Four reasons not to refinance your home Globe and Mail
There is no magic number that represents an acceptable break-even period - it depends on how long you plan to stay in the house and how certain you are about that prediction. (Find out how to determine whether refinancing will put you ahead or even more behind. For more, see How Mortgage Refinancing Affects Your Net Worth .)
2. The long-term costs are too high
Refinancing to lower your monthly payment is great - unless it hurts you significantly in the long run. If you're several years into a 30-year mortgage, you've paid a lot of interest but not much principal. Refinancing into a 15-year mortgage will probably increase your monthly payment, possibly to a level that you can't afford. If you start over again with a new 30-year mortgage, you're starting with almost as much principal as you had at the beginning of your current mortgage. While your new interest rate will be lower, you'll be paying it for 30 years. So your long-term savings might be insignificant or the loan might even cost you more in the long run.
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How do I calculate what my new payment would be if I refinanced my 30 yr mortgage?
Current rate is 6.375% fixed
Current Payment is $1,671.15 per month
Loan Amt: $242k
I have a BA-35 calculator, but can't remember how to use it.
What is the new rate?
What you might look into (and what I did) was to go from a thirty year mortgage to a 15 year mortgage! Cut in HALF and amazingly, the monthly payment didn't go UP all that much! It all has to do with time and interest!
Good luck and I hope this helps!
my website has an amortization calc www.firstntlmtg.com
Will A Mortgage Company Refinance Me For Tax Lien?
I was hospitalized 4 years ago and had to have a major surgery with a much longer recovery than I ever anticipated. I live alone, I dropped many of my responsibilities, it all fell by the wayside and actually it is only the last year I'm beginning to catch up. I didn't file that year and I received an IRS letter recently with calculated penalties and interest of a little over $30k. On top of that I have outstanding uncollected hospital bills of about $30k. I have a home I inherited free and clear that is valued around 120k. My question is: Can I find a mortgage company that will deal with me though I have terrible credit and never had a mortgage? What kind of loan amount would be available? And what would likely be the interest range/terms for someone like me? Thing is, I don't want to lose my house right when I'm just beginning to pull my life back together. thanks in advance for your thoughts.
The tax lien is your worst enemy right now. Now that you own this home they could seize it and auction it to pay your back taxes. You need to contact the IRS and setup a plan to repay this debt and stick to it before they take your home. They can and do seize property (just ask willie nelson) and it is only a matter of time before they find out about this property. I doubt any lenders will touch this until the lien is gone. If they were to loan you money they would be at risk of loosing their collateral to the IRS. If your home goes to auction your chances of getting the homes value would be greatly reduced, especially in this market.
how calculate present value of investment?
I have a partnership investment I inherited -- I never have looked very carefully into it. Also, the partner is another family member, so I have basically left it all to trusting the general partner.
Now I want to sell and think I am being cheated of the fair value of the investment. The partnership holds the notes on the financing of real estate. How do I calculate present value of this investment.
I remember from college that there were formulas for calculating present value of a steady stream of future income. The thing is that this is not a certainty that this is a steady stream. People can default on their mortgage, or pay it all ahead of schedule if they refinance.
Is there an easy way of calculating PV without hiring an accountant?
calculating the PV is easy to do in microsoft excel. the problem is estimating the stream of cash flows. it doesn't have to be a steady stream, you can calculate PV based on variable streams, but you will have to estimate how much you will make each year, or at least the next couple years, then estimate an average amount you expect to make per year from there on out.
if you hire an accountant, he will make these estimations, so its not like he is doing anything that you can't, except his estimations might be better.
You can also search for Net Present Value or IRR if you want some other ideas on how to value your investment. If you have some idea of your future cash flows for the next 5 or 10 years, you should be able to calculate a PV. Good luck!
http://www.noteworthyusa.com/calc.asp
Enter all of the fields except for PV then press the = sign next to PV to calculate Present Value.
Good luck,
Peter K
Here's how it works
First, all future cash flows would be discounted back at 10% to determine the present value of those cash flows. Secondly, the $100,000 initial investment would be deducted from the PV. The difference between the two is the NPV. For example, if the present value winds up equaling $110,000, the $100,000 would be subtracted to determine a net present value of $10,000 ($110,000 - 100,000 = 10,000). Whereas, if the PV calculates at $90,000, the NPV would be -$10,000 ($90,000 - 100,000 = -10,000).
For More Info Visit
http://hot-uk-real-estate.blogspot.com/
should mortgage person be paid if no acceptable mortgage is calculated?
I have 4 properties- 2 investment, 2 residential. My main home is with WaMu and has a second with Countrywide. The mortgage person told me he could get a second on one of my investment properties that he refinanced, then I could use that cash to re-fi my main home, I would be able to get out $12,000 and then combine the 1st and 2nd plus get lower payments on this home. This has been going on for 2months, and he just told me that he could not get the second from the rental, and that I would have to come to the closing with $20,000 for my main home to go through with WaMu,plus payment would be closeer to $2100,a month with escrows combined! I put a halt to this because it is a worse scenario than I have currently. He is stating that I should pay him $1000 for all his work! Do I need to pay him for his (as he stated child support)?
you need to pay him if you signed a contract with him that said you pay him 1k no mater what. If you didn't, tell him to go to hell.
This is some kind of shell game this person is playing with your money, and you will only lose. Tell him to get lost and don't pay him anything because his ideas are not beneficial and make no logical sense. Tell him you have you own child to support.
His work amounted to nothing because he did not know what he was doing and merely wasted his time as well as yours. No loan closing, no payment.
Being a broker is a sales job and not all deals get done. You dont owe him for his time. There is alot more going on here than meets the eye.
As far as the loans go - yeah, it sounds pretty wrong to try to do what you've written here. And maybe he had a way to work it out if this was August of 2006 instead of August 2007. Many loans have disappeared in the last 6 months. Many loan officers will be disappearing in the next 6.
If his bread and butter have been cash-out re-fis, or sub prime type loans, he either needs to get with a company that does "real" loans, or if his does already, he needs to learn those products - or he needs to go to another career.
You need to call Frank IMMEDIATELY at 661-635-4900 or 919-802-3119 or 866-728-8587. He can get you financed with his network of over 400 lenders (up to 100%) even with bad credit. He has helped me with 4 properties and it has saved me thousands per month. He also helped me with foreclosures and made me a ton of money. He is an expert in this area.
http://www.realestatefundingnetwork.com
How do you calculate the profit for a rental house?
I am new to house renting, and so I have some questions about how to calculate the rental income. Assume the monthly rent is $2000 a month and we're only considering the mortgage expense. How should the taxable income for the following two cases be calculated?
Case 1: Mortgage payment is $2000 a month, the same as rent. What will the rental profit be? Is it $0?
Case 2: Mortgage for rental house is paid off, so mortgage payment is $0. Is the rental profit $2000?
If both cases 1 and 2 are true, should one refinance the rental house to maximize the mortgage payment?
Your profit is what you get to stick in your pocket and take on vaction with you after paying all the bills.
If your mortgage is $2000 and the rent is $2000 you're in trouble. Operating expenses across the US are roughly 45-50% of gross rental income. So take out $1000 gives you $1000 NOI. Take $2000 out of that for the mortgage and your looking at a profit of -$1,000. Doesn't sound like a great deal.
If you have no mortgage, be satisfied with the $1,000 a month in profit.
Divorced but still on ex's mortgage?
I divorced two years ago and my "brilliant" lawyer did not insist on requiring that my ex refinances the mortgage loan, but he convince me to quitclaim interest in the property. It appears to be close to imposible to get a judge to order the refinance now, besides i don't have the money to hire a lawyer. I find myself stuck with an almost 100k mortgage loan that shows up on all the major credit reports and everytime i turn around the bank is using this debt in calculating the debt to earning ratio. Do i have the right to request a monthly statement from the mortgage lender to keep track of whether or not the ex is making the payments? Could i get the bank to take my name off the loan whithout going through lawyers and courts?
Since your name is still listed on the mortgage, you're still obligated to make sure the payments are made. You can also get any and all information about the mortgage that you want. The bank won't take your name off the loan unless your ex refinances in his name only.
You do have the right to a regular accounting of the loan status since you remain jointly liable.
The bank will gladly remove you from the loan if it is refinanced. Otherwise, why would they let anyone off the hook? They won't.
What should or can I do about a Bad (low) appraisal on my house?
OK, so I wanted to refinance my mortgage. Everything was going fine, even for having a lower credit score. The closing was set, all we were waiting for was the appraisal. Well, when it came in, it was over $30,000 less than comps near by. It seems that the appraiser decided that the Family Room, which was enclosed from a carport in the mid 1980's, should not be included as living space. "The garage was converted by sealing the opening with T-111 siding, carpet on floor, it is under central a/c, this area is calculated seperate from the living sf for comparative purposes of this appraisal, and is typical and not adverse as it may be readily converted back to car storage purposes at minimal cost." The problem with this is that it never was a garage. There was actually a block foundation attached to the concrete slab, that would not be easy to tear up! He used 936 sq. ft. as the living space, when all the other appaisals stated it was 1183 sq. ft. What do I do to fix this?? Or am I stuck?
I bought the house in 2002. That appraisal included the room as a family room. When I got a home equity loan in 2005, the room was listed as a fourth bedroom, and included as living space. So, I just don't know if I can fight this or not? Any ideas?
The mortgage company I am refinancing with is Countrywide. They currently hold my mortgage. The state I live in is Florida.
Country wide has ALL records pertaining to your property since the beginning. The appraisal is ONE MANS OPINION. Call for another appraisal and lets hope he gets it Right this time considering CW has all the previous appraisals.
You could get another appraisal, but you may have to have a connection to get the number you want.
Try calling the realtor that sold you the place and see if they think they can help.
The appeal hearings are usually three times a year
depending on the size of the municipality.Do your homework. Get copies of the Assessors Cards for at least
6 or 10 properties adjacent to you.Make sure you get all this info even that you are on city water or septic. Your
proximity to the nearest firehouse even counts in the
appeal process. Make sure your name goes on for the next hearing and have all your paperwork together.
Good Luck.
Lenders are very cautious right now, given the tremendous surge in foreclosures, which unfortunately is passed on to the appraisers too.
I'm sure you'll get it all resolved! Good luck to you!
Get an extension on your purchase contract, and sounds like you will need to order another appraisal. But before you do that, talk with your lender/broker/LO - show them the older appraisal, the Lender may go off the old value on the sq footage. Every underwriter in every company is different. Does not hurt to ask, or ask your Broker, etc to ask his appraiser what can be done, since you are so close to closing. If they get their heads together, they may thing of something. But I woul dbe prepared to pay out for another appraisal (unless the seller is willing to help with the added costs or the realitor).
Good Luck
Appraisal underwriting standards and guidelines change all the time. What might have been acceptable in the past may not be acceptable now. And that is based upon how loans have performed. If loans with converted carports have been hard-sells in the cases that ended in foreclosure, then Fannie Mae, Freddie Mac, and lenders would start looking at that space differently.
You mention the room is air conditioned, but say nothing about heat. There is a rule that if a room is not heated, then it cannot be counted in the room count. This holds true everywhere, even Florida. So if the room is unheated, your appraiser was correct to not include it in the room count. Not only is heat required, but the heat needs to be passive - that it is turns itself on and off to maintain the temperature - permanent, and vented to the outside.
how do you multiply to figure house interest?
i have highh 7oo cr rating.land has a trailer on it and can only be refinanced through a high rate mortgage co.this is why my rate stays at 9 percent.all mort co's would raise percent to 11's or 12 percent.i have tried.that is why i over pay.i just need to see how the numbers are calculated.
Hi-- I posted this on your other question also:
http://www.dinkytown.net/
I use their calculators to figure out how far ahead I am when I make extra principal payments on my mortgage, but they have over 250 types of calculators for all sorts of financial scenarios.
Getting rid of my mortgage payment without hurting the credit that much?
"What would you do in my situation?"
I bought a house in 2005 for 160K, fully financed.
I bought a car few months later for 20K (my fully paid one broke and I needed a new one which represented more monthly payments out of pocket). Additionally I paid for the landscape, gutters, electrical outlets and central air conditioning after I purchased the house, a total of 10K from my pocket that made me put more debt on the credit cards.
So, I started with a mortgage payment of 1K per month, then increased credit card payments while doing all the improvements in the house, and then got a car loan, so in mid 2007 I needed to refinance, and out of the refinancing I paid the credit cards and the car all on escrow without having a penny coming to my pocket . My house got appreciated for 270K at the time, and I took a loan for 190K (for what I pay $1,200 monthly).
In 2008 moved to another state, my house is vacant and for sale for some months now, if an appraiser comes will appraise it for 210K, although no buyer is ready for more than 195K and obviously I won't be able to pay the realtor commissions if I sell at that price considering I owe 190K and that the commissions are of 6% on top of that. My contract anyways is about to expire. I am current in all the mortgage payments.
Since renting in one state and paying mortgage, gardener, insurance, services in the other is becoming quite a burden, I was looking into options, such as a Short Sale. I know that some debt relief was approved later but I don't find anything on the IRS website, all I find is what was passed in 2007/ I would like to know which options I have. I really do not care about my empty/vacant house, I care about my credit. If I rent it I will get about $800 a month, so I need suggestions as of what could I do. For instance, is there any possible negotiation with the bank to stop the payments for 6 months? This way it will let me try to sell by owner with the help of some local friends.
Both states are non-recourse states. I do not think buying will be a good option at this time, I do not know how the taxes will affect my situation, I just need some ideas.
How do I short sale the house? and then am I responsible for paying for the taxes and how is that calculated (you have all my numbers there). Does the appraisal value at the time of sale play any role on the taxes or forgiveness of taxes?
Please advise,
Thank you!
An another thing, what happens if I rent the house in matter of taxes, how will that affect me? It is bad enough not being able to pay the mortgage with the rent to get some penalty in the taxes, thanks.
Well, first of all I'm sorry your finances look that way. I suggest you to read the book The Total Money Makeover by Dave Ramsey.
Now, you can only sell your house on a short sale when the bank has already began the foreclosure process, otherwise you can sell it or rent it. If you rent the house, it will be considered an investment for tax purposes so you will have to report all your income against all of your expenses on that house.
If you do not like to read you should then listen to this guy online at http://www.daveramsey.com He is an expert on realestate an bad finances. He went through your situation a couple of times until he figured out that what he was doing was not working.
Any ideas as of best way to deal with mortgage in a vacant house?
Getting rid of my mortgage payment without hurting the credit that much?
"What would you do in my situation?"
I bought a house in 2005 for 160K, fully financed.
I bought a car few months later for 20K (my fully paid one broke and I needed a new one which represented more monthly payments out of pocket). Additionally I paid for the landscape, gutters, electrical outlets and central air conditioning after I purchased the house, a total of 10K from my pocket that made me put more debt on the credit cards.
So, I started with a mortgage payment of 1K per month, then increased credit card payments while doing all the improvements in the house, and then got a car loan, so in mid 2007 I needed to refinance, and out of the refinancing I paid the credit cards and the car all on escrow without having a penny coming to my pocket . My house got appreciated for 270K at the time, and I took a loan for 190K (for what I pay $1,200 monthly).
In 2008 moved to another state, my house is vacant and for sale for some months now, if an appraiser comes will appraise it for 210K, although no buyer is ready for more than 195K and obviously I won't be able to pay the realtor commissions if I sell at that price considering I owe 190K and that the commissions are of 6% on top of that. My contract anyways is about to expire. I am current in all the mortgage payments.
Since renting in one state and paying mortgage, gardener, insurance, services in the other is becoming quite a burden, I was looking into options, such as a Short Sale. I know that some debt relief was approved later but I don't find anything on the IRS website, all I find is what was passed in 2007/ I would like to know which options I have. I really do not care about my empty/vacant house, I care about my credit. If I rent it I will get about $800 a month (this is after paying the property manager fees, the house is located on the hardest hit by the bubble burst city of the country, so there are not any more movers in line to buy/rent), so I need suggestions as of what could I do. For instance, is there any possible negotiation with the bank to stop the payments for 6 months? This way it will let me try to sell by owner with the help of some local friends.
Both states are non-recourse states. I do not think buying will be a good option at this time, I do not know how the taxes will affect my situation, I just need some ideas.
How do I short sale the house? and then am I responsible for paying for the taxes and how is that calculated (you have all my numbers there). Does the appraisal value at the time of sale play any role on the taxes or forgiveness of taxes?
Please advise,
Thank you!
no worries. many seller's are in your same situation. contact a local realtor who is familiar with short sales. They will list your home about 80-85% market value and is sure to bring an offer. Be pro-active and contact your lender to request a short sale package. They will mail or fax this to you. Your short sale agent will negotiate with the loss mitigation negotiator and get the offer accepted. Within 3 weeks you could have your home closed. In essence, your lender will pay the commission to the listing agent and the buyer's agent. YOU will need to net ZERO dollars at closing. Of course you will have a loss, the lender will send you a 1099 for the loss that you report on your next tax return as earned income. Your credit will be saved and it will say "settled." Good Luck.