New answers tagged

0

Mortgage interest is billed in the month after it is accrued. So interest owed at the beginning of December was calculated from the loan balance times the daily interest rate for each day in November. It's also likely that they anticipated the loan payoff, and rolled all future interest (Nov 1 - Dec 8, for example) into the payoff amount.


5

The new mortgage company gets the current balance from the existing mortgage company, and calculates any accrued interest that will need to be paid off. They probably got that balance well before the closing date, and were calculating more than a month's worth of accrued interest (and didn't account for a payment being made in between). So it's a "...


1

I'm also a contractor. For us, the advantage of an offset mortgage is that you can keep access to your savings in case of lean times for business, while also reducing your mortgage payments. This gives you the benefits of overpaying without actually parting with the money. That might be worth paying a premium for an offset, but it depends on how you trade ...


13

Discussions of current mortgage products would be out of scope, so this is a general answer. Offset mortgages are indeed appealing in theory. In practice, it almost always comes down to rate. Whenever I have looked at offsets, the rates and fees simply haven't been competitive versus the cost of borrowing and saving at the 'best buy' rates with different ...


3

While the firm is registered on the FCA register in all instances, the only individuals listed are those that hold a management function at the firm. they will typically be CF1 status (confirming that they are a director of the company with a control function), as well as details for compliance functions and complaints handling. If the advisor you are ...


-1

If you need the money for a month or two, then take out 100% of your 401k. There is no penalty if you return the money in less than 60 days. Note this is an IRS rule but some employers will add extra company-specific restrictions to their 401k. I used the 60 day rule to drain my IRA accounts to buy a house. I put the money back in < 60 days and there was ...


5

When did this limit get put in place? The Internet is really good for finding current information, but it takes a bit of sleuthing to find historical information. I haven't found anything to indicate whether the loan limit has been a part of the 401(k) system since its inception in 1978, but I can't find anything that documents a lower limit, as would likely ...


2

This is a problem that people currently face when trading houses. Typically, one does not have the amount of a home purchase laying around even if their net worth far exceeds their purchase price. Getting a conventional mortgage cost real money, and some borrowers may not qualify for a second mortgage. For this reason most home traders make the new home ...


1

I am a financial and monetary economist and there really isn't anything quite exactly what you are describing. Let me describe what is missing from your post. Let me first begin by mentioning two different types of deeds. One is a fee simple deed. The other is a grant deed. Three states use grant deeds. The mortgage laws around grant deeds, of necessity,...


8

D Stanley's answer is excellent and just to provide information on different jurisdictions, I will explain how mine works: Any time a lien is filed in my county, that is public record. So if you initiate any kind of mortgage, that information is available publicly and often generates a number of solicitations. Some companies are savvy enough to look back ...


15

Different counties could vary on what they report, but in my county there is a searchable public record when you file a mortgage on a property (including the mortgage amount) and when the mortgage is released. There is no public information on how the mortgage was released (or the payoff amount), so if the refinance is with the same institution, then there ...


1

In a buyer-financed mortgage, you add the actual interest paid to you to your taxable oncome, year for year, as you get it. If you don't get any more interest - for whatever reasons - you don't have to pay taxes for it, obviously. The lost interest is just that - income you should have gotten (and taxed), but you didn't. There is no tax advantage to it for ...


0

Building a house is expensive. It is not just the cost of building but also various fees for getting a permit, etc and in your case demolition of the old house and also possibly ground work if you do want to be limited by the foundations of your old house or they are no longer good. You should also not forget that building takes time and you will need a ...


0

Since they already own my escrow, there is also no additional funding needed there. Are you sure ? I did a 0/0 refinance with the same company and it didn't help at all. They fully closed the existing mortgage and escrow account and set up new ones for the refinanced loan. In fact, they were trying to screw me out of $2000 on the Escrow refund and I had to ...


0

The calculation in point 1 indicates confusion on a significant point. Income is never depreciable; the property is depreciated and that amount is deducted from the income each year (along with expenses like mortgage interest). When the property is sold, the depreciation is recaptured as deferred income and taxed at that time. As mentioned in another answer, ...


8

I agree with D. Stanley's answer and started a comment that was getting a bit long. One option here might be to get completely new loan that covers not only the construction but the remaining balance on the existing mortgage. At first this seemed unlikely to fly but it's not too different from getting a loan to buy a plot of undeveloped land and build a ...


34

The main complication is that you're destroying the collateral for a loan that you owe almost $200k on. Builders can do this because they're including their profit margin in the equity on the new loan. Since you're having a new house built, you would need to make sure that the construction cost plus the $185K you currently owe is sufficiently less than the ...


3

The depreciation is more of a tax deferment. When you go to sell the property, the basis is reduced by the depreciation you have claimed over the rental period and the IRS will "recapture" the depreciation with a Section 1250 25% tax rate. This is excepted from the personal exemption on primary home capital gains (the situation where capital ...


6

You've pretty much nailed it conceptually, but you are implying something which I think should be explicitly called out: Plus if we actually pay 20% to 50% down payment, and if the mortgage interest per year is $6,500 or more, then in this case, all the rental income is tax free? Not exactly. You just made the case that there is no rental "profit"...


14

If you had no expenses related to the property as the owner of a rental property: no interest payment on the mortgage, no real estate tax, no condo fee or HOA fee, and no insurance, and no utilities; then yes the entire rental income minus depreciation would be taxable. But most people who have rental property aren't in that situation. They do have to pay ...


1

Justin Cave has a good answer and Pete B.'s is decent, but there's a bit more to this that hasn't been said yet. As Justin Cave mentioned, there's a lot of mortgage calculators out there that'll help you figure out some of the pure math of the mortgage, but that's only skimming the surface of what you'll need to know about the process, so I won't go into ...


Top 50 recent answers are included