Questions tagged [mortgage]

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

Filter by
Sorted by
Tagged with
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 ...
-5
votes
2answers
150 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 ...
10
votes
1answer
340 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 ...
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 ...
1
vote
1answer
188 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
79 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 ...
2
votes
3answers
76 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 ...
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 ...
3
votes
3answers
459 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 ...
3
votes
1answer
165 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 ...
5
votes
2answers
362 views

Is the British student loan considered the same as a standard loan when applying for a mortgage abroad?

I am currently living in the Netherlands and I have quite the accumulation of UK student debt, currently it's sitting at around £50000 but based on my repayment schedule, it wouldn't affect my ability ...
26
votes
7answers
9k views

Emotionally driven to buy a house. Does it make financial sense?

I am a US citizen living in Europe, so this question might be complicated by tax laws, but let's just ignore them for now. Basically, I am really emotionally driven to buy a house but am realizing ...
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 ...
1
vote
4answers
147 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 ...
0
votes
2answers
135 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 ...
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 ...
1
vote
3answers
371 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 ...
4
votes
2answers
767 views

How long I should pay the mortgage to break even when selling? (is 2 years enough)

Some basic assumptions: London real-estate market is very expensive. I used mortgage calculators "how much I could borrow". I cannot borrow enough to buy a home in an area I want to live in long term;...
4
votes
4answers
533 views

As a first time home buyer looking for a mortgage, are there financial advisers to help me through the process?

I am thinking about purchasing a home instead of renting. The cost saving and benefit of doing so seem to outweigh the thought of long term renting. My problem is that I am fully overwhelmed with all ...
3
votes
1answer
132 views

How to invest in property in the UK - mortgage vs cash buy

I'm fairly new to investing and I've never learnt to invest in different asset classes. Since my career has kicked off really well in the recent 3-4 years, now I'm planning to invest in property. I'...
1
vote
1answer
710 views

Does the official county appraisal count for PMI calculation?

I contacted my county's tax office today and I was told that my home is appraised $7,000 more than it was a year ago. Great news, especially as I'm fighting to stop paying private mortgage insurance (...
8
votes
1answer
344 views

Mortgage broker insisting I sign out of date disclosures

I'm working with a mortgage broker who so far has been very helpful and transparent. I had asked for a preliminary mortgage estimate and we locked in a rate at that time. We changed up the terms of ...
48
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 ...
1
vote
1answer
198 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....
5
votes
1answer
334 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 ...
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
84 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
110 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 ...
1
vote
1answer
101 views

Discount points and mortgage prepayment

I currently have about $10,000 in seller credits which I plan to apply to discount points at closing (~600k loan). However, I'm also planning to prepay this 30 year mortgage, targeting 10-15 years for ...
-6
votes
2answers
1k 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
votes
3answers
201 views

Is it possible to incur closing costs before closing on a home, by backing out of contract too late?

Someone I know is purchasing a home and has already gone through the inspection, commitment period and all. While waiting on the lender and lawyers to get everything ready for closing, this buyer ...
4
votes
1answer
172 views

Is it legal for a Lender to decline an offer after providing me a commitment letter?

I had my commitment letter given to me on August 8th. I provided all requirements for the commitment to get clear to close. The letter states that the commitment can be revoked only for any CHANGE for ...
3
votes
3answers
160 views

alternative to reverse/Balloon mortgage

Hypothetically, suppose a person who is close to retirement, who has comfortable savings that will last his/her lifetime( if need not to pay monthly mortgage) and is close to retirement and has 2 or 3 ...
0
votes
1answer
87 views

Manual Underwritten Mortgage: Cash Reserve Requirements

How much should I expect to have in cash reserves if my mortgage is manually underwritten (non-traditional, no credit loan). I know Freddie Mac, Fannie Mae, and FHA loans all make allowances for non ...
1
vote
1answer
98 views

Prepayment of mortgage in summer

In Veronesi's Fixed Income Securities book it is written: Summers are characterized by large prepayments, as this is the period in which people move from one place to another for various reasons....
0
votes
3answers
5k views

new car loan vs use mortgage loan to pay for car

We have a mortgage loan for 3.5% and just got a car loan for 1.49%. My husband thinks we should pay off the car with our mortgage loan instead of using the car loan because we can claim mortgage ...
2
votes
4answers
280 views

Do extra mortgage payments typically go directly towards principal?

I have a 30 year mortgage and I'd like to make extra payments each month to speed up the amortization schedule. I thought this would be better than taking out a 15 year mortgage as it gives me some ...
3
votes
1answer
52 views

Ontario Capital Gains,are profits also part of taxable income?

Say I Sell my investment property house for 500k and bought it for 250k. Leaving me 250k profit. I'd be taxed on 50% of that correct: 250/2 = 125k taxable. and 125k Profit. Now my 125k is taxed ...
3
votes
2answers
1k views

How much of a mortgage should I take on to maximize my 5 year financial plan?

I'm trying to insure that I understand US tax laws with regard to itemization and mortgage interest, in order to calculate whether to take out a mortgage in order to maximize my 5 year gains with the ...
3
votes
1answer
214 views

What's the incentive to offer consumers loans with negative interest?

A bank in Denmark (Jyske Bank) is reportedly going to offer consumer mortgages at -0.5% interest. First off, is that true? Or is there some catch making the actual effective interest positive? If it'...
12
votes
2answers
5k views

True cost of a mortgage when considering inflation

For the purposes of this question, let's assume the following: Inflation is and will be a steady 2% I am in the 30% tax bracket and there is a home mortgage interest deduction I have a 30-year fixed ...
14
votes
4answers
4k views

Etiquette around loan refinance - decision is going to cost first broker a lot of commission

We are in the process of doing a refinance. However, we just took out the original mortgage loan recently. The new loan is 3/8 of a point better than the original loan and we are going to save a lot ...
7
votes
1answer
259 views

Mortgage Advisor recommending long term mortgage at first, with short term later. Advisable?

Issue and Background Having gotten a new job, I am moving out of my rented accommodation, and moving across the country to what is a far more expensive area, where I am buying a 45% share in a £260,...
1
vote
1answer
93 views

Mortgage in principle with several mortgage advisors (UK)

I am looking to buy my first home (UK). Because we are a bit nervous, we are visiting 3 different mortgage advisors with the intention of obtaining the best deal possible. All of them say that we won'...
1
vote
2answers
181 views

30 yr mortg + IRA/stock market, OR 15yr mtg then 15 yrs IRA/stocks

I'm planning to refinance the mortgage given the low rates these days. Need to make a choice between a 30 yr fixed and a 15 or 20 yr fixed. Monthly household budget can accommodate any of the mortgage ...
0
votes
0answers
42 views

Total Claim Amount vs Claim Checks Amount

Some damage was done to my house. I received 2 checks from the insurance company: Check payable to me AND the bank in the amoutn of $x to cover damage to the house Check payable to me in the amount ...
10
votes
1answer
413 views

Demolishing a home and rebuilding

My fiance owns a nice piece of property with an old run down home. The value of land and house right now is about 250,000. There is no mortgage on this property. How do I borrow money to demolish ...
11
votes
4answers
5k views

Bigger mortgage downpayment vs. paying extra on the first regular payment?

Assuming there is no fees on paying extra $10k at the time of the first scheduled mortgage payment, what would be better - to put this $10k towards a downpayment or make bigger regular payment? ...
0
votes
3answers
114 views

Hypothetical Question About Mortgage and Yield [closed]

Making These Assumptions: I have $1M, I want to buy a house which costs $1.5M. I want to have a mortgage of $500K. The interest rate on my mortgage is 2.5% annually. Assuming I rent the house and ...