Questions tagged [mortgage]

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

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4
votes
2answers
11k views

How do I calculate break even on selling a home?

I've only owned 1.5 years, but looking to sell my home because I want to change neighborhoods. Since most of the early mortgage payments on my 30-yr fixed rate loan go to interest rather than ...
5
votes
4answers
421 views

Should a $150K mortgage @ 6% be paid off with $150K withdrawn from a 401K at retirement?

Should a $150K, 30 year mortgage @ 6% be paid off with $150K withdrawn from a 401K account at retirement?
1
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2answers
1k views

Why does APR sometimes show as lower than the stated mortgage rate?

I see an offer for a 15 year fixed jumbo at 4.5% with a 4.622% APR while on the some advertisement it shows a 5/1 ARM jumbo at 3.875% with a 3.283% APR. Why is one APR higher and the other lower?
3
votes
1answer
494 views

Are there ways to hedge against a rise in interest rates, other than refinancing my loan?

I was wondering what options do I have available to hedge against the inevitable/eventual rise of US interest rates? One obvious action is to refinance my loan at the current interest rate. However ...
0
votes
2answers
428 views

mortgage math problem

There's a 30yr home loan for $100,000 at 7%. After 15 years the loan is paid off in order to refinance at a lower rate. The loan has a prepayment penalty of six months interest of 80% of the ...
5
votes
1answer
237 views

Credit check for refinance inquiry?

I'm thinking of refinancing my mortgage. I called my current lender, and was given a quote for a refinance with a lower interest rate, and $1200 in closing costs. Now I'm trying to shop around for ...
4
votes
2answers
4k views

How to calculate incremental interest rate for home refinancing?

Summary: When you refinance your house and borrow more money, how to calculate the incremental interest rate you pay? I currently owe $95K on my house, 4.75% interest rate, $510 monthly payment (...
20
votes
4answers
3k views

Is it better to use a 401k loan to make a down payment or to put less than 20% down?

I'm about to buy a house and am considering two options: Make a 12% down payment and pay for mortgage insurance Take out a 401k loan and make a 20% down payment I'm having a hard time finding ...
5
votes
1answer
151 views

What documentation will I need to apply for a mortgage?

I'd like to get things in order so the application process can be quick, so I thought I'd scan a bunch of documents beforehand. What will I need?
5
votes
1answer
204 views

When and how do I lock a mortgage rate while shopping for a refinance?

We're in the process of hunting around for a lender in our area (US) to refinance our mortgage with. I'm having a hard time understanding the steps in the application process. In particular once I'...
3
votes
3answers
392 views

Advantages/Disadvantages to refinancing online?

There's a fair amount of ways to refinance online via sites like Zillow marketplace and lendingtree. I'm hesitant to dive into using these services, I prefer dealing with a person directly. However I'...
3
votes
2answers
172 views

Late on mortgage: Can the bank disclose this to my mortgage broker?

I was late on my mortgage payment with Bank of America for a couple of months. Does BOA have the right to disclose this with the company that helped me obtain my mortgage?
12
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2answers
4k views

A good investment vehicle for saving for a mortgage down payment?

I've calculated that I will be able to save approximately enough for a 20-25% down payment on a home (at my back-end-ratio affordability level) in the next 2-3 years. I'm maxing out contributions to ...
5
votes
2answers
177 views

Under which conditions does it make sense for a Canadian investor to put their mortgage in their RRSP?

Canada allows investors to use their retirement fundings (RRSPs) as part of a loan to themselves, which can fund the buying of a house. When does it make sense to take advantage of this?
7
votes
5answers
772 views

First time homeowner and getting a mortgage?

My wife and I are looking to purchase our first house. What is the best approach for finding a mortgage? We're looking for a conventional 30yr fixed (w/10-20% down). Thanks!
6
votes
3answers
13k views

Buying a house: Is it a problem if I switch jobs after qualifying for a mortgage but before closing on it?

Lets say I get started with the process of buying a house. I sign the sales paper and then secure a mortgage. After I sign the sales papers and sign on for a mortgage, but before closing I get a new ...
17
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6answers
2k views

Should I pay off my student loan before buying a house?

Should I pay off my student loan before buying a house?
5
votes
3answers
1k views

FHA Streamline Refi causes principal balance to increase $9000?

I am in the process of doing an FHA Streamline Refi from a 5% 30-year-fixed to a 2.7% 5/1 ARM. I will only have to come up with slightly less than the amount of my monthly mortgage payment at closing ...
5
votes
5answers
6k views

What are the differences between an investment mortgage and a personal mortgage?

I am researching purchasing a three unit brownstone in Washington DC to serve as a rental. I am comfortable with my understanding of a personal mortgage, but don't fully understand how an investment ...
3
votes
2answers
232 views

What is APR when looking at mortgages?

When looking at mortgages they all have an APR figure "for comparison". What does APR mean, and how does it allow you to compare the products?
6
votes
4answers
254 views

High mortgage rate and low home prices VS low mortgage and high prices

Currently in Canada we have low mortgage rates and high home prices. I get the vibe from reading different articles that people actually want mortgage rates to go up which would lower the home prices. ...
2
votes
2answers
4k views

Can I get a mortgage from a foreign bank?

I live in the UK is it possible to transfer a mortgage to a bank based in a different country that doesn't operate in the UK, say Germany or United states for example?
3
votes
2answers
294 views

Are online mortgage lenders as good as local brick-and-mortar ones?

Are the online lenders responsive and helpful? Lately it's been hard to get anyone on the phone though I suspect that's due to refi's because of the very low rates.
4
votes
2answers
226 views

Should I renew the rate on my ARM to a lower one, considering the fees charged?

I have a 5-year ARM at 4.5% APR. I can renew the rate at 3.25%. However, that would cost $800. The current loan value is $156,219. Is it worth it for me to renew the rate? How long would it take to ...
2
votes
1answer
3k views

What are the state and county taxes for refinancing a mortgage in Virginia?

I'm in the process of refinancing a mortgage, and want to know what state and county taxes apply. I'm not talking about property tax here, but the recordation taxes and fees charged by the county and ...
1
vote
1answer
373 views

Home office deduction with a line of credit mortgage (e.g. Manulife One)? [Canada]

I've been looking at mortgage products such as Manulife One - which work like a line of credit based on the equity in your home. The monthly payment is the interest on the amount left owing every ...
4
votes
1answer
262 views

Possible to remove remaining foreclosed mortgage debt off my credit report?

A little while ago, I asked a question where the consensus was that the bank won't be coming after me for the remainder of the money after the house was foreclosed on. Seeing how they can't come ...
9
votes
4answers
759 views

Can I take advantage of lower interest rates while I'm stuck in a fixed-rate mortgage?

Interest rates across Canada are gradually creeping up, but they're still incredibly low compared to when I started my 5.79% fixed rate mortgage a few years ago. Several lenders still seem to be ...
10
votes
4answers
361 views

Homeowners: How can you protect yourself from a financial worst-case scenario?

Say your a home-owner, a first time buyer. You've just got your first flat and your about 1 year into your 25 year mortgage. Suddenly, something goes wrong with your job, and your made redundant (...
9
votes
7answers
965 views

Which type of mortgage is better? Fixed-rate, or Variable?

We just bought our first house and are contemplating fixed vs. variable. Our broker is really pushing for variable but we're just not sure. I know interest rates will probably be creeping up soon, ...
5
votes
1answer
312 views

With interest rates beginning to ascend, is it better to lock in a mortgage at fixed rate or opt for variable rate?

With the interest rates beginning to ascend, is it better to lock the house mortgage at a fixed rate or to opt for a variable rate mortgage? Thanks in advance for the sage advice that is shared here.
0
votes
2answers
322 views

What is the difference in payments and ratios between High-ratio and Conventional mortgages?

On bank's site it says: Conventional mortgage: means your downpayment is at least 20% of the purchase price. High-ratio mortgage: means your downpayment is less than 20% of the purchase price. ...
3
votes
1answer
159 views

When I pay off my mortgage loan, what would really happen?

Correct me if I'm wrong. I understand that when I open a mortgage loan, some underlying bond is issued and purchased by some investors. When the rate is much lower and I refinance and close my ...
5
votes
1answer
1k views

Is mortgage interest tax deductible for not only federal but state income taxes?

Does anyone know if mortgage interest, mortgage insurance and property taxes are deductible for not only federal but state income taxes? This may be a state-by-state issue, but if anyone has ...
6
votes
2answers
3k views

What are your thoughts (pros & cons) on all-in-one accounts, like Manulife One?

I think it looks very interesting, and certainly promises to deliver. My main concern is, as a single person, is it wise to put all of my eggs into one basket?
2
votes
1answer
168 views

What impact does the new mortgage rules have on CMHC policies? [Canada]

With reference to this question, how does this affect the Canadian Home and Mortgage Corporation (CMHC)? This organization made it possible to get a new home with as little as 5% downpayment, ...
5
votes
1answer
2k views

Mortgage: Difference between joint tenancy / tenants vs. tenancy in common?

When taking a mortgage, what is the difference between joint tenancy and tenancy in common? Under what circumstances is it preferable to choose one over the other? If your circumstances change how ...
2
votes
1answer
522 views

Canada: New mortgage qualification rules, 2010: Why, what, & when in effect?

Earlier today, the Canadian federal Finance Minister Jim Flaherty announced new mortgage qualification rules for Canada. Why were new rules introduced? What are the new rules being introduced, vs. ...
5
votes
2answers
179 views

When applying for a mortgage, can it also cover outstanding debts?

When applying for a mortgage, can you also add some extra on (£10k) to cover car finance? Or is there any benefit of keeping them separate?
7
votes
1answer
333 views

Getting on the property ladder: mortage, downpayment, fees? [UK]

Once I've got my finances straight I'd like to think about getting my own place, but what sort of money am I looking at to have under my belt before I can begin thinking? Is it right that the UK ...
14
votes
5answers
2k views

Should I put more money down on one property and pay it off sooner or hold on to the cash?

I've a huge chunk of money saved up for a down payment on a property that I'd eventually like to pay off and use as a rental. The assumption is that the property value will go up substantially over ...