42
votes
Accepted
Which mortgage should I pay off first? Same interest rate and mortgage length
You haven't accounted for what happens when the small loan is completely paid off.
Seven years into the aggressive payoff schedule you need to shift all original principal and interest payment and the ...
- 136k
34
votes
Can someone sue for house ownership if they gave money for it?
In the US (and I'd imagine elsewhere), before the bank gave your parents a loan to buy the house, they need to underwrite that loan. Underwriters are (generally) required to document the source of ...
- 26.5k
27
votes
Accepted
What can be done to mitigate rental income tax liability once depreciation is fully exhausted?
Several comments first:
If rent is $X/month and all in mortgage is also $X/month, it would suck to need to pay income tax on $X x 12 for the year, when it all went towards paying the mortgage
This ...
- 166k
21
votes
Prepay principal vs putting money in savings account
I think you've found the biggest drawback to prepaying the mortgage, which is that you lose the liquidity of having the cash. So it depends on how much liquid cash you have (i.e. do you have enough to ...
- 131k
19
votes
Should I pay off mortgage or invest in CD?
Assume I have $50,000 loan that I could pay off (2.875 rate) which I
could invest in CD with 5.5 rate for 12 months, could anyone please
tell me what would be the correct calculations? Thanks!
...
- 69.1k
17
votes
Accepted
Mortgage repayment strategy
You are unlikely to be able to avoid paying down your regular mortgage payments (which will need to be made based on the required payment schedule). Instead, consider this in the context of what ...
- 42k
16
votes
Accepted
Is 2 years of recent continuous employment required to get a mortgage?
2 years of continuous work history isn't a hard and fast requirement. It's highly recommended, but other factors can override a lack of work history. 6 months might be a little tough to work around ...
- 6,508
15
votes
Can someone sue for house ownership if they gave money for it?
My parents received money from my grandmother to put a down payment for a house.
This sounds as if it was supposed to be a gift. Or was it only loaned?
Now [grandmother] wants her money back which ...
- 5,417
15
votes
Is a buyout of an inherited house in a trust an option?
It's a question to an estate attorney. The whole point of trusts is to avoid probate, which includes these kinds of issues. The property is owned by the trust, and as the trustee your job and legal ...
- 166k
14
votes
Can I use a Mortgage Interest Statement Form 1098 to reduce my taxes?
This goes on your Schedule A line 8, for itemized deductions. If your total itemized deductions end up being less than the standard deduction then you get no tax benefit.
- 166k
12
votes
Prepay principal vs putting money in savings account
You don't state the jurisdiction, but in most places, you pay income tax on a savings account, but don't pay any tax on the interest you save by prepaying the mortgage. If your marginal tax rate is ...
- 301
11
votes
Which mortgage should I pay off first? Same interest rate and mortgage length
However, I just started thinking, and because of the nature of
amortized loans, I'm obviously paying quite a lot of interest in the
beginning....
This is a common point of confusion, the portion of ...
- 69.1k
9
votes
Can applying for a new loan affect my existing mortgage? (US)
The FAFSA is the Free Application for Federal Student Aid (FAFSA).
The form is used to look at your school expenses, income, and savings and determine how much you can afford to contribute to your ...
- 136k
9
votes
Does it make sense to sell stocks to pay off part or all of my mortgage loan?
With the exception of certain kinds of retirement accounts, investment gains are taxable. In other words, if you buy $100,000 worth of stock and sell it for $120,000, you owe taxes on the $20000 gains,...
- 43k
8
votes
Should I pay off mortgage or invest in CD?
I think you have a decided advantage with the limited duration of 12 months on the CD. The difference between the rates is minor, but not insignificant, especially when you consider the return on ...
- 874
7
votes
Can I use a Mortgage Interest Statement Form 1098 to reduce my taxes?
I received a Form 1098 Mortgage Interest Statement for 2022 from my
bank. Since I'm early in the mortgage, the interest I pay is quite a
large percent of the home payments, so a significant amount of ...
- 136k
7
votes
Accepted
What property type should I select for a coop apartment mortgage application?
I cannot speak for better.com's specific policies, but this sounds like a condo to me.
A single-family property is a building* that houses one family; a multi-family property is an entire apartment ...
- 2,620
6
votes
Accepted
Does it make sense to sell stocks to pay off part or all of my mortgage loan?
If you are a US taxpayer and the stocks are held in a regular after-tax brokerage account, you'll owe capital gains taxes on the appreciation when you sell. You can't avoid paying capital gains taxes ...
- 26.5k
6
votes
Accepted
Taxes, personal mortgage loans, and interest. IRS Form 1098?
See the instructions for line 8b on your Schedule A, which exists for this scenario:
Seller financed mortgage.
If you paid home mortgage interest to the person from whom you bought the home and that ...
- 166k
6
votes
Should I pay off mortgage or invest in CD?
I actually made a google sheet comparing basically what you are talking about a while ago.
The sheet isn't perfect and there are some missing variables but you can sort of see what math is involved in ...
- 394
6
votes
Accepted
Which Debt shall I pay first?
First of all, congratulations for wanting to pay down debt with the 30k instead of buying a new car...
You should pay the student loan for three reasons:
It has the highest interest rate, and thus ...
- 131k
5
votes
The bank that owns my mortgage inexplicably increased my escrow payment by about $900. What can I do?
Just to make this an Answer rather than a comment:
Ask the bank. No need to guess.
If something the escrow is paying for, like real estate taxes or insurance, has gone up the escrow portion of your ...
- 43k
5
votes
Way for bank to entice someone to repay loan with an interest rate lower than current market rate
I work in risk management at a bank and I dont think any bank will incentivize you to pay back a loan early. We certainly would not. Prepayment (risk) is only an issue if rates decline and people ...
- 2,461
5
votes
Can someone sue for house ownership if they gave money for it?
He also fears that she might try and sue for ownership of the house. If she tried to sue, can she win the house even if we have proof that she authorized the fund transfer and that the title is under ...
- 2,246
5
votes
How to cash out golden handcuff mortgage
You have a relatively cheap debt secured by your expensive asset. You can't keep the debt without keeping the asset. If you sell the house you'll have to pay off the mortgage first.
Banks have no ...
- 166k
4
votes
Do paperless mortgage statements put one at risk?
No it does not incur additional risk. You can print or save all of your paperless statements in a folder if you are worried about this.
- 53k
4
votes
Can I get a mortgage from a foreign bank?
Most likely NO
If you are talking about a mortgage for a property (house or land), it is highly unlikely as the main security against your mortgage is the property and an oversea bank would have a ...
- 159
4
votes
Will mortgage rates in the future be lower?
Yet everyone keeps telling that the rates will be lower so even if I
buy a house today I can still refinance it in the coming years.
Over the last 20 plus years since the rates dropped due to events ...
- 136k
4
votes
Do variable interest mortgage have penalties for unscheduled repayments?
In AUT for example there are no penalties (normally around 1%) for so called windfall payments with a 'Variabler Kredit' - though keep in mind that even with a 'Fixer Kredit' you can arrange a lump-...
- 309
4
votes
Why is the mortgage company refusing to sign a check that's already deposited in my account?
First of all the insurance company had to put the your name and the mortgage companies name on the checks. The mortgage company wants to know about the damage, and wants to make sure it gets fixed to ...
- 136k
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