All Questions
16
questions
10
votes
2
answers
36k
views
Construction loan for new house replacing existing mortgaged house?
Let's say I buy a home with an ordinary thirty-year mortgage, intending to renovate the house slowly and live there a long time (ten years at least). Five years into the mortgage, however, I decide I ...
10
votes
3
answers
4k
views
Overpaying on mortgage - How is term reduction calculated?
Just for some example figures:
Original Term: 25 Years
Loan Amount: £100,000
Interest rate: 2%
I'm trying to make an excel table which keeps track of my mortgage payments including overpayments. ...
- 255
0
votes
1
answer
1k
views
Algorithm to calculate the Interest on Loan with a Balloon Payment
I am trying to understand the algorithm used by My Calculators.com - Balloon Payment Calculator
If I enter the following details:
Loan amount: 4556.75
Number of months: 5
Interest rate: 5.75%
...
- 111
85
votes
10
answers
15k
views
Why is being "upside down" on a mortgage so bad?
For the longest time (especially during/after the housing crash in the US), people would speak in hushed whispers or terrified pleas when they talked about being upside down on their mortgage. While I ...
- 2,065
13
votes
3
answers
4k
views
First time home hunters. Pay debt or save for down payment
tl;dr
We want to buy a house.
We've done all the pro's and con's of home ownership.
We have 1/2 a down payment and some highish loan payments
Would it be wiser to pay down the loans and go with a ...
- 285
12
votes
6
answers
4k
views
For a major expensive home renovation (e.g. addition, finished basement, or new kitchen) should one pay cash or finance with a loan? Would such a loan be "good" debt?
This other question is similar, but was referring to a specific renovation/repair (new flooring) that, while expensive ($1500), isn't very expensive – it's feasible to consider saving up for ...
- 31.7k
9
votes
2
answers
3k
views
What is the formula for calculating the total cost of a loan with extra payments towards the principal?
If I have a 30 year mortgage of $200,000 with an APR of 4.446% I can calculate how much my monthly payment will be and how much the total cost of the loan will be.
But what if I have an extra $200 to ...
- 91
3
votes
2
answers
2k
views
What is the formula for loan payoff date?
My goal is to calculate loan payoff date. Actually I'm making a wordpress plugin to calculate that. I made a form from I can have following inputs from user.
Current Loan Information
Original ...
- 133
60
votes
9
answers
18k
views
Why are 30-year mortgages seen as unwise, if you can pay off the loan in a shorter period of time anyway?
I'm slowly working towards buying my first home (yay!), and have been playing around with the numbers. As far as I can tell, there's literally zero advantage for getting a 10 or 15-year mortgage since ...
user44315
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
16
votes
4
answers
10k
views
Will our hefty student loans affect our chances of getting a mortgage?
My husband and I live simply but we're content. I'm an avid budgeter and love finding ways to be frugal. My dilemma right now is that we've been able to keep our living expenses below what we make, ...
- 2,286
5
votes
1
answer
1k
views
How to obtain "Negative Equity Insurance" aka "Home Equity Protection" aka "Equity Protection Policy" in the UK?
I'm searching for an insurance policy to protect against negative equity on a residential real-estate.
The risk I'm trying to protect against is that house prices will fall.
I'm looking for ...
- 483
1
vote
2
answers
789
views
Compound Interest & Mortgages
Mortgages are compounded 2 times a year in Canada and 12 times a year in the USA. However, I read that mortgages are simple interest and not compound interest because you pay the interest for each ...
- 27
1
vote
3
answers
538
views
What is a tranche?
I am studying Collateralized Mortgage Obligations (CMOs) - My understanding is that the product consists of mortgages which have real estate as collateral.
The mortgages are bundled in batches which ...
1
vote
1
answer
361
views
Understanding pledge, mortgage, and collateral in home buying
I am trying to better understand the terms pledge and collateral, in home buying.
My understanding is that a Pledge is usually a pawn or piece of property used to secure "financing". When I try to ...
- 449