Questions tagged [mortgage]

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

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3
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2answers
284 views

Do home loans ever have a limit on what can be paid toward the principal?

Do home loans ever have a limit on what can be paid toward the principal during each month (or billing cycle)? In other words: Do some lenders prohibit taking out a home loan and paying it completely ...
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3answers
253 views

What are the downsides to refinancing a mortgage, if any?

I'm about one year into a 30-year fixed-rate mortgage, and while visiting my bank's website, I noticed that their rates for an equivalent mortgage are about 0.5% lower now than what I am paying, which ...
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1answer
74 views

How is mortgage in Canada calculated?

I'm taking a finance course at a Canadian university. The teacher said this time-of-money is how the banks calculate their loans and mortgages. Out of the blue, I want to try how close the formula in ...
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1answer
221 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....
4
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4answers
466 views

Are bond index funds a safe way to save for a mortgage down payment?

I came across Betterment's "Smart Saver" account today, which is a savings-account alternative that invests in U.S. Treasury bonds and low-volatility corporate bonds. The APY is almost exactly the ...
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0answers
24 views

How do I compare refinance offer with my current mortgage if I already paid more towards the principal [duplicate]

I received an offer for refinancing my mortgage, but I am very unclear whether it is beneficial to me. I googled for refinance calculators, but they all seem to assume that you just paid regular ...
3
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0answers
54 views

Cannot Find Mortgage Adviser on FCA Registry

My partner and I are currently on the market looking for our first home to buy. When contacting a estate agent for a potential house they referred me to a Mortgage adviser. When searching for details ...
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2answers
108 views

To opt for interest only home loan and save for next property down payment or keep paying P&I to reduce debt AND borrow more for next property

I currently own an investment property which I bought to live in (lived in for couple of years) and now has rented out as I moved (renting) in a better area for kids school. I am comfortably managing ...
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0answers
37 views

Recapture of portion of Federal subsidy

My state offers a mortgage program which stipulates: The Internal Revenue Code includes a restriction relating to such mortgage loans. The Federal government treats homebuyers who purchase a ...
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7answers
12k 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 ...
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7answers
13k views

Should I provide my username and password for my brokerage account to my mortgage lender to verify my assets?

I’m applying for a mortgage, and found a potential lender from a referral from my real estate agent. The initial application process seemed normal and very similar to what I’ve experienced with other ...
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3answers
130 views

Who normally attends a residential real estate closing in the US?

For a standard mortgage closing, what parties are usually in attendance for the final walkthrough and closing event?
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3answers
146 views

Using a personal loan to cover gap in down payment for potential mortgage

We are planning on buying an apartment or a house in the next year or two and we're trying to work out some calculations. Situation: we are living in West Germany and and this is where we'd like to ...
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2answers
128 views

How to decide where to invest home equity?

Let's say I bought my home several years ago and now have (for example) $100k equity available if I refinance. Now I can take that $100k* and invest it in the stock market. Or I could take the 100k ...
2
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1answer
149 views

If buying a home for less than it's valued will I need a downpayment?

Currently my wife and I are living in a home is owned by her parents. We plan to buy it from them once we get other debts paid off and they're willing to sell it to us for the original price they paid ...
3
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1answer
303 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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1answer
387 views

Buy Land Using Old 401K?

I have a 401K from a job I left ~7 months ago. I'm looking to buy some land and do construction on it. I need to put about $40K down on the land, but I only have ~$30K in savings. What's the best way ...
5
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3answers
189 views

Will incomplete home improvement projects affect mortgage refinance?

We purchased our home a year ago at a not-terrible rate, but we are now considering refinancing for a shorter term at a rate nearly 2% lower. We have about 20% equity in the house, and do not plan to ...
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2answers
96 views

Can a house appraisal impact my mortgage loan?

Purchasing my first home and had to go over asking price due to competing offers. What's the likelihood that the appraisal will come in under the purchase price, thus complicating my mortgage ...
2
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1answer
608 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
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2answers
303 views

Along the path of buying the first, second, and third house. Should I rent one myself?

If I have 2 houses, and rent out both of them for $4,000 each, then the bank will take into account the rental income of $8,000. But if I live in one and rent out the other, the bank only accounts ...
2
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3answers
199 views

Two realtors estimating different price ranges

I'm looking into investing into a specific apartment. It hasn't been publicly listed as for sale yet, I just happen to know the current owner. The owner asked me to do my own research and make him an ...
5
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1answer
703 views

What does it mean when 5 year fixed is lower than 5 year variable [duplicate]

For the past 10 years, we've had 2 5-year variable rate mortgages. We have more or less won the bet in the fixed vs. variable game. In the past, the variable was always a lower rate than the fixed. ...
0
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1answer
60 views

How does depreciation deduction work in mortgages?

Home investors are said to be concerned that the depreciation deductions exceed mortgage amortization. This is because the depreciation remains flat but the amount of amortization rises, albeit slowly,...
4
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1answer
1k views

First time homebuyer, want to buy an old house tear down and rebuild

My spouse and I have never had a mortgage. We're pre-approved for about a $600k mortgage, which we want to use to buy an older house to tear down and completely rebuild. The initial price on these ...
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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 ...
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1answer
231 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
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1answer
326 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 ...
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1answer
87 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
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1answer
153 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 ...
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0answers
71 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 ...
2
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3answers
418 views

Put extra payments towards almost paid off house or newer house?

My wife and I have two houses: one her parents live in and has only 4.5 years of mortgage payments left, the other we live in and is only 2 years into a 30 year mortgage. She has been making extra ...
23
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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 ...
8
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4answers
4k views

Lender refuses to terminate PMI despite my LTV being less than 78%

My lender, US Bank, is refusing to terminate my PMI even though I am now below the 78% loan to value ratio. We've been perfect customers and have never missed a payment. Their reasoning is that they ...
18
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6answers
4k views

Previous owner of my home wants to buy it back but the property's value is less than my loan… what to do?

I've owned my home for close to 5 years and it's value is currently around $100k below my loan amount (according to zillow). I hate living here, and I've wanted to sell it for a long time. Today, ...
5
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2answers
2k views

Why would an FHA loan require a loan guarantor to also be a party to the deed?

My daughter is buying a house with an FHA loan but does not have enough income to qualify, so she needs me as a co-signer. The loan originator is claiming that, by FHAs terms, if I am co-signing, I ...
1
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1answer
175 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 ...
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 ...
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0answers
83 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(...
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2answers
448 views

How can I find a bank willing to provide a mortgage on a house affected by Japanese knotweed? (UK)

How can I find a U.K. bank that would consider providing a residential mortgage on a property affected by Japanese knotweed? The problem is fairly minor and is under control. If you've been able to ...
2
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1answer
173 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 ...
0
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1answer
71 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 ...
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9answers
20k views

How is early-and-often home buying as “get rich” advice feasible?

I am being told by this guy that the following is a guaranteed-to-work way to become rich and retire early. He says to start early. 20 years, or near that age. Buy 1 house a year. Rent it out. Start ...
4
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2answers
166 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
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1answer
221 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 ...
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1answer
166 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
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3answers
240 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 ...
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5answers
196 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 ...
17
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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
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1answer
150 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 ...

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