Questions tagged [mortgage]

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

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2
votes
4answers
340 views

How would a mortgage lender evaluate an existing private mortgage with no monthly payments?

I have a private mortgage for my house in the US. (Not seller-financed. My parents are the lender.) The lender gifts me the interest amount each month and only the interest is paid on the loan. So, ...
3
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1answer
109 views

Is there any real downside to recasting my US mortgage?

I have been paying additional principal every month on my 30 year fixed mortgage. As a result, I have paid more principal than expected, and can recast my mortgage to lower the monthly payments (and ...
4
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1answer
147 views

CARES Act 401k withdrawal requirements - Is this a hardship?

From my understanding, financial hardships related to COVID-19 can qualify an individual to withdraw money from their 401k, with literally no penalty so long as it is repayed to a similar retirement ...
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2answers
196 views

Can a closed but undischarged mortgage be reopened easily?

Getting a new mortgage can involve a lot of paperwork and take considerable time. If one (for whatever reason) happens to have an existing mortgage that has been fully paid off but never officially ...
0
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1answer
116 views

Refinance jumbo mortgage to conforming mortgage worth it?

My home mortgage was originally $602,400 when I initiated it in 4/2015, with a fixed 30y rate of 3.75%. No mortgage insurance. The principal balance is now $539,315. I'm being offered a rate of 2.875% ...
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15answers
12k views

Is there any reason to not buy if mortgage is comparable to rent?

I'm curious: Say if you could buy a property or choose to rent and the mortgage per month on the property is similar to (or even lower) than the rent in your area, is there any reason to not buy? ...
3
votes
1answer
89 views

Why do the points on a refinance depend on my current mortgage?

Looking at refinancing, a salesman is suggesting a double-refinance. The context is that we are looking at a cash-out (to repay a HELOC at a lower rate), and the points are higher for that. The ...
1
vote
1answer
60 views

Is there a downside to doing a cash out refinance followed immediately by a rate and term refinance?

I want to do a cash out refinance on my primary residence to pay off a HELOC, and to put more money into an investment property. Cash out refinances have higher rates than rate and term refinances. Is ...
28
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7answers
23k views

Tax consequences of paying "rent" to romantic partner that owns the house

I moved in with my romantic partner nine months ago. My partner owns 100% of the property and pay about $1000 per month to the mortgage (minimum is something like $300). Partner had no intention of ...
2
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1answer
114 views

UK Stamp Duty - corona virus changes

I am about to buy my first house in UK with my girlfriend (price is £250,000) I also own a house in Poland, that my dad gave me in his will (its value is over £40,000) Recently it was announced in UK, ...
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4answers
21k views

Tips on making a best and final offer

Me and one other buyer have been asked to make our best and final offers on a house after us both making initial offers. I believe I am in a good position as stated here and I will reiterate this to ...
2
votes
2answers
132 views

earnest money and security when buying a house in Vancouver

I am in Vancouver and planning to buy a townhouse. There is approximately a difference of 2 months from the day I make the deposit to the closing day (which I see as the funding day). I am starting my ...
0
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2answers
181 views

Is there precedent for mortgage rates being higher for a refinance than a purchase?

Right now, most if not all major banks have mortgage refinance rates about 1% higher than the rate for a mortgage used to purchase a property. Up until a few months ago, I don't recall ever seeing any ...
8
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4answers
538 views

Can collections agency actually remove debt from credit report or are they just lying?

I recently ran my credit score and discovered that unbeknownst to me there was evidently a $60 medical co-pay from last year that I never paid (they sent the bill to an old address and due to it being ...
10
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2answers
535 views

15 or 30 year mortgage with this "invest the difference" approach?

Two scenarios- 15-year fixed-rate mortgage. After 15 years (the mortgage is paid off) the monthly mortgage amount is invested into an S&P 500 index fund for 15 years. 30-year fixed-rate mortgage....
2
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1answer
266 views

risk on selling home and never receiving funds from settlement company

I was about to sell a home where I have good equity, my question is what are the chances that settlement company never pays me the proceeds and runs away/abscond. I see there is FDIC insurance for ...
4
votes
1answer
78 views

Refinance a 15yr fixed to a 5/1 ARM?

I have about 6 years, 6 months left on a 15yr mortgage: Type: 15 year conventional mortgage (no PMI) Rate: 3.75% Balance: $64,780 Origination: 02/2012 Maturity: 01/2027 I am seeing 5/1 ARM refinance ...
2
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1answer
73 views

Is the principle payment in an amortization schedule the amount that goes towards how much of the house you own?

When I first learned of amortization schedules I was confused by the division of payments into "interest" and "principle". I think I get it now: isn't it that the principle payment ...
3
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2answers
90 views

Do loan credits increase the amount of money I owe?

I am currently in the process of refinancing my home, but I'm not sure how long I want to keep it. Today the mortgage company sent me the terms, and asked how many points or credits I would like to ...
2
votes
1answer
278 views

Forced closure of retirement fund: Best use of lump sum

I have been working in Australia for several years, with a temporary residence visa. I expect to soon be returning to my home country (UK). At this point, my superannuation account will be closed, ...
6
votes
1answer
325 views

Do I need to get a mortgage when using the Lifetime ISA?

I am using the Lifetime ISA and was wondering if it's possible to use the money to buy a first home without getting a mortgage at all. For example, if I have enough money in the LISA, perhaps together ...
0
votes
2answers
381 views

Can you gain access to the equity in your house by selling it to yourself?

I am sure many people are in a situation like this: I've owned my house for a while and now there's a decent amount of equity in it which I would like to tap into. One option is to get a Loan or HELOC....
0
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0answers
62 views

UK first-time home buyer government programs - ISA

I am currently looking for my first house to buy. I looked at https://www.helptobuy.gov.uk/help-to-buy-isa/how-does-it-work/, The Help to Buy ISA had been closed to new accounts at midnight on 30 ...
0
votes
1answer
113 views

What if we do not end up occupying the property till 6 months as it is a tenant occupied and has lease for 6 months, bought as a primary residence?

We have an offer on a property we intend to live as primary residence. The property is tenant occupied and the tenant has lease for another 6 months and I have to honor the lease as per seller. We ...
20
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9answers
8k views

Should I buy a nicer house in a worse area for less than I budgeted?

I am a single male in my mid twenties, based in the UK and looking to buy my first home. I see this home as a 'stepping stone' home and intend to live in it for 5-15 years until I get a partner and ...
4
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5answers
3k views

Buying a house and appraisal comes below agreed price, can bank ask that I put down more than 20%?

I plan to put down 20% on the purchase price of a home, but the appraisal values the home 10% below the agreed price. Can the bank ask for additional down payment to get to 80/20 loan to value?
3
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1answer
209 views

What determines the interest rate on an ARM mortgage?

I have a 5/1 ARM (2.8% interest rate) that started in May 2016. So I'm in my final year of the fixed rate period. What determines the rate the ARM will go to after the fixed period ends?
2
votes
1answer
210 views

Could we put less down-payment then what is on the offer we signed to the seller?

We originally made an offer with 90k down, but they countered and we accepted and want to do less now, 68k down payment to build a bathroom. We're in escrow right now. Will there be a problem with ...
2
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3answers
34 views

Home insurance offers from Chicago Title's affiliations

After entering an escrow for a home purchase we have received an email (legit) from a company affiliated with Chicago Title with quotes. I hadn't yet come to this step mentally. We're still in the ...
1
vote
2answers
120 views

When does 7-1 (or 5-1) ARM make sense for mortgage?

I have seen previous questions from close to 6-8 years ago on this subject and so I am asking here for: relevance to 2020 (esp in the context of historic low rates and Covid-19) from an inverted ...
-1
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1answer
147 views

If you want to buy a house but you also think value will drop… is there something you can do to alleviate the risk?

Disclaimer: yours won't be fiscal advice. People involved will consult a professional before doing anything. This is just to gather some preliminary information. Situation: you want to buy a house ...
0
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1answer
77 views

Home Mortgage w/ Very Low Interest Rates: More or Less Down?

I know this question has been asked in different formats previously, but I'm curious about the variables that should go into the decision making process. I have enough in savings, excluding ...
24
votes
9answers
9k views

What exactly happens to my mortgage debt when I sell my mortgaged home?

Let's say I am buying a house for 100k. I put 10% down (10k) and my bank gives me a loan of 90k. However I also become liable for paying interest on that 90k, e.g. with total of 30k that I need to pay ...
1
vote
0answers
26 views

How compute mortgage interest deduction for two mortgages that together exceed the max allowed indebtedness?

We have a mortgage for about $650k on our primary residence. It dates to 2012, i.e., to a period where $1M was the maximum allowable indebtedness. We also have a mortgage on a vacation home (which we ...
0
votes
2answers
107 views

When we retire and take out the 401(k) and IRA money to buy a house, are we subject to a big portion of tax?

Say, when we get to the age of 65 or 67, and retire, and we take out most of the 401(k) and IRA money, if luckily they can grow to $1,000,000 to buy a second house, all at once, will we be subject to ...
1
vote
1answer
124 views

Why would anyone use Heloc to pay down a house?

So I been thinking about buying my first home. I saw youtube and other resources saying that heloc is better and faster to pay down your mortgage. However, heloc just doesn't make sense to me. It has ...
1
vote
1answer
82 views

What kind of construction mortgage would I need if there is an existing mortgage?

Last year my Father died and left the house to me (daughter). It is through probate and registered with the town as mine. It is a two family house that was occupied by my father on one floor and I on ...
3
votes
2answers
188 views

S/O out of collections, where to go from here?

My S/O and I have been together for ten years (not married). We started attacking all of our debts starting October 2018 in order to move into a house debt-free (except a mortgage) in 2021. My last ...
3
votes
2answers
257 views

How much savings is worth refinancing a mortgage?

I got an e-mail from the company that brokered our mortgage loan offering me a great opportunity to refinance at a lower rate and save almost $200/month. Seeing as the rate drop was only 0.25% I was ...
1
vote
2answers
125 views

Can you get a mortgage loan larger than the house amount and buy a car with the remaining loan amount?

Would it be possible to get a mortgage loan for 40-50,000+ the amount of the house and then use the remaking amount of the loan to buy a car? The house is 62,000 and I’m pre-Approved for 120,000 .. ...
1
vote
1answer
74 views

Legal constraints on real estate loans to family members

I'd like to "refinance" the remainder of my home loan with my parents, meaning, they would pay off the remainder of my loan, and I would pay them an agreed-upon interest rate for an agreed-upon time. ...
0
votes
1answer
90 views

How to calculate a loan constant payment (like PMT) but extra double paying (without interest) twice a year

This is my first post in this community, already tried to find my answer, and didn't succeed :(. I'm working a way to understand the formula behind a loan that allows the client to extra pay the same ...
3
votes
1answer
187 views

Is it possible to make larger mortgage payments to make up for a lack of down payment?

I have a new job, and my wife and I are considering buying a condo near my new work place due to the lack of adequate rental properties in the area. Currently, we have a guaranteed $10,000 that we ...
0
votes
2answers
109 views

Tips on frugal approaches to donating to charities for averagely well-off

The title says it all really, but to get the discussion going let's imagine the following simplified reality: Suppose John is 25 years old, lives in the UK, has a very secure job with a take-home ...
0
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0answers
64 views

Buying a New home for my Family [duplicate]

Recently we had a baby and planning to buy a home. Is now a good time to buy a home? In my area houses are around 650K. I have the following questions. Is it good time to buy a home? Interest rate ...
1
vote
1answer
235 views

When is a lump sum principal payment to remove PMI worth it?

I bought a house 2 years ago, but due to the current pandemic fears, I'm already refinancing my mortgage to get an interest rate that's a full percentage point lower than before (3.5% vs. 4.5%). I ...
1
vote
1answer
83 views

Does Mortgage Forbearance affect future refinances?

Assuming my credit score is unaffected, if I were to apply for the mortgage forbearance for people affected by the coronavirus, and then later (say 1 year after the forbearance period is over), if I ...
27
votes
11answers
10k views

Should I ask the seller of a house for a price reduction given a recession is almost certain?

I've gone sale agreed (note: "sale agreed" means the sale has been agreed in principle - no contracts have been signed, no non-refundable deposits have been made etc.) on a house. The market ...
2
votes
2answers
249 views

home buying and moving in coronavirus in USA

For UK, I see news that may help people there. Is there any guidelines of USA. I know a few people in Maryland, Virginia who have closing coming in First week of April, should they close, what about ...
8
votes
2answers
2k views

Deciding on a correct down payment for a house

I am in the process of making an offer for a house. Wife and I have about 135K saved, with steady jobs, both happen to be an 'essential business' as required for this period during the corona virus. ...

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