Questions tagged [mortgage]

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

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2answers
709 views

Can I save our credit with a quickie divorce?

I bought a house in 2006, at the height of the boom. Now I owe more than $100K what the home is worth, and considering walking away from my mortgage. (I'm in California, which is a "no recourse" ...
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9answers
1k views

Why can't house prices be out of tune with salaries

I have been arguing for years with my colleagues that having house prices go up 10% pr year and salaries only 3-4% means that we have less money, not more. They in turn say that its not a problem ...
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2answers
728 views

Is a good faith estimate equivalent to a rate lock?

I am in the middle stage of the loan approval process. Since all the uncertainty about the debt ceiling has been going on, I had asked my lender to give me a rate lock on the loan. But what he has ...
12
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2answers
5k views

What are the risks in changing jobs during closing on a house?

I am working for CompanyX and my closing date on the house is on 18th August. I just now got a job offer from CompanyY and I have accepted it. My start date is August 29th. I dont want to jeopardize ...
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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 ...
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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?
8
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4answers
2k views

What are my chances at getting a mortgage with Terrible credit but High income

I want to get a house in the near future(ideally within 6 mo. to a year) and my credit is very poor right now. Basically, I was working in a job that I could barely make it on, and missed payments on ...
11
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10answers
724 views

Are mortgage interest deductions really a reason for buying a house?

I've read in several articles that a good reason to buy a home instead of renting is that you can deduct mortgage interest on taxes. I don't follow this reasoning though.. If I take a loan so that I ...
8
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5answers
742 views

I want to buy a house in a few years, what should I do now to improve my bad credit?

I have bad credit, score is in the mid 500s, and I have been paying off old debt accounts. There are still a few left to pay, but what I want to know is what will raise my credit score, how much can ...
17
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8answers
19k views

What is the incentive for a bank to refinance a mortgage at a lower rate?

I can't figure out why banks would actively try to get their customers to refinance their mortgage at a lower interest rate. And to be absolutely clear, I am talking about a bank refinancing a loan at ...
9
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4answers
11k views

Why are monthly mortgage pre-payments applied to the back-end of the mortgage?

After having paid several years of 'extra' principal payment on my mortgage, I found that the extra monies were being applied the the 'back-end' of the mortgage instead of the 'front end'. The ...
9
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4answers
9k views

Will a 7/1 ARM be better vs a 30yr fix rate for a mortgage if I am prepaying part of the principal every year

I am a 1st time home buyer and I have just accepted a counter offer from a seller for a house that I like. The next step was to apply and get a mortgage for buying this house. Some background on the ...
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4answers
8k views

5 years left on mortgage..Can I still refinance and save money?

I have 5 years left on my 15yr 4.75% mortgage. Are there any mortgage options that I could refinance to and actually save money or should I just focus on paying more each month?
6
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2answers
712 views

Paying for mortgage points vs investing that money

First time home buyer here. So I've been reading about points and how an up-front payment can save you money in the long term. At first, the numbers seem pretty convincing. For example, pay $5000 ...
6
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6answers
326 views

Pay down on second mortage when underwater?

I did an 80/20 financing for a home I bought for $280K that is currently worth about $210K, yet I owe a total of about $265K right now. My primary is 6.75% and 2nd is 8.6%. I have also have a $7K ...
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4answers
2k views

Is it safe to take a new mortgage loan in Greece?

What will happen if the country bankrupts or it exits the euro zone? I am a Greek resident and the loan will originate from a Greek bank. The property is located in Greece as well.
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6answers
1k views

Is an interest-only mortgage a bad idea?

I am planning to refinance my primary residence. I am intrigued by an interest only mortgage like the ING Orange mortgage because of the low interest rate. But I know if all I ever pay is interest ...
5
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2answers
1k views

Primary Residence to Investment Property - Changing PMI Terms

When I purchased my property, it was my primary residence. Two years later, I moved out and began renting this property out. I am now trying to refinance the mortgage on this property, but I am not ...
10
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4answers
3k views

Will we have trouble getting a mortgage for our second home if we keep our first to rent out?

My wife and I are currently saving for a home. We currently own a small condo, which we would like to keep as a rental unit once we purchase the second home. Currently our home costs are under 12% ...
8
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3answers
3k views

What is the true value, i.e. advantages or benefits, of building up equity in your home?

I am a relatively new home owner, having purchased my first home in October 2009. It was a $315,000 home, purchased with a 5% no-cost loan with I believe 12% down payment. I think the total financed ...
6
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2answers
1k views

Is it possible to eliminate PMI (Personal/Private Mortgage Insurance) on a mortgage before reaching 20% down on principal?

I am a relatively new home owner, having purchased my first home in October 2009. Overall, I feel I got an excellent deal on the loan, which was 5% no-cost, no points, and 12% down. I had to take on ...
7
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3answers
343 views

Is it advantageous for me to refinance my house at a lower rate?

I bought my house about two years ago, the interest rate is 5.25%. I'm seeing interest rates as low at 4.50% now. Is it worth refinancing my house this soon, or is it likely the fees will out-weigh ...
54
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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
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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 ...
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2answers
508 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
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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
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3answers
793 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
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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
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5answers
13k 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
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2answers
441 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
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2answers
822 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
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1answer
971 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
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2answers
390 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
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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
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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
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4answers
643 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 ...
7
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2answers
919 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
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3answers
6k 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
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6answers
49k 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
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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
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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
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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
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1answer
333 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
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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
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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
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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 ...
8
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2answers
14k 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
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4answers
6k 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
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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
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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)?