A mortgage is a loan that is secured by real property (land, buildings).

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Mortgage question: Which banking terms mean “lends smaller amounts” or “offers small mortgage loans”?

Despite many phone calls I haven't been able to find a lender who offers home loans under 100k USD. Which banking terms are used to specify lenders who do "small" mortgage loans? I'm going with an FHA ...
0
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0answers
56 views

Take car loan out of mortgage to improve equity

I have my car loan as a part of my mortgage. Now, I want to buy a new house and I'm applying for a Proof of Funding (POF). My salary is (relatively) good, so the limiting factor is my equity. When ...
44
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7answers
13k views

Why are 30-year mortgages seen as unwise, if you can pay off the loan in a shorter period of time anyway?

I'm slowly working towards buying my first home (yay!), and have been playing around with the numbers. As far as I can tell, there's literally zero advantage for getting a 10 or 15-year mortgage since ...
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3answers
194 views

Rent at $1500/month in Toronto or Mortgage even with ≥ 5% interest?

Because my aunt had 1 Bankruptcy discharged in 2004 and 1 Consumer Proposal discharged in Jan. 2015, for her any mortgage interest rate probably ≥ 5%. Her credit score is 720, and she is renting now ...
3
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3answers
201 views

Is there any reason not to get pre-qualified for a mortgage?

I'm considering buying a house, but I'm very early in the process so I don't want to commit to anything yet. I noticed that my bank (USAA) has an option for mortgage pre-qualification, and I'm curious ...
6
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3answers
863 views

When building credit in preparation to buy a house, should I buy a car or not?

I am in the process of re/building my credit, as I have never had a credit card until recently (I did everything with debit or checks). I do however have a decently sized number of student loans (on ...
3
votes
4answers
456 views

That “write your own mortgage” thing; how to learn about it

In the US experience, I've often heard or read of people "writing their own mortgage", I mean to say when selling a house. You'll hear of a "doctor or attorney" writing their own mortgage on a sale, ...
5
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2answers
483 views

What is a HomeStyle Mortgage from Fannie Mae?

Background: We are considering buying home listed for USD$199,000. It is rather outdated and the systems are - we think - original to the home, built in 1976. (I'm trying to get more disclosure from ...
3
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2answers
261 views

What happens to my mortgage if I quit my job?

I want to buy a house and take out a mortgage for it. I plan on making this a rental property. However, I want to travel and start my own company next year. If I do that, I won't have a stable income (...
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2answers
217 views

Why is there so much interest on home loans?

Search around the internet for current mortgage rates and play with some of the amortization calculators. You'll see that at the end of the payment schedule you will be paying almost an equal amount ...
2
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4answers
98 views

How to hedge an adjustable rate mortgage to lock in the current rate for the whole loan duration?

For a certain property my lender will only give an ARM (10 year fixed, 1 year adjustable afterwards), which is based off the U.S. Treasury rate. However I would really prefer a fixed rate mortgage. ...
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0answers
45 views

How to check up financial situation of a company in Canada

Planning to buy a place where a small business is located currently. I want to allow them to continue operating, but I want to know if they don't have any debt with Government or if they could file ...
3
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1answer
89 views

How is my [UK] bank calculating mortgage porting affordability?

I have had a mortgage with my bank for ten years now, and want to move. I have phoned them a few times to ask about what I can afford, but each time the answer confuses me, and when I ask how they ...
2
votes
1answer
32 views

Am I eligible for Home mortgage interest deduction if I live outside the US?

I am a US citizen living outside the US, and I have a mortgage. Am I eligible for Home mortgage interest deduction?
7
votes
4answers
332 views

Avoid paying off a mortgage early?

My mortgage is 3.5% fixed rate. I have enough money to pay off the remaining balance, and still have enough left over for an emergency fund. My investments have historically made more than 3.5% per ...
3
votes
1answer
70 views

Is cash (from sale of equities, other property or savings) taken into account for mortgage affordability?

Imagine the following scenario: Gross annual income - $100k Cash (from property equity, shares, saving etc) - $100k No debt. Down payment - 20% (e.g. $20k) to be taken from cash pot. Mortgage - ...
5
votes
1answer
83 views

Are unknown lenders safe to use?

I want to refinance my mortgage, so I went searching for rates and a typical page on BankRate looks like this: These rates are a good half a percent less than what's offered by the major banks, but ...
4
votes
2answers
165 views

What is included in 43% debt to income ratio calculation for mortgages?

I'd like to know what items a bank will look at for their debt to income ratio calculation for an application. My only loan right now is a car lease. So I'm specifically wondering if any of these ...
4
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1answer
74 views

How do you find best mortgage without damaging credit score?

I have a few questions on trying to get my first mortgage (30 year, fixed rate). I'm first doing some comparisons using these two online tools: https://www.zillow.com/mortgage-rates http://www....
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2answers
30 views

Re-financing rental property in excess of original basis

Is the interest deductible on a rental property mortgage that is in excess of the original basis plus any improvements, less depreciation?
0
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2answers
68 views

US mortgage without waiving or assigning rights?

At a bank in Pennsylvania (USA) to get loan with house as collateral. This is for a small rental LLC with a couple of houses. While reading the agreement, much of it was commonsense, but a few things ...
0
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1answer
68 views

Calculate APR from balloon loan

I need formula to calculate nominal APR from balloon loan with contract fee. The initial data and payment schedule is: Loan sum: 10 000€ Interest rate per year: 15% Loan period: 2 years Payments ...
3
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2answers
105 views

Getting Earthquake Insurance on a new Mortgage

I live in the bay area, CA where there are many earthquakes. I was recently reading: http://blog.petetheplanner.com/financially-what-happens-when-your-house-burns-down/ which stated that your home ...
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1answer
57 views

Jumbo loan amount before or after downpayment? [duplicate]

I want to take out a mortgage, but the value of the house is greater than $417,000, which is the amount when a mortgage becomes a Jumbo loan. I looked for more information on BankRate.com, and even ...
23
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5answers
9k views

Owning house for 3 years. 15 or 30 year mortgage?

I'm about to move to a new area and will be living there for 3-4 years and then moving to another area (I'm in the military and move every 3-4 years) and I'm thinking that buying a house there is my ...
3
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2answers
97 views

Is a secured loan or mortgage considered debt? [duplicate]

Lets say you buy a home for $300k, and put down a $100k payment and take out a $200k loan. The house was purchased for a fair, properly appraised value. Does this mean that you are now $200k "in ...
4
votes
2answers
157 views

Higher mortgage to increase savings to invest?

Last week we went to the bank to talk about a mortgage. Here in Belgium, 40% of your mortgage is can be deducted from your taxes. You can deduct 1520 euro during the entire course of the mortgage. ...
0
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2answers
51 views

ESPP (Employee Stock Purchase Plan) Funds on Mortgage Loan Application

Will the bank count these funds? My company ESPP works like this: 25% of my bi-monthly paycheck (after taxes) is withheld and sent to some kind of company escrow account. This is done for 6 months. ...
4
votes
2answers
149 views

Break even point of mortgage prepayment penalty vs anniversary payment

I want to calculate the optimal way to apply a $100,000 inheritance to my mortgage and am having difficulty figuring this out. I am in Canada and if I apply all of the money on the mortgage ($170,000 ...
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1answer
43 views

large recurring transfers of to India from US and/or taking Indian mortgage

I am a US citizen and have lived in America my entire life. My wife is an Indian citizen is in the US on a Greencard (K1/fiancee visa) for the last few years. Before marriage, when she was in India, ...
3
votes
1answer
268 views

Lender asking why I'm moving to a new state

Question from my lender for a new primary residence I'm under contract on in another state (my personal data has been replaced with fake addresses): "BORROWER TO PROVIDE SATISFACTORY DOCUMENTATION ...
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1answer
54 views

Getting a mortgage

we own a rental property with our son. The rentals pay the house payments. After 10 years our son wants to buy his own house in another state. Do we have to pay him the whole price to buy the house or ...
2
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1answer
87 views

Condo hazard insurance — who takes the next step? Everyone else is refusing

I live in California. The bank (in Atlanta) who has our home loan needs to see proof of our condo master hazard insurance policy or they will buy us a policy. The agent who sold the policy told me ...
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4answers
216 views

Renting or Buying an House

We are a young couple who are renting apartment near NYC. It has been almost 4 years that we have been renting and after every couple of years we had to move to a newer location and every time our ...
0
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1answer
51 views

Purchase a home as primary residence but rent it until current lease is up

If I purchase a home as a primary residence, how can I rent it out until my current apartment lease is up (about 1 year)? My intent is to use it as a primary residence, just not within the 60 days ...
3
votes
1answer
222 views

In-laws want to gift us $100,000 for a house downpayment. Money will be coming from an overseas account

My in-laws (living in US, green card holders), want to gift my wife and me (US citizens) $100,000 for a down payment on a house. The money will be coming in from Taiwan. What do I need to know about ...
3
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1answer
115 views

Inflation adjusted total formula for cost of mortgage

True cost of a mortgage when considering inflation has an answer by a Chris Degnen with the relevant formula(s): adjusted = (p - (1 + inf)^-n*p)/inf; pv = Σ p2 (1 + r2)^-k for k = 1 to n ∴ pv = (p2 ...
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2answers
75 views

Setting up auto-pay. Should I use my bank that holds mortage or my personal bank?

I am trying to setup my bills so I can be a little hassle free when it comes to paying them. The cost isn't so much an issue as me remembering to pay them in the first place. Currently, I have been ...
3
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3answers
144 views

Mortgage refinancing

Lets say I buy a house worth £350k with a mortgage of 30 years. Down-payment of £50k and monthly £1250 with 3% interest. After 5 years I realized I can afford £5k monthly, can I pay off some debt to ...
73
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10answers
11k views

Why is being “upside down” on a mortgage so bad?

For the longest time (especially during/after the housing crash in the US), people would speak in hushed whispers or terrified pleas when they talked about being upside down on their mortgage. While I ...
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5answers
82 views

Alternatives to mortgage for mobile expats

I know that buying a house, as opposed to renting, is often a very good financial decision: you have to live somewhere, and paying off a house instead of throwing money away on rent often makes alot ...
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0answers
47 views

What is formula to calculate “In 5 years” amount on page 3 of the mortgage Loan Estimate form?

Loan Estimate form for mortgages in US have a "In 5 years" amount paid. What is the formula for calculating that based on other values in the form ? On page 3 of the example form at http://www....
0
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2answers
80 views

Withdraw IRA Early to Buy a House

I am looking at purchasing my first home, as my calculations show it would actually be cheaper to pay a mortgage (and related fees) than it would be to continue renting. I have some savings, and some ...
0
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2answers
100 views

While interest rates are low is it better to take a short-term fixed mortgage or long-term one

In the UK mortgage uinterest rates are historically low and I'm in a position where paying off a small mortgage in tens is financially viable. There are however two courses of action I could take: ...
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1answer
45 views

compute the principal and interest for a specific month (period) on an amortized loan

I can easily compute the monthly payment for a loan given the amount, the number of periods, and the periodic rate. From that, I can easily build an amortization table iteratively by subtracting the ...
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5answers
3k views

Should I buy a house because Mortgage rates are low

Interest rates are pretty low right now and a few of my friends are rushing to buy a house(even though the actual property prices are pretty high.) I was of an opinion that mortgage rates being low is ...
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1answer
147 views

Am I a first time buyer if I own a share of my parents property?

If my parents use the land registry to add me as a 10% owner of their house, would I still qualify as a first time buyer in reference to common first time buyer mortgage schemes?
2
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1answer
157 views

What happens to an Earnest Money Deposit if underwriting falls through?

I paid an Earnest Money Deposit (EMD) on a home purchase to an escrow account setup by real estate agents and later paid the full down payment amount to the title insurance company. If underwriting ...
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1answer
90 views

What do I bring to an accountant if I own a house?

I bought a house in Dec. 2014. I wrote checks and paid both School and County taxes on it in 2015. I have the bills for these taxes. Is that enough? I went on the county property tax information ...
3
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1answer
57 views

Lending to SMSF

I have owner occupied/investment property. I have $2M loan on my property, and $2M sitting on my offset account, therefore paying no interest. Can I use my cash in the offset to lend to my SMSF to ...