A mortgage is a loan that is secured by real property (land, buildings).
7
votes
1answer
64 views
Pay off debt with RRSPs, or refinance and roll into Mortgage?
A few years of a combination of under-employment and trying to keep afloat a floundering business has left me (us) with 50k debt on a line of credit and a credit card. We are getting 5k back from ...
6
votes
1answer
111 views
What is a rule of thumb for accruing debt on a rental property?
My sister and I were fortunate enough to inherit 2 properties from my father, one a suite of apartments and cottages worth about ~$3M and also his home.
We currently have about $200K in mortgage ...
4
votes
2answers
90 views
How do I arrange a private mortgage between myself and a trusted individual?
I live in the UK. Specifically, how do I draft a loan agreement that provides basic safeguards for borrower and lender (very basic safeguards, as we're talking about an intra-family loan and the level ...
3
votes
2answers
64 views
How to get the lowest mortgage rate on a new purchase?
Looking for a home loan in the mid $400,000, with 20% down on the value price, a first home purchase and in the U.S.
What strategies can be applied to ensure the best interest rate possible?
What ...
7
votes
3answers
151 views
Financing with two mortgages: a thing of the past?
Back in 2006, our mortgage broker easily got us two mortgages for use when purchasing a home with 10% down:
A non-conforming ("jumbo") loan with 80% LTV requirements covering 80% of the purchase, ...
1
vote
2answers
104 views
Mortgage points vs. down payment: How should I look at the break even point?
Some relevant questions are here:
What are points on a mortgage?
Should I pay points on my mortgage?
First Time Home Buyers - Down Payment, PMI and Points
I am aware that most people look at the ...
5
votes
2answers
130 views
+50
Cash out retirement account or sell and downsize the house to pay off line of credit?
I am in my mid 40's and I have an outstanding secured line of credit with a large balance that I want to clear.
I can only come up with 2 scenarios to clear this amount based on my home equity and ...
2
votes
2answers
55 views
Basic Info On Construction Loans
My wife and I are looking into possibly buying a lot in Chicago and having a custom home built on it.
My most basic question: is it possible to get a loan that covers buying the lot AND the cost of ...
2
votes
1answer
62 views
Relocating and buying a house simultaneously - How to handle pre-approval on fluctuating yearly income?
The background is as follows. We are currently renting and want to buy our first home as we are relocating for a new job. My new job starts 1st June 2013. My current job ends May 31st 2013. My yearly ...
2
votes
1answer
76 views
For qualifying for a mortgage, is it better to have a small business showing a loss or a pay stub with short history in the company?
My fiancee and I are trying to qualify for a mortgage. She is full-time W2 employee and I am a small business owner. My 2012 profit in the business was significantly less then 2011 (more than 20% ...
1
vote
0answers
57 views
Which scenario is better for getting rid of mortgage insurance faster?
I'm closing on a house in a few days with an FHA loan that has a hefty mortgage insurance. As I understand it, once I reach 78% loan-to-value of the initial sales price or appraised value of the home ...
5
votes
3answers
147 views
What are the transactional costs when buying and selling a house?
I am trying to breakdown all transactional costs related to buying and selling a house as well as their numerical values. For instance, the agents get around 3% in commission each, the inspection ...
3
votes
2answers
119 views
Would a bank take shares in mutual funds as security for a mortgage instead of a down payment?
Let's say I have 20% (or more) of the mortgage principal as shares in a mutual fund.
I could cash out the shares, pay my cap gains tax, and pay it to the bank as a down payment.
But is it ...
2
votes
1answer
91 views
PMI cancellation based on original mortgage amount
We bought a house in 2005, and since we did not put 20% down, we have been paying PMI. Since then, the value of our home (and neighborhood) has declined. Our principal balance is currently 77% of ...
2
votes
5answers
219 views
Whether to prepay mortgage or invest in stocks
If at the end of the year, I have 10k in hand that I want to save/invest and these are my options:
1.Prepay into mortgage. Rate is 2.1%
2.Invest in stocks and I know I can get at least 7 % return.
...
2
votes
1answer
84 views
Physician Mortgage: What's the advantage of using one, vs. a regular 20% loan?
I'm a software engineer whose bride-to-be will become a medical resident in a few months.
We're confident that we'll live in the area where she'll do her residency.
Looking at a $250,000 house, I'd ...
-5
votes
1answer
90 views
Mortgage Refinance [closed]
My father has a 30 yr fixed loan at 7.5% with 30k principal left with a little over half the term left.
I've been trying to convince him to try and get a cheaper interest rate for the last several ...
4
votes
1answer
74 views
How can I get a home loan within 2 years of bankruptcy?
About 1.5 years ago I had my bankruptcy discharged. Now, the lease on my house is up and I have about $7k for a down payment on a small starter house (they asking $55k)
However the 2 places I have ...
0
votes
1answer
30 views
Mortgage-based budget spreadsheets?
Got my first pre-approval on a mortgage loan, for an amount much larger than I thought I would.
At first glance, it looks like more than my conservative mind would think is reasonable to spend on a ...
9
votes
1answer
202 views
What can I plan for to save money on my mortgage?
I am a first time home buyer and any advice is greatly appreciated.
I am going to start shopping soon for getting a mortgage and I need to know what strategies I can use to avoid paying more than is ...
1
vote
2answers
275 views
Best way to transfer a mortgage, and keep the house?
This might be easier if I quickly outline the situation.
Currently, I rent out my house (I have consent to let from the Bank), I wish to purchase a new house (with my girlfriend) but because I have a ...
1
vote
0answers
85 views
Can I work with two or more mortgage brokers at the same time?
When searching for a home loan, can I get two or more mortgage brokers to search for the best rate for me and at the end just choose the one that found the best rate?
10
votes
5answers
386 views
What are the advantages of paying off a mortgage quickly?
What are the advantages of paying off the mortgage quickly??
Sure, not paying interest and truly owning your house is great, but then the money is tied in a fixed asset, and if you want to get at ...
8
votes
1answer
102 views
Are there downsides in refinancing with 5 and 1/2 yrs left?
I have 5 and ½ years left on my 15yr 4.75% mortgage. I originally borrowed $200,000, and according to the amortization table, I will pay a little over $12,000 in interest on the $86,000 left. I have ...
2
votes
0answers
60 views
New construction closing in a year; how can I lock in mortgage rate?
I've just contracted for a new house in Florida to be built. The closing won't occur for approximately a year. Is there a way to lock in a mortgage interest rate for so long in the future? It will ...
0
votes
1answer
84 views
Does putting my name on my wife's condo mortgage raise my credit score?
Would it be wise for me to put my name on my wife's condo mortgage (which she owned before we met) to raise my own credit score?
3
votes
4answers
210 views
Overpaying my mortgage monthly payment
I have a 30 year fixed-rate mortgage. Yearly interest rate is r. If my initial principal is P and monthly payment is p, but this month i decide to pay p+Delta, how do i calculate how much of the ...
2
votes
3answers
157 views
Quick formula for calculating total interest in my head
Is there a rough, quick and dirty, formula that I can do in my head for calculating the total interest on a loan? Something like:
TotalInterest = Principal * (Yearly Interest% * Term In Years / 2);
...
5
votes
3answers
188 views
How does refinancing work?
I heard someone say that he refinanced his house, and reinvested the money into the mortgage to lower his monthly payments.
What I don't understand is:
Since there was no sale, where does the money ...
2
votes
1answer
97 views
Does it make sense to refinance and convert the HELOC back to a fixed 20 year low rate mortgage?
I have $5k left on a primary mortgage at 5.375% interest. I have $155K debt on a HELOC at a variable 3% rate. The total line of credit approved is 200K. 3.0% APR. No penalty for pre-pay. Can lock ...
0
votes
0answers
82 views
Personal “Profit & Loss Statement” required for mortgage?
I am purchasing a house and have finished most of the process. My mortgage application has been approved pending some documents; all of these documents are typical except for "Profit & Loss ...
4
votes
3answers
178 views
Is PMI rate set until 20% paid off
From various things I have read, it seems like PMI stays at the same rate, regardless of how much you owe. Is that right? That is, say I put down 10% and I get PMI. Will my PMI payments stay the ...
0
votes
1answer
46 views
What are the cost differences between a deed In lieu and a judicial foreclosure and the effect of those differences?
Reading this interesting question and great answer:
How do banks lose money on foreclosures?
I was thinking back to several episodes of the Clark Howard radio program where he states that Deed In ...
2
votes
1answer
89 views
Who ultimately receives principal and interest of a mortgage payment?
So the mortgage is bundled and sold as a securitized instrument in tranches, etc. That explains the contract side of a mortgage. When an individual makes a monthly payment on that mortgage, how does ...
4
votes
2answers
86 views
Closing on two mortgages (investment refi & primary home) — is it ok to do them simultaneously?
My wife and are are simultaneously in the market for a new home and trying to refinance a condo we rent out as an investment.
The stars may be aligning that both loans could go into underwriting ...
3
votes
1answer
97 views
How does paying off one of two mortgages affect my credit score?
As a follow up to Should I pay off investment property mortgage question, if a person has 2 mortgages and decides to use all the savings to pay off one of the mortgages (why give the bank 5%), how ...
4
votes
2answers
469 views
Should I pay off investment property mortgage
Just a little financial puzzle.
Inputs:
An investment mortgage with 5.5% interest rate, 100K balance and 20 years left.
Saving account with 100K in the saving account at 0.5%
HELOC without any ...
1
vote
1answer
84 views
Find monthly interest rate from principle, monthly payment, and loan's term?
Is there a formula to find the monthly interest rate required on a compounded interest fixed-rate mortgage loan, given the principle, the monthly payment, and the loan's term?
2
votes
2answers
88 views
Mortgage and/or unit trust
I will be purchasing a property soon, so my question is the following:
Do I pay off my mortgage off as soon as possible (by paying more every month) or do I put the same amount extra into some unit ...
4
votes
1answer
97 views
Would extending my mortgage cause the terms to be re-negotiated?
I have a particularly good mortgage deal (lifetime tracker, base rate + 0.18% with a 2% collar).
If I were to approach my mortgage lender and ask to extend the mortgage, to borrow more against the ...
4
votes
2answers
138 views
Why is my mortgage rate for a refi higher than the prevalent market rate?
I'm refinancing my house at the moment. We have great credit (high 700s). We're getting a 15 year fixed and have locked in a rate of 3.5%. Current market rate seems to be about 2.88%. The mortgage ...
3
votes
1answer
141 views
Safety of keeping savings in a mortgage account
I have a mortgage account and a separate (yet linked) savings account with a certain Australian bank.
This bank draws a minimum mortgage repayment from the savings account into the mortgage account ...
4
votes
3answers
148 views
Can I check multiple lenders for mortgage rates, via preapproval, and have it only count as one hard inquiry on my credit?
Note: This applies to the State of New York (the NYC metro area), in the United States.
I'm shopping around for mortgage rates. I'm not sure if I have to get a preapproval mortgage to get their ...
6
votes
3answers
125 views
I have an “excellent” credit rating. Do I need to get a preapproval mortgage letter?
I'm in the infancy of buying a residential property. I have a credit rating of EXCELLENT. Do I need to get a preapproval mortgage letter? I thought that getting preapproved would expedite the ...
8
votes
2answers
186 views
Why is mortgage interest deductible in the USA for a house you live in?
In Australia, if you have a mortgage on the house you live in the interest and other expenses are not tax deductible, unless you rent out one or some of the rooms or run a business from your home, in ...
3
votes
2answers
373 views
want to refinance FHA loan, may move out unexpectedly and would like to keep as investment property, what are my options?
I'm currently in my primary residence with an FHA loan. I'd like to refinance for a better rate (as I can likely get it down at least 1.5 percentage points or so). I also intend to ultimately use ...
3
votes
1answer
146 views
Does it make sense to get a 401k loan for land purchase?
Does it make sense to use a 401k loan as a downpayment on land that you intend to build a house on?
I am currently in one house, however, I do not have much cash to make a downpayment on land that ...
3
votes
1answer
194 views
How do I qualify for a mortgage (refinancing) after I retire and no longer have a paycheck?
I've just retired and wish to refinance my mortgage. However, when I spoke with my bank, they said that since I no longer have a consistent paycheck I dont qualify under their rules for a refinance. ...
3
votes
1answer
139 views
Is it possible to get a loan when you own a significant portion of a business that is taking investment?
My wife and I collectively own more than 25% of a company that has taken over a million in investment from other investors for the purpose of growth. Our home loan is currently at 6.5%, and so we ...
3
votes
3answers
441 views
What's my risk of buying a house for a friend and sell back to him?
I'm in a situation and need some advice. A friend of mine is in the middle of Chapter 11. He asked me to help to buy his house and in a few months sell back to him, so he can force the bank to lower ...
