New answers tagged

8

In order to address the broader question in your title, Should I be Wary of First-Time Home Ownership Programs? It's important to point out that there are a huge variety of (legitimate) housing programs in the US which aren't well known, and which sometimes offer (completely legitimate) subsidies or features that are surprisingly attractive. Often these ...


1

Usually any no-money-down mortgage (or low money down mortgage) requires the mortgagor to buy private mortgage insurance to guarantee the repayment. This insurance is priced to cover the risk of default and usually results in total costs that are significantly higher. If there is no PMI, then usually there will be fees or higher interest rates. The bankers ...


4

Given that your employment contract explicitly says it's "fixed-term", I don't think you can say it's permanent. The government site about fixed-term contracts is talking about specific rights that employees on fixed-term contracts get. In that context, I think excluding apprenticeships is just to make it clear that those specific rights don't apply to ...


1

A donation/contribution to a trust is not considered a gift as long as the beneficiary has a future interest in the gift. If you are referring to a payable on death account than it is the same as your parents leaving you the monies when they die--except it avoids probate. Note that your parents have a large estate exemption so this would only be relevant ...


3

What are the downsides to refinancing? The downside is you pay closing costs upfront. The interest you save needs to make up for the closing costs within a reasonable time frame (4-5 years is a common rule of thumb). So if you pay $5,000 in closing costs and save $100 a month in interest, in 50 months you'll have made up the closing costs in interest ...


0

An interest reduction of 0.5 % does not sound like enough for me. I used a payout of 3 years maximum, That is; the total monthly savings in a maximum of 3 years must exceed the cost of the new mortgage. One thing to consider is the average home mortgage lasts about 7 years until the house is sold. I have refinanced about 10 times ; I have had several houses ...


2

Different sources will give you different answers to this question, but typical recommendations are that you want to drop the interest rate by 1% or more to justify the closing costs involved in refinancing.


1

As Nayuki points out you have too few days per year as 14 x 26 = 364 meaning you miss 1 day per year. This results in two errors in your calculation Your rate is a little too big, should be 0.001143 by using this formula (1 + 0.03 / 2)^(14 / (365/2)) - 1 You have too few periods as you use 26 payments x 25 years = 650, which should have been (365/14) x 25 =...


-3

My financial advisor said to keep 5 yrs of cash in my bucket. That means anything I need within 5 yrs for any reason should not be invested in anything except short term, such as a CD. You can find higher CD rates at bankrate.com. if you need that money in 5 yrs, keep it out of the market.


0

Considering that you can claim a tax deduction for the mortgage interest on the investment property but not on the mortgage interest on a future house you plan to live in, you are better off paying Interest Only on the investment property so that you can save as much as posible for your main residence. The more you can save means the less you need to ...


1

The main disadvantage of an interest only (IO) loan is that it typically has a higher interest rate than principal plus interest (PI) loans. If the rates were identical, then for a disciplined person it would be better to choose the IO loan, because then you can decide if and when it makes the most sense to start paying down the loan. For example, you might ...


1

Refinance the house. You can generally refinance up to 80% of the home's value. That would give you enough money to make payments for quite a while if necessary. If they are over 62, then they can take out a reverse mortgage to cover the remaining balance and receive payments from the loan to help with living expenses. If they straighten out their income ...


0

I am not going to answer based on the technology. Other answers have focused on that. Instead I am going to focus on what information you have to provide. You only need to establish that you have the income to service the debt, that your required monthly payments are manageable and you have the money in cash or near cash to pay the down payment and the ...


0

No. Do not provide YOUR login to ANYone, not even your dog. Broker statements are sufficient proof of your holdings, as they would contain your ID as well. Any settlements or transfers between your brokerage account & bank account could be additional proof when reconciled with your bank statements.


0

I recently sold and bought in NJ. Closing during the purchase was handled by my lawyer. I didn't attend but instead signed a few days before. When I sold, I attended the closing with my lawyer, my real estate agent, the titling company, and the buyer. My mortgage broker showed up as well but wasn't necessary.


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