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Questions tagged [mortgage]

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

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4
votes
8answers
1k views

Do monthly payments decrease on a mortgage later in the loan? [duplicate]

I am planning to purchase a home and all calculations and the banks say principal, interest, property tax, plus mortgage insurance will be close to $1000 per month. The calculator show that if I ...
0
votes
1answer
154 views

Paying USD 1000 towards the principal on my mortgage

I bought a home worth 200,000 paid 20% down, my interest rate is 4%, 30 yr fixed Remaining Loan 160,000. Initially, lets say I pay around 1000 USD (200 toward my principal and 800 towards my interest)....
2
votes
1answer
299 views

Is there a non-income tax way of my father paying off my house?

My father will soon be moving in with me as he is retiring at the age of 77. We are wanting to pay off my mortgage ($250,000). But we want to do it all in my name because we don't want it to appear as ...
1
vote
1answer
78 views

Loan to family member in Canada

I am residing in USA. I am considering loaning USD 50K to my brother in Canada to help him buy a home. Whats the best way to go about this? I read that if its within US its best to do this a loan ...
0
votes
1answer
124 views

What scenarios to look for when bringing a large down payment for buying a house?

I have been looking to buy a house for about $120k. There are abundant properties for sale in this price. While house hunting, I suddenly came into an inheritance, so I can now afford a down payment ...
0
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0answers
69 views

What happened to my “Pre-Paids” on mortgage closing?

In August I closed on a home purchase (not refi), it's now November. My closing included both prepaids and escrow. My "Section F" Prepaids included 1-year home owners insurance Prepaid interest ...
23
votes
6answers
12k views

Does paying a mortgage early mean you effectively paid a much higher interest rate?

Most mortgages use an amortization schedule that have you pay more interest than principal at the beginning and then less interest and more principal as time goes one. You can see this using this ...
1
vote
1answer
117 views

UK - first house as a investment, mortgage

I am about to buy first house in UK, mainly for investment purposes (UK) Property price: up to 280k £ Spare cash: 60k (deposit, fees, renovation costs) (renovation costs will be much lowers, because ...
0
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0answers
79 views

203k loans, hometyle loans, and 'habitability'

I am looking to buy a primary residence in Detroit. I am interested in doing renovations myself as much as possible, even if it takes several years while living in the home. I've been researching 203(...
25
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8answers
7k views

What's a good strategy for offering low on a house?

We are in the UK and interested in purchasing a house, but the highest offer we could make is substantially below the asking price by around 5%. However, we have some advantages over other ...
3
votes
1answer
181 views

How is debt to income ratio calculated by mortgage lenders? (what is the source material)

I was thinking about this as I was writing a comment for this question. I wanted to make a point that is the OP paid his credit card in full before each month's statement was generated (so that the ...
0
votes
1answer
56 views

Calculating real estate rental yield with a mortgage?

I'm struggling to work out how to calculate real estate rental yield in a way that makes it somewhat comparable to any other income-generating asset (e.g., given an investment of X, and a periodic ...
2
votes
1answer
69 views

How do rental income/costs factor into a debt to income ratio for a home purchase?

If I own a house that I rent out, and I apply for a mortgage to purchase a new primary residence, how do the rental income and costs factor into a debt to income (DTI) ratio for that new mortgage? My ...
4
votes
2answers
164 views

Can I use home equity line of credit as second house down payment?

I recently moved to Boston where housing is very expensive compared to where I lived before. Buying a house requires a lot of money as down payment, and I am still short of $30000-$40000. But I have a ...
5
votes
1answer
198 views

Does a cash back mortgage at a higher rate with the cash immediately applied to the principal make financial sense?

A mortgage advisor was trying to sell me on cash back mortgage. For most clients he said they use it to pay down debt at a higher interest rate or to buy the essentials for a first home. This is not ...
1
vote
1answer
161 views

Refinance Cost is high

I got 30 years loan for 232K two years ago with interest rate of 4.25% and now I am planning to refinance again for 15 years. Financial company mentioned they can provide interest of 2.85% but the ...
3
votes
3answers
231 views

Letting a partner in on home ownership gradually

I have owned my house for 10 years. My boyfriend has been living in it for nearly two years. So far he hasn't been paying anything towards the mortgage. We split bills and council tax 50:50. This ...
1
vote
5answers
195 views

Is it valid to mix assets and expenses when calculating the worth of a house?

I'm trying to calculate (for myself, not relying on other people's graphs) when it becomes worth it to buy vs. rent. On the positive side, there is: the down payment, property that (roughly, over ...
1
vote
1answer
91 views

Why do FNMA and FHLMC impose loan limits?

Why do FNMA and FHLMC announce new loan limits for one to four-family loans? Is there a justification to have something called "conforming" loans as opposed to "jumbo" loans? Is this to separate on ...
5
votes
6answers
2k views

How does paying extra on my mortgage affect my amortization schedule?

I am a first time home buyer and have some spare cash after my home purchase to pay forward quite a bit of money (cash was not available during actual purchase, so, no, I could not have put it towards ...
12
votes
8answers
6k views

How much income am I getting by renting my house?

I am moving from Portland, OR to SF Bay area and therefore contemplating whether to sell or rent the house. I am not planning to move back to this house. Property details: Bought for : $267,000 Paid ...
17
votes
7answers
8k views

How to handle shared mortgage payment if one person can't pay their share?

I have been struggling with figuring out how to handle mortgage payment on a common apartment after a breakup. I am usually good with numbers but those configurations all seem to make some sense for ...
2
votes
1answer
142 views

Mortgage term and overpayment

I have been comparing mortgages on a banks website. It appears that the term I choose does not affect the interest rate I am offered. In this case the deals allow 10% overpayment per year without ...
0
votes
2answers
180 views

Buydowns when House Market is Weak

I would like to better understand how the buydown works in residential housing market. A typical situation that comes to my mind is that a developer who wants to get rid of excess supply of homes in ...
0
votes
1answer
67 views

“Negative Amortization” Terminology

I want to better understand the term "negative amortization". For example, in the Graduated Payment Mortgage (GPM), people often say it usually has negative amortization as the loan balance increases ...
1
vote
2answers
121 views

Residential Mortgage Tilt Effect

The way I understand the mortgage tilt effect is that the lender "prices in" the expected rate of inflation into the contract borrowing rate, so that the lender is compensated in the earlier years of ...
3
votes
1answer
157 views

Why do Loan Discount Points Exist?

Loan Amount Disbursed = Face value of Mortgage in the contract *(1-discount points). Why do we have this type of computation in place in the US? Is this conventional because of some history behind it?...
0
votes
2answers
64 views

How to calculate the profitability of an investment property, taking mortgage leveraging into account?

If you buy a property with cash, its fairly easy to make a calculation by totaling your profits over the lifetime of your investment against investing the same amount into an index fund. But how does ...
-5
votes
2answers
144 views

Can I avoid paying property tax by creating a non-profit?

Let's say I own a home and the mortgage is completely paid off. I was reading the nonprofits do not have to pay property tax. What if I created a nonprofit with the sole purpose or mission statement ...
9
votes
5answers
5k views

Can I pay off my mortgage with a new one?

I'm wondering if this is possible and a wise decision. Let's say I have a house mortgage for $100k. Now, if I were able to save up half of the amount. Should I get another mortgage of $50k and pay ...
10
votes
1answer
336 views

Should I stop over-paying my mortgage before moving?

In response to this question: Does Bank Manager's discretion still exist in Mortgage Lending a user ("Bryce") commented: Stop overpaying your old mortgage now. Maybe even take out a home ...
29
votes
3answers
4k views

Does Bank Manager's discretion still exist in Mortgage Lending

UK-Based Once upon a time, banks gave mortgages based on the branch manager having known Joe Bloggs for 20 years and making a judgement call about whether he was good for the money. These days ...
1
vote
1answer
185 views

Buying a house with credit line and getting a mortgage later

We are considering buying a house for about $150-160 thousand. We recently moved, and my wife has been on maternity leave benefits for a year now. So, proof of income is basically non-existent. We ...
3
votes
0answers
68 views

Do you have to pay taxes on a Unison “investment”?

I keep getting these Unison solicitations in the mail. Another question discusses whether or not this is a good deal in general, but one thing I don't see mentioned is taxes. I have searched quite a ...
14
votes
8answers
26k views

Practicality of 30 year fixed mortgage at 55 years of age

I understand that lenders cannot discriminate based on age, but is there really data to support that lenders do not do that? But suppose if one gets the mortgage when he/she is 55 years or older and ...
2
votes
3answers
75 views

Assuming a mortage dependent on interest rate outlook

Purchasing a home. All-cash deal is feasible. I believe that mortgage rates will be rising in the near future, say doubling in ten years. I do not believe mortgage rates will fall. I believe interest ...
3
votes
1answer
164 views

What is effective interest rate?

I'm reading the book The Big Short. In the first chapter, it says that around 2002, Household Finance Corporation was offering home equity loans that were lying to the consumers. They were actually ...
3
votes
3answers
451 views

The balance between Renting and Buying

My girlfriend and I are spit-balling the idea of buying a house. We've heard pros and cons for mortgages; you're putting your money into an investment vs you're paying far more than you anticipate due ...
7
votes
4answers
3k views

How long to wait to change jobs after closing on a home

I am closing on a home in the next few weeks. Is there a period of time AFTER closing I should wait before I look for a new job? Is there any process post closing I need to wait for? I assume I would ...
1
vote
4answers
145 views

Impact of Spending Cash/Debit vs Credit Card on Debt to Income Ratio

Since debt-to-income ratio (dti) is an important factor in determining one's creditworthiness especially for mortgage rates, it is clear that one should keep the monthly recurring debt and credit card ...
1
vote
2answers
210 views

Removing ex wife and adding new co-owner to mortgage

I am finalizing a divorce where I am being given ownership of our house. The house has a joint mortgage on it, which I will be assuming, While removing my soon-to-be ex wife from the house, I would ...
0
votes
2answers
133 views

Renting Part of the Home

I am currently living in a rented house. I am thinking of buying a home with the intention of renting out a section (for example, a two story house, live on the first floor and rent out the second ...
2
votes
1answer
41 views

Mortgage: Floating rate loan tenure extension on rate increase

I am trying to figure out how my bank has implemented re-pricing on my floating rate home loan. The original home loan was for an amount of ₹ 48 lakhs (₹ 4.8 Mn) at an annual rate of interest (RoI) ...
1
vote
3answers
368 views

Should one always put 20% down?

I can afford to put up to 25% down in the price range I'm looking at. Assuming average market returns and a high credit score of 800, should I always put 20% down, or should I put less? It would seem ...
13
votes
11answers
7k views

Amortized Loans seem to benefit the bank more than the customer

It seems to me that a large number of mortgages are refinanced in the first ten years which means the bank is getting mostly interest all the time. More Profit. Also, the bank also has collected the ...
47
votes
6answers
14k views

Why do sellers care about down payments?

I'm going through the process of buying a home now. Whenever I make an offer, the seller wants to know how much of that will be down payment. Why do they care? Isn't the combination of the down ...
10
votes
3answers
2k views

Do mortgage points get applied directly to the principal? [duplicate]

Lets say I want a $100,000 mortgage. I can get it at x%, or (x-0.25)% if I pay 1 point. If I do the 1 point option, will my first payment be on a $99,000 balance, or a $100,000 balance? In other words ...
2
votes
1answer
83 views

USA, NY State Homeowner Post-TCA: Should I pay off mortgage or attempt to find investments?

While trying to build a model for our finances, I've managed to confuse myself reading various threads. Any advice appreciated to get me on the right track or pointed towards modelling spreadsheets. ...
2
votes
2answers
109 views

Does pre-qualification for a mortgage affect your credit score?

If submit a mortgage pre-qualification application, does my credit score go down? Does it trigger a hard credit check? Or do the hard credit checks only come when the mortgage process goes further ...
5
votes
1answer
332 views

Calculate interest on mortgage

I have been trying to arrive at the same interest figures that my bank charged me on my mortgage, however I am off by a few dollars so I must not be using the correct formula. I have a 30 year ...