A mortgage loan, or a home loan, can come in many different forms. A 30-year fixed rate, a 15-year fixed rate, an adjustable rate mortgage, a jumbo loan. And what about prepayment or foreclosure? The articles, blog posts, videos and radio shows on this page will answer all your mortgage loan questions and help you find the right mortgage loan for you.
Mortgage Transfer to Relatives Before Giving Home
If you give your home as a gift to relatives without checking to see if the mortgage loan is assumable, as the former homeowner, you are still responsible for the mortgage. The situation is worse if mortgage is still in your name but the deed is in the name of your relatives. As the former home owner, you are responsible for all the mortgage payments, and need to either refinance the mortgage in your relatives' names, or transfer ownership back to yourself.
The Tax Advantage Of A Mortgage
A lot of people think that they'll do better by getting a bigger mortgage because they can write off the interest they pay on their federal income taxes. But getting a bigger mortgage will only pay off if you itemize on your federal income tax form and if you have a better place for your cash than in your property. Most investments won't pay more than the interest rate you're paying on your mortgage.
Good Faith Estimates: Applying For The Right Mortgage Loan
A home buyer wonders about the limits of a good faith mortgage estimate. Ilyce points out several good online resources to help the buyer select the right mortgage without a good faith estimate. Good fait estimates are usually provided after you apply for a loan.
IRS Tax Refund: Pay Debt And Loans Down, Start IRA
Getting a tax refund from the IRS isn't much to brag about. If you're getting a tax refund from the IRS, you just gave the government an interest free loan by overpaying what you owed. There are some smart moves you can make with your tax refund from the IRS.
Seller Financing Offered to Rental Tenants
An investment property owner wants to sell their property to the tenants and offer seller financing. The seller financing will work like an installment purchase, or "lay-away" plan. The installment contract with the seller will include certain provisions that will pay "interest" on the amount owed by the buyers along with payments for all of the costs associated with the ownership of the home. When the time comes to transfer title to the home to the buyer, they will pay off whatever remains on the installment contract. The seller will use part of the cash they pay to payoff the current mortgage.
Are Prepayment Penalties Illegal?
Prepayment penalties are illegal in some states, but they are still legal under Federal law. Also, they are only illegal for certain types of loans. As far as owner financing goes, some states permit owners to charge a prepayment penalty, and others do not.If you payoff the loan early, the lender loses the money it would have made in the future. With that in mind, many lenders protect themselves from early prepayments on loans by forcing the homeowner to pay a penalty if he or she decides to pay off the loan before the end of the loan term. These penalties are known as "prepayment penalties."
Interest-Only Loans Best For Short Term
How do you know if an interest-only loan is good for you? Interest-only loans generally work best for short-term circumstances to avoid getting into higher payments you cannot afford. Rates for interest-only loans can me lower or higher than a conventional fixed-rate or adjustable mortgage.
Refinance Old Mortgage Or Home Equity Line Of Credit?
A homeowner has a small balance on their mortgage with a high interest rate, should he refinance or get a home equity line of credit? The homeowner and Ilyce cover the options for refinancing the remaining balance, or getting a home equity line of credit. Ilyce suggests a home equity line of credit instead of refinancing in order reduce interest.
A Canceled Wedding Impacts Homeowner
A woman canceled her wedding but is still on the mortgage loan for the home she bought with her fiance. Until the fiance refinances the mortgage, the woman will be responsible for 50 percent of the mortgage. Keeping her name on the deed to the home will give the ex-fiance a reason to refinance the home in only his name.