All Questions
138
questions
0
votes
3
answers
153
views
Do lenders consider stocks and bonuses as part of your income?
Most tech companies give their employees a basic income plus a certain amount of stocks plus annual bonuses.
I am wondering if someone has a $120k salary + $50k stocks + $50k bonus in a year, would ...
- 151
6
votes
4
answers
4k
views
How exactly does a biweekly payment schedule on your mortgage reduce the amount of overall interest paid over the life of the loan?
Here is how a normal fixed-rate monthly amortization schedule is calculated:
First we determine the total monthly payment:
Payment = [P*(r / n)(1 + r / n)^nt] / [(1 + r / n)^n*t - 1]
where n = 12, P ...
- 161
14
votes
3
answers
7k
views
Which mortgage should I pay off first? Same interest rate and mortgage length
tl;dr:
I have two amortized mortgages; one big and one small.
The conditions (interest rate and mortgage length) are exactly the same.
Which should I pay off first?
I have always heard that you ...
- 143
3
votes
1
answer
644
views
Can applying for a new loan affect my existing mortgage? (US)
I live in the US and I am a somewhat mature full-time graduate student. I have gone back to grad school after having spent some years working and I have children and a mortgage. My school has a policy ...
- 695
0
votes
1
answer
1k
views
When using land as a down payment for a construction loan, how much money can I borrow?
I am looking to purchase some land in cash (in the USA) and build a house on the land. I intend to use the land as equity (as part of the down payment) for a construction loan.
I'm looking to ...
1
vote
1
answer
324
views
Income Tax Return: Is the co-op's mortgage (not the lending institution mortgage) a secured or unsecured loan?
I have two 1098 forms: One from the lending institution and another from the Corporation. For the lending institution 1098 form, I deduct the mortgage interest and there are no real estate taxes. It's ...
- 145
3
votes
1
answer
193
views
Title company doesn't know how to amortize a loan?
More likely I don't get it/am not used to this. Can anyone explain/formulate what I'm told is a "Daily amortized, 5.5%, fixed interest rate loan"?
I've been buying and selling properties for ...
- 1,541
1
vote
3
answers
175
views
Put down only 10% or put 20% down and pay a family member back the other 10% at 2.99% interest rate?
I am buying a 350K condo with 10% down, 2.99 interest rate, 30 yr fixed mortgage (I hope to pay it off in 15 yrs).
I cannot put down more without depleting my savings. Should I ask my dad for a $35K ...
- 11
2
votes
1
answer
100
views
What's the APR for this in combination with the Balloon Payment of 6525 USD?
I am trying to solve the following:
Finance Amount: 24.951,82 USD
Interest Rate: 2.29%
Residual Value: 6.525 USD
Number of Months: 60
Fee: 374.28
Years: 5
What's the APR for this in combination with ...
- 21
3
votes
0
answers
345
views
How does “Velocity Banking” actually work?
I’ve seen this mentioned a few times now in various financial articles, but it smells like some kind of “system” a gambling addict would come up with to “beat the house”. Doing a web search on it, I ...
- 309
0
votes
4
answers
2k
views
Why doesn't just everyone mortgage a property from bank, rent it out and make monthly payment to the bank by that rent?
I don't have any background of loans and finance since I am an Engineer, but I have been planning to own a property lately. What I understood from my research is that there are two options to get a ...
- 111
-2
votes
1
answer
211
views
Is buying a mortgaged property profitable?
I am planning to buy a property and wondering if this property is worth buying.
A. Price of property including everything: Rs 45 lacks
B. Down payment: Rs 5 lacks
C. Loan/Mortgage (C = A-B): Rs 40 ...
- 97
0
votes
2
answers
193
views
why would a mortgage lender be asking someone a year away from retirement about their pre-retirement income?
My 69yo mother is looking to buy a new house (and sell her current one). Based on what she's expecting to get for her current house, how much she still owes on her current house and how much a new ...
- 3,842
0
votes
3
answers
225
views
Home sale payment
My questions refer to real estate in the US.
When the buyer pays cash (i.e. without taking a loan), would it usually mean that the buyer will have to pay the whole amount in a single payment? Or is ...
- 465
6
votes
3
answers
2k
views
Was 50k loan limit always a part of the 401k program and are there any ways around it?
I got a loan from my 401k that I repaid a while back and I don't remember anything about a $50k limit. Now I am buying a new house before I sell mine and the $50k limit seems to be ridiculous since ...
- 4,727
1
vote
2
answers
145
views
Should a mortgage refinance bank be granted access to full tax returns of the last two years?
I'm shopping around to refinance my mortgage (in the USA) and one bank asked for the following information:
2018 & 2019 Tax Returns (All Pages)
2018 & 2019 W2
Most Recent Last 2 Paystubs If ...
- 293
3
votes
2
answers
230
views
Should I prioritize repaying my 401(k) loan over maxing out my 401k contributions?
I took out a $22,000 loan (over 7 years) against my 401(k) for the purchase of a new home. I currently owe $15,000 on that loan. While I make 401(k) contributions each paycheck, I am not making the ...
- 33
0
votes
0
answers
35
views
Interest and principal line-item amounts for seasonal mortgage
I'm working with this question: Seasonal Loan Amortization. I wondered if someone could elaborate how to calculate the principal and interest portions of the payments when they are paid. The article ...
- 1
2
votes
1
answer
156
views
Why would anyone use Heloc to pay down a house?
So I been thinking about buying my first home. I saw youtube and other resources saying that heloc is better and faster to pay down your mortgage. However, heloc just doesn't make sense to me. It has ...
- 467
1
vote
2
answers
361
views
Can you get a mortgage loan larger than the house amount and buy a car with the remaining loan amount?
Would it be possible to get a mortgage loan for 40-50,000+ the amount of the house and then use the remaking amount of the loan to buy a car? The house is 62,000 and I’m pre-Approved for 120,000 .. ...
- 11
0
votes
1
answer
189
views
How to calculate a loan constant payment (like PMT) but extra double paying (without interest) twice a year
This is my first post in this community, already tried to find my answer, and didn't succeed :(.
I'm working a way to understand the formula behind a loan that allows the client to extra pay the same ...
- 111
0
votes
0
answers
38
views
Specific name for a refinancing mortgage loan
I have a translation issue and I'm not sure where else to turn for help. In our country, there is a type of refinancing of a mortgage loan, which works thusly:
Someone decides to renovate their ...
1
vote
3
answers
494
views
Should I buy a house or wait for the housing bubble to burst?
I am a 23 year old living in Romania, currently renting an apartament. I am earning enough that I am now looking to buy an apartment of my own in the near future with a mortgage loan, but, right now, ...
- 165
6
votes
5
answers
5k
views
Early payoff of mortgages: does the interest get recalculated?
I understand that a monthly payment of a mortgage consists of principal and interest. At the beginning of a mortgage, most of the monthly payment goes towards the interest and only a small part ...
- 163
27
votes
5
answers
12k
views
Buy house with down payment, no loan, sell instantly
I just read Rich Dad Poor Dad, and I have no idea about mortgages, loans or real estate.
The author of the book describes a scenario in which a property is found for a cheap price (auction in this ...
- 387
1
vote
1
answer
133
views
Why do FNMA and FHLMC impose loan limits?
Why do FNMA and FHLMC announce new loan limits for one to four-family loans?
Is there a justification to have something called "conforming" loans as opposed to "jumbo" loans?
Is this to separate on ...
- 449
13
votes
8
answers
7k
views
How much income am I getting by renting my house?
I am moving from Portland, OR to SF Bay area and therefore contemplating whether to sell or rent the house. I am not planning to move back to this house.
Property details:
Bought for : $267,000
Paid ...
- 409
0
votes
2
answers
219
views
Buydowns when House Market is Weak
I would like to better understand how the buydown works in residential housing market.
A typical situation that comes to my mind is that a developer who wants to get rid of excess supply of homes in ...
- 449
1
vote
2
answers
1k
views
Residential Mortgage Tilt Effect
The way I understand the mortgage tilt effect is that the lender "prices in" the expected rate of inflation into the contract borrowing rate, so that the lender is compensated in the earlier years of ...
- 449
3
votes
1
answer
176
views
Why do Loan Discount Points Exist?
Loan Amount Disbursed = Face value of Mortgage in the contract *(1-discount points).
Why do we have this type of computation in place in the US? Is this conventional because of some history behind it?...
- 449