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Questions tagged [mortgage]

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

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3answers
947 views

Invest $50,000 in cash or borrow $100,000 and get a mortgage?

I have $50,000 saved and I'm paying $760 on rent right now. All my relatives are telling me to get a mortgage so I don't "throw money away on rent", but I just don't like the idea of getting in debt ...
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1answer
118 views

What are the tax implications of renting out my condo if it's worth less than the mortgage?

I own a condo, and its market value is less than what I owe on the mortgage. On the upside, several interesting developments are going in nearby in the next couple of years. Because of some lifestyle ...
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2answers
148 views

Why are mortgage rates the same for everyone?

Generally speaking, when it comes to a conventional mortgage, a given bank offers loans at the same interest rate for everyone. As long as your qualifications allow you to pass a certain threshold to ...
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3answers
154 views

Better to make extra principal payment in first year versus putting more into down payment?

For a mortgage I considered putting down X and then said, let me reduce my interest over the life of the load by paying an addition Y. However, when I compared the original total interest with down ...
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5answers
13k views

Going house hunting next week and my credit score just dropped by 100+ points

My wife and I (usually) have excellent credit. TransUninion had me at 790 and other agencies well into the 800s. Our lenders have already prequalified us for our home, and sent the ratings they got ...
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1answer
130 views

Please Define this FHA Loan Requirement

While looking up FHA loan requirements, I found the following line interesting: Must have a steady employment history or worked for the same employer for the past two years. From: http://www....
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4answers
350 views

Is home equity worth taking out a mortgage when I have $67k student loans to pay?

Note: home equity isn't the only reason I'm thinking about buying. I'd like to have control over my own living environment, more space, not have to worry about annoying the apartment unit upstairs if ...
23
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8answers
8k views

Paying Off Mortgage

I have owned my home for two years with a loan of $177,000.00. My monthly payments are $706.00 and I have an interest rate of 3.5%. I have just won a large sum of money and would like to use some of ...
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2answers
211 views

Are you out of pocket if moving before paying mortgage interest?

Please could somebody clarify the following scenario for me (first time buyer)? Are there any tips? Any differences if moving from one lender to another? Supposing I take out a 25 year mortgage on a £...
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2answers
350 views

Home loan discharged in bankruptcy - distribution of funds from sale

My ex-wife was the primary borrower on a home loan with me as co-borrower. After our divorce was finalized she filed for bankruptcy and the loan was discharged. However, I remained in the home and ...
3
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3answers
122 views

How much variation between lenders is there in the cost of financing a home mortgage loan (in the United States)?

Short Version I recently spoke with a mortgage loan officer who told me that shopping around for the least expensive home mortgage loan is essentially a waste of time, because (due to regulation) the ...
2
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2answers
171 views

What is the formula for calculating how many mortgage payments remain after variable extra payments?

I’m looking for a Wolfram Alpha equation to put in my rate, loan term, principal remaining, and monthly payment (and anything else) to solve how many payments I have left. All I seem to find are ...
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2answers
170 views

Mortage loans when switching houses

I bought my home (a townhouse) in early 2017. Now, I want to "switch houses" in the same area - buy another home and immediately sell my current one. I still have a sizable mortgage on my current ...
2
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1answer
159 views

Can I pay off mortgage in full to keep my insurance claim check?

I've received an insurance claim check due to water damage in our house and the check was made in my name as well as my mortgage company's name. We believe that we can do the necessary repairs for ...
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3answers
263 views

Is Rate Hike a good thing or a bad thing for homebuyer?

I am a bit confused with co-relation between rate hike being a good or a bad thing for home buyer. I have some notions and please correct me on each if I am wrong: Home Prices and Interest rates are ...
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2answers
1k views

Does IRS count paying mortgage principal as taxable income from family?

My parents offered me a generous gift, specifically they want to pay off $10,000 of my mortgage principal (the mortgage is under my name, not theirs). However, I am hesitant to let them do this, as ...
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1answer
47 views

Should I pay and refinance or continue LPMI?

Details: Origin loan: $152,000 Original downpayment: $8000 Remaining loan: $144,000 (= approximate current pay-off quote) Currently value of house: $160,000 (assume value hasn't changed since I ...
3
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1answer
279 views

Income Tax rebate on Housing Loan on rental property and HRA rebate?

I had purchased an under construction Flat with loan of 30 lacs in Indirapuram, Ghaziabad in Year 2011 for which I got possession in June,2015. I am staying on rent in East Delhi and claiming HRA ...
2
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2answers
120 views

Is it possible for me to put 50% down and my partner take out a mortgage?

I'm able to afford 50% of the house in cash, but my partner and I want joint ownership. We have considered taking out joint mortgage, but my partner's median credit score from the 3 bureaus is higher ...
2
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1answer
246 views

If I build a new house on my plot then demolish the old house, can I transfer the mortgage from the old to the new house?

We have purchased a bungalow with land for £800,000, we have a £500,000 mortgage. We have planning to build a much larger house next to our bungalow (so the bungalow will be part of the driveway once ...
5
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1answer
120 views

Loan-to-value (LTV) ratio of 65% to remove escrow?

I just got off the phone with Wells Fargo to try to close my escrow account on my mortgage (prefer to just manage taxes & insurance myself). I'm currently at an LTV of 75%, and after doing some ...
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2answers
94 views

What is the formula for loan payoff date?

My goal is to calculate loan payoff date. Actually I'm making a wordpress plugin to calculate that. I made a form from I can have following inputs from user. Current Loan Information Original ...
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4answers
8k views

Can lose everything even when house is almost paid off?

I have a dumb question I've been wondering about. It doesn't apply to me; it's just theoretical. Suppose there's an older couple who bought a house 27 years ago. They have faithfully made the ...
7
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1answer
390 views

Was I a victim of illegal bait and switch mortgage fraud?

My wife and I recently purchased a home and I think we were victims of bait and switch mortgage fraud and I wanted to find out of what happened to us was illegal, or just very strange. We were first ...
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3answers
558 views

Estate Agents Told Us House Requires a 50% deposit

We called an estate agent today to arrange a house viewing, shortly after they called back saying the purchase would require a massive 50% deposit so we cancelled the booking as this is out of our ...
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8answers
5k views

Paying Off Principal of Home vs. Investing In Mutual Fund

I close on my first home October 21. I've locked in a 4.330% APR on a 30-year fixed conventional mortgage and my payment will be ~$800/month. I've put the required 20% down to avoid paying PMI. ...
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2answers
240 views

APR without principal repayment?

I've been trying to find out about this own my own but can't seem to work it out via search engines, loan/mortgage websites and excel. When I try to work out how much a loan costs, rates like APR ...
7
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1answer
925 views

Is the mortgage interest calculated on original principal or remaining principal

When I take a mortgage of 300 000 at 3% annual rate, will the 3% always be calculated on the 300,000? Or will it be calculated on the remaining principal? i.e if after a year, I paid off 15,000, the ...
2
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2answers
725 views

Should I pay off my student loan in the UK before getting a mortgage?

I've had a search around and there is a similar question here and maybe here. However, I think this use-case is slightly different (not to mention those answers are US based), and also the answer to ...
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3answers
254 views

Running the numbers on buying a house for 3 years instead of renting

My SO and I moved out to a new city while she's in med school. We're currently in an apartment paying ~$1,300/mo (after utilities, etc...). However, the other day I realized 2-3 bed houses here cost ...
7
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3answers
549 views

Disadvantages of getting a mortgage from a mortgage broker?

Are there any disadvantages to getting a mortgage from a mortgage broker? It seems like they would be in your best interest because they save time by shopping around for you. Does it typically cost ...
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3answers
88 views

What are fair methods to buy out an equal share holder in a mortgaged property?

TLDR: What are fair methods to buy out an equal share holder in a mortgaged property? Curent situation: My partner and I, and her parents have entered in to a mortgage on a piece of land. It is ...
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3answers
3k 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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2answers
439 views

For someone who already has enough cash to buy a home, isn't it better to wait and take mortgage when interest rates are high?

Contrary to common wisdom in media the reasons why I think that taking mortgage at higher interest rates may make more sense are that: Almost all mortgages are callable by borrower. Hence, if you ...
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1answer
422 views

What are some motivating ways to track performance of paying back a loan?

I have a mortgage right now and I am motivated to pay it off as fast as possible. I have thought of a few key performance indicators that I store in a spreadsheet and check on each month. These ...
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7answers
5k views

Is it possible to offset a mortgage with only the appreciation of that property's value?

As in, is there a possible scenario where the appreciation of the value of a property could be greater than the mortgage payments on that property?
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4answers
4k views

Refinancing immediately after closing on a house purchase

I recently purchased a new home as a primary residence with a 4.375% 30 year fixed mortgage. I discovered, a little too late in the process, that I could find rates significantly lower elsewhere -- ...
4
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2answers
220 views

Mortgage principal reduction

For a 30-year mortgage that started less than a year ago, how much will the monthly payment be after making an additional $100,000 payment towards the principal? The mortgage currently has a balance ...
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1answer
750 views

Is is possible to take a mortgage using Bitcoin as collateral? [closed]

A few days ago I've asked a "wrong" question: What are the pros and cons of buying in cash and remortgaging vs taking a mortgage right from the start? It wasn't the actual question I wanted to ask. ...
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1answer
61 views

How to calculate payment and accrued interest on a mortgage when one payment missed (D30)?

How is the interest and principal payment calculated when mortgage has already missed one payment? Are the new payments calculated off the new balance (non-amortized balance) or the original scheduled ...
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3answers
2k views

Lost job a week before closing with a mortgage. Options?

I unexpectedly lost my job a week away from closing on a condominium with a mortgage. I wasn't worried… until I realized that the mortgage is conditional on my creditworthiness remaining the same. ...
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1answer
97 views

Do mortgage offset accounts typically accrue interest at high balances?

Say someone has a 100% offset account on their mortgage. This means that if they have: Loan amount: $150k Offset balance: $100k ...then their interest is computed as if they only owe $50k on the ...
4
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5answers
590 views

Moving and renting out my house

Currently I have a mortgage on my house, the mortgage is £2000. I am moving to another city, but don't wish to sell my house, the rental value is £1500. Does it make sense for me to 'cover' the £500?...
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7answers
7k views

Why do people use mortgages, when they could just pay for the house in full?

I would like your recommendation on whether you should buy a house with a mortgage, which you would pay as you go, or should you buy it in full.
2
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1answer
91 views

How a mortgage backed security fluctuates

If I buy a mortgage backed security, what will happen to my investment if: The person that took out the mortgage defaults The person makes a prepayment The person refinances The bank that gave ...
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3answers
322 views

What is a tranche?

I am studying Collateralized Mortgage Obligations (CMOs) - My understanding is that the product consists of mortgages which have real estate as collateral. The mortgages are bundled in batches which ...
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3answers
133 views

collateralized mortgage obligations

I was reading a comparative description in between CDO's and CMO's on Investopedia.com and I cant seem to understand the following statement: When the mortgages underlying a CMO are of poor credit ...
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5answers
2k views

What is the best way to stay risk neutral when buying a house with a mortgage?

I'm looking to buy a property. I do not want to take a risk on this property. Its sole purpose is to provide me with a place to live. How would I go about hedging against increasing interest rates, to ...
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4answers
2k views

Should we pay extra into our Home Mortgage or HELOC?

Home Mortgage has 18 years left and is at $184,000 principal with a monthly payment of $1135 and an APR of 3.15% HELOC has $24,000 principal left with a monthly payment of $400 and an APR of 5.5% I ...
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4answers
10k views

HELOC debt is 2x my mortgage, help [duplicate]

My home equity line of credit (HELOC) amount owed has now grown to where it is approximately double the amount remaining on my mortgage and the interest payments are killing me. I have no other debt. ...