 My tenant wants to break the lease and move out immediately. as a land lord, what should i do? |
| she says that her mother has cancer and she has to move to Texas to take care of her. she says that she got fired from her job. there is no money to pay rent next month.... |
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 Apt rental agreement question with a faulty appliance? |
| I have just gotten a new 1-bedroom apt and it came with a refrigerator. most of the apts though in this bldg and managment company DO NOT come with a refrigerator and so i noticed there was one when ... |
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 How much am I entiled to? |
| My ex and I bought a house together a year ago. It is financed in her name alone, but both of us are listed on the deed. She broke up with my four months ago and we are in the process of sorting ... |
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 Father-in-law possibly buying house across the street? |
| my father-in-law and his girlfreind are looking into buying the house that's up for sale right across the street from my husband and I. My husband wants him to buy that house, however I'm ... |
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 Am muslim lady came to london from abroad for treatment looking for stadio flat to rent for 6weeks close to? |
| regent mosque, ready to pay 150 per week maxi, please may allah reward you can you help please reply yes or no. ... |
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 The house I'm buying isn't worth the price offered...? |
| the appraiser said it wasn't worth the price. it's about 50,000 less than what we offered. the sellers don't owe anything on it, but i'm worried they won't negotiate with ... |
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 Is this a good time to buy house / condo in Conneticut? |
| or are the prices expected to still come down? Do you think prices of Condos and townhouses will coem down, too?... |
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 Is It ok to Tag Along With a House Inspector While He/She Is Inspecting Your Future House? |
Buying a house and need an inspection. (Cincinnati, Ohio) A friend said that their house inspector did not want them to be there because he might get distracted.
Is that the norm.? Or ... |
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 A subprime borrower preparing for refinance? |
| When I bought my house a year ago I was a subprime borrower. I have a mortgage through Option One a known predatory lender. However I have made all my payments on time and havnt had one problem. In ... |
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 How much rent should this family pay? |
How much rent should this family of 7 pay?
Here's the family:
- A couple in their early 40s
- 4 kids (aged 4 - 13)
- 1 baby (5 months)
They're ... |
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 Want to put in a back up offer on a house that is pending sale now? |
| We found a house that we like, but someone else put an offer on it last week (almost 2 weeks ago) Is it too late for us to put up a back up offer?... |
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 Should i withdraw money from my 401k for closong costs? |
i need to come up with $4500 for closing costs and my only resource is my 401k. is it wise to do this and just deal with the penalties and fees that come along with it?
Additional Details<... |
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 Should I move? |
| I am fed up with the way my landlord talks to me. I am moving. The rent here is cheep. I have a one bedroom for $750/mo- which is cheep in New York. I think she has a screw loose and I dont feel ... |
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 I private rent a house which I have lived in with present landlords for 2.5 years? |
| They have recently issued me with a new type of contract which lists all the things that I am responsible for. This includes keeping the guttering clear! (I did see them prior to receiving the new ... |
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Sarah | Question about a home morgage and interest.? |
HI, I am thinking about getting my first morgage, and I am confused. My broker says for the first few years I will be paying mostly just interest, and over the course of the loan interest will reduce and payments toward the actual home will go up. But what happens if I only live there for 2 or 3 years, then want to sell it? Will I still owe all the rest of the interest that would have accumulated if the loan reached maturity? If not, but I have paid primarily interest, after 3 years when I sell I will basically only get a very small fraction of what I paid the bank back from the sale? What is the best way to proceed if you only want to live in the home for 3 years or so, and then sell? |
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shiba
|
Yes, your broker is right. However, if you will pay just an extra 50 bucks a month, you will DRASTICALLY lower your principal balance, saving literally thousands of dollars over the life of the loan if you keep it more than a couple of years. Another great way to lower your principal is to split your monthly mortgage payment into 4 WEEKLY payments, this will attack your principal balance quickly. You will want to make sure your lender will accept this type of payment (although they sure won't LIKE it, due to loss of interest on their part).
It is up to you what type of loan you get. Ask questions to prospective lenders. You shouldn't have to pay interest that hasn't accrued (what you would pay if you went through the entire life of the loan). If that is what they are proposing...LOOK INTO OTHER LENDERS..this is not standard practice.
Homes will normally gain value over time, if kept well. You may not come out ahead a lot over just a few years, but you should have some equity (value) built up.
Good luck....ask questions...no question is dumb. |
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scrappinmomma
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why not keep it as a rental property? it is true that you probably won't get much back b/c you won't have much into the home. when you sale the home it will pay back the "payoff amount" which includes interest to date. |
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bigtalltom
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When you sell, you pay off the rest of the principal of the loan in one lump sum. You will NOT owe the rest of the interest once you sell.
Yes, if you sell after 3 years, your payments will not have built up that much equity. But if the value increased you'd get that profit. |
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NONAME
|
I'm a financial advisor, and it's illegal to give financial advice like this without being authorised. I'll tell you what I did though.
I took an interest only mortgage (you only pay the interest generated not the capital amount) and bought a flat in need of renovation. Did the place up over a year and sold for a 14000 pound (British) profit. Interest only is a good option for me as I wanted to keep my costs down over the year. If I had chosen Capital and Interest (also called a repayment mortgage) then I would have been in the situ you describe. In this case the monthly payment would have been more expensive to me as I would have been paying both the interest generated and a small proportion of the original capital I borrowed. When selling you phone the mortgage company and ask for a settlement figure, whereupon they will add the capital amount outstanding to the interest due up to the date you want to repay, so if I borrowed (interest only)100 000 I'd have to repay 100 000 plus say about 300 with was about one months interest. If I had chosen C&I then I would repay something like 999 800 plus a month or so's interest.
I've just read what Shiba says and I'd agree too, it's a complex market. Questions should be asked at every stage along the way, ANYTHING you don't understand untill you totally understand. The brokers job is to find you a good loan so make sure he isn't a tied agent - you're prob better with an independent advisor and also to explain things in a manner that you understand. If you don't then the brokers a bad broker - get another one. |
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something
 |
Tough question. One more thing you need to throw in is the commission when you sell, about 7%. So, if you're buying a $100k dollar home, when you go to sell, you'll pay 7k in fees. Ouch. But, this can be offset if you find a good deal on a house.
On to your question. No, you don't have to pay the remaining interest. Each months payment covers(hopefully) all of the interest, some principle, and taxes.
As for buying the house, one major factor is how much do you want to live in a house. Also, there are a lot of first-home expenses. Have you seen the price of blinds? Do you have a lawn-mower? Furniture? Repair bills? I really prefer living in a house, but I know it's not for everyone. |
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jmorritz
 |
If you are only going to be in there for 2-3 years, it is usually recommended that you just rent. Since you are mostly paying interest, as well as closing costs and fees, it is not normally profitable to purchase unless you are going to be in the house for several years. |
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brianbondy101
 |
Let's say your mortgage is for 1200. You will only be paying around 300 every month towards the principal. And the rest will go towards interest and property taxes.
So this means that if your loan is for let's say 200,000. Then every month, that loan amount is only going down by 300. The rest of the money is unfortunately wasted. There's nothing you can do about it.
You should be able to get a breakdown every month of the amount put towards your principal. Just ask your bank.
When you want to sell, you take the selling price (let's say you want to sell for 200,000). From that 200,000 you subtract the amount of principal payments total you've made. So 200,000 - 300*amountOfPayments = profit that you will put back in your pocket or put towards your next house. |
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wassonattack
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You are only going to have to pay off any of the interest that has been earned. So, if you pay off early, then you don't have to pay the interest as if it went to maturity. Make sure there is no prepayment penalty for paying off early. The good thing with a mortgage (on a house, not mobile home) is that the equity immediately begins to rise! Right now, especially! (depending on the area). So you may get a mortgage for what the home is worth, now, but then you can sell it for the principal amount, lus any interest you paid, PLUS some (most likely). This is what investors do all the time! |
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Wild
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Go for it.Interest will be high for awhile but comes down with time .Don't ever worry about signing a house mortgage yea you will have to ask for a pay off for the loan,so you might lose money depending on how much you pay for the property. |
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