Questions tagged [mortgage]

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

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8
votes
2answers
1k views

Should I make extra payments to my under water mortgage or increase my savings?

Currently I have a mortgage that I am underwater on by about $10K - $15k, and I am looking to move to a different state in the next year for several unrelated reasons (not buying a new home). I have ...
9
votes
4answers
2k views

Should I get a personal loan to pay on my mortgage to go “above water” to qualify for a refinance?

I purchased my primary residence in 2007. The rate was 5.99% on a 30 year fixed. Rates have dropped dramatically since then, but so have home prices. I wanted to refinance a while back, but it looked ...
6
votes
2answers
440 views

What options exist for a person moving with an upside-down mortgage?

I'm currently considering moving to another state to seek employment that might be better than my current situation, hopefully better pay, a better company to work for, and more long term options. The ...
7
votes
4answers
827 views

What steps should be taken, if any, when you find out your home's market value is underwater, i.e. worth less than the mortgage owed?

What steps should be taken, if any, when you find out your home's market value is underwater, i.e. worth less than the mortgage owed?
12
votes
3answers
819 views

How can I minimize losses on an upside down mortgage for a condo I no longer live in?

I have made a good faith effort to keep up my mortgage payments on a condo that I no longer live in since Oct 2005. In 2005 I had to move out of state for my job and I listed the property for about ...
5
votes
4answers
471 views

What's the deal with these mortgage-refinancing fees?

currently we have 400k on a 20 year mortgage at 3 and 7/8 percent. We can move to 3 1/8 percent 15 year mortgage. The guy says this should save us around 70k over the life of the mortgage. The ...
4
votes
2answers
183 views

Do I pay the bank back if I shortsale?

I am confused about this. If I still owe 350,000 on my house and it is valued at 270,000 and I short sell it for 270,000, would I need to pay the bank 80,000? Are there scenarios where you don't ...
3
votes
1answer
101 views

Am I required to use the listed agent on a property?

I live in Florida and am about to be a first-time buyer. Am I required to use the real estate agent/agency whose sign sits in the yard of the property in which I am interested? Are they the current "...
4
votes
3answers
316 views

How can I predict which way mortgage rates are moving?

I've been thinking about refinancing my mortgage, but I'm not sure if I should wait a week or two for better rates, or lock in what they are offering today. How can I make an educated guess?
6
votes
3answers
4k views

Does paying off loans increase or decrease your credit score?

It's a pretty simple question, but I've read a lot of conflicting information on this. From my basic understanding of credit, I know that it's good to have lots of long-standing accounts. That's why ...
14
votes
8answers
3k views

Extra payments toward mortgage or student loans?

So I have roughly $5000 in student loans at 5% and about $65000 on my mortgage at 3.875% (5/1ARM). Should I put extra payments towards the student loan or the mortgage? 5% is higher, so if it's ...
10
votes
3answers
2k views

If you buy a new home before selling the old one, what could happen from not paying the old mortgage?

I'm researching the process of selling a home and buying a new one. Several articles warn against buying the new home before the old one is sold because you may end up having to pay two mortgages. I'm ...
2
votes
2answers
923 views

Alternative to Jumbo Mortgage

My understanding was that before the financial crisis, there were many options for getting non-conforming loans, including jumbo mortgages, second mortgages, HELOCs, etc. Are there still alternatives ...
6
votes
6answers
1k views

Why can't the government simply payoff everyone's mortgage to resolve the housing crisis? [closed]

If the government could spend hundred of billions to save the banks, Fannie Mae, Freddie Mac, the automakers, etc. wouldn't it have been better for the economy if the government had paid off everyone'...
0
votes
0answers
56 views

Credit score impact of shopping around to get the best home loan? [duplicate]

Possible Duplicate: Multiple mortgage pre-approvals and effects on credit score My wife and I are starting the process of buying our first house. We would like to shop around a bit to get the ...
2
votes
1answer
204 views

Does re-financing an FHA-insured mortgage incur the UFMIP again?

I currently have a low-down payment FHA-insured mortgage. When I got the mortgage, I rolled the 2.25% up-front mortgage insurance premium into the loan. Rates have fallen, and I'm considering ...
4
votes
1answer
351 views

High Student Debt - Will Mortgage Lenders Take Into Account Repayment Assistance Program?

I am a few years out of professional school, and am starting to think about buying a home. Based on my credit, income, and available down payment, I would be easily eligible for a good-size mortgage. ...
6
votes
1answer
7k views

What if you get pre-approved for a mortgage but don't find a house in the pre-approval timeframe?

If I get pre-approved for a mortgage, that's generally good for 60-90 days, but what if I don't find the right home in that time frame? Another hard-pull on the credit to get pre-approved for ...
3
votes
4answers
413 views

Economics of buy-to-let (investment) flats

I'm trying to figure out whether it is a good business to buy a flat and rent it out. These are the numbers I have so far: Costs Property: 150,000 Downpayment (30%) : 45,000 Interest rate/year: ...
7
votes
3answers
237 views

Helping family with house payments

My wifes sister and husband can no longer meet the payments on their house. He can no longer work and she is working and earning enough to cover a little more than half the monthly payments. Lets ...
3
votes
2answers
2k views

How inflation factors into a loan amortization schedule

I've been looking at a lot of loan amortization schedules for mortgages lately and wonder how they relate to real dollars over time with inflation. The calculators I've been using have a calculated ...
2
votes
1answer
144 views

Mortgage interest deduction requirements

When my wife and I purchased our home my in laws lent us about $80k. We set up a fair interest rate and we've been making our monthly payments to them as agreed. We have every intention of paying ...
0
votes
1answer
5k views

FHA Reduction Notices From Third-Party Companies - Scam? Or Something To Consider?

We've got an FHA loan on our house with a 4.75% interest rate. We get a lot of seemingly junk mail but one item from "American Financial Network" caught my eye: The Federal Government recently ...
4
votes
2answers
2k views

Mortgage broker asking for a rate extension ($1,300) - is this fair?

Here's my situation. I'm working with a mortgage broker to refinance my existing mortgage. I locked in a rate on Feb 14, 2012. The lock was for 30 days. The broker has now told me that they cannot ...
4
votes
2answers
182 views

Improving credit score by taking on spouse debt, possible?

My wife and I recently purchased a car, during the process I was shocked to learn my credit score was below average (no debt, healthy credit limit and always paid balances in full, good income) while ...
5
votes
2answers
405 views

Taking out a loan to pay down a mortgage

I realize this sounds bad, but hear me out. I currently own two properties (A and B) which I rent out. I do not own my primary residence. Property A has a 15 year mortgage at 3.25%. I'm happy with ...
6
votes
2answers
911 views

If banks offer a fixed rate lower than the variable rate, is that an indication interest rates may head down?

This is one of the major banks in Australia: http://www.anz.com/aus/RateFee/InterestRates/Rates.asp At present time, the variable rate is 7.80% but the fixed rate is 6.99% for one year. And it seems ...
4
votes
2answers
2k views

First Time Home Buyers - Down Payment, PMI and Points

My wife and I are looking to buy our first home in the next couple months and wanted to get an idea of what we are looking at. Right now we have about 80k saved up and want to put 10% down on a home ...
9
votes
3answers
6k views

Joint property ownership: 2 homeowners, but only 1 lives in the home. How to fairly split mortgage payments?

If 2 people decide to invest in a house, but only 1 of them wants to live in the house, should the interest only monthly mortgage payments be: split 50/50, the person living there pays 100% the ...
8
votes
2answers
778 views

How to tell if HOA for a prospective condo purchase is financially healthy?

I'm considering purchasing a condo. I live in a major metropolitan area; so I'm almost certainly going to end up in a building maintained by an Home Owners Association (HOA). As I'm learning the ins ...
5
votes
1answer
2k views

First Time Home Buyer - How much down payment? Where to go for Mortgage?

I'm currently spending $15,000 a year in rent and gaining nothing in equity! This needs to change :). Looking to buy a place, I'm in the DC area so it'll be in the $500,000 price range. I have just ...
4
votes
3answers
3k views

Why would refinancing my mortgage increase my PMI, even though rates are lower?

I'm currently stuck in a 5.5% loan on balance 167.5k. PMI is roughly $75/mo. I am trying to refinance, but my lender tells me that even going down to ~4% rates, it wouldn't be worth it because my PMI ...
1
vote
1answer
123 views

What should I do with a mortgage on mobile home that is in disrepair?

Some years ago I took up payments on a mobile home for a co-worker who was having some money woes. At the time I was renting and was desiring the opportunity of home ownership myself. To make a long ...
1
vote
3answers
294 views

Using an interest-free loan as a downpayment on a house

My wife and I bought our house in Dec 2010 using the U.S. Federal Government's Neighborhood Stabilization Program, which essentially resulted in our city (Phoenix) giving us a $15,000 loan to cover ...
1
vote
2answers
101 views

How to analyze the option of refinancing a home?

5 years ago when the market was up I bought I a home. This house was in my means so I had no issues paying it on time for all this time. Now the market is down and the interest rates are about 2.5% ...
5
votes
2answers
209 views

Are higher closing costs worth a shorter mortgage term, if I'm making extra payments in either case?

I have a loan with 18 years left at 5.125%, with balance of $132k. I pay about $1,020/month ($1350 with escrow and whatnot). I can refinance to 15 years at 4.00% with closing costs of $967. Monthly ...
3
votes
2answers
289 views

What is the process to refinance a home?

All, A family member is thinking about refinancing their home. The idea is to take advantage of low rates to get a lower interest rate loan, ideally with a longer term (current mortgage is 15yr I ...
5
votes
4answers
2k views

Lower rate with PMI or higher rate?

I'm currently in the process of looking for home to buy, and one of the options is one costing 460K, which I plan to pay with 15% down and the rest (391K) financed. Since it's less than 20% down, the ...
0
votes
2answers
337 views

Student loans in IBR plan, should I pay more on them or pay more on our mortgage?

My husband purchased his house a year ago. We are looking into making it an investment property. We want to fix it up and pay off a reasonable chunk of the mortgage to hopefully have a good return ...
5
votes
1answer
161 views

HAFA: Missed 14 Day Response Window — Am i SOL now?

I have started the short sale process with Bank of America and I am going through the federal program HAFA. I initiated the process but delayed submitting documentation longer than the mandated 14 ...
4
votes
2answers
126 views

Should I refinance my mortgage now if I'm planning on taking another one soon?

I'm considering refinancing my current mortgage, which would probably lower my payments by ~$100/month. However, I'm also planning on buying a second house in the next few months, which means I'll be ...
9
votes
3answers
7k views

How to get a down payment for your next home? Use current home as the down payment on the new one?

I bought my first home last year; it's my primary (and only) residence. I intend to pay off the mortgage in 5 or 10 years, then sell the house and buy a bigger one. The new one would cost 2 to 3 times ...
13
votes
1answer
4k views

Does it make sense to “save” for college by paying off my mortgage?

Assumptions (using round numbers): Two children start college in 12 and 15 years. Currently saving $400/month in a college savings fund earning ~2%. (Some in a taxable account, some in a Coverdell.) $...
6
votes
3answers
301 views

Average Mortgage Rate vs What I would get

So average mortgage rates are lower and lower. I.e. X-year mortgage rates are 4%. Lets assume I have a greater than average credit score and credit history, greater than average net worth, greater ...
2
votes
1answer
200 views

In a foreclosing Arizona home, can the bank or anyone hired by the bank access the home's interior premises without permission?

I am residing in an Arizona home that is being foreclosed upon, until the sale confirmation. Does the bank have any right to demand or assume rights to access the interior of my home while I am living ...
5
votes
2answers
3k views

I have a mortgage with PMI, what happens to PMI when I get to the 'safe' LTV ratio?

I have a mortgage with PMI, what happens to PMI when I get to the 'safe' LTV ratio? Does my payment stay the same and more money goes to paying off interest or principal? Does my payment drop?
3
votes
2answers
950 views

How to calculate interest tax deduction for a mortgage?

I am trying to ascertain the effect of the mortgage tax deduction on my bottom line. The various calculators I found are confusing to me. Specifically, I want to know how much less I'll pay in taxes,...
7
votes
2answers
1k views

Calculating savings from mortgage interest deduction vs. standard deduction?

I've read just about anything I can find on comparing cash-flow between owning a house versus renting. One new thing popped into my head yesterday, and I can't shake the feeling that it's an obvious ...
16
votes
4answers
1k views

On top of 20% down, are there any more rules of thumb for money needed to buy a house?

I know that 20% down on a house is a good rule to put as a down payment on a house. What I don't know, however, is how much more is typically a good idea to have beyond that. Since this will factor ...
3
votes
2answers
3k views

What ETF or other security tracks closest to 30 year mortgage rates?

Is there any ETF, fund, security that closely tracks 30 year mortgage rates in the USA?