Your Questions About Check My Mortgage Balance

George asks…

how can i pay off my mortgage fast without changing any of my current spending habits?

I have been looking into this HELOC (Home Equity Line Of Credit)plan. Which is: You open a HELOC, which is a revolving account that comes with a debit card and a book of checks. Say your home is worth 80,000 and your current balance is 75,000. Well, you can get a HELOC of 5,000. You dont spend this money. You just leave it where it is. This is where it gets interesting. When you get paid you start using this HELOC account as your checking account. Say you get paid 2500 every 2 wks. When you make your deposit of 2500. Your daily periodic balance that you will be charged interest on is going to be 72,500. As you pay your bills and living expences for that 2 wk period you may only have 500 dollars of the 2500 you put in. This will leave you principle at 74,500 for the remainder of the 14 days of intrst . You get paid again. Put another 2500 in this account. You again leave 500 in, and you make a house payment of 700. Which has been in the account the entire time anyway. Will this work?

admin answers:

The HELOC usually has a much higher interest rate than your mortgage- around 8% or so…

Instead try taking any extra money that you have and putting it into a mutual fund… Over time it should grow at a faster % rate than your mortgage interest rate, so you should be able to pay it off earlier than if you’d just sent those extra monies in on the mortgage right away.

Laura asks…

Can collectors such as “Countrywide/Bank of America” continue to harass you after bankruptcy?

I logged into my bank account yesterday and noticed that Bank of America had some type of mortgage account open. Okay…Bank of America brought Countrywide out a while back and I could understand that. But, I filed for bankruptcy in 2008 and was discharged by the courts in Jan 2009 for all of my debts “Fresh Start”. They actually have the amount of my old mortgage balance posted in my account lineup. I had only one checking account before noticing this yesterday. I am going to contact the lawyers tomorrow to see if this is a form of harassment. I am tired of Bank of America. I talk to a representative on the phone and he said I still have an existing mortgage account with them so that’s why its up there. I told him I am not going to sit on the phone and argue with him I will just call my lawyer and get things straight. Any advice would be nice. Thanks

admin answers:

If this item was listed in your bankruptcy petition they can not call you

Sandy asks…

Reporting Tax in Restaurant Business?

I used to work in a restaurant for 2 months, but my boss have not report ANY to the IRS. So the income was totally in cash (my tips) and a personal check from him ( for hours ).

Now, i can’t balance my account, as i make payment for my mortgage. Is any ways to get this done without make my boss in trouble???

admin answers:

IRS does not care how you paid your mortgage
you want to balance just say it was a gift of cash from your mother. Boyfriend or who ever. Or you could have went to Vegas and won the cash. You could have taken the money out of your bed matress where you stored it over the years
f it is under 10,000 there is no problem or taxes if it was a gift

Charles asks…

Is a Good Faith estimate a legal contract?

I am about to sign a good faith estimate . I have had some concerns about my broker. They seem to be trying to screw me the more and more I deal with them. Would I get any penalties against me for signing and handing in paperwork , then switching mortgage companies? Will I get charged regardless? As of right now they have my check stubs and bank account balance, but as far as I know I haven’t signed anything that says they can charge me.

I am going with countrywide, are they relatively fair with everything?
The house is a foreclosure and we are dealing with a VA loan. I was told that the VA loan usually don’t approve foreclosures. So now we are going to go ahead and get a back up 100% conventional back up loan.

admin answers:

Dont worry, you can go ahead and sign it. To sign a GFE means the lender already present it to you and you sign to verified you receive and aknowlegde the receipt of a copy of GFE.

When you go with any lender, you should not be charged anything up front if you are going with a mortgage broker.

Feel free to contact me with any questions.
Www.raymondtsai.com

Ruth asks…

Credit life insurance?

My mom passed away in sept. of cancer. She had a $100,000 balance on her mortgage loan. Now I just recieved a letter stating that her credit insurance had gone through and a check had been sent to her mortgage account number. I have never even heard of credit insurance, does this mean the remainder of her loan is gonna be paid off??? If so I am in shock.
Well we just got a lawyer and my brothers and I will be in trust of her estate. My mom died kind-a suddenly and she never kept good records..we actually have a meeting w/her bank/mortgage company tommorow.

admin answers:

Check with the mortgage life insurance or credit life insurance company. Also the mortgage holder (bank) should answer that question. Simply ask if the balance is paid off with the credit insurance.

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Your Questions About Check My Mortgage Loan

Sandy asks…

Mortgage loan __ Credit history?

Hi guys,
I have been in the U.S for 2 yrs,but my credit history is a little over a year.
I am looking for a mortgage loan and I appied for bank, and after they check everything, they said that I have good credit scores, good income and all, except I just establish my credit over a year.
They required at least 2 yrs period.
Do you know all the bank/financial institution have the same guideline?
or Do you know other bank that does not require that?
Pls let me know which bank….

Thank you.
who is credit union? can you give me their website?
Can you guys refer me to a very good credit union ? I am from bay area.

admin answers:

It will be hard for you to apply with a credit history so fresh… Have you tried to apply with an actual mortgage company instead of a bank? Some banks are very strict when it comes to credit requirements. What you can also do if interested is apply for an FHA loan. They do not base their decisions solely on credit alone, so you may have a better chance of getting approved. Good luck to you!

Laura asks…

Should I pay off my mortgage quicker or should I save?

Im closing on my first house next week. My husband and I are both 30. I checked I mortgage caculator and found out if we make a payment of $3500.00 1 x a year in addition to our regular payments then we will pay the loan off 10 years earlier. Is that a good thing to do with our money or should we be putting it into some sort of stocks for retirement.

admin answers:

Basically it all boils down to what is your mortgage interest rate versus what rate of return can you get for investing in stocks. If your mortgage interest rate is lower than the rate of return that you can get from stocks, then go with stocks, if it’s the other way around, then go with paying off the mortgage quicker.

Mark asks…

How do I qualify for a mortgage/financing as a foreigner?

I know in my country (South Africa) the banks do credit checks and calculate a max loan amount based on income. How is Texas different? Will the do credit check in country of origin? How does mortgage influence your tax payment to government. We do not get tax cuts for bonds.

admin answers:

The same applies in the US as far as credit checks and income. If you do not have an established US credit history, the bank may require an International Credit Report which can be costly.

Mortgage interest is a tax deductible item on income taxes.

If you are not a US Citizen, you can still purchase property in this country but you will be subject to some different guidelines. This is mostly due to the fact that since you are not a citizen it is a possibility that you will leave the country and not return to pay your obligation. Ask the mortgage specialist at your bank as suggested but many Mortgage Brokers can be of service too. Just make sure they are an established and reputable Broker. In addition, Texas has some very specific lending guidelines that are unique to that state. Being a border state, they might have tougher restrictions on lending to foreigners.

Sharon asks…

Policeman problems……I am a mortgage loan officer. Recently, I denied an applicant’s loan?

(the applicant is a small town policeman….the town we live in has a population of 10,000) because the lender changed their loan program. The man did nothing wrong, it’s just that his loan was a “subprime loan” and the subprime lenders are tightening up. I called the policeman and told him. He called back several times screaming at the top of his lungs, threatening to sue me personally, the company I work for and making all kinds of strange threats. He apparently also did a criminal background check on me, our secretary and the owner. What my question is should I be worried that he or some of his policeman friends will harrass me with pulling me over just to get me back or cause any other problems? I have never had problems with the law just a couple speeding tickets. Has anyone ever run into a situation like this where the police harrass since something did not go their way? Thanks for your input!

admin answers:

As a fellow LO, I understand completely what you’re going through! Although, thankfully, none of my clients are cops : – 0

I’m sure you exhausted all your lender options before denying the loan, and with all the recent changes, I understand how difficult that can be. But FHLMC, FNMA and FHA have been loosening guidelines and have stretched into the Alt-A and higher sub-prime loans. If his mid-score is >580, I would keep looking for a progam that might work. Also, if you live in an LMI area, and/or the borrower’s income is below the median – he may qualify for Freddie’s Home Possible program. There is a special program for people who work for the community such as police officers, firefighters, teachers, etc. The program offers 100% financing with loosened DTI and reserves when manually underwitten, otherwise just go by the LP findings. The name of the program is Neighborhood Solution under the Home Possible guides.

If he doesn’t qualify for the above mentioned program or FHA, I would call the guy and let him know that you are mailing copies of the sub-prime program, before and after the guideline change. Clearly show him in writing why his application is currently denied. Run a credit simulator scenario through your credit vendor and see what improvements he can make to increase his score to an approveable number. Offer to counsel him through his credit score improvement process and let him know that you will be more than happy to help him with financing when he is ready to try again. I would also offer a reduction in closing fees (see if you can waive the in-house processing fee). Hopefully the harrassment will cease.

Best of luck to you.

Robert asks…

FHA mortgage Loan question?

What does it mean to be pre-qualified for an FHA loan?? My credit has been checked, I was asked my income, and they sent it thru the FHA approval computer and said the fha says ok for them to proceed?? Does this basically mean if everything matches up like income, assets, credit we are approved??

The paperwork that I received said we have been “Conditionally approved” but did not state any conditions which was strange. I hope someone can help

They’ve asked for a purchase contract and the title company and they will do an appraisal after they receive a title from what I’m told.

Also under what cases will the underwriters not approve a loan?? How long does this process normall take?

admin answers:

Well that all depends on who your lender is. When you give your application to the loan officer, they run it through an software thats usually referred to “DU” or in some cases “DO” That process is usually instant to see the results. If you come back pre-approved, the loan officer will tell you to gather your information to back up what you said on your application (exam: income documentation, pay stubs, w2’s for the past two years, your current employers information, etc) . If you can provide all the documentation to back up your application, you will have no problem getting the final approval. Getting the final approval depends on your underwriters. If they are busy, it can take anywhere between 2-3 days. If they are slow, they can approve it in a day or so. This just all depends on who your lender is.

Also, there are a lot of reasons why the underwriters might not approve the loan at the end. Title may be one, if there are liens and judgments, they will dissmiss it until the title is cleared. Lets say the appraisal came back and there is a problem with the foundation or the water or whatever reason it may be, that might be another reason why the underwriters will not approve it until its fixed. Your loan officer, whoever is helping you get into your home, should have all of this information for you. They will help you approve any conditions that may be on the final approval. Trust me, your loan officer is your best friend at this point because they want you to get that house just as badly as you do. Thats how they make their money so don’t be afraid to ask questions, to be a bug, to know what exactly is going on at all times because remember, you’re paying them! From my past experiences, it takes around 2-4 weeks for everything to be completed but again, this also depends on your lender. 🙂

Just to note: there are some things that neither you the loan officer can’t fix on the final approval and you will have to wait until that problem is fixed before you can purchase your property.

On the bright side, appraisal problems, title problems that can’t be fixed rarely occur so if I were you, getting the pre-approval is a great step, I’d be really excited!

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Your Questions About Check My Mortgage Interest

Sandy asks…

Can you claim the interest on a mortgage that is NOT in your name but you make all the payments?

Basically, an in-law used their credit to get the loan for the home because my credit was not good enough.The in-law makes no payments and every payment made is by check with my name and info on it.

admin answers:

Nope you can’t claim it. It’s not in your name.

Steven asks…

Whats the best way to modify my mortgage interest rate?

I bought my home about 2 years ago at 7.125%. I had (and still have) excellent credit, but the reason my rate was high is because I went with a stated, no doc loan. That means I didn’t show any tax returns to get my loan (they just needed my ID, bank statements, assets, and credit check). Nowadays, stated and no doc loans do not exist anymore (for good reason). It’s so tempting to refinance now with the rates being so low. But, I can’t. There’s lots of banks offering hardship programs now that will lower/modify your interest rate without refinancing (and I am experiencing some hardship due to the economy), but I would like to know if there are any other options. The bank is Citibank. Does anyone else have this same issue? Should I hire an attorney who specializes in loan modifications? If so, what should I look out for? Thanks in advance.
I forgot to mention that I did apply for the hardship assistance program that my bank is offering, but I was rejected because I was not in enough financial trouble. The rep even hinted that I should pay my next mortgage payment a week late to make it seem like I’m having problems. I really dont want to do that. I just want to lower my rate a little bit and have some extra money to save each month. Thats it.
Ok, I can’t refinance based on their requirements, thats the whole point of my question. I want to modify my loan. Refinancing is not an option. If ya don’t have an answer, then moooove along. Thanks!

admin answers:

Can you not refinance because of your tax returns? Because on your tax returns it will show you make a lot less than what you were stating 2 years ago? If that is the case, I can see why you can’t just do the straight up refi like normal everyday folk. ( I am self employed and really had to jump through hoops to get a loan last November )

If you do go the lawyer or modification company route, make sure they do not charge you an up front loan fee. That is a sure sign of a scam.

The only way you will probably get to modify your loan is by doing what you don’t want to do: get behind on your mortgage.

What exactly are the requirements you cannot meet to refi?

William asks…

Unmarried (but engaged) owners of a house/mortgage interest question?

My gf and I bought a house last year and we both wrote montly checks to the lender (although my payments are much larger than my gf’s). Both our names are on the deed and the loan. Only my name and SSN is on the 1098 mortgage interest statement. Basically I wanted to be the traditional male provider and make all of the house payments myself, but she writes checks to the lender to give us a budget buffer between paychecks. I basically pay her back her payment by buying all of the groceries and paying all of the utilities.

I plan to claim all of the mortgage interest on my taxes and she plans to claim none. The only question that I could see the IRS asking is: Why did she write checks to the lenders every month? As I said, I pay her back (we didn’t want a case where I made the full payment each month and then she gave me money directly because I’d have to report that as income, wouldn’t I?).

Can I claim all of the mortgage interest legally?
Someone asked how the IRS would know who pays what: If we were audited, wouldn’t we have to show canceled checks, etc., to show who made the house payments?

I can “prove” that I paid almost 70% of the mortgage, but I’m not so sure how I’ll prove that I reimbursed my co-owner by paying for all the groceries and utilities. It’s a gray area which is why I’m unsure of the legality of claiming all of the mortgage interest on just my taxes.

If I didn’t reimburse my co-owner based on our mutual agreement, I would guess that legally I wouldn’t be able to claim all of the mortgage interest since our bank statements would show that I didn’t pay 100% of the payments.
What if I could show based on grocery receipts, etc., that she was reimbursed for her mortgage payments?

Could we say that her payments were towards the principle and my payments were towards the interest?

If I had paid the entire mortgage and she had paid me, would I have had to claim that as income?

Thanks!

admin answers:

How would they know who pays what?

Sharon asks…

We are closing on our refinance Wed. The original mortgage company is charging $800 interest?

This is a little over 2 weeks interest. Is this normal? The current principal balance is $112,500. We had to make a mortgage payment by the 3rd and because it was then 113,700 (4 or 5 days ago) when the new mortgage company called the original mortgage company says they will refund us that $1,200 within 30 days of the closing which is fine. My question is they are asking as the payoff amount of $114,500 which includes $800 interest which would be about 16 days interest for them to process/cash the check after the closing? (Obviously I don’t think it will take them 16 days to cash a check!) Is that typical procedure? I have absolutely no idea.
The $800 I understand is about 99% interest I don’t have a problem with that. My question is more the length calculated: about 16 days worth of interest from the closing and signing/ refinancing with another mortgage company. Would a mortgage company really take 16 days to cash a check? Doesn’t seem likely. But of course if that is standard operating procedure I will live with it of course!

admin answers:

It’s common to issue a payoff that is a couple weeks further out than when the refinance might actually close.

They CAN NOT keep the extra money. You will receive a refund of any unearned interest (which stops the day they receive their payoff funds), generally 2-3 weeks after closing.

Most title companies will purposely overfund the payoff by 5-7 days, just to make sure that, if for any reason the receipt of those funds is delayed, that there is sufficient funds to fully satisfy the loan. If you’re short, they simply refuse the entire amount and you lose even more days of interest getting it corrected.

If you had an escrow account, you’ll likely have a refund of whatever funds were in that account as well. They take 2-3 weeks on average to process their payoff, and settle out your loan and escrow accounts, after which time you’ll get your balance back by mail.

David asks…

Co-borrowed on mortgage; other borrower in higher tax bracket. How to make sure he takes 100% of deduction?

My boyfriend and I just bought a condo; we co-borrowed on the mortgage. We’ll be filing taxes separately. He’s in a higher tax bracket, so it would make sense for him to take the entire mortgage interest deduction since he will get more back than I would. How do we make sure that can happen?

I have heard different things about what we should do. For example, I have heard that the paper trail for the mortgage payment should always be traceable back to him and him alone (e.g., the checks should come from an account that only has his name attached to it). I have also heard that we can take that route, but that I can actually pay the principal amount out of my funds so long as he pays the interest amount out of his funds. And I have heard that we don’t have to go through any of this trouble; that as long we don’t both try to take the entire interest deduction, it’s fine however we split it.

Does anyone know for sure? Is there a source with a definitive answer?

admin answers:

If you’re both on the loan you can split it any way you wish. If his SSN is on the Form 1098 from the mortgage company, no further action on either of your parts is required. If you are splitting the payments, give him your share and let him cut the check for the payment.

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Your Questions About Check My Mortgage Interest

James asks…

100 % Financing Mortgage Interest rates?

I have checked with my bank, a mortgage broker, and another lender about getting a zero down %100 financing mortgage with no PMI. I have a better than average FICA score, and have a very low debt to income ratio. The best interest rate for a 30yr %100 financed fixed mortgage I rcvd was 7.5 (with lowest closing fees)
My friends and family insist I’m getting screwed over and should be getting a low 6 interest rate.
My question is should I expect a low interest rate when I have no money saved for closing, and no down payment? Does my rate sound normal for high my situation? Is 7.5 really that bad for %100 financing of fixed rate?
(I’m in Texas, 1st time home buyer, recent college graduate, single mother of three young kids—so unable to save a bunch of money)

admin answers:

You’re getting a good rate for a 100% ltv loan- especially without PMI. Low 6 rates are for 80% ltv loans on a 30 year term. Make sure it is a FIXED rate for the life of the loan so you don’t get caught in a variable rate nightmare in three to five years. And watch the points charged up front, one or one and a half should be enough. As a first time buyer, you may want your broker/banker to look for some downpayment grant money for you- if your state allows such programs.

Betty asks…

Received two mortgage interest statements (1098) can I claim both?

Its for a new construction home – closed last year May 31st. (so 6 months in the home). I received two 1098 mortgage interest statements. One from lender A for about $11k and one from Lender B for about $9K. Loan amt was approx $348K at 6.5%. Can I claim both or do you think there was a mistake somewhere. Oh by the way, Lender A sold my loan off to Lender B probably 2 months after I moved in/closed. I don’t remember getting a check for taxes or anything I had to pay (was a blur) when I closed for the first 6 months (Jan-May 31st). Does any of this make sense? Basically, again, I got a mortgage interest statement from the two lenders. If anyone could help, that would be greatly appreciate as it makes no sense to me. Obviously, I benefit if I can claim both.
Looking at those tables, it looks like Lender A sent me interest statement for May 31st to Dec 31st. And Lender B, sent something based off of when they purchased the loan (5 months). So I should most likely then just submit the 1 (lender A 6 month) 1098 right?

admin answers:

Look at your amortization table and determine the interest you paid for 2007 and compare it to both 1098’s if the total is correct you claim both if not a correction will eventual be made and the IRS will hit up for for the taxes, int., andpenalty.

Sharon asks…

What is a typical interest rate on a bad credit mortgage?

I have recently been given the opportunity (because of a special HUD program for teachers) to purchase a $120,000 home for less than $60,000. My credit is not good enough (thanks to a job loss a few years ago) to get a good deal on a conventional mortgage. My parents and grandparent want to lend me the money because it would be a good investment for them (i.e., if I can’t pay, they can turn around and sell the home for twice what they paid). But they obviously shouldn’t charge me the typical 4.75% interest for a 15 year fixed which is what the rate is in my area, but they also said they don’t want to charge a typical private mortgage interest rate, which is between 10-12%. Though I’m high risk on paper, I’m really not, I pay rent first from every check and my husband now has a “recession proof” job. What would be a typical good interest rate for them to charge me?
I’ve read the fine print. I know how the program works. I’m not asking for advice on whether or not the house is a good deal. I’m asking what the interest rate should be.

admin answers:

I would say 6% is reasonable under the circumstances (i.e. They’re FAMILY). Even though the typical rate in your area is 4.75%, your family will probably consider the interest rate they are currently making on their money (i.e. If the money is currently invested elsewhere at a 6% return, why would they take it out and loan it to you at 4.75%? They would lose money). Anything over 6% and you should look elsewhere.

Another option, if you have time, is going through a home buyer program called NACA (Neighborhood Assistance Corporation of America). You can get a home with no money down and the interest rate is fixed regardless of credit (currently at 4.75%), and if you choose to put money down, for every 1% you put down they take .25% off the interest rate (these are NOT points, this is a down payment). They’re SLOW, so you would need to have a few months before your purchase in order to go through them. But they’re still a good deal.

The HUD programs are great, and a lot of people don’t know about the TND/OND programs, so I’m glad to know someone is taking advantage of it.

Good luck!

Nancy asks…

I know I don’t HAVE to report my mortgage interest?

and frankly, I’ve ran the numbers 4 times and I will get a bigger return by NOT doing the itemized Schedule A. But….on the statement sent to me by my financial institution, it states:

“If you are required to file a return, a negligence penalty or other sanction may be imposed on you if the IRS determines that an underpayment of tax results because you overstated a deduction for this mortgage interest or for these points or because you did not report this refund of interest on your return.”

Is this a joke? Deductions are optional, not required. And if NOT deducting this gets me a bigger check, I’m not gonna do it. What’s the worst they can do?
I did medical and dental, state income taxes, real estate taxes and home mortgage interest and only came up with $5237 total. My total itemized deductions just aren’t there to offset the standard deduction. BTW, my mortgage interest statement is only $2761.
Wow, I’m impressed! You folks really know your stuff. Thanks a million (I wish, haha!)

admin answers:

You should always figure out your schedule A deductions, which include mortgage interest, real estate taxes, state taxes etc. But if your standard deduction is still more, then by all means take the standard deduction.
If your mortgage interest is low enough, you may not have enough to itemize. This is not a bad thing, you just have lower expenses than some.
The notice from the financial institution you received just means you can’t claim more than you actually paid. There are special rules for points paid on a refinance, and this is mostly what it refers to.
You would not receive a notice for taking the standard deduction.

Paul asks…

We have a mortgage application with the “float” option checked for interest. Isn’t this the same as an ARM?

The document says the float option means the above quoted rate is not guaranteed and may change at closing. This would lead me to believe that there may be a rate change, but one time…at closing. And thereafter, the rate will be fixed? Is this true?

I want a fixed rate. I don’t want to fall into the boat that the whole country has fallen into. If they checked this option for me beforehand, does that mean they will not consider a fixed mortgage, in which case, I will look to my second option, a smaller company.

What do you think about this?
Whew! OK. Thanks.

admin answers:

NOT at all.
It merely means you have NOT yet LOCKED in the fixed rate you will have, but are allowing it to float until whatever time you fix it.
TALK to your lender.
Generally you can lock it in whenever you want, but once locked, it is only good for a set amount of time, say 30 days.

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Your Questions About Check My Mortgage Interest

Donna asks…

What kind of mortgage interest rate can I get with a 660 credit score?

I have a Chapter 7 Bankruptcy that was discharged 3 years ago. Will mortgage lenders even consider me for a loan of $100,000, with a gross yearly income of $75,000?

Since my bankruptcy, all of my payments have been on time, paying off credit cards (I have two) monthly. I have a school loan paid up to date, and no other bills. I check my credit score monthly, and for the past 6 months my score has been hovering around 660. I know it takes time, but what may lenders be willing to offer me with my current status? Should I wait another year or two before applying for a first time home loan?
Would renting an apartment for a couple of years “up” my credit score, and look better for lenders down the road?
I guess I’m in a “toss-up” between buying and renting. I just don’t want to waste any more money on renting. But I’ll rent again if it looks good to lenders, and a better interest rate. I know I have to pay somewhere along the line due to my own past financial mistakes.

admin answers:

Good……
Clean up credit …..Lexington, Ovation or do it yourself letters off of net.
Pay extra on all credit cards, student loans to build up your fico. Do NOT apply for any new credit. Opt out of all pre-approval nonsense. These soft and hard inquires bring down the fico.
Your 660 is a decent score……the higher your score the lower your interest rate will be.
Most lenders will give a 100% LTV no money down loan for 7% if cash flow is tight. Put 25% down and with your 660 fico you can get a much lower interest rate than 7%.

Sandy asks…

Is interest rate only criteria to pick a bank for my mortgage ?

I am shopping for homes and wanted to get a pre-approval letter and later get a loan from bank.

What factors do I need to consider to say that the bank what I am picking is the best one I got ?

Just checking the interest rate,my downpayment is enough ?

I have 800+ fico, 5 yrs work history, 20% downpayment.

admin answers:

Check also the points the bank is charging, and the loan fees, and ask which escrow company they use and then check the fees AND charges of that escrow company.

All of these items will raise your loan cost considerably and vary from institution to institution.

Donald asks…

Can I write off mortgage interest?

I live with my girlfriend, and we both split the mortgage payment. I write her a check every month. Can I write off half of the interest on my taxes at the end of the year, as long as I have the documentation of the payments made for the mortgage?

admin answers:

Yes

Lisa asks…

Is there a website that will give me an understanding of what kind of mortgage interest rate I will get?

I am on this quest to buy a home, and am trying to figure out what I should expect when it comes to applying for a mortgage. I intend to buy in a year, which gives me time to get my credit in the best shape possible as well as save for that down payment. At this point my biggest concern is making enough money to maintain homeownership. The purchasing part shouldn’t be a problem for me, but I don’t want to be living check to check, so I am curious how to figure out my monthly payments based on my specific scenerio. (ex., credit score, down payment, possible co-signer if it will help, ect.)
Is there a website or something that will let me plug in different scenerios to get an estimate of what I would be paying? (Like they do on car dealership websites.)
Oh, I am also weary of needing to type my contact info into a website, because I am not ready to have sales people calling me left and right…so preferably a website that doesn’t ask for contact info.

admin answers:

When you go to realtor.com their is a caculator assumptions on each listing input various numbers depending on down payment,cost of home-but keep in mind you cant forget insurance and taxeshomeowners are caculated with the monthly payments.each countys millage rate is different -here it is .18% =18 dollars for every 1.000.00 dollars of the price of home bought a home in 2000 new-cost 79000 at that time the taxes came in at 1286.52.you can call your local county appraisel office in your area to get a ball park figure on what your taxes will be based on the price of the home ,homeowners insurance varies greatly as to were you are looking to buy, in 2000 our policy was for456 in 2005 it went to 876 and in 2006 it went to 2186.a staggering thought i know if you have enough to put down uasually 20% you will not have to pay an additional fee for pmi its for those to be at higher risk to not be able to make their payments on a timly manner

Nancy asks…

which bank has a good mortgage or interest rate?

I don’t know much about buying a house, this will be my first time buying it. I don’t know a lot of thing. My questions are how do I know which bank has a low interest rate? I can’t let all them to check my credit score. It will hurt my score.

admin answers:

Be very, very careful of mortgage companies. Always go to a real bank or credit union. The reason so many people are losing their homes is because of mortgage brokers who are crooks. And your not knowing anything will make them screw you over even more. All banks are competitive. And the rates change day to day with the stock market. Go to the bank that you have your checking account with. Or a credit union, they often give good deals with no origination fees. They can all give you an FHA loan, which is a safe loan to get. Ask your Realtor to recommend someone. But still be careful, and make sure it is a real bank or credit union, because some Realtors don’t know anything about mortgages either.

Another bit of advice. Do not make any changes in your credit, or job until after you have closed on the house. The bank will check your credit when you start and then again just before the closing to be sure that nothing surprising comes up. Wait to buy anything new on credit. It is OK to pay something off, but do not add anything to your cards. Do not change jobs. Getting a mortgage will be the hardest type of loan that you will ever get. They will check everything, including where you are getting your down payment. Good luck, this is a good time to buy. Lots of good deals out there in many areas.

I use to sell mortgages.

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Your Questions About Mortgage Loan Rates

Charles asks…

I have a 30 year mortgage when is it the best time to convert to a 15 year loan?

Is this a reasonable thing to do? I have only been in my home for one year! I want to pay it off sooner. accellerated mortgage loan? is this a scam? I hardly believe anything the morgage company offers because the interest rates are a rip off. any advise all welcome!

admin answers:

Buy a CD instead.
The Certificate of Deposit will earn almost as much interest as you are paying and when you have enough, pay off the loan. You might want to buy a bigger home later and use the CDs as down payment.

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By investing in CDs you have money if something goes wrong prior to paying off the mortgage.
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The Certificate of Deposit may pay a point less interest but you will lose more screwing with your loan or early payment penalties.
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The Majority of people who accelerate their mortgage regret it and many end up in default. Just save the money and draw interest.
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Donna asks…

Variable mortgage loan interest rate?

My home mortgage loan with a fixed interest rate (5.75) expire next month and it will become variable for the next 20 years. My house has no equity and To be able to refinance, my Bank (Wells Fargo) is asking me for 20% Down payment (money that I don’t have). I’m worried that my new variable interest rate will make my monthly payments more than what I can afford.
If you know how to deal with this situation, please answer my question?
I have called different mortgage companies, and all of them are asking me for 20% down.
Right now, my house is worth about $ 240.000 and my mortgage is for $265.000.
What should I do?
Thank you.

admin answers:

If you have no equity in your home and you are unable to come up with 20% down for a new house, then the only thing you can do is stay put and continue paying your mortgage payments on a timely basis. First thing you do is look at your loan documents to find out how much your interest rate can move once it becomes variable. There is always a cap on how much your lender can raise the interest rate. Find out what the cap is — can the rate go up by 1% a year or 5% a year?. Remember that interest rates can go DOWN as well as go up although in this market that would probably be rare. Once you know how much the interest rate can move, you can figure out the maximum of how much your monthly payment will be. Then you need to start saving your pennies so that if your monthly payment does go up a lot you will be prepared.

It sucks, I know, but that’s the way it is.

Good luck!

Susan asks…

How does a bank decide the mortgage interest rate of housing loan in Korea in general?

Please explain it in detail.

admin answers:

Hello everyone,
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I’m posting this message everyday on yahoo answer; in order to express my everlasting gratitude to Mr. Christ Felix
Please i need you all to pray for this man for me.

David asks…

mortgage loan?

if i signed a good faith estimate on the 28, electronically, does it mean that i have to stick with the loan, if i find a better rate with another lender

admin answers:

The good faith estimate you signed was simply acknowledgement that you received the document, as is required by law. It is not a loan document.

You can back out of the loan now. Don’t delay!

Here’s something that has worked on occasion–get that better deal in writing and show it to your current lender. Tell them to match that deal or cancel the loan. You might find they match the deal!

Michael asks…

What would be a decent interest rate on a 30 yr mortgage loan for 200K, with 200k down payment?

Credit score is excellent. Investment property. I don’t know how to judge whether my broker is getting me a good deal or not.
The loan is for 200K, the down payment is 200k….the house is 400K.

admin answers:

The rate and costs will vary depending on how you are structuring the purchase. Even at 50% LTV, the agencies charge 1.75%. The broker can up the rate to try to cover some of the cost or you can pay it upfront.

If you were paying it up front, my rate to day would be 6.875% with closing costs of $500 plus recording + $3500 = $3,850.

If you don’t plan to hold the property very long, then it could make sense to increase the rate to cover some of the adjustment, but you will get to a point where it doesn’t make sense to do that.

We also have some portfolio programs for that scenario where you would just pay .5% + $500 + all third party fees. We have a 3 year arm at 6.75% or a 1 year arm at 5.99%.

I hope this information is helpful.

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Your Questions About Mortgage Loan Rates

Betty asks…

What is the success rate of being a mortgage loan originator?

I am considering working for Acceptance Capitol in Spokane Washington and wanted to know if there is anyone who has/does work for them and can give me insight on what the success rate/salary/turnover rate of working for this company in this specific location is? Any help would be appreciated! Thanks

admin answers:

Less than 10%. There are too many originators in every city. The only way you can guarantee that you will be one of the 10% is to refuse to accept any salary or “draw” against future commissions. If they don’t have to pay you, they will never lay you off. You can continue until you get discovered by the real estate community. It usually takes 2-3 years until you have a stable income.

If they pay you a salary, they will fire you if you don’t produce 5 loans per month. That is almost impossible for a new person to accomplish.

George asks…

How much can I expect for an interest rate on a fixed interest rate mortgage on an FHA loan?

What does it depend on? Are FHA loans always the same rate on the same day, know what I mean?
My score is bad, the only thing I have is good credit history for the past few years.
I think it’s like 580 🙁

admin answers:

5% last I checked; you should know that you can get the best rate by paying points; this is well worth the upfront expense unless you are planning to sell the home in the next 3-5 yrs or so…

Helen asks…

Where is the best place to find mortgage rates on cooperative loans in New York?

admin answers:

Here’s a good site that keeps home mortgage rates up to date: http://www.whataboutloans.com/mortgage/mortgage-rates.html.

John asks…

Is This FHA Mortgage Loan a Good Deal?

My wife and I are first time home buyers, and we want to tap into this buyer’s market. We spoke with a Wachovia representative a couple days ago, and we are considering the following FHA loan:

For a $200,000 house-
1. 15% down payment, FHA Loan, 30 year fixed mortgage
2. 5.10% mortgage interest rate (per month)

To avoid a horror story with this home purchase, what kind of questions should we ask, and what kinds of things should we look out for?

admin answers:

FHA mortgage loans are very good. The one draw back I have against a FHA mortgage loan is there is MIP sorta like PMI, that last the life of the loan no matter the balance of your mortgage loan.

Your MIP might be tax deductable depending on which tax bracket you are in.

For all tax and legal matters you should consult with your tax consultant and attorney.

Once you reach 80% of the value of your property I would consider refinancing to a conventional mortgage loan thus taking away the MIP and since the refinance would be for less than 80% of the value of the property your new mortgage would not have PMI.

Of course you would have to sit down and do the numbers to see if they match the cost versus any possible savings you might make from the refinance.

I would be reluctant to put down 15% with the housing market the way it is today. Once you purchase your property if could lose value thus your down payment would have been for naught and gone until the property appreciate in value. Presently, still in certain parts of the country properties are still losing in value.

Now your house is less than what you purchased it for and you have lost your down payment with the lost.

Therefore I would put down the minimum and leave my cash liquid in whatever instruments you presently have them.

You should ask and inquire about all the possible mortgage loans you are approved for.

You should ask as many questions as you can.Asking questions might conjure up more that you had not thought of. Don’t leave your mortgage broker/bankers office until you are pleased with what they are telling you and you have all the answers to the questions you asked.

There are many things you should do, but the first thing you should do is contact a mortgage broker that does FHA mortgage loans and get pre-approved. This is the first step. Once you have your pre-approval then contact a real estate agent to look at house based on what you are qualified to buy.

You will need proof of income so have available pay stubs, w-2, bank statements and other items your mortgage broker will require.

He will inform you of what is necessary once you contact him.

This pre-approval will tell you the amount of house you are qualified to purchase as well as the interest rate, monthly mortgage payments and other necessary things you need to know about your mortgage.

Your pre-approval should indicate the interest rate, monthly mortgage payment and how long you have to pay the mortgage off (Terms). You should get a Good Faith Estimate (GFE) and a Truth in Lending (TIL) once you have beem pre-approved. As soon as you get these two documents call your loan consultant and ask questions about the numbers, what they mean, closing cost you are required to pay.

Make sure once you have seen a property that you inquire of a roof cert(even if the lender does not require one), an inspection report, an appraisal. A sales contract the give you the right to back out based on your inspection report.

To avoid a horror story don’t sign anything unless you know exactly what it is that you are signing. Once you have signed your loan docs it is too late 2-3 years later to find out that what you thought you were getting you are not getting.

So if the interest rate, mortgage payment and terms on the mortgage docs you are about to sign do not match what you were told prior to you getting and signing your mortgage docs STOP and get an explanation from your mortgage consultant.

I hope this has been of some benefit to you, good luck.

“FIGHT ON”

Sandra asks…

How many of you are taking advantavge of mortgage interest rates at 5% for a 30-year loan? ?

admin answers:

Not me — my house is paid for!!!

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Your Questions About Mortgage Loans For Bad Credit

Mandy asks…

How do I get a mortgage loan with no credit?

It is my dream to own my own home. But all I here about is credit scores and stuff. I don’t have bad credit or good credit I don’t have any at all. Is it possible for me to buy a home?

admin answers:

Answer this question:
1) Would you lent your car to a stranger who says: I will bring it back?

Banks wants guaranty that you can pay back there money.

To be totally sure go to a bank and ask for information.

Paul asks…

What exactly is a home equity loan and can I still get one with bad credit?

I do own my own home but am still paying off my mortgage. My son needs more money for college and we’ve tapped out on student loans and my credit cards are all maxed. I was wondering what I could do and thought that a home equity loan with bad credit might be an option. I don’t know if it’s a good idea though.

admin answers:

When you take out a home equity loan, you are basically borrowing money and putting up your house’s equity as collateral. It’s like any other loan but this kind states that the lender can take your home, in very plain terms, should you default on your loan.

When you’re looking for home equity loans, bad credit shouldn’t stop lenders from giving one to you. It doesn’t sound like you’re in too good financial standings so make sure that you will be able to pay back the loan because losing your home would not make your situation any better. I sincerely recommend you spend at least a day budgeting out the next few years of your life in preparation for this new loan. On the bright side, it will be a much better lending rate than other high interest rates in which only your credit is offered as collateral, but the stakes are higher for failing to pay.

I do think that your sons college education is a great reason to take out a loan though. If you have to make some sacrifices to make it happen and pay the loan back, I think that you probably should. Get your kid to help pay the loan back after he’s graduated and making money; the odds are that the loan will still be around then.

Ken asks…

How bad can mortgage loan restructuring hurt your credit?

I am looking for a way to get out of a bad investment. I bought a house for 325 K and now its only worth $200,000, thanks to the current market. I owe the bank 280 K and its a negative option arm loan, so they let me pay less than interest. Soon the Bank will realize that this house is worth so little. The may force me to make a full payment and I will not be able to. The Rent I earn now barely pays the minimum payment. So I have 4 choices: 1) walk away, 2) Foreclose 3) Short Sale and 4) Loan Restructure. Do you think the last one will have the least or shortest impact on my credit? If I do it, I plan to pay the new loan on time forever. I plan to send many disputes to the credit bureaus until they erase the 90 days of skipped payments that I will have to do in order to get this approved.
I added even more details at www.blogsomebody.com. which contains full details in various posts

admin answers:

You need to answer two questions:
Do you plan to stay in this home for many years irrespective of price of the house. If so, try to restructure the loan. Bank does not want to own your home, they just want $$$ as long as you can make reasonable payment, they will work with you. The question is can you afford to make payment for $280K loan based on the income you bring in. If the answer is no with today’s mortgage interest rate, you are done.
If you decide to walk away, and let the bank have the house, you are not going to get anything for 7 years. I suggest, rent the apartment first before you decide to walk out. In my view, you will not recoup your money for many years to come. Market going up that much ($125K increase) is not going to happen anytime soon.
Keep in mind if you short sale, you still owe money. You are better off walking away, i.e. Let them foreclose on your property.

Linda asks…

Where are some good places to apply for a home loan with bad credit?

My husband and I are currently trying to fix our credit. We are also shopping for a home loan. We live in michigan and I am looking for mortgage companies willing to work with people with bad credit.

admin answers:

Look for an FHA lender. If your credit score is less than 620, you will not get a mortgage anywhere and you need to clean up your credit first.

Lisa asks…

Mortgage with bad credit and 150K down?

My wife and I are wanting to buy a house. Our credit is not that great. Our credit score is around 600. We have 150,000 for a down payment on a 350,000 home. We are only seeking 250 K mortgage. What’s our chances of being approved for a loan and at what rate?
Not 250K, only 200K.

admin answers:

If the house is 350, why do you want 250 with 150 down? That’s 400k and will send up a flag.

You have almost half of the price as a down payment, I’d think you have a good chance. Most loans are 10% or 20% down.

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Your Questions About Mortgage Rates Today

Thomas asks…

what determines mortgage interest rates that banks charge? bankrate.com says 5.8% today, yet banks are 6.5%?

i am comparing a 30 yr fixed on bankrate to a the same in a bank. also, anyone know if there is a u.s. stock ticker symbol for the 30 yr rates?

admin answers:

Depends on the type of mortgage.

Some are fixed rate – and will not alter whatever the bank rate does. Some are LIBOR ones which track London bank rates. Some are capped – which means they vary – to a maximum but not higher.

Depends on the type.

Donna asks…

what company has the cheapest mortgage rate as of today’s date?

admin answers:

That question isn’t as easy to answer as it may seem. I’m a real estate agent, not a lender, but in my opinion, that question can’t be summarily answered by throwing out one rate. I’d shop around and while you are comparing rates, make sure the loan package is the same structure before deciding one company’s offer is better than another. 🙂

Paul asks…

when applying for a fha loan is there a web sight so i can wach the rates. iwas told to me that the mortgage b

rates? the mortgage broker said it was up to her to watch the rates, but i think its my job to watch for rates. she said today 3/25/08 that with a credit score of 750 my fixed fha rate was 6.25%. I FIND THAT HIGH? there has to be a web site i can find my own rates to lock in.
thank you

admin answers:

Sherri, that rate sounds about right for FHA today. The best indicator of mortgage rate movements is the 10 year treasury bond yield – currently around 3.5%. Watch for movements in this figure to see what the mortgage market will do on a daily basis. Be careful about rate quotes you get online and in newspaper ads. As a mortgage broker, I can tell you it is easy to sandbag a quote and then raise the final rate when you’re at closing. Then you’re stuck and basically have to pay whatever I throw in front of you. I won’t work that way, but plenty of mortgage people will so be careful.

If you have to look up rates online, try bankrate.com

Mark asks…

Is it possible for consumers to buy mortgage rate locks for ~12 months?

Most mortgage lenders give you a “free” 60 day lock for the application to process. I am interested in purchasing a lock for 12 months at today‘s rates as I will not be ready for a mortgage until next year. Any advice?
FYI The first answer does not help and appears to be spammy in nature.

admin answers:

No…

Mortgage companies barely give you enough time to close as it is to get a good rate, much less a 12 month grace period.

The silver lining here is—- Obama has this economy so damned screwed up, that you wont have to worry about “locking” the interest rate. The rates will be pretty much where they are now in a year’s time, as this economy isnt going anywhere anytime soon. The Feds are looking at buying up all the low-interest bonds as it is to retire the savings bonds they have out at 7%+…

My advice to you is to wait it out. In a year’s time the housing market will still be in the toilet, prices will still be at historic lows, as will interest rates. Dont believe me??? Look at the last 2 years. 20009 is 2 years AFTER the housing meltdown.. And things are STILL in the crapper in 2011…

William asks…

what is a good mortgage interest rate for today?

admin answers:

If you are seeking the current mortgage rate you will be able to find this in your local newspaper or on the internet. It would mean nothing to you knowing the current interest rate.

Your interest rate is determine by your credit score, the way you pay your debts on your credit report. Also if you are applying for a conforming or jumbo mortgage. Then the other is if you are applying for a conventional mortgage or a government (FHA or VA) mortgage.

There is a lot that goes into determining your mortgage rate. The way you find out the rate you are qualified for is to apply for a mortgage loan through a mortgage banker/broker, preferable one that does FHA and VA mortgage loans.

I hope this has been of some benefit to you, good luck.

“FIGHT ON”

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