 I purchased a home last October, 0% down.? |
| Will sending my mortgage company $3k towards my principle help reduce my monthly bill? By the way, I got a 6.375% rate for 30yrs. Should I try to refinance instead?... |
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 They want to keep our deposit! we havent even signed a lease!? |
They want to keep our deposit! we havent even signed a lease!?
we put a security on a house we were going to rent this past saturday, they don't want to give us back our money now. My ... |
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| If the bank of England raise the interest rate do house prices usually come down? |
| I'm hoping to buy a house this year and the Bank of England have just added another 0.25% to the ineterest rates. How does this effect house prices?... |
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 Do I still pay my rent if Landlord is in Foreclosure? |
| Okay, it is November 10, 2008 and according to the papers the court server just dropped off my landlord has not paid his mortgage since June 1, 08. I have tried to contact my landlord to find out his ... |
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 Do you know any on who can help save my house? |
| i got hurt at work ,and can not work the mogt people redid my house note , to help me out it went down to 563.00 now there calling me and telling me it is back up to 824.00 i only get 827.00 a mo ... |
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 Is this a scam? |
I have my house listed online and I have been eamiling this guy back and forth. He wanted pictures of the home and so on and so on...and the lowest price and then I got this ermail from him
... |
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 My next door neighbour has put his house up for sale my question is ? |
| Why does he think it is worth a small fortune. It is a poxy little 2 up 2 down.... |
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 I have £225,000 cash in the bank.? |
| do you think i should wait for a resession before i buy when the property values crash to buy a big ... |
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 In a rental apartment is it ok to have a fish? |
| We are renting an apartment in which the contract specifically said 'No Pets'. Fair enough that cats, birds and dogs ruin the place with their poo and fur and feathers and scratching. Of ... |
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 Which type of mortgage is best? |
| Which is better, 10 yr fixed mortgage or a 30 yr fixed with extra principle payments?... |
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 Am I wrong or is my mother? |
| I made several financial mistakes which have hurt my mothers financial stability. She had financed a house for me which I was responsible for making the mortgage payments. As of know the house is in ... |
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 If I add a 2 car garage to my house, would I still have to pay PMI? |
| If we add a garage to our house and that makes the value go up, would we still have to pay PMI insurance? We are paying 80,000 for the house and there is no garage. If we added a 2 car garage would ... |
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 How to handle the Death of a Tenant? |
| My tenant passed away last week. Aside from the fact that she has not payed me the rent for June, she is survived by her 17 year old daughter and 14 year old son. Is it legal for me to vacate them? H... |
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 Is it true that estate agents wait until a friday ...? |
before giving you the keys to your house?
What day did you get the keys for your home?... |
|
 How do i look up?...........help? |
| How do I look up what propery or building used to be on the land where I live at now? I want to find out because I think my apartment is haunted. Does anyone know of any websites where I can look up ... |
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 Can anyone suggest a good company to refinance with? |
| Has anyone ever heard of Refinance.com or refinanced with them?... |
|
 What adds value to a house? |
Please help i can't decide!
What adds more value to a house-:
Having 2 reception rooms (1 lounge, 1 dining room)
OR
1 lounge and a big kitchen, diner
My house has ... |
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 Does having a pitbull next door make your house harder to sell? |
We don't have a fence between our yards. The dog is in a large fenced cage.
Additional Details
Pitbulls are not banned in MI. We are not allowed to put up a fence.... |
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 Buying a House - Making a low-ball offer to a "DESPERATE" seller... Advice??? |
| Found a 12 yr old 3,200 sqft house we want to buy that needs some work. It has been moved 200 yards to make way for a new development. Its structurally sound but needs new kitchen countertops (... |
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 What rights do tenants have if a house they're renting is taken over by the bank (landlord not paying mrtg)? |
| We found out a week ago that our landlord wasn't paying mortgage on a house he leased us, and it's up for foreclosure, some huge company took it over, and are evicting us, giving us $500 to ... |
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macin77 | If you have an interest only mortgage, do you not accrue equity in your home? |
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 |
 
iceman
|
The natural course of time will add value to your home.
Also, most people with interest only mortgage still tend to make princple payments when they have extra money laying around. |
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dusmul78
 |
As time goes on, your home will appreciate in value. This appreciation is the only equity you will accrue with an interest only mortgage. |
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Amanda H
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Wow. Too bad Recomio is the WORST "professional" i've ever seen.
With an interest-only mortgage, you do not pay down the amount of your loan. You pay only interest on the note, and no principle. The only equity you acrue is on apprecation. |
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flamingojohn
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You will not pay down your principle if you make only the required payment. You can accrue equity through normal value increases in your property- which depending on where your home is may or may not be happening right now. However, there is no rule saying you can't pay extra towards principle while in the interest only phase of your loan. There is generally a line for you to add in any extra payment you wish to apply towards principle on your payment coupon. Anything additional you put in will directly pay down the principle balance and you have equity gains accordingly.
So basically accruing equity can be gained by natural increases in value, or you can proactively pay extra towards principle at anytime and also accrue equity. |
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wizjp
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Of course not. Equity is principal; and you aren't paying it. |
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mazziatplay
 |
The only equity you accrue in your home when you have an interest only loan is equity accrued by appreciation in property value. |
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rlloydevans
 |
Yes you do accrue equity, only not quite so fast.
In a normal 30-year loan, if your payment is $1,000, then about $985 goes to interest and the remaining $15 to pay down the principal. This ration changes as you go along until in year 30 your $1,000 payment is $985 to principal and $15 to interest. So what this means is that for the first 3-5 years (depending on the loan) your loan principal balance only goes down a fraction.
If it is an interest only loan, the principal does not go down at all. It just makes your monthly payment less.
Now, you still will get any equity from the increased value of your home. So if you are buying a property, and only plan on keeping the property for 1-5 years, and you expect property values to rise during that time, then an interest only loan can be good for you. You will sacrifice some equity you would have earned, but saved thousands on your monthly cash flow.
Of course, if you are planning on keeping the property for longer than 5 years, or there is a question whether your property will increase in value, then an interest only loan is bad for you.
Hope this helps. |
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sandy
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yeah that's right. i heard from a financial consultant that has a t.v. show that interest only mortgages are the worst you can possibly get and are a rip off |
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ConcernedCitizen
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recomio, crawl back under the rock you came from. No matter how you try to diguise it, it's a scam. dusmul78 is right; with interest only you don't accrue any equity other than your appreciation. After 15 years you'd still owe as much principal as you did at the beginning.
One more word of advice to everyone. Never trust a "financial professional" who doesn't even know how to spell "principal" correctly. A "principle" is an ethical standard, which is something recomio doesn't have. "Principal" is the balance you owe on a loan. |
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sfcjcl
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Maybe, depends if the home increases in it's value. Otherwise, you are currently paying the intrest only for a set period of time. |
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Christine W
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I don't think so. I know you start gaining equity when you start paying principle. |
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recomio@sbcglobal.net
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Of course you do, because youre paying interest before principle, which is better than the traditional. Why? because in a traditional, you dont pay off your interest for 15 years, and only paid about $15,000 of your principle. Atleast in an interest only, you get your principle down faster, which in turn creates more equity . We actually offer programs that will lower payments cheaper than an interest only loan, and it made for all buyers, but only the investors know about it. IF interested in it, let me know. |
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