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297 votes
Accepted

If you have a home mortgage, why do you still have to pay all of the property tax?

You have a misunderstanding of what a mortgage means. The bank does not own 80% of your home. Instead they have lent you some amount of money, and they have a lien which means they can possess your ...
DJClayworth's user avatar
  • 33.5k
237 votes

Should I buy my house in cash, or with a mortgage and invest the rest of my money?

Ask your investor friends if you already owned the house, would they be advising you to take out a mortgage in order to invest elsewhere. If not, ask them to explain the difference between taking out ...
Rupert Morrish's user avatar
139 votes

How is early-and-often home buying as "get rich" advice feasible?

How do you buy 1 house a year? You save up the money you make from the rent for a down payment on the next house. Then you save up the money from those two houses and buy two more the next year (or ...
D Stanley's user avatar
  • 136k
112 votes
Accepted

Are my parents ripping me off with this deal that doesn't allow me to build my equity in my home?

It's a little unusual, but I don't think the financial terms are completely unreasonable on their face. What you describe is similar to an interest-only loan, where you make payments that only cover ...
Nate Eldredge's user avatar
97 votes
Accepted

How to handle shared mortgage payment if one person can't pay their share?

Transfer the ownership of the house now. If you have broken up and your SO has moved away you don't want them to have a share in the house you are living in. They can cause you a lot of trouble down ...
DJClayworth's user avatar
  • 33.5k
95 votes

Why do sellers care about down payments?

They want to gauge the chance of a successful sale. There's nothing quite as frustrating when selling and moving to a new home as getting into escrow, doing all the paperwork, crossing off all the ...
Rocky's user avatar
  • 24k
92 votes

Buy house with down payment, no loan, sell instantly

Wholesaling is basically the act of standing in at an auction and "buying" a home on behalf of a yet-to-be-determined buyer. You put a down payment on the purchase, and then, you go out, find that ...
dwizum's user avatar
  • 17k
87 votes
Accepted

Currently sole owner of a property. My girlfriend is looking to move in with me and is offering to pay 'rent'. Am I at risk here?

The rent payment is in principle taxable. However, you should be able to take advantage of the "rent a room" scheme, and the proposed rent falls well under the £7,500/year tax threshold for that. So ...
GS - Apologise to Monica's user avatar
84 votes
Accepted

Why is being "upside down" on a mortgage so bad?

I can think of a few reasons why they seem like a bigger deal to people than similar situations with other loans. Mortgage values are a lot larger than car loans. For many people, real estate is by ...
farnsy's user avatar
  • 15.1k
81 votes

Should I buy my house in cash, or with a mortgage and invest the rest of my money?

I think you have a misunderstanding in point 2: Effectively, the cost of the mortgage in the first year would be much higher than the nominal ~3.5 percent interest rate of the loan. No, the rate ...
D Stanley's user avatar
  • 136k
81 votes
Accepted

Borrowing money in one country to pay off debt in another

Logistics of borrowing in a different country aside, financially if the reason the interest rates are higher is because inflation is expected to be higher, you might be trading smaller interest ...
D Stanley's user avatar
  • 136k
79 votes
Accepted

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

You're misunderstanding the interest portion. You don't immediately "become liable for" and owe all of the interest on the loan up front. Any "total interest" calculation presented at the beginning of ...
yoozer8's user avatar
  • 9,513
76 votes

The mortgage company is trying to force us to make repairs after an insurance claim

You submitted a claim for damage to the deck. The insurance company notified the mortgage company. Now the mortgage company wants to make sure that the collateral for the loan is still in good ...
mhoran_psprep's user avatar
75 votes
Accepted

Considerations when providing money to one child now, and the other later?

Loaning money to close relations tends to end poorly. You are better off not loaning your older child money. This solves all your issues except for one. You mention that your cash savings are ...
Pete B.'s user avatar
  • 76.7k
69 votes

Amortized Loans seem to benefit the bank more than the customer

You're borrowing money from someone else, and "interest" is the cost for borrowing money. There's no Greedy, Evil Bankers conspiracy at all: it's just math that the cost is high when you owe a lot. ...
RonJohn's user avatar
  • 50.7k
69 votes
Accepted

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

There are a few economical reasons to rent instead of buy including if the cost are similar. The first is that you anticipate that you might be moving soon. It is typically expensive to transact real ...
Pete B.'s user avatar
  • 76.7k
66 votes

Math Behind Buying a House

Compared to the other answers, I feel like I'm taking crazy pills, because: Is my following calculation correct? Sorry to be the bearer of bad news, but no, this is not correct. In 3 years, if ...
TTT's user avatar
  • 47.2k
66 votes
Accepted

How does paying off the mortgage work if I demolish a home and rebuild another home on the property?

The existing mortgage is for that house on that land. It's (almost certainly) an "owner-occupied" mortgage. Thus, you'll have to talk to the bank. They'll want you to refinance the ...
RonJohn's user avatar
  • 50.7k
65 votes

Does paying a mortgage early mean you effectively paid a much higher interest rate?

I see your confusion: You're looking at the interest as if it applied to the whole loan balance. That's not what actually happens--the interest rate remains the same but as you pay down the loan the ...
Loren Pechtel's user avatar
63 votes

Why would a lien appear on a mortgage after 17 years?

RocketLawyer has a brief review of how to place a lien. Searching Money.SE for 'lien' may also turn up some helpful information for similar situations. You should exercise extreme caution when ...
Freiheit's user avatar
  • 8,742
60 votes
Accepted

Invest $50,000 in cash or borrow $100,000 and get a mortgage?

I can use that property to get a loan for another real estate? Or that's not how loans work? That's not how secured loans generally work. You could get a mortgage on your rental property, but the ...
D Stanley's user avatar
  • 136k
59 votes

Why is being "upside down" on a mortgage so bad?

The problem comes when the borrower cannot afford his home. If a borrower buys more home than they can afford, as long as he can sell the house for more than he owes, he's not in a disastrous ...
Ben Miller's user avatar
  • 116k
59 votes
Accepted

Is giving my girlfriend money for her mortgage closing costs and down payment considered fraud?

With the standard "I am not a lawyer" disclaimer, consider this question: If you and your girlfriend split up sometime after purchasing the house but before getting married, would you expect her to ...
Istanari's user avatar
  • 2,131
59 votes

Should I provide my username and password for my brokerage account to my mortgage lender to verify my assets?

If more than one person knows something, it isn't a secret. There is no legitimate circumstance under which you should provide your personal password to anyone. Ever. Anyone that asks for your ...
Ray Butterworth's user avatar
59 votes
Accepted

Tips on making a best and final offer

Personally I would send back this note: "Thanks, we have already made an offer. Feel free to come back to us if you have a counter-offer in the future. For now we are persuing other properties. ...
Fattie's user avatar
  • 13.8k
58 votes
Accepted

Mortgage adviser recommends a longer term than necessary combined with overpayments

Two mortgages with the same interest rate and same monthly payment are identical in their total cost and time-to-repayment, regardless of the loan term. The big caveat here is that the 25-year and 30-...
Nuclear Hoagie's user avatar
57 votes

Owning house for 3 years. 15 or 30 year mortgage?

You said that you figured the interest you will have paid over the first 3 years will be the same with the 15- and the 30-year mortgages. That is not quite accurate. Let's look at the numbers. From ...
Ben Miller's user avatar
  • 116k
57 votes

Is there any reason a person would voluntarily choose to have PMI?

Private mortgage insurance protects the lender if you stop making your mortgage payments. It does not benefit the borrower, aside from the fact that many lenders require it if your down payment isn't ...
Nuclear Hoagie's user avatar
56 votes

I cosigned on a house for my brother

This is why we tell people not to co-sign unless they are able and willing to risk that money becoming a gift... or are able and willing to treat it as business rather than family. Unfortunately that ...
keshlam's user avatar
  • 47.6k
56 votes

Can I buy a new house before selling my current house?

You can make a contingent offer: "I will buy this house if I sell my own." In a highly competitive environment, contingent offers tend to be ignored. (Another commentator described such a contingency ...
Michael Lorton's user avatar

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