Your Questions About Check My Mortgage Interest

Helen asks…

my fiance wants to buy a house his credit score is720 he was incarcerated several years only check stubs 1 yr?

my score is poor 578 is it possible to get a mortgage without a really high interest rate and should we disclose this to the lender iwork part time but have over 5 years at the same job he works more than full time and makes about 680.00 perweek sometimes more i only make 170.00 per week

admin answers:

Ron B is correct (don’t listen to EmmaHersh….she’s wrong and does not know what she’s talking about)

you WILL disclose your FICO (credit) score in any mortgage loan… Whether they are “No doc” loans are not.
720+ credit is the BEST you can have.
Also, most lenders consider 2 years of employment in the same field (or at the same job) as stable, and that’s good.

~sales rep for a mortgage lender

Steven asks…

I just bought a house, and my first tax return seems too low, what should I do?

I bought my first house in 2007, so I have more deductions on my 2008 tax return. But when my tax adviser finished my taxes, I’m only receiving about two or three hundred dollars back more than last year, despite the fact that I pay hundreds and hundreds of dollars in mortgage interest each month. Does anybody understand how this is possible? I did sell some mutual funds in a Roth IRA to make the down payment on the house, but my profit from those IRAs was just a few hundred dollars, and there were no penalties.

And if that seems off, what should I do? My adviser seems to know what he’s talking about, but this still seems wrong to me. Is there a (cheap) service that double checks tax returns to make sure they’re filled out alright?
I closed on the house in March, 2007.

admin answers:

Actually that sounds very reasonable. Many people think they’ll save thousands of dollars in taxes by owning a house – the only way that happens is if they pay tens of thousands in interest and real estate taxes.

You only get any tax benefit from the amount your itemized deductions are higher than your standard – what you save is that extra amount times your tax bracket. So for example if you are single (standard deduction $5350) and in a 15% tax bracket, and your total itemized deductions are $7000, your total tax saving from itemizing is (7000 – 5350) times .15, or $247.50.

George asks…

I don’t know what my husband and I should claim on our W4s?

I am married with two children. We own a house and pay both real estate taxes and mortgage interest. We earn about $100,000 a year combined. Right now we both claim married zero and we get a pretty good refund of $6,500. At this point we need a little more money in our pay checks (just had a new baby) and I wanted to change our allowances on our W4s, but I don’t want to do anything too drastic because I don’t want to end up owing next year. Any help is much appreciated.

admin answers:

Six to eight. This is assuming you don’t have a kid turning 17 this year, because if that happens you lose $1000 of refund money due to expiration of child tax credit. It also kind of depends on how much each of you earns and how much your itemized deductions are. The child tax credit is worth roughly 2 allowances on the W-4 because, as I noted, it decreases your tax liability $1000. This is similar to two extra dependents lowering your taxable income by $3700 each, because at 15%, this would decrease your tax liability $1110.
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Mandy asks…

can my interest rate change once i lock on a 30 fixed if my credit score went down?

i locked at 6.2% this week and i know my credit has gone down since i applied for the loan i told the Mortgage company this today and they told me my credit score is good for 6months. im worried that they will check again and rasie my rate. Can this happen and what can i do ?

admin answers:

Your file will have a credit report in it. If the report is current then the lender does not need to go back and get a new report.

A rate lock is the lender saying they will not change the rate because of market changes. If the rates go up or down your loan rate is locked in.

If your file has reasons that you do not qualify for a loan or something material changes (loss of job) the loan offered can be pulled. In effect you are making a series of promises and if those promises are not true when it is time to sign for the loan the lender could pull back the loan.

A credit score change is not likely to be an issue. A court action or a filing for bankruptcy and other such things would be an issues.

So, it will really come down to if the lender has a reason to reopen the file and to recheck the information. They likely will stick with the credit report that is in the file unless they have a reason to doubt the report.

Until the loan is in place and you have signed off the documents the lender’s underwriter can reopen the file. Not common but within the rules.

John asks…

a question about paying mortgage ?

we owe the mortgage 93k. 30 years fixed FHA interest 4.25%
monthly $ 762
( principle + interest=476, and the rest are insurances, tax, …ect.)
1.my brother has some cash saving , he decides to pay for us 50k
how do we pay them ? in check or wire transfer?

3. how it will turn out if we pay them 50 k ?
and before we pay this big amount , should we talk to a mortgage consultant ?

2. suppose we finished paying 50k,
we still owe them 43k . then how much monthly payment will be ?
if the monthly payment are still the same, the interest in the note will decrease ? and the principle payment increase?

admin answers:

You need to find out if there is any type of prepayment penalty and exactly what happens if you make a large balloon payment.

Typically, you would do a cashier’s check or wire transfer for such a large amount. Your mortgage payment would remain the same but your principal would decrease. The interest will remain 4.25% but it will be off of a lower principal so you’ll be paying less interest.

You should also speak with someone about stopping the escrow of your taxes and insurance. The bank takes it and puts it in a bank account that THEY earn interest off. If you are paying $500 a month in taxes and insurance (which seems VERY high as insurance is usually about 1-2% and property taxes are usually about 1%), you could be putting that money into a savings account and earning 1% or better on it. That’s $60-$100 per year being thrown away and stolen by the bank.

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