakening demand for loans as the housing market slows down, is the main factor. Plus mortgage lenders compare the rate of return from lending the money out at whatever percent they can get for it with the return on other investments. With stocks and bonds performing so poorly lately, locking in what might seem to be a low rate of return might compare favorably with other alternatives.
homeless people
They have an over abundance of money that they must put to work and now that refis are almost all done with they need to find new places to park the funds which they have at very attractive ratesto the consumer or they will not buy the money . The housing bubble is loosing air rapidly mainly cause all the high end houses are coming down in price dramatically . There is alos the fact that alot of people who took adjustable rate mortgages out 3 years ago when interest was at 3% now have to refinace and they are getting creamed . Why they did not take fixed mortgages is beyond me !!! Did they think banks were going to PAY people to take the money ?????
The rate will only go higher.
This is from an AP story dated 8/10:
Analysts attributed the latest decline to continued evidence that the economy is slowing, which should ease pressure on interest rates, and the decision by the Federal Reserve this week to call a temporary halt to its two-year campaign to push short-term rates higher.
Wow I did not know that they had dropped. but when they do it because of the economy I thought but who know this day and time.
Your dreams. Make no mistake that just because the Fed paused today in raising rates that this is any indication of a slowdown in rate hiking. Just because the housing sector is being hard felt right now, isn't to say that other sectors of the economy won't even out in the near term. I would look for a stoppage to rate hikes once the market absorbs the adverse selling capacity and new home sales continue to rise. Having peaks and valleys is what causes the boat to tip over and Bernanke is putting on the right touches to stave off unnecessary inflation.
On a very fundamental basis, it is that mortgage demand has dropped. Rates can only decrease if the mortgage lenders (1) have access to cheaper funds (2) willing to squeeze their margins.
Regardless of the trade imbalance we currently have, mortgage lenders have money to invest in mortgages and are lowering rates to do it.
It is a further sign that a recession is right around the corner. When the yield curve inverts (longer rates are lower than short term rates), a recession is coming. Just in time for the 2006 elections!What is causing mortgage rates to drop?
I agree that supply of money and weakening demand for loans as the housing market slows down, is the main factor. Plus mortgage lenders compare the rate of return from lending the money out at whatever percent they can get for it with the return on other investments. With stocks and bonds performing so poorly lately, locking in what might seem to be a low rate of return might compare favorably with other alternatives.
homeless people
They have an over abundance of money that they must put to work and now that refis are almost all done with they need to find new places to park the funds which they have at very attractive ratesto the consumer or they will not buy the money . The housing bubble is loosing air rapidly mainly cause all the high end houses are coming down in price dramatically . There is alos the fact that alot of people who took adjustable rate mortgages out 3 years ago when interest was at 3% now have to refinace and they are getting creamed . Why they did not take fixed mortgages is beyond me !!! Did they think banks were going to PAY people to take the money ?????
The rate will only go higher.
This is from an AP story dated 8/10:
Analysts attributed the latest decline to continued evidence that the economy is slowing, which should ease pressure on interest rates, and the decision by the Federal Reserve this week to call a temporary halt to its two-year campaign to push short-term rates higher.
Wow I did not know that they had dropped. but when they do it because of the economy I thought but who know this day and time.
Your dreams. Make no mistake that just because the Fed paused today in raising rates that this is any indication of a slowdown in rate hiking. Just because the housing sector is being hard felt right now, isn't to say that other sectors of the economy won't even out in the near term. I would look for a stoppage to rate hikes once the market absorbs the adverse selling capacity and new home sales continue to rise. Having peaks and valleys is what causes the boat to tip over and Bernanke is putting on the right touches to stave off unnecessary inflation.
What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
I am looking for a first home. I am four years post-bankruptcy. Sure, I could continue to try to build stronger credit, but life is short, and home ownership is an important goal for me to reach in the near future.
In my area, I have heard that first-time home owners can get rates for 30-yr mortgages around 5.8%. What kind of rate can I expect to qualify for? I know it depends on lots of other factors I'm not going to get into here. But what is a rough estimate? 7%? 9%? 12%?
I have no savings for a downpayment (a strike, I know), but my debt-to-income ratio is reasonable.What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
You're right on track with your own assesment. The ';no savings'; certainly hurts on interest rate but you can, and should, still buy a house.
The last answer was correct that one of the main benefits of owning a home is gaining that equity. When you continue renting you are netting 0% equity. No matter if your rate is 3% or 12% you are not paying much down on your principle for the first few years anyway. Your equity is gained by the increasing value of YOUR home. So I suggest you buy now.
First, check out my blog to learn more about the mortgage process: http://explaintome.blogspot.com
Find a mortgage broker that will walk you through this process.
Your situation puts you into two different loan categories. You could possibly qualify for a rate of about 6% but since you are borrowing more than 80% of the sale price, you would have to pay PMI. That can be very expensive. That's why you should never concentrate completely on rate. Look at your total payments.
Most likely you'll fall into a non-conventional, or subprime, loan. You'll be between 7.5% and 8.5% on your first mortgage of 80% and around 10% on your second. If you can afford the payments, it may be worth it to you. After two years or so you can refinance. Hopefully your credit is in better shape but you can use your equity in the property to give you the best rates available at that time.
Best of luck!What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
With no down payment and a bankruptcy in the near past, any rate you get, if you can get a rate, will be unreasonable. The goal of ownership for most people is to have a sense of security. This sense of security comes from the equity in the home which continues to build over time with payments. If you have no downpayment and a high interest rate, this will not apply to you. You may be better off renting and saving that money in a bank or other investment (depending on your risk tolerance). In addition to the rate, you also consider the additional costs of private mortgage insurance (with less than 20% down), homeowner's insurance, maintenance and upkeep as well as your time involved in taking care of a home. Financially, it may make more sense for you to rent.
It does not sound like it will make sense financially.
It probably won't be a fixed rate, unless you get an apr for just a couple of years and then try to refinance. So, we're talking about something maybe in the 8s, or so, and if you do not have money for a downpayment you may need a second mortgage, where the interest will be considerably higher, maybe 10 or more.
I think Century 21 has one of those calculators you can run the numbers on...
It all depends on the lender as each lender has their own criteria for making loans.
In my area, I have heard that first-time home owners can get rates for 30-yr mortgages around 5.8%. What kind of rate can I expect to qualify for? I know it depends on lots of other factors I'm not going to get into here. But what is a rough estimate? 7%? 9%? 12%?
I have no savings for a downpayment (a strike, I know), but my debt-to-income ratio is reasonable.What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
You're right on track with your own assesment. The ';no savings'; certainly hurts on interest rate but you can, and should, still buy a house.
The last answer was correct that one of the main benefits of owning a home is gaining that equity. When you continue renting you are netting 0% equity. No matter if your rate is 3% or 12% you are not paying much down on your principle for the first few years anyway. Your equity is gained by the increasing value of YOUR home. So I suggest you buy now.
First, check out my blog to learn more about the mortgage process: http://explaintome.blogspot.com
Find a mortgage broker that will walk you through this process.
Your situation puts you into two different loan categories. You could possibly qualify for a rate of about 6% but since you are borrowing more than 80% of the sale price, you would have to pay PMI. That can be very expensive. That's why you should never concentrate completely on rate. Look at your total payments.
Most likely you'll fall into a non-conventional, or subprime, loan. You'll be between 7.5% and 8.5% on your first mortgage of 80% and around 10% on your second. If you can afford the payments, it may be worth it to you. After two years or so you can refinance. Hopefully your credit is in better shape but you can use your equity in the property to give you the best rates available at that time.
Best of luck!What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
With no down payment and a bankruptcy in the near past, any rate you get, if you can get a rate, will be unreasonable. The goal of ownership for most people is to have a sense of security. This sense of security comes from the equity in the home which continues to build over time with payments. If you have no downpayment and a high interest rate, this will not apply to you. You may be better off renting and saving that money in a bank or other investment (depending on your risk tolerance). In addition to the rate, you also consider the additional costs of private mortgage insurance (with less than 20% down), homeowner's insurance, maintenance and upkeep as well as your time involved in taking care of a home. Financially, it may make more sense for you to rent.
It does not sound like it will make sense financially.
It probably won't be a fixed rate, unless you get an apr for just a couple of years and then try to refinance. So, we're talking about something maybe in the 8s, or so, and if you do not have money for a downpayment you may need a second mortgage, where the interest will be considerably higher, maybe 10 or more.
I think Century 21 has one of those calculators you can run the numbers on...
It all depends on the lender as each lender has their own criteria for making loans.
What document should be preapre will help to apply mortgage for real estate?
You will need at least a couple of years of W-2s you will need your most recent statements for your accounts(savings, checking and brokerage). They probably can get your debt information from your credit report. Getting approved for the mortgage is the first step in seriously shopping for a home. If you do not have everything in your possession right now, you can probably start your application and supply the documentation as needed.What document should be preapre will help to apply mortgage for real estate?
are you asking how to aply for fiancingscary mask buy make up
are you asking how to aply for fiancing
Is the Diversified Mortgage Service a credible home loan company?
Home buying has always been a tedious process. The home buying journey is fraught with winding turns and crossroads, making buying a home complex and difficult. The complexities of the real estate and mortgage market are not easy to decipher. So, the more prepared you are before begin home shopping, the easier it will be%26lt;!--Herein, I have assembled a top ten list for home buyers. This list is good preparation for homebuyers who are setting out on their home buying journey.
http://badcreditloans.awardspace.com/How_to_Obtain_a_Bad_Credit_Home_Loan.html
Decide on what you can really afford Before buying the house, do a monthly budget. It is critical that you know your finances in-and-out, only then can you truly know how much home you can afford. The general rule of thumb is that you should--%26gt;purchase a home that is about 2.5 times your annual salary. But use our extensive online mortgage calculators to better understand your affordability. Learn how your income, expenses, and debts can affect what you can afford.Is the Diversified Mortgage Service a credible home loan company?
For a loan company, you don't have to worry about how credible or respectable they are - just have to worry about the loan terms. It is possible that a less respectable company may have predatory loan terms but so could many respectable companies. Mortgage companies provide no other value added services, so all you judge them is for the loan terms you get from them.
Besides, money from any source has exactly the same value (as long as it isn't fake)!
http://badcreditloans.awardspace.com/How_to_Obtain_a_Bad_Credit_Home_Loan.html
Decide on what you can really afford Before buying the house, do a monthly budget. It is critical that you know your finances in-and-out, only then can you truly know how much home you can afford. The general rule of thumb is that you should--%26gt;purchase a home that is about 2.5 times your annual salary. But use our extensive online mortgage calculators to better understand your affordability. Learn how your income, expenses, and debts can affect what you can afford.Is the Diversified Mortgage Service a credible home loan company?
For a loan company, you don't have to worry about how credible or respectable they are - just have to worry about the loan terms. It is possible that a less respectable company may have predatory loan terms but so could many respectable companies. Mortgage companies provide no other value added services, so all you judge them is for the loan terms you get from them.
Besides, money from any source has exactly the same value (as long as it isn't fake)!
Am I a homeowner for tax purposes if I'm on the title but not the mortgage?
My mom and I are on the title, but only she holds the mortgage even though I pay half the monthly mortgage payment, which looks more like rent. She does not live here though, I live here with my family and we have incurred about $20,000 in remodeling expenses. Do I have to claim the property on my taxes or am I considered a renter since I have no legal responsibility to the mortgage? In either scenario can I deduct those remodeling costs?Am I a homeowner for tax purposes if I'm on the title but not the mortgage?
If you are on the tile, you are a homeowner. You do not pay rent.
You should clarify your relationship with your mother as to the shared interest you have in the property. This will be important when you sell it or she dies.
Remodeling expenses are added to the cost basis of the house. They are not expenses per se.
Whoever paid property (real-estate) taxes can deduct them.
If you are on the tile, you are a homeowner. You do not pay rent.
You should clarify your relationship with your mother as to the shared interest you have in the property. This will be important when you sell it or she dies.
Remodeling expenses are added to the cost basis of the house. They are not expenses per se.
Whoever paid property (real-estate) taxes can deduct them.
What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
I am looking for a first home. I am four years post-bankruptcy. Sure, I could continue to try to build stronger credit, but life is short, and home ownership is an important goal for me to reach in the near future.
In my area, I have heard that first-time home owners can get rates for 30-yr mortgages around 5.8%. What kind of rate can I expect to qualify for? I know it depends on lots of other factors I'm not going to get into here. But what is a rough estimate? 7%? 9%? 12%?
I have no savings for a downpayment (a strike, I know), but my debt-to-income ratio is reasonable.What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
You're right on track with your own assesment. The ';no savings'; certainly hurts on interest rate but you can, and should, still buy a house.
The last answer was correct that one of the main benefits of owning a home is gaining that equity. When you continue renting you are netting 0% equity. No matter if your rate is 3% or 12% you are not paying much down on your principle for the first few years anyway. Your equity is gained by the increasing value of YOUR home. So I suggest you buy now.
First, check out my blog to learn more about the mortgage process: http://explaintome.blogspot.com
Find a mortgage broker that will walk you through this process.
Your situation puts you into two different loan categories. You could possibly qualify for a rate of about 6% but since you are borrowing more than 80% of the sale price, you would have to pay PMI. That can be very expensive. That's why you should never concentrate completely on rate. Look at your total payments.
Most likely you'll fall into a non-conventional, or subprime, loan. You'll be between 7.5% and 8.5% on your first mortgage of 80% and around 10% on your second. If you can afford the payments, it may be worth it to you. After two years or so you can refinance. Hopefully your credit is in better shape but you can use your equity in the property to give you the best rates available at that time.
Best of luck!What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
With no down payment and a bankruptcy in the near past, any rate you get, if you can get a rate, will be unreasonable. The goal of ownership for most people is to have a sense of security. This sense of security comes from the equity in the home which continues to build over time with payments. If you have no downpayment and a high interest rate, this will not apply to you. You may be better off renting and saving that money in a bank or other investment (depending on your risk tolerance). In addition to the rate, you also consider the additional costs of private mortgage insurance (with less than 20% down), homeowner's insurance, maintenance and upkeep as well as your time involved in taking care of a home. Financially, it may make more sense for you to rent.
It does not sound like it will make sense financially.
It probably won't be a fixed rate, unless you get an apr for just a couple of years and then try to refinance. So, we're talking about something maybe in the 8s, or so, and if you do not have money for a downpayment you may need a second mortgage, where the interest will be considerably higher, maybe 10 or more.
I think Century 21 has one of those calculators you can run the numbers on...
It all depends on the lender as each lender has their own criteria for making loans.
In my area, I have heard that first-time home owners can get rates for 30-yr mortgages around 5.8%. What kind of rate can I expect to qualify for? I know it depends on lots of other factors I'm not going to get into here. But what is a rough estimate? 7%? 9%? 12%?
I have no savings for a downpayment (a strike, I know), but my debt-to-income ratio is reasonable.What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
You're right on track with your own assesment. The ';no savings'; certainly hurts on interest rate but you can, and should, still buy a house.
The last answer was correct that one of the main benefits of owning a home is gaining that equity. When you continue renting you are netting 0% equity. No matter if your rate is 3% or 12% you are not paying much down on your principle for the first few years anyway. Your equity is gained by the increasing value of YOUR home. So I suggest you buy now.
First, check out my blog to learn more about the mortgage process: http://explaintome.blogspot.com
Find a mortgage broker that will walk you through this process.
Your situation puts you into two different loan categories. You could possibly qualify for a rate of about 6% but since you are borrowing more than 80% of the sale price, you would have to pay PMI. That can be very expensive. That's why you should never concentrate completely on rate. Look at your total payments.
Most likely you'll fall into a non-conventional, or subprime, loan. You'll be between 7.5% and 8.5% on your first mortgage of 80% and around 10% on your second. If you can afford the payments, it may be worth it to you. After two years or so you can refinance. Hopefully your credit is in better shape but you can use your equity in the property to give you the best rates available at that time.
Best of luck!What will my mortgage interest rate be with a FICO in the low 600s and income around 60K?
With no down payment and a bankruptcy in the near past, any rate you get, if you can get a rate, will be unreasonable. The goal of ownership for most people is to have a sense of security. This sense of security comes from the equity in the home which continues to build over time with payments. If you have no downpayment and a high interest rate, this will not apply to you. You may be better off renting and saving that money in a bank or other investment (depending on your risk tolerance). In addition to the rate, you also consider the additional costs of private mortgage insurance (with less than 20% down), homeowner's insurance, maintenance and upkeep as well as your time involved in taking care of a home. Financially, it may make more sense for you to rent.
It does not sound like it will make sense financially.
It probably won't be a fixed rate, unless you get an apr for just a couple of years and then try to refinance. So, we're talking about something maybe in the 8s, or so, and if you do not have money for a downpayment you may need a second mortgage, where the interest will be considerably higher, maybe 10 or more.
I think Century 21 has one of those calculators you can run the numbers on...
It all depends on the lender as each lender has their own criteria for making loans.
What document should be preapre will help to apply mortgage for real estate?
You will need at least a couple of years of W-2s you will need your most recent statements for your accounts(savings, checking and brokerage). They probably can get your debt information from your credit report. Getting approved for the mortgage is the first step in seriously shopping for a home. If you do not have everything in your possession right now, you can probably start your application and supply the documentation as needed.What document should be preapre will help to apply mortgage for real estate?
are you asking how to aply for fiancing
are you asking how to aply for fiancing
Is the Diversified Mortgage Service a credible home loan company?
For a loan company, you don't have to worry about how credible or respectable they are - just have to worry about the loan terms. It is possible that a less respectable company may have predatory loan terms but so could many respectable companies. Mortgage companies provide no other value added services, so all you judge them is for the loan terms you get from them.
Besides, money from any source has exactly the same value (as long as it isn't fake)!Is the Diversified Mortgage Service a credible home loan company?
Home buying has always been a tedious process. The home buying journey is fraught with winding turns and crossroads, making buying a home complex and difficult. The complexities of the real estate and mortgage market are not easy to decipher. So, the more prepared you are before begin home shopping, the easier it will be%26lt;!--Herein, I have assembled a top ten list for home buyers. This list is good preparation for homebuyers who are setting out on their home buying journey.
http://badcreditloans.awardspace.com/How_to_Obtain_a_Bad_Credit_Home_Loan.html
Decide on what you can really afford Before buying the house, do a monthly budget. It is critical that you know your finances in-and-out, only then can you truly know how much home you can afford. The general rule of thumb is that you should--%26gt;purchase a home that is about 2.5 times your annual salary. But use our extensive online mortgage calculators to better understand your affordability. Learn how your income, expenses, and debts can affect what you can afford.
Besides, money from any source has exactly the same value (as long as it isn't fake)!Is the Diversified Mortgage Service a credible home loan company?
Home buying has always been a tedious process. The home buying journey is fraught with winding turns and crossroads, making buying a home complex and difficult. The complexities of the real estate and mortgage market are not easy to decipher. So, the more prepared you are before begin home shopping, the easier it will be%26lt;!--Herein, I have assembled a top ten list for home buyers. This list is good preparation for homebuyers who are setting out on their home buying journey.
http://badcreditloans.awardspace.com/How_to_Obtain_a_Bad_Credit_Home_Loan.html
Decide on what you can really afford Before buying the house, do a monthly budget. It is critical that you know your finances in-and-out, only then can you truly know how much home you can afford. The general rule of thumb is that you should--%26gt;purchase a home that is about 2.5 times your annual salary. But use our extensive online mortgage calculators to better understand your affordability. Learn how your income, expenses, and debts can affect what you can afford.
Am I a homeowner for tax purposes if I'm on the title but not the mortgage?
My mom and I are on the title, but only she holds the mortgage even though I pay half the monthly mortgage payment, which looks more like rent. She does not live here though, I live here with my family and we have incurred about $20,000 in remodeling expenses. Do I have to claim the property on my taxes or am I considered a renter since I have no legal responsibility to the mortgage? In either scenario can I deduct those remodeling costs?Am I a homeowner for tax purposes if I'm on the title but not the mortgage?
If you are on the tile, you are a homeowner. You do not pay rent.
You should clarify your relationship with your mother as to the shared interest you have in the property. This will be important when you sell it or she dies.
Remodeling expenses are added to the cost basis of the house. They are not expenses per se.
Whoever paid property (real-estate) taxes can deduct them.scary mask buy make up
If you are on the tile, you are a homeowner. You do not pay rent.
You should clarify your relationship with your mother as to the shared interest you have in the property. This will be important when you sell it or she dies.
Remodeling expenses are added to the cost basis of the house. They are not expenses per se.
Whoever paid property (real-estate) taxes can deduct them.
I sold land that was ltcg-I hold the mortgage which is interest only-this is the $1800.?
When i sold the land-the buyer put down 20% which I paid big buck taxes on. Now it's interest only mortgage (divided among my siblings) This year the $1778 in interest money is my only income and I want to know do I have to file a tax return for so little?I sold land that was ltcg-I hold the mortgage which is interest only-this is the $1800.?
If that is your only income, no return is required.
I assume the tax paid on the 20% down was in a prior year
If that is your only income, no return is required.
I assume the tax paid on the 20% down was in a prior year
WHAT the HECK are MORTGAGES!!!!!! lol?
Ive started to work in a mortgage and financial Brokers company, and I havent a clue what a mortgage is! HELP but explain it like you would a child, because I'm not very bright in that area.WHAT the HECK are MORTGAGES!!!!!! lol?
A mortgage is a three-party promissory note. Here's how it works. A builder builds a structure--let's say a house--and wants to sell it for $100,000. You see the house and want to buy it, but don't have $100,000 cash, which is what the builder wants, even needs in order to continue building homes. At this point, no deal is possible, because you cannot afford to meet the builder's terms, and the builder cannot afford to meet your terms.
Enter the third party--a bank, or a mortgage lender, such as a Savings %26amp; Loan Institution. This third party says to the builder, I will loan the potential buyer $100,000 and pay it to you in a lump sum, thus meeting the builder's need. This third party says to you--the house-buyer--I will loan you $100,000 and pay it to the builder, on your behalf, if you will agree to the following:
1. Let me set the interest rate that I charge you for this loan
2. Let me set the term of the loan as long as I can, 30-years-for example.
3. Let me compound the interest monthly and establish the combined payments of Principal, Interest, Taxes and Insurance (PITI) each month.
4. Also let me establish other fees (closing, etc.) associated with making this deal viable for me, the lender.
You agree. Thus the mortgage is now established.
In a nutshell, that's a mortgage--a three-party promissory note that gets the builder what the builder needs--$100,000 in cash in this example; gets you what you desire--to move into this new house now, in this example; and the mortgage lender (bank, etc.) what he desires--the highest possible return on the loan.
Let's go a step further and look at what happens.
For the first 23 years of a 30-year mortgage period, more than 80% of the monthly ';mortgage'; payments go to pay compound interest. So let's say that you monthly payment is $1000 for 360 months (30 years), You agreed to pay $360,000 for a house with a retail value of $100,000.
Well, there's your answer.
Have a nice dayWHAT the HECK are MORTGAGES!!!!!! lol?
its a big fat loan that the bank gives you to buy property with.
they earn TONS of cash from it in interest and it will take the average person 25 YEARS to pay off.
Well aint that grand??
To know that my house that I've slogged long and hard for could be taken away %26amp; reposessed by someone who doesn't even know what I've defaulted (on through no fault of my own by the way).........
If I were you I WOULD NOT even admit it to myself that I was in charge of something as binding as a mortgage for someone when I had no clue what I was doing!!!!!!!!!!!!!!!!!!!
By the way Einstein.... A mortgage is a huge loan you get to buy a home %26amp; you get charged interest on it, if you don't pay the bank/mortgage company (in this case god help us you) can take the house away....
Maybe you could work in Pizza Hut or something...?
I assume you know what pizza is!?!?!?!
it is a house loan! the bank give you money at a lending rate for the purpose of you to build a house!! eg. car loan is for a car.. student loan for students. mortgage is just a fancy word.
if you are going to buy a home you willneed a bank loan
its called a morgage
Well aint that grand??
To know that my house that I've slogged long and hard for could be taken away %26amp; reposessed by someone who doesn't even know what I've defaulted (on through no fault of my own by the way).........
If I were you I WOULD NOT even admit it to myself that I was in charge of something as binding as a mortgage for someone when I had no clue what I was doing!!!!!!!!!!!!!!!!!!!
By the way Einstein.... A mortgage is a huge loan you get to buy a home %26amp; you get charged interest on it, if you don't pay the bank/mortgage company (in this case god help us you) can take the house away....
Maybe you could work in Pizza Hut or something...?
I assume you know what pizza is!?!?!?!
mortgage is loan again the property of person, or rather the loan amount outstanding againts your property , there are two kinds of loans available in market , one static where installment remin same throughout the period of the loan and variable where the payments keep on changing on the base of intrest of the market
A huge loan given to you by a bank to help you pay for a house, but which you must pay back at incredibly high rates! horrible stuff!
It's just a big loan the bank puts up against the value of the house.
You get charged a hell of a lot of interest for years and years and years, making the bank a million dollars.
how did you get the job?
It literally means Death loan!!
Basically you borrow money from a bank or building society.
say 拢100,000 pounds. Now, you've got to pay that back, but they can give you upto 25 years to do it - earning interest ALL the time on the ORIGINAL sum!!
A common type is an ';endowment policy'; where you pay a sum of money eg. 拢150 a month to be invested, so that at the END of the 25 year period you get back 拢100,000 and clear the original debt. IN ADDITION to this, the mortgage is actually you just paying the INTEREST on the original loan at a fluctuating rate but it'll be about 拢500 a month on that amount - this is PURE PROFIT for the loan company.
In the end your 拢100,000 pound house will have cost about 拢250,000!!
A mortgage is a three-party promissory note. Here's how it works. A builder builds a structure--let's say a house--and wants to sell it for $100,000. You see the house and want to buy it, but don't have $100,000 cash, which is what the builder wants, even needs in order to continue building homes. At this point, no deal is possible, because you cannot afford to meet the builder's terms, and the builder cannot afford to meet your terms.
Enter the third party--a bank, or a mortgage lender, such as a Savings %26amp; Loan Institution. This third party says to the builder, I will loan the potential buyer $100,000 and pay it to you in a lump sum, thus meeting the builder's need. This third party says to you--the house-buyer--I will loan you $100,000 and pay it to the builder, on your behalf, if you will agree to the following:
1. Let me set the interest rate that I charge you for this loan
2. Let me set the term of the loan as long as I can, 30-years-for example.
3. Let me compound the interest monthly and establish the combined payments of Principal, Interest, Taxes and Insurance (PITI) each month.
4. Also let me establish other fees (closing, etc.) associated with making this deal viable for me, the lender.
You agree. Thus the mortgage is now established.
In a nutshell, that's a mortgage--a three-party promissory note that gets the builder what the builder needs--$100,000 in cash in this example; gets you what you desire--to move into this new house now, in this example; and the mortgage lender (bank, etc.) what he desires--the highest possible return on the loan.
Let's go a step further and look at what happens.
For the first 23 years of a 30-year mortgage period, more than 80% of the monthly ';mortgage'; payments go to pay compound interest. So let's say that you monthly payment is $1000 for 360 months (30 years), You agreed to pay $360,000 for a house with a retail value of $100,000.
Well, there's your answer.
Have a nice dayWHAT the HECK are MORTGAGES!!!!!! lol?
its a big fat loan that the bank gives you to buy property with.
they earn TONS of cash from it in interest and it will take the average person 25 YEARS to pay off.
Well aint that grand??
To know that my house that I've slogged long and hard for could be taken away %26amp; reposessed by someone who doesn't even know what I've defaulted (on through no fault of my own by the way).........
If I were you I WOULD NOT even admit it to myself that I was in charge of something as binding as a mortgage for someone when I had no clue what I was doing!!!!!!!!!!!!!!!!!!!
By the way Einstein.... A mortgage is a huge loan you get to buy a home %26amp; you get charged interest on it, if you don't pay the bank/mortgage company (in this case god help us you) can take the house away....
Maybe you could work in Pizza Hut or something...?
I assume you know what pizza is!?!?!?!
it is a house loan! the bank give you money at a lending rate for the purpose of you to build a house!! eg. car loan is for a car.. student loan for students. mortgage is just a fancy word.
if you are going to buy a home you willneed a bank loan
its called a morgage
Well aint that grand??
To know that my house that I've slogged long and hard for could be taken away %26amp; reposessed by someone who doesn't even know what I've defaulted (on through no fault of my own by the way).........
If I were you I WOULD NOT even admit it to myself that I was in charge of something as binding as a mortgage for someone when I had no clue what I was doing!!!!!!!!!!!!!!!!!!!
By the way Einstein.... A mortgage is a huge loan you get to buy a home %26amp; you get charged interest on it, if you don't pay the bank/mortgage company (in this case god help us you) can take the house away....
Maybe you could work in Pizza Hut or something...?
I assume you know what pizza is!?!?!?!
mortgage is loan again the property of person, or rather the loan amount outstanding againts your property , there are two kinds of loans available in market , one static where installment remin same throughout the period of the loan and variable where the payments keep on changing on the base of intrest of the market
A huge loan given to you by a bank to help you pay for a house, but which you must pay back at incredibly high rates! horrible stuff!
It's just a big loan the bank puts up against the value of the house.
You get charged a hell of a lot of interest for years and years and years, making the bank a million dollars.
how did you get the job?
It literally means Death loan!!
Basically you borrow money from a bank or building society.
say 拢100,000 pounds. Now, you've got to pay that back, but they can give you upto 25 years to do it - earning interest ALL the time on the ORIGINAL sum!!
A common type is an ';endowment policy'; where you pay a sum of money eg. 拢150 a month to be invested, so that at the END of the 25 year period you get back 拢100,000 and clear the original debt. IN ADDITION to this, the mortgage is actually you just paying the INTEREST on the original loan at a fluctuating rate but it'll be about 拢500 a month on that amount - this is PURE PROFIT for the loan company.
In the end your 拢100,000 pound house will have cost about 拢250,000!!
Do you believe mortgage rates will drop any further in the next 6-12 mos?
Looking at doing a conversion to bring down my rate (+ pay 2 points to bring that pymt down as well) ....and wondered if anyone has any predictions?
Do you feel the rates have dropped as far as they will for a while? Do you feel they'll be on the rise again shortly?Do you believe mortgage rates will drop any further in the next 6-12 mos?
I am thinking we will see a drop. The R word is looming large. This might depress rates either naturally or artificially (fed).
I am not a huge points fan. What is your current rate? What is the loan amount. How long will you live there? Why a 15? Is having the house PAID OFF in 15 part of your long term financial plan?
If you are rolling points into the loan, the break even is about 6 years.
Please DO NOT listen to ';Over 15 years'; or over ';30 years you save..$XXX.'; speils. NO WAY you are holding the same loan on the same property for that long. Try to think in 10 year chunks of time. Even 10 years is likely longer than you will have a given loan, but it more realistic than 30.
Here is a link to a great points v no points calc...
http://www.dinkytown.com/java/MortgagePo鈥?/a>Do you believe mortgage rates will drop any further in the next 6-12 mos?
Personally I don't see them dropping further. I do not expect them to raise until next year, and no major jumps prior to the election. If we stay republican there should be no major jumps, but if we go democrat they will raise the interest rate high and quickly.
I don't believe mortgage rates will drop any further. However if I knew for sure, I'd have my own island in the Caribbean!
who knows ?
No one knows for sure.
You'll have to see if it is in your best interest to pay the 2 points. How long do you plan to stay in the house?
Maybe a 30 year loan will give you lower payments without the points. You can always pay extra toward the principal each month to pay off in 15 years.
Wow! If you know someone who knows the answer to that question, honestly, make him/her your best friend and invest in real estate.
I would say no though. I live in Indiana and we are currently the highest foreclosure state in the nation. Having said that, you would think that there would be no new construction. On the contrary, houses are going up like clockwork. This is very bad for our economy. Which means somewhere something has to give..Unfortunatley, I believe it will be in the rates..
good luck
Do you feel the rates have dropped as far as they will for a while? Do you feel they'll be on the rise again shortly?Do you believe mortgage rates will drop any further in the next 6-12 mos?
I am thinking we will see a drop. The R word is looming large. This might depress rates either naturally or artificially (fed).
I am not a huge points fan. What is your current rate? What is the loan amount. How long will you live there? Why a 15? Is having the house PAID OFF in 15 part of your long term financial plan?
If you are rolling points into the loan, the break even is about 6 years.
Please DO NOT listen to ';Over 15 years'; or over ';30 years you save..$XXX.'; speils. NO WAY you are holding the same loan on the same property for that long. Try to think in 10 year chunks of time. Even 10 years is likely longer than you will have a given loan, but it more realistic than 30.
Here is a link to a great points v no points calc...
http://www.dinkytown.com/java/MortgagePo鈥?/a>Do you believe mortgage rates will drop any further in the next 6-12 mos?
Personally I don't see them dropping further. I do not expect them to raise until next year, and no major jumps prior to the election. If we stay republican there should be no major jumps, but if we go democrat they will raise the interest rate high and quickly.
I don't believe mortgage rates will drop any further. However if I knew for sure, I'd have my own island in the Caribbean!
who knows ?
No one knows for sure.
You'll have to see if it is in your best interest to pay the 2 points. How long do you plan to stay in the house?
Maybe a 30 year loan will give you lower payments without the points. You can always pay extra toward the principal each month to pay off in 15 years.
Wow! If you know someone who knows the answer to that question, honestly, make him/her your best friend and invest in real estate.
I would say no though. I live in Indiana and we are currently the highest foreclosure state in the nation. Having said that, you would think that there would be no new construction. On the contrary, houses are going up like clockwork. This is very bad for our economy. Which means somewhere something has to give..Unfortunatley, I believe it will be in the rates..
good luck
More lucrative, being a real estate agent or a mortgage broker?
I am about to graduate from college and I have two real options for work starting in 3 months, either become a real estate agent, which i have one summer of rentals experience, or trying mortgage brokering. Which of the 2 would I have a more realistic chance of making money over the next 5 years or so?More lucrative, being a real estate agent or a mortgage broker?
I have seen very successful professionals on both sides of the aisle. As I happen to be a REALTOR I'll admit a certain bias. With that being said, it really boils down to your personality, business, strenghts and weaknesses. Someone who is a top-notch sales person could falter in loans because they simply don't care about the product and vice versa.
So look at what you think you will enjoy and the money will follow in either case.
I have seen very successful professionals on both sides of the aisle. As I happen to be a REALTOR I'll admit a certain bias. With that being said, it really boils down to your personality, business, strenghts and weaknesses. Someone who is a top-notch sales person could falter in loans because they simply don't care about the product and vice versa.
So look at what you think you will enjoy and the money will follow in either case.
POLL - How many times your salary or salaries do you (and your partner) borrow for your mortgage?
and what do u think is an acceptable multiple?POLL - How many times your salary or salaries do you (and your partner) borrow for your mortgage?
The first house we bought cost 1500 GBP in 1963. 100% mortgage over 25 years with local council.
Moved to second house 5 years later which cost 3250 GBP, 25 year mortgage for 3000. Each time it was 2 1/2 times my salary, plus an insurance to top up the rest.
We have moved 3 more times since then but didn't need big mortgages.
Now retired and live in Spain with no mortgage.POLL - How many times your salary or salaries do you (and your partner) borrow for your mortgage?
My mortgage is now about equal to my salary, when I took it out (10 years ago) it was equivalent to double.
I'm not filthy rich - I wouldn't be able to afford a garage for that amount of money now!
The rule of thumb is your mortgage payment and all of your debts payments added together should be less than 30% of gross. Anymore than this and you begin to see a severe restriction on your cash flow.
A quick calculation is in the U.S. we will pay approximately 1% each month for mortgage, insurance and taxes. This is not meant to be exact just a rule of thumb. For example, in Keller Texas, the median home price is around $270K. This means that the mortgage payment, insurance and taxes on a monthly basis would be around $2700.
This should be 30% of gross income. This means you should make, before taxes, and other deductions, around $9,000 per month or $108,000 annual. You might be able to reduce the intereste rate and move the monthly payment lower. You could also do a self funded escroll account like we do that will further reduce your expenses. I have a company funded Stock Purchase plan where I get a 15% discount on company stock twice a year. After taxes and fees, this works out to be around a 12% savings on my realestate taxes and insurance.
Good Luck!
The ratio of mortgage to income is more important, because interest rates can make a huge difference in how affordable a mortgage is. My mortgage to gross income ratio is about 33%, but I have a roommate so my portion of the payment is closer to 19%.
I could probably afford to pay the mortgage on my own, but it would make things a lot tighter financially.
A good ratio is that you should not borrow more than twice your annual income for your home. This assumes a good loan and interest rate. This is a simple and straightforward formula that is conducive to wealth building.
Hope this helps
The first house we bought cost 1500 GBP in 1963. 100% mortgage over 25 years with local council.
Moved to second house 5 years later which cost 3250 GBP, 25 year mortgage for 3000. Each time it was 2 1/2 times my salary, plus an insurance to top up the rest.
We have moved 3 more times since then but didn't need big mortgages.
Now retired and live in Spain with no mortgage.POLL - How many times your salary or salaries do you (and your partner) borrow for your mortgage?
My mortgage is now about equal to my salary, when I took it out (10 years ago) it was equivalent to double.
I'm not filthy rich - I wouldn't be able to afford a garage for that amount of money now!
The rule of thumb is your mortgage payment and all of your debts payments added together should be less than 30% of gross. Anymore than this and you begin to see a severe restriction on your cash flow.
A quick calculation is in the U.S. we will pay approximately 1% each month for mortgage, insurance and taxes. This is not meant to be exact just a rule of thumb. For example, in Keller Texas, the median home price is around $270K. This means that the mortgage payment, insurance and taxes on a monthly basis would be around $2700.
This should be 30% of gross income. This means you should make, before taxes, and other deductions, around $9,000 per month or $108,000 annual. You might be able to reduce the intereste rate and move the monthly payment lower. You could also do a self funded escroll account like we do that will further reduce your expenses. I have a company funded Stock Purchase plan where I get a 15% discount on company stock twice a year. After taxes and fees, this works out to be around a 12% savings on my realestate taxes and insurance.
Good Luck!
The ratio of mortgage to income is more important, because interest rates can make a huge difference in how affordable a mortgage is. My mortgage to gross income ratio is about 33%, but I have a roommate so my portion of the payment is closer to 19%.
I could probably afford to pay the mortgage on my own, but it would make things a lot tighter financially.
A good ratio is that you should not borrow more than twice your annual income for your home. This assumes a good loan and interest rate. This is a simple and straightforward formula that is conducive to wealth building.
Hope this helps
Are there any mortgage brokers out there? What are the chances of this happening?
My fiance and I have enough money to put 50% down on a duplex, or small house. We have looked for hard money lenders, approval online for mortgages.. and nothing is working. Most banks online won't finance less than 50k.
The loan would be in his name, title in both of our names, mid fico is 580 (although some on the credit report is not accurate), stable work history for 7-9 months. We're both students.
Can we get financed? If so, where should we try?Are there any mortgage brokers out there? What are the chances of this happening?
The fees they charge are based on the size of the loan so they would not be earning enough. You will have to talk to a human at a bank and get them to help you.
Have you thought about putting only $20,000 down or $30,000 down so your loan would be bigger? You could make it a fifteen years loan or a ten year loan and you could even make extra principal payments to shorten the life of the loan even more.
This idea will result in a higher house payment than you probably want so be careful with that idea.Are there any mortgage brokers out there? What are the chances of this happening?
I can get you financed depending on what state your in.
With half down, I am surprised you have not found financing. It is more difficult to find a lender that will finance small amounts. Still, hard money should be able to help you but only as a last resort since they charge some hefty fees. Try speaking with several mortgage brokers in your area. Many loan officers sometimes don't want to work on small loan amounts because it takes the same amount of work as a $200,000 loan and since most brokers charge only 1% to 3% of the loan amount, they can't make much money on those loans. It could also be something else. Maybe it is an income issue since you are both part-time students. Even if that is an issue, I couldn't imagine a private lender (hard money) not taking a chance on such a relatively low risk loan.
With 7-9 months of work history and still students, I've never worked for a lender that would underwrite a loan without charging a near double-digit interest rate, with that credit score, and I don't even have an investor that would touch that right now, again...without charging you dearly.
For now, you are better off renting. Don't get into a subprime loan, that is a huge mistake. Work on getting your credit scores up first, and if ONE of you cannot make the mortgage payment alone, get married before you buy a house...the law offers married couples legal protections that are not extended to live-ins, and many find this out the hard way in the event of a split.
try www.naca.com
I had a similar issue in the past and I was told its hard to get a loan for less 100,000. You can keep trying to find a loan but you are really going to have a hard time trying to get if for less than 100,000.scary mask cool mask
The loan would be in his name, title in both of our names, mid fico is 580 (although some on the credit report is not accurate), stable work history for 7-9 months. We're both students.
Can we get financed? If so, where should we try?Are there any mortgage brokers out there? What are the chances of this happening?
The fees they charge are based on the size of the loan so they would not be earning enough. You will have to talk to a human at a bank and get them to help you.
Have you thought about putting only $20,000 down or $30,000 down so your loan would be bigger? You could make it a fifteen years loan or a ten year loan and you could even make extra principal payments to shorten the life of the loan even more.
This idea will result in a higher house payment than you probably want so be careful with that idea.Are there any mortgage brokers out there? What are the chances of this happening?
I can get you financed depending on what state your in.
With half down, I am surprised you have not found financing. It is more difficult to find a lender that will finance small amounts. Still, hard money should be able to help you but only as a last resort since they charge some hefty fees. Try speaking with several mortgage brokers in your area. Many loan officers sometimes don't want to work on small loan amounts because it takes the same amount of work as a $200,000 loan and since most brokers charge only 1% to 3% of the loan amount, they can't make much money on those loans. It could also be something else. Maybe it is an income issue since you are both part-time students. Even if that is an issue, I couldn't imagine a private lender (hard money) not taking a chance on such a relatively low risk loan.
With 7-9 months of work history and still students, I've never worked for a lender that would underwrite a loan without charging a near double-digit interest rate, with that credit score, and I don't even have an investor that would touch that right now, again...without charging you dearly.
For now, you are better off renting. Don't get into a subprime loan, that is a huge mistake. Work on getting your credit scores up first, and if ONE of you cannot make the mortgage payment alone, get married before you buy a house...the law offers married couples legal protections that are not extended to live-ins, and many find this out the hard way in the event of a split.
try www.naca.com
I had a similar issue in the past and I was told its hard to get a loan for less 100,000. You can keep trying to find a loan but you are really going to have a hard time trying to get if for less than 100,000.
Why does loan mitigation keep me from paying a mortgage?
My mother has been in the hospital for a month so I went to the bank to pay her mortgage. They told me I couldn't because her mortgage is in loan mitigation. They would tell me nothing else. I looked on the internet and I see nothing that would tell me why having a mortgage in loan mitigation would prevent me from writing out a check to pay a flipping mortgage. Can anyone tell me, since the bank was so unhelpful?Why does loan mitigation keep me from paying a mortgage?
She is behind, you can not pay part of it, you need to pay in full. The bank is in process (and pretty far along) of foreclosing on the house.
They can not tell you anything, it is illegal. You have no more rights to her information then I do. She needs to provide them with written permission for them to discuss her matters with you.Why does loan mitigation keep me from paying a mortgage?
if you are behind on the mortgage than they won't except a payment unless it is the full amount you are behind, or if you are in mitigation because the mortgage company is trying to talk to the financial backed and come to terms with them so at this moment they won't except any money until they know where they stand with the investors lets say that they don't give you a payment plan or loan modification and you gave them that money and they foreclosed you just through that money down the drain
She is behind, you can not pay part of it, you need to pay in full. The bank is in process (and pretty far along) of foreclosing on the house.
They can not tell you anything, it is illegal. You have no more rights to her information then I do. She needs to provide them with written permission for them to discuss her matters with you.Why does loan mitigation keep me from paying a mortgage?
if you are behind on the mortgage than they won't except a payment unless it is the full amount you are behind, or if you are in mitigation because the mortgage company is trying to talk to the financial backed and come to terms with them so at this moment they won't except any money until they know where they stand with the investors lets say that they don't give you a payment plan or loan modification and you gave them that money and they foreclosed you just through that money down the drain
Can I claim mortgage interest on my taxes if 1098 is in husband's name?
We are filing married filing separately.Can I claim mortgage interest on my taxes if 1098 is in husband's name?
Only the party(ies) on the mortgage loan are entitled to claim the tax deduction for interest. Doesn't matter who actually paid the payments.
Only the party(ies) on the mortgage loan are entitled to claim the tax deduction for interest. Doesn't matter who actually paid the payments.
I have a mortgage and two dogs. Should I quit my job and pursue my dream of becoming a physical?
therapist? I am an auditor now. I hate my job and am bored by it. I would like to be a personal trainer and a physical therapist.I have a mortgage and two dogs. Should I quit my job and pursue my dream of becoming a physical?
You should keep your job so you can keep paying your bills. You wouldn't want to fall behind and get your home foreclosed and your dogs taken away. You should keep working full time, but take classes part time, and once you complete your degree requirements, you should start looking for a job as a physical therapist, and when you find a job, quit your auditor job.I have a mortgage and two dogs. Should I quit my job and pursue my dream of becoming a physical?
There are many things to consider. You don't give your age but a lifetime in a job you don't like can feel like 2 lifetimes. Do you have savings? Can you work part time and be able to meet your obligations? Can you get financial assistance? Will the new career meet your financial requirements. Look into all of your options. If you need to put it off for a year and sock money away to help you through the training period and getting started in a new career.
yes because life is ';too short'; why not do what you want to do. But dont quit just yet, do the training and classes to become a physical therapist and or personal trainer then find a job doing that, then quit your auditor job, because you still have bills to pay so dont quit just yet. GOOD LUCK!
You would have to way up your pros and cons its great to follow your dreams but not if you lose your house and dogs
It depends how old you are and how much you're making now.
If you can afford it, then go for your dreams!!!
Can you try it out part time first?
You should keep your job so you can keep paying your bills. You wouldn't want to fall behind and get your home foreclosed and your dogs taken away. You should keep working full time, but take classes part time, and once you complete your degree requirements, you should start looking for a job as a physical therapist, and when you find a job, quit your auditor job.I have a mortgage and two dogs. Should I quit my job and pursue my dream of becoming a physical?
There are many things to consider. You don't give your age but a lifetime in a job you don't like can feel like 2 lifetimes. Do you have savings? Can you work part time and be able to meet your obligations? Can you get financial assistance? Will the new career meet your financial requirements. Look into all of your options. If you need to put it off for a year and sock money away to help you through the training period and getting started in a new career.
yes because life is ';too short'; why not do what you want to do. But dont quit just yet, do the training and classes to become a physical therapist and or personal trainer then find a job doing that, then quit your auditor job, because you still have bills to pay so dont quit just yet. GOOD LUCK!
You would have to way up your pros and cons its great to follow your dreams but not if you lose your house and dogs
It depends how old you are and how much you're making now.
If you can afford it, then go for your dreams!!!
Can you try it out part time first?
How much $ Will I get back at the end of the year If I take my mortgage interest off on my taxes?
How much $ Will I get back at the end of the year If I take my mortgage interest off on my taxes? I just purchased my home in January 2007 and plan on claiming it next year of course and was just curious how much do you usally get back money wise heres my homes details:
Loan Amount: 117,000
Interest Rate: 6.5% Fixed 30 Yr.
Location: Indiana
Thanks for your help :o)
DrewHow much $ Will I get back at the end of the year If I take my mortgage interest off on my taxes?
Most of your payment the first year is interest. Very little is going towards the principal. You're going to be paying about $7500 in interest in the first year. Only about $1300 of that first years payments actually goes toward the principal. (Sucks, doesn't it?) You don't actually get to where you've paid off half of the house until about the 23rd year on a 30 year loan.
However, there is no way of telling you how much that will help your taxes because we don't know what tax bracket you are in.How much $ Will I get back at the end of the year If I take my mortgage interest off on my taxes?
The first answerer was a bit...optimistic.
You can deduct the interest, yes (along with property taxes) but it only makes a difference once you exceed the standard deduction. For couples, that means as much as $10K. So if you had 7K in interest you may not see a difference in your return at all.
However if you itemized THIS year, then you're likely already exceeding the standard deduction, in which case you'd add about 7K worth to that deduction and yes, it would increase your return, but it would still be less than 2K.
For instance, for me, I took the standard this year and basically got a 0 return. Next year I will have added a child (expecting next month) AND nearly 17K in interest-- and my return is only going to be $2500. 1000 of that is the child credit, so my total increase is 1500.
I'm guessing around 7000 in int per yr,deduct that from gross income,about 2000 in your pocket.
Loan Amount: 117,000
Interest Rate: 6.5% Fixed 30 Yr.
Location: Indiana
Thanks for your help :o)
DrewHow much $ Will I get back at the end of the year If I take my mortgage interest off on my taxes?
Most of your payment the first year is interest. Very little is going towards the principal. You're going to be paying about $7500 in interest in the first year. Only about $1300 of that first years payments actually goes toward the principal. (Sucks, doesn't it?) You don't actually get to where you've paid off half of the house until about the 23rd year on a 30 year loan.
However, there is no way of telling you how much that will help your taxes because we don't know what tax bracket you are in.How much $ Will I get back at the end of the year If I take my mortgage interest off on my taxes?
The first answerer was a bit...optimistic.
You can deduct the interest, yes (along with property taxes) but it only makes a difference once you exceed the standard deduction. For couples, that means as much as $10K. So if you had 7K in interest you may not see a difference in your return at all.
However if you itemized THIS year, then you're likely already exceeding the standard deduction, in which case you'd add about 7K worth to that deduction and yes, it would increase your return, but it would still be less than 2K.
For instance, for me, I took the standard this year and basically got a 0 return. Next year I will have added a child (expecting next month) AND nearly 17K in interest-- and my return is only going to be $2500. 1000 of that is the child credit, so my total increase is 1500.
I'm guessing around 7000 in int per yr,deduct that from gross income,about 2000 in your pocket.
What is a mortgage refinance with bad credit the pros and cons?
You like to know about pro and con bad credit, you can see at http://nice-tip.com/finance/a_mortgage_r鈥?/a>
I found it from google. Hope you enjoy it.
I found it from google. Hope you enjoy it.
Is there a mortgage or lending company in Utah that will finance a mobile home on land?
Well I think it depends on what a mobile home is categorized as, it might be residential. I would contact a residential mortgage place to find out what the rules are for that type of loan. You can find other types of real estate loan services from an online phone book! There are some in Salt Lake City, one called Primary Residential Mortgage that you can check out : %26gt;scary mask cool mask
Would a personal style quarterly newsletter sent to clients be a good product to market to mortgage brokers?
I have created a newsletter that a broker can send to his/her clients. It is part of a client retention strategy. Four quarterly newsletters written in the brokers voice.Would a personal style quarterly newsletter sent to clients be a good product to market to mortgage brokers?
There are already a dozen companies offering something like this. So yours would have to be better, cheaper and easier. Start looking at the ones that are out there and see how you compare.
I know for my own sake, that anything I can send a few times of year to retain my clients and keep in front of them is a good idea. Yet I've never spent the money for something like this. Even though it probably would have been money well spent.Would a personal style quarterly newsletter sent to clients be a good product to market to mortgage brokers?
It works very well for my clients, so long as the information is good and it's not too long.
Good luck!
I hate to be vague, but it depends on the clients. If they are busy and usually have their assistants do a lot of things then it might be a waste. However, if they are everyday folks it might not be bad idea. I would actually love to see a newsletter generated for the 20-30 crowd--there are a lot out there that don't know too much about investing but what to... hmm biz idea?! you can email me too to get some more thoughts:) But, most 20-30 year old I know don't use brokers...missed market-- perhaps
Good idea but bad timing.
There are already a dozen companies offering something like this. So yours would have to be better, cheaper and easier. Start looking at the ones that are out there and see how you compare.
I know for my own sake, that anything I can send a few times of year to retain my clients and keep in front of them is a good idea. Yet I've never spent the money for something like this. Even though it probably would have been money well spent.Would a personal style quarterly newsletter sent to clients be a good product to market to mortgage brokers?
It works very well for my clients, so long as the information is good and it's not too long.
Good luck!
I hate to be vague, but it depends on the clients. If they are busy and usually have their assistants do a lot of things then it might be a waste. However, if they are everyday folks it might not be bad idea. I would actually love to see a newsletter generated for the 20-30 crowd--there are a lot out there that don't know too much about investing but what to... hmm biz idea?! you can email me too to get some more thoughts:) But, most 20-30 year old I know don't use brokers...missed market-- perhaps
Good idea but bad timing.
Sunday, August 22, 2010
What kind of mortgage can I get with a credit score of 646?
I haven't gone through the preapproval process but I am curious on what range my credit score will qualify me forWhat kind of mortgage can I get with a credit score of 646?
It should qualify you for lots of good stuff, assuming your income can actually qualify you for a home.
Ask about Fannie Mae's My Community Mortgage product. 100% financing with rates only about .25-.5% higher than the lowest rates available, with generally inexpensive mortgage insurance.
Any score under 660 is difficult to get 80/20 financing on to avoid the mortgage insurance. Lenders don't usually offer the 2nd mortgage under a 660 score, and if they do, rates are often double-digit. Which usually means the mortgage insurance is the cheaper way to go. And MI can be tax-deductible now, which helps even out the cost a bit.
FHA is a great option if you can come up with a 3% downpayment from savings or a gift from family. Low rates, reasonable mortgage insurance, easy qualifying.What kind of mortgage can I get with a credit score of 646?
It depends what is or is not on your credit report...collections, judgments, etc. If you would like me to give you a few options, contact me anytime. I do business in these states:
MI, IL, IN, TN, AL, MO, OK, OH, FL
Good luck.
David Woolman
(800) 678-6663 Ext. 5126 Toll Free
dwoolman@shoremortgage.com
Your credit rating is good but there are a few other factors to take into consideration. Income, and employment. A pre approval process takes only a few minutes, and will help you determine what you qualify for based on all three factors, and also what price range you should be looking in. Talk to three lenders, running your credit too much in a short amount of time can drop your scores, and see what they offer in the way of rate, terms, and closing costs. Always have them put their offers in writing, and if they don't don't consider them. I am a loan officer for 7 years now, and can offer you sound advice if you need it if you wish to you can email me. My website listed below can offer you valuable information on what steps to take and what you need to do. Good Luck
It should qualify you for lots of good stuff, assuming your income can actually qualify you for a home.
Ask about Fannie Mae's My Community Mortgage product. 100% financing with rates only about .25-.5% higher than the lowest rates available, with generally inexpensive mortgage insurance.
Any score under 660 is difficult to get 80/20 financing on to avoid the mortgage insurance. Lenders don't usually offer the 2nd mortgage under a 660 score, and if they do, rates are often double-digit. Which usually means the mortgage insurance is the cheaper way to go. And MI can be tax-deductible now, which helps even out the cost a bit.
FHA is a great option if you can come up with a 3% downpayment from savings or a gift from family. Low rates, reasonable mortgage insurance, easy qualifying.What kind of mortgage can I get with a credit score of 646?
It depends what is or is not on your credit report...collections, judgments, etc. If you would like me to give you a few options, contact me anytime. I do business in these states:
MI, IL, IN, TN, AL, MO, OK, OH, FL
Good luck.
David Woolman
(800) 678-6663 Ext. 5126 Toll Free
dwoolman@shoremortgage.com
Your credit rating is good but there are a few other factors to take into consideration. Income, and employment. A pre approval process takes only a few minutes, and will help you determine what you qualify for based on all three factors, and also what price range you should be looking in. Talk to three lenders, running your credit too much in a short amount of time can drop your scores, and see what they offer in the way of rate, terms, and closing costs. Always have them put their offers in writing, and if they don't don't consider them. I am a loan officer for 7 years now, and can offer you sound advice if you need it if you wish to you can email me. My website listed below can offer you valuable information on what steps to take and what you need to do. Good Luck
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