All Questions
8
questions
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
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
0
votes
1
answer
2k
views
Effective interest rate for mortgage loan
I'm currently deciding between taking loan with down payment and no down payment. To get behind the idea, I read a case study from a finance textbook.
I get the basic math and understand concept of ...
- 103
-6
votes
2
answers
1k
views
Why is there so much interest on home loans?
Search around the internet for current mortgage rates and play with some of the amortization calculators. You'll see that at the end of the payment schedule you will be paying almost an equal amount ...
- 121
1
vote
2
answers
1k
views
Should I take out a bigger mortgage, or pay a greater cash deposit?
Let's say I want to buy a house worth £400k. I can get a mortgage up to £300k, and I have £150k cash sitting in the bank. Which would be my best option:
1) Take out the maximum mortgage of £300k and ...
- 601
1
vote
2
answers
268
views
Credit Unions vs Bank Mortgage
I am a first time home buyer. My home-buying credit score is 620. I was recently preapproved for an FHA loan with my bank. The interest rate is decent at 3.75%, the only issue is I will have to pay ...
- 286
3
votes
1
answer
223
views
Formal Definition of APR
I have seen several conflicting sources on the internet about APR. Some say the effective rate is (1+APR/n)^n -1 while others say this formula is the APR since APR represents the rate over all ...
- 31
6
votes
7
answers
768
views
How smart is it really to take out a loan right now?
With the economy in its current state (i.e. horrific), interest rates on loans are very low right now. I have heard people say that right now is a 'good' time to take out a loan, and that it is a ...
- 163