What is the difference between Principal Reduction and Additonal Payment for my mortgage?
I just recently bought my first condominium, and I am paying my first mortgage bill. On the bill, it has a box that says:
APPLICATION OF EXTRA MONEY (‘X’ CHECK ONE)
__ PRINCIPAL REDUCTION (C)
__ADDITIONAL PAYMENT (P)
I am wondering what is the difference between the two and if anyone has any suggestions on which one I should check? Thanks!
Check Principal Reduction.
If you do this at least 1x every year you will save a lot of interest in the long term.
If you look at the numbers, the initial principal amount is very small and you can pay some every month in the beginning.
It saves a lot in the long term. Don’t let anyone tell you that you need the interest deduction. That is money that you never have to spend and you can keep it instead of being able to deduct 15% or 28%- whichever is your tax bracket.
I wish I had known this in the early years of my mortgage!
Congrats on your new home!.
Mortgage? – DTI needed for self employed?
So my mortgages are keeping me from getting any loans.. against my home or any of my rental properties. (DTI too high and no W2–self employed landlord).
I’m considering selling my home to move into a rental.
The question is if you sell a property this obviously has an immediate impact on your DTI..
At that point… It seems to me your DTI would be recalculated. Correct?
Will they consider my present circumstance or will it not count until it’s on a tax return?
I really need an underwriter or mortgage banker to answer this I believe.
Is there a bank (or professional) that might look at my situation without me having to do an entire application (credit check, etc.)?
As soon as you sell or have a sales contract dated and signed for the subject property (property you intend to sell) than the Underwriter should be able to put that into consideration when re-calculating your new source of income or in this case deduction of your monthly expenses. Most lenders typically would like to see a 38-40% DTI. FHA loans allow you to go to 55% DTI. This would be a lot easier to answer all your questions if you just contact me via email firstname.lastname@example.org
8 yrs in the business, I should be able to answer any of your questions reguarding mortgages.
What info do I need to prove my mortgage payment?
My case worker sent me a paper asking for my proof of mortgage payment for my application for food stamps.
I have a payment booklet that we rip a page out of and send in each month with our check. Would a copy of the sept bill be good enough?
A bill and a canceled check would be sufficient.
Where can I find information on contractors or businesses that keep my personal information in the US?
I don’t want a title search for property being bought sent overseas (w/my SS number), or a Mortgage application, or credit check;
I don’t want a law firm that uses overseas sweatshop “attorneys” for document review of my personal information (and then I’m forced to pay them US going rate on top of that);
I don’t want to hear an Indian accent when I call customer service for a product I bought in the US;
I know to look for the “Made in the US” label, but what about services? Is there a club I can join that keeps track of that crap?
You are in for a lot of disappointment in your life
Should I not use my Credit Card when My Mortgage Loan Application is about to go into underwriting?
Here’s the situation. We were supposed to receive a mail in rebate from Verizon for $200 by the time our bill was due. Go figure, it’s not here because of their error so they’re sending them again. We can not afford the extra $200 from our checking account right now because we have to verify the downpayment for the loan. My question is, do I pay the $200 on my Credit Card, or do I hold off for a few days? Which would look WORSE to the underwriter?
Both, they can pull your credit at any time- up to the time you are sitting at the closing table- how are your ratios? Or maybe borrow the money?
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