Questions tagged [mortgage]

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

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54
votes
7answers
18k views

How big of a mortgage can I realistically afford?

I'm 25, and I'm in the process of closing on a $260,000 mortgage for a very nice condo in downtown Salt Lake City. My salary is $80,000 right now, which I feel is pretty solid, but I'm starting to get ...
4
votes
3answers
4k views

Shared home ownership - How to calculate percentages?

How do (can?) you fairly calculate the ownership percentages of a property between 3 people? *All 3 people live in the property *All 3 people have put in a different deposit amount *All 3 people ...
7
votes
2answers
505 views

Co-signed with my mother and sister on a home, sister has made no payment is she entitled to 1/3 of the share of the home?

I, my mother, and sister co-signed on a home for my mother so that she could afford a home she has been dreaming of for years. My mother paid most of the mortgage and I paid some payments. My sister ...
23
votes
1answer
3k views

Paying off home mortgage and lender wants a “Recording Fee”

So I whittled down my house note to the point where I have enough cash to just pay it off early and be done with it. Yay! I asked my lender for a "payoff" statement, which provides an accounting of ...
10
votes
3answers
790 views

Should we try to make additional mortgage payments if we want to sell the home after 5 yrs?

In this question: Why making additional payment to mortgage counts towards principal? Why does it matter? it is explained why making additional payments towards your mortgage will bring down the total ...
5
votes
7answers
4k views

Why would a bank take a lower all cash offer versus a higher offer via conventional lending?

There seems to be a a belief that a bank or individual will always take cash over conventional financing from a buyer, even if the buyer who is purchasing through conventional financing offers a ...
10
votes
5answers
12k views

Making higher payments on primary residence mortgage or rental?

I just purchased a new home (owe about 310,000) at a rate of 5%. I kept my previous house as a rental (owe about 104,000) which has a rate of 4.35%. I have a bit more cash I can put down on a ...
6
votes
2answers
435 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 ...
10
votes
2answers
803 views

Short-sell, or try to rent out?

I'm currently considering taking a job in another state, and I currently own a home that's up-side down in it's mortgage. I'm trying to figure out what I would do with my home in the event that I move....
10
votes
1answer
967 views

What fees should I expect when buying and/or selling a house?

I am looking at my options of buying a house out of college. I am comparing the cost of buying a cheaper house now and then in about 5 years moving up to a house that will be able to support a family ...
5
votes
2answers
382 views

What's a Mortgage?

I'm from Europe and curious how this stuff works in the US. From what I read on wikipedia this seems to be some kind of a security deposit for a loan that you take to buy a house. Is this correct? ...
8
votes
1answer
1k views

Does unemployment count as income for a mortgage?

My wife and are hoping to buy a house this summer once she gets her 'grown-up' job, but I am on unemployment and we are concerned that it will not count as income when applying for a mortgage. It is ...
9
votes
2answers
2k views

How do principal payments on my mortgage affect my taxes?

If I choose to pay a larger chunk into my principal say every 6 months, does the extra money I pay into it become tax deductible, or how does it affect my taxes in general. Also, I'm self employed if ...
17
votes
4answers
636 views

Owner-Financed home sale or Land Contract — how to handle the transaction and the ongoing entity?

My sister and I inherited a property in a rural, backwater area rather inconveniently located to where we live. We've got zero interest in keeping it. To wit, we put it on sale and now are recieving a ...
6
votes
2answers
865 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 ...
5
votes
3answers
5k views

Can I make a larger down payment at a mortgage closing without notifying the bank before closing?

I have a loan all set and ready to go, but I have a few thousand that I would like to put down. So instead of 10% it can be something like 11%. Is it possible without telling the bank first? Does ...
37
votes
6answers
48k views

Should I pay an extra $100 every month on my mortgage or pay $1200 extra every year at the beginning of the year?

I can pay $1200 extra once a year or $100 every month - which is better? The first one does sound better, but for a 30 year mortgage, is it that significant? Say the mortgage is for $200,000. ...
9
votes
2answers
2k views

Should my husband & I be saving money?

My husband and I are looking to buy a new house with a mortgage of about 400K-500K and a downpayment of 200K-300K (max value of home:700k). (We currently own a home that we purchased for 300K, and ...
10
votes
6answers
6k views

Why making additional payment to mortgage counts towards principal? Why does it matter?

When it comes to mortgage advice, some people recommend making an extra payment. The logic is :"These extra payments are automatically applied to your principal, not interest". Why does it matter if ...
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 ...
3
votes
1answer
330 views

What is the difference between a home equity line of credit and a mortgage?

In the article About.com - Six Ways To Prepare Now For Rising Interest Rates it states: The average US household debt, according to the Fed, is $20,000, not including mortgages. Most of that ...
7
votes
2answers
2k views

Should I pay the interest or the principal on my second mortgage?

We have a second mortgage on our home from 10/08. It was designed to be deferred for five years, so we're right in the middle. After the deferral, our monthly payment will be $413.74 for 25 years. ...
10
votes
3answers
1k views

Our only debt is hefty student loans, should we pay the student loans off first or save for a 20% down payment on a house?

My wife and I have been working on debt for the last year and a half. We've knocked out $50k in car loans, credit cards, etc. Our only debts left are student loans. Would it make more sense to ...
7
votes
2answers
374 views

What kind of credit rating hit can I expect if I short sell my house?

Like many others, my house has fallen in price so much that I now owe the bank over much more than I can sell it for between the first and second mortgage. I know that in my state (and many others) I ...
6
votes
2answers
13k views

Can you sell your house for less than you owe and still make payments on the remainder?

I want to sell my house, but it seems that in order to do so I may need to lower the price to less than what I owe. Is it possible to make an upside down sale like this and still make payments on the ...
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? ...
2
votes
1answer
1k views

Are there any disadvantages of Progress Draw Mortgage?

I am thinking about getting a Progress Draw Mortgage on a home currently being built, and the builder is willing to cover all the interest until the possession date. Are there any disadvantages of ...
9
votes
2answers
1k views

What economic, political and other factors influence mortgage rates (and how)?

I'm trying to determine whether to lock in my interest rate or wait, and that led me to the broader question of what factors influence mortgage rates (both upwards and downwards)?
11
votes
6answers
3k views

Do I end up richer paying down a mortgage or contributing to an IRA?

I have $10,000 extra cash that I can either use to pay down my 5% mortgage, or contribute to my IRA. I'm 30 years old. I hope to pay off the mortgage in about 5 years. I'm stymied, because: Paying ...
4
votes
3answers
4k views

What if I'm named on the deed but not on the mortgage and my boyfriend moves out?

7 months ago my boyfriend and I purchased a home together. I am named on the deed but not on the mortgage. He has moved out and I have agreed to make the mortgage payments myself so that I do not have ...
8
votes
3answers
18k views

Can a mortgage payment date be changed?

Can a mortgage payment date be changed? When we closed on our home over 2 years ago, our attorney told us we could call up the lender and they could change our due date to later in the month. Our due ...
2
votes
3answers
817 views

What effect would sovereign default of a European country have on personal debt or a mortgage?

What effect would sovereign default of a European country have on personal debt, especially a mortgage?
5
votes
4answers
14k views

How do credit card balances relate to getting a Mortgage?

My wife and I have been paying off debts since we got married about 3 years ago. We have about 15k left in credit card debt, 1 car loan, and 2 student loans (one is very negligible @ < 4.5k). The ...
3
votes
4answers
199 views

mortgage companies that help their customers make wise decisions

I'm looking for a lending company to refinance my mortgage through that does not cause cognitive dissonance for me by enabling others to make poor decisions by my indirect support. Its a similar ...
15
votes
7answers
1k views

Is this mortgage advice good, or is it hooey?

I don't know what he's saying or if it's true. If it is true, it might be worth doing. Please interpret, and advise regarding the value of, this advice: Pay your mortgage down faster by opening a ...
4
votes
3answers
848 views

Should I take money out of an old 401(k) to put a down payment on a house?

My wife doesn't work anymore and she has a 401(k) of about $80,000 from an old job. I have been kicking around the idea of taking that money out or rolling into an IRA so that I can have better ...
15
votes
6answers
6k views

Put money in savings or pay towards mortgage?

Should we take our excess cash at the end of the month and put it in savings or put it towards our mortgage payment? We've been in our home 3 years and we already have some emergency money saved up. ...
18
votes
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, ...
3
votes
2answers
546 views

How is the 6th year on a 5/1 ARM calculated?

Given a 5/1 ARM for a $350,000 loan at a rate of 2.875%: After 5 years of paying at 2.875%, let's say the balance is $310,000. On the 6th year, the first adjustment kicks in an kicks the rate up 1% ...
9
votes
3answers
5k 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 ...
13
votes
8answers
120k views

In a house with shared ownership, if one person moves out and the other assumes mortgage, how do we determine who owns what share in the end?

Let us assume a shared ownership house, where everything is 50/50 in terms of deposit, monthly payments, bills, and eventually estate agent costs, and lawyer costs when the house is sold. If the ...
4
votes
2answers
220 views

Mortgage interest income tax deduction during year with a principal residence change

In 2010 my residency changed from the home I own to a home I'm renting, but I owned the mortgaged home all year. Is the deductable amount of mortgage interest paid pro-rated based on the date I moved?...
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 ...
1
vote
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
573 views

Does reopening a Chapter 7 bankruptcy to reaffirm a mortgage change the date of discharge for reporting to credit bureaus?

I am considering reopening my Bankruptcy Chapter 7 that was discharged last year for the purpose of reaffirming my mortgage for the purpose of boosting my FICO score by adding a mortgage to my mix of ...
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
vote
1answer
174 views

Can I apply for immigration if I have a house mortgage to pay?

I am planning to continue to pay the mortgage after immigration. But I don't know if the bank will allow me to pay house mortgage from another country.
3
votes
1answer
497 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
431 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
241 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 ...