 What do you think? |
| If myself and partner rent a house (say £350 per month) and we split all the bills (inc the rent, gas electric etc) in half, how much money could we survive on that is left over after paying the ... |
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 Fixing holes in walls in Apartments? |
| Someone put a moderate sized hole in the wall in my apartment. Is this something I should fix or should I have the apartment people fix it? Would I get charged if they fixed it?... |
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| A lady approached me about bying her house that is about to go into foreclosure in less than 30 days. She owes $165,000 I would like to purchase the house for 65,000-70,000. I would like to flip ... |
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 People whispering in the work place? |
| I work for my father's business and I found out that different individuals have been whisping and when I come into the room they stop, these people are range from 35-50yrs, is there anyway I can ... |
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 What does it mean if someone name is on the title of the home and not the mortgage? |
| The loan person I went to see, say she just wanted to do the mortgage in my name, not also my boyfriends name, but she stated that she could put his name on the title, what exactly does that mean, ... |
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 My Tenant has asked me to give her an eviction notice? council pay at the mo...? |
| my tenant is having her rent paid by the council. its a first floor flat, she is a 22 old mum (chav) and has just got herself pregnant again and is saying she doesn't want to live upstairs any ... |
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| Is there a place i can call about the Illegals that my apartment building people rent out to? |
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 Council House Question? |
Me and the bf have been on the waiting list for a while and we're close to getting a house now.
The only reason we're entitled to a 2 bedroom is because his son stays one night ... |
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 House buying question.? |
| My FICO score is about 575, and I want to purchase a home. I have paid off my debt in order to increase my score, so that I can get a lower interest rate on my mortgage. Can I buy a house know or ... |
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 Can you be a successful real estate agent if you do not have a large social network to begin with? |
| I have a small group of close friends and don't go to church or any big organizations like that. Is it still possible for me to go into real estate and be successful? Where else do agents get ... |
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 A listing agent refuses to show me a house unless they represent me if I make an offer. is that ethical? |
| I called the listing agency and the agent asked if they would be representing me if there was an offer. I told them I had been in that situation before and I was not going to be represented by an ... |
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 Any other women in their early twenties feel this way? |
| Ive been shopping for a home for about a year now. I want to own a house. I live alone now, but I rent, and thats such a waste of money. I rented the house 5 years ago when prices were good so now ... |
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 First time home buyer. Estate Agents? |
I am a first time buyer.
Do i register with only one estate agent, or go and register an interest with a few?
What is allowed? or recommended?
(UK)... |
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supernovam13 | I have an interest only mortgage. My lender has said if I can afford it I can pay 10% off the capital each yr? |
But why can I not throw any excess repayments into my savings account and when the mortgage ends in 18 years time I can pay off my mortgage from my savings and pocket the interest rather than just handing my cash to them now? |
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The Drunken Fool
|
because you will not be able to earn as much interest as they are charging on your mortgage. Paying off capital will reduce the interest payments, allowing you to pay off yet more capital. |
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Eddy T
|
It is better to pay off your mortgage as suggested by your banker because the interest charged on your mortgage is far more higher than what you can earn from a saving account. |
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Doctor Deth
 |
a regular mortgage starts out with at least 10% of the payment going towards principal. - right now, your mortgage balance is almost guaranteed to be more than the house is worth because of downturn in RE mkt over last 3 yrs. if you were paying a normal mortgage, you wouldn;t have as much negative equity |
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shortbreadtin
 |
You can do whatever you want with your money. You need to work out what's the best financial option for you. |
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Mezcal
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It is a simple enough calculation. If you can put the money in a savings account and Net of Tax make a greater return that what you would be charged on the mortgage interest then it is worth it. Frankly I suspect that after tax you will probably not make enough to make this work in which case you are better off paying the 10% off your mortgage. You should also make sure that you have thought longer term about how you will pay off the rest of the debt in the end, if 10% per annum is not realistic then perhaps you need to think about a repayment mortgage. Interest only loans are perfectly legal and can make a lot of sense for certain people - The problem is in recent years that people are taking them out because they can not/will not pay the higher repayment monthly payments without thinking about how they will actually repay the loan back in the end. Given that house prices are falling this is a risky practise. |
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truecockney
 |
If you can afford it, it is always advisable to have a repayment mortgage. You will then be paying off money from your mortgage each month, and that proportion will increase each month.
If they are saying you can pay off up to 10% each year capital, you should still be able to do it with a repayment mortgage. The only difference being you will be paying the bank LESS interest over the full duration of the mortgage. |
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src50
 |
With an interest-only mortgage, you are not paying down the principle owed at all. What you earn in a savings account will be less than what you will pay in interest. Why don't you try a refi to a 15 year fixed loan? |
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aaahyeaaa
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If you're paying off capital, then your interest will be less as it will be based on a lower amount. I think you would be better off doing it this way... especially with the state the banks are in, i'd rather owe the mortgage company less than put my savings into a bank!! |
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KATE
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I have an interest only mortgage. I am lucky I am in a position I can pay the lot off now before the endowment policy matures, but I don't wont all my capital tied up in bricks and mortar I like to keep some liquidated. I have a good income so I dont miss the £150.00 a month and I know with my lender they charge if you pay it off with more than 10 years remaining. It is really up to you and what your circumstances are, but dont be forced into something you dont wont to do. |
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anythingwilldo
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You need to get on a banking or real estate site and use one of their calculators to see just how much better off you would be to put any spare money on the principal.
You wouldn't even be asking this question then.
Interest only loans are usually utilised by property investors where I am. |
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Hanz H
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It's because your lender is earning more money from your interest. You should switch to another type of mortgage. You may use this article as a reference. This differentiates each mortgage type :http://www.mortgages-for-everyone.com/news/how-to-identify-risky-mortgages/ |
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georges10
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Very simply because your lender is charging you far more than you will recieve from any savings account. You are probaly paying in the area of 6% interest. Say your loan is for 100,000 dollars. That means you are paying 6000 dollars in interest each year minus your tax savings of 1500 for a net out of ocket of 4500 dollars. If you take the 10000 dollars you would use to pay off part of the loan and put it into savings you would get possibly 1percent or 100 dollars interest. If you put it into stocks, well you can see what can happen to money in the stock market. You are far and away money ahead by paying off the loan as soon as possible. |
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draggy43
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An Interest only mortgage? Isn't that illegal?
If your lender is asking for money on the principal of the loan it's not interest only. Pay up or risk loosing your home.
Just my 2c worth. |
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