Little Blossom asked:


Our names are both on the loan. He is willing to allow me to buy him out. But I cannot refinance a new loan and be able to afford to buy him out. If we have a notarized contract that states he releases any interest on the home with the address and loan number, in exchage for the lump sum and some of the articles in the house will it be legal as a settlement?
We make an agreement, I keep the loan we have, give him a lump sum to release his repsonibility on the loan and I continue to pay the loan I have.instead of refinancing a new one just to get his name off the mortgage. If we have a contract that is notarized he releases responsiblity of our current loan and I take over payments, is this going to be a legal document is the question?
So far Randy has the best advice!
So far Randy has the best advice!

Dennyr asked:


Wondering what the differences are between online home loan providers and banks - is it just that the interest rates are better at the bank?

Jumbo mortgages are not so different from standard mortgages but there are a few key things that are worth looking in to.

Jumbo Mortgage Loans

A jumbo mortgage loan is a loan taken for property that is high-priced.. In Colorado, as in most of the U.S., a jumbo mortgage loan is any mortgage that exceeds $417,000 - the limit set by Fannie Mae and Freddie Mac for conforming loans.

Fannie Mae and Freddie Mac, the two agencies that buy the majority of real estate mortgages, will not finance loans greater than $417,000 in most states; however Alaska, Hawaii, and a couple others are exceptions. Therefore, the large jumbo mortgage loans are sold to other investments, often banks and insurance companies, and so a jumbo mortgage loan falls into a different category. Rates for a jumbo mortgage are also higher than conforming loans because there is more risk involved.

What This Means for Jumbo Mortgage Interest

The size of a jumbo mortgage loan means there is more to lose. The size, coupled with other factors, results in somewhat higher jumbo mortgage rates than those carried by conforming loans. Since percentage points on jumbo mortgage rages can mean sizable payment differences, buyers should shop around for a good lender when applying for a jumbo mortgage loan in order to find the best rate. Buyers should shop around for a good lender when applying for a jumbo mortgage loan in order to find the best rate.

In truth, jumbo mortgage interest rates are only one thing to consider when shopping for a jumbo mortgage. There are additional fees and closing costs to be considered that could even out the difference in jumbo mortgage rates. Sometimes, the company with the jumbo mortgage rates is actually the cheapest, all things considered.

Also, buyers shopping for good jumbo mortgage interest rates need to consider their goals, plans, and all of their options. Like conforming mortgages, jumbo mortgages are offered in a variety product lines. Buyers have the option of taking out loans with adjustable jumbo mortgage rates with 3 or 5 year locked rates that adjust after that period, or 15 or 30 year fixed jumbo mortgage rates that never change.

Deciding which type of product (variable or fixed jumbo mortgage interest rate) is better for you depends on whether you plan to stay in the home for more than that locked 3-5 year period, or whether you will refinance the loan within 3-5 years anyway.

Buyers should not be scared off from higher jumbo mortgage rates; jumbo mortgage rates are higher only by a quarter of a point or so for well qualified buyers. What’s more, jumbo mortgages are the only option for home buyers in many parts of the country because $417,000 really isn’t that high a price in today’s housing market. As a matter of fact, jumbo mortgage loans are the only type available in many areas. The best way to find a good jumbo mortgage loan is the find a reputable and experienced lender with good rates. A great mortgage lender will take the time to understand your needs so they can help you select an appropriate product.



By: 1st American Mortgage

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david m asked:


6.5 percent. I am paying 1.5 points to buy down the rate. The first is at 40 years and the second is 15 years amrt. over 30. What is par rate or how could you find out what it is? Do you think this is a good loan? Thanks for the input.

babieyig asked:


just wondering..because just recently i applied for a loan there and gotten approved and was ready to buy a home but at the last minute my loan officer told me that i wasn’t approved anymore…he had no excuse and then told me he could refer me to another mortgage that could maybe help me…the other mortgage did approve me but it was about 1.25 more of the interest rate…i just don’t want to trust them…
my score is 721..

Many people may have heard that the Chinese expression for “crisis” consists of two characters, “challenge” and “opportunity.” The expression could also describe the dual nature of the current housing market downturn - peril and potential.

Whether you are taking advantage of current prices to buy a house or trying to cope with a difficult financial situation to keep your home, it is important to understand how a mortgage works and what to do if you start to encounter payment problems.

According to an HSBC-North America consumer survey, one out of three people don’t even know if they currently have a fixed rate mortgage or adjustable rate mortgage. Moreover, three out of ten consumers surveyed have no idea of what types of fees are associated with their mortgage loan.  Loretta Abrams, senior vice president of HSBC’s Consumer Affairs, says improving mortgage know-how will help consumers protect their investment     

Before you obtain a mortgage or a mortgage refinance loan, make sure you understand the following:



 What types of mortgages are you considering? Is it a fixed rate mortgage or adjustable rate mortgage (ARM)? What are the advantages and disadvantages to your personal situation?

What’s the interest rate and how much are the fees associated with the mortgage loan? Costs such as points and processing fees can be an added two to ten percent of the loan. You don’t want to be surprised by an extra $2,000 or $10,000  in fees when you close your loan;



As a general rule, you should spend no more than 28 percent of your gross monthly income on housing expenses. Besides the mortgage, remember to include taxes, insurance and other related expenses;

If you have an adjustable rate mortgage (ARM) loan, make sure you know when the payment can change, by how much, and what the maximum payment can be. Check into options like mortgage refinancing before your adjustable mortgage resets.



Do you have money to cover costs if your roof suddenly leaks or your furnace goes out? Set aside an emergency fund (three percent of your home value) for maintenance and other unexpected costs.  



If you have payment problems or you’re just having trouble keeping up with your mortgage payments, remember it’s never appropriate to “do nothing.”  No one – neither you nor your lender – wants you to lose your home. The earlier you take action, the more options you may have.

 Take the following steps:



 Contact your lender at the first sign of trouble.  Respond to all your lender’s communications, describing your circumstances;

If you prefer to speak first to a trusted third party about your options, call Homeowner’s HOPE™ Hotline, 888-995-HOPE. You can also dial 1-800-569-4287 or visit www.HUD.gov for a HUD approved counselor

Take advantage of free resources on YourMoneyCounts.com, available in both Spanish and English, to find information that will help you manage your finances.



 Did You Know?

According to a  Financial Literacy Survey, one out of three people don’t even know if they currently have a fixed rate mortgage or adjustable rate mortgage. To learn more about mortgages, visit http://www.beneficial.com.

 



By: Beneficial Editorial Staff

About the Author:

Clueless asked:


I have a flat in mira road purchased for 17 lacs i am selling it for 22 lacs. I paid arnd 2 lacs interest on home loan… Do I pay tax for this sale and if yes how much?

erica_bischoff asked:


is it Geico? Also, my father keeps trying to get a loan for at least just $6,000 because we saw a moblie home in a book and the mobile home park want $6,000 up front to pay, but no matter where my father applies for a loan no one will give him one just because his credit is a LITTLE bad, but it is not even all that bad! They will not even just give him a loan with high interest at all. So does anyone know of a company that will still give him a loan even though he has slightly bad credit (in particular a company that will still provide low or no interest even though he has bad credit)?

Barry D asked:


I have a home loan that I’ve made 8 payments on so far. The initial loan amount was for $139,650 at a simple interest rate of 8.5%. The interest accrues on a yearly basis. The bank calculated my monthly payment to be $1,130 / month. Alright, so I’m getting ready to sell the house and I call up the bank to ask how much I still owe on the house. They tell me $139,400. That’s only $250 that I’ve paid off after paying 8 payments of $1,130 (which is $9,040)! I’ve done this calculation: I = PRT, which gives I = $139,650 * 0.085 * 1 = $11,870.25 of interest this year. $11,870.25 / 12 = $989.19 of interest per month. This should mean I’m paying $1,130 - $989.19 = $140.81 of principle per month, which is about $1,125 over the course of 8 payments! So why have I only paid $250 towards the principle? What am I missing here?

Getting the best mortgage rate is the topmost factor on everyones mind while applying for a home loan. There are many lenders who are willing to give you good deals. There are also some who will seem to charge you less but have many hidden costs. You have to be careful when choosing your lender. It would help you if you gather enough information about mortgage loan in general. This would enable you to know what exactly to look for.

Some Factors To Consider

You should first know what to look for while taking a loan. An important thing to know is that mortgage loans can fluctuate from time to time. If you could keep a track of the trends in the market, you would be able to get the best rate possible. There are many factors that cause these fluctuations. If you are planning on taking a home loan, you should plan it in advance and follow market trends for a while before actually availing a loan. This is one way of staying on top of the market. Some of the factors that determine this rise and fall are the demand of investors and the state of the economy.

When the economy is down, the rates will fall. This is because investors would be buying everything that they can get their hands on. This is the best time for you to take a loan. And this is when you will get the best mortgage rate possible.

Use A Mortgage Rate Calculator

There are several websites where you can get an estimate at a click. You can compare several rates offered by different lenders. This will also help you find the best available option in the market. You can also find out the rates of different types of mortgages for various periods of time by using the rate calculator. It can be a really handy tool for you. You will be able to take a look at the current rates and calculate your rates accordingly. You can even check out the second mortgage rate and adjustable mortgage rate on the site if you want to.

These sites help you to get the lowest deal that is available. You can compare the rates of the different products available. Once you have compared all the products and rates, you can find the one that is best for you. Once you find the best rates, you should check out the company and make sure that they are credible. These are the few factors you must keep in mind while shopping for mortgages.



By: Apurva Shree

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