What is the difference between mortgage tax and property tax?

Posted by admin on October 20, 2011 6 comments

mortgage tax is the same as property tax but mortgage tax is pay to the bank because you borrow the mortgage loan?

There is mortgage interest not mortgage tax. That is paid to the loan company. Property tax is paid to the county.

How does a mortgage holder get out of PMI payments on their mortgage loan?

Posted by admin on October 10, 2011 6 comments

Seems to me that PMI is very costly for the home owner, especially me with a perfect credit rating and new funding source to maintain a mortgage if I lose my job (my job is very secure). Please any suggestions on how to get the PMI waived by the mortgage company.

Other than getting 20% equity in the property, there are no ways to avoid PMI.

How does making your mortgage payment bi-weekly save you money?

Posted by admin on September 29, 2011 5 comments

I got a letter in the mail from the bank that says paying our mortgage payment bi-weekly instead of monthly could save us $40,000 to $100,000 in interest and reduce our mortgage term by 7 to 9 years without refinancing. How does this work?

The "interest on 15 days instead of 30" isn’t always true. Many mortgage companieswho offer this program just hold the first half till the second half arrives. The mortgage company might make some interest, holding all those half payments for 15 days, but you don’t.The real benefit is that paying every 2 weeks make for 13 months. You make an extra payment which goes right to the principal.Only the mortgage professional will solve your problem. So don’t waste your time just check out the link and discuses your problem.

Can you pay off a home mortgage with a home equity line of credit?

Posted by admin on September 10, 2011 4 comments

My sister is asking me for money to pay up her home equity line. When I asked about her mortgage payment, she said she paid it off with her home equity line. Is that possible to borrow money on your home to pay off your home?

Sure it’s possible but why would she do that? Now she still owes money on the house but her interest rate is completely adjustable and probably higher than where it was with her first mortgage. The terms of an equity line or 2nd mortgage are never as good as a 1st mortgage.meanwile its batter to discuses with the home mortgage professional.A friend of mine showed me mortgage professional website . Good luck!..

Can you roll taxes into your home mortgage?

Posted by admin on September 3, 2011 5 comments

I know that future taxes can be rolled in, but how about the initial taxes? For example, if the taxes on a house are $6,000/year, would we need to present that $6,000 in full at the time of the closing? or would we be able to roll it into the mortgage? Someone once told me that that the taxes are due in full when you first buy a home, and then each year after that they can be rolled in to the mortgage payments.

On a standard contract in my state- the printed form says that the property taxes for the current year would be prorated. At closing the title company would estimate to the best of their ability the amount of the taxes that will be due this year (they are not billed here until October so before that they have to use last years taxes as an estimate)

That prorated amount is given to the buyer to be used to pay the property taxes when billed and due. If the buyer is getting a mortgage the buyer’s mortgage company sets up an escrow account and takes a similar amount from the buyer and puts it into that account so that the account will have sufficient funds to pay the taxes when due.

Your Realtor and your loan officer can tell you how it will be done in your case.

How does the Aug 2nd deadline affect car loans and mortgage loans?

Posted by admin on August 5, 2011 3 comments

If you are already paying a 24% car loan, why would that go up if we default, isnt that already in ur contract?

No change unless you have a variable rate?

Can a person have two mortgage loans on two different houses at once?

Posted by admin on August 1, 2011 4 comments

Is it possible to have 2 different mortgage loans on two different houses at once? Or would banks shy away from giving you a second loan if you already have one out? The reason I’m asking is because I’m looking into buying a house for cheap and renting it out.

You could have 10,000 mortgages on 10,000 different houses if you wanted to.

Now for reality: This rental will be treated as a rental property. That means that you will have to put 20% down payment on your new home.
Also, your salary will have to support both mortgages (although the bank will use a large part of the rent as income).
Note: Real eastate never pays off when you make mortages, pay interest, pay closing costs, pay property taxes, and the rent is taxable.
Also, we rented a property – biggest nightmare of my entire life
—
The people that get rich from real estate are the ones that do their dealings in cash – not mortgages

How to refinance a home mortgage with negative equity?

Posted by admin on July 28, 2011 5 comments

I really need good options on how to refinance a home mortgage with negative equity. Currently my mortgage wont allow me a refinance. Any options on what i could do?

Sorry, there are no options. None.

mortgage loans?

Posted by admin on July 16, 2011 2 comments

is it better to take the proceeds from the sale of our house and use it as a down payment or use it as cash at closing? The builder is paying 2% towards closing.

Also are FHA loans or conventional loans better?

If you get an FHA loan, they only require 3% down. With an FHA loan, the PMI rates are lower & rates are a little better. If you were looking to put 20% down, go conventional.

What percentage of your net income should go towards a home mortgage?

Posted by admin on June 17, 2011 9 comments

Lets say you have $5000 coming in per month, how much is a safe amount to spend on a mortgage, while still saving some for car payments, other loans, insurance, groceries, emergencies, etc? My dad said a 1/4 of your net income is a good idea per month to spend on your home payments…agree? disagree?

Your father is exactly correct! Listen to him! The people on here that recommend, 33% as a mortgage payment are also the ones who have contributed to the mortgage crisis in this country today! 33% of your net income is too much. It doesn’t leave you any buffer.