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Thread: Mortgage Management

  1. #11
    An innocent bystander nlmcp's Avatar
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    Keep the mortage, transfering it to a credit card is just a huge problem. It looks worse on a credit report to have a huge credit card debt rather then a mortage. Just pay a bit extra each month and it will go down much faster. Plus a credit card is much more likely to screw around with you then the mortage on the interest rate.
    I could go east, I could go west, it was all up to me to decide. Just then I saw a young hawk flyin' and my soul began to rise. ~Bob Seger

  2. #12
    Peeking In Duxxy's Avatar
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    I know I can only overpay 10% of my original borrowed amount each year, if I pay more than that I have to also pay a penalty for early payment.
    "Education's purpose is to replace an empty mind with an open one."

  3. #13
    FORT Fogey joeguy's Avatar
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    also how old is your mobile home, after 30 years they won't refinance a loan unless all the interiar has been redone, elect. plumbing and such.......Mine is 40 and I can't refinance to save my soul and I got a 8.875% loan on it

  4. #14
    FORT Fanatic Melitta's Avatar
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    Our mobile home is 11 years old. It is still in good shape, but not what I want to keep for the rest of my life. Even if we did keep it, I want to pay it off fast so we can do some remodeling. The cheaper interest on the credit card would have allowed us to pay it off faster. I am not sure in other states, but we have to have at least 6 to 7 thousand dollars in mortgage interest each year to be able to claim it on taxes. We pay around 3 thousand each year. We have never been able to claim the interest. It has something to do with which is more...the tax breaks you get or itemizing. Our tax breaks always out weight the itemizing. I was looking last night at trying to refinance through companies that do just mobile homes and hit road blocks with all of them also. We have added a back deck, a covered front deck and a covered car porch with a cement floor. Those items alone disqualify us for a refinance. Plus, we still had to have at least 15 years left on the loan and we have 9. We are damned if we do and damned if we don't. Also, our mortgage has just been sold to another company and one refinance company wouldn't do a refinance if your mortgage was held with this certain company. Go figure. This is our third mortgage company since buying the home. It is pre-computed interest and even if I did send in extra it says on the payment stubs any extra money will be applied to the interest first. Either way, I have to pay all the interest. Had I been a little smarter, and older, I would have found a different way to finance the home. Looks like we are stuck. I really don't think that the mortgage company will accept a pay off by credit card anyway. Just was wanting to see if anyone had actually done it.
    Last edited by Melitta; 05-17-2005 at 07:35 PM.
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  5. #15
    Dreamer rt1ky's Avatar
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    Potential first-time buyer

    I am thinking about going from renting to owning. The problem is that my income is low. I have already pre-qualified for on mortgage and the person who I'm working with want me to get some commitment forms.

    As a first-time buyer, is it better for me to try and get pre-approved by multiple mortgage companies?

    Has anyone here ever used a HUD or Fannie-Mae loan?

    Has anyone here ever purchased a foreclosed home? These fit my budget, but I'm afraid there will be some nightmare attached. Right now I am looking into condos and townhomes. I'm a little afraid of the huge responsibility of owning a home with a lawn, with no maintanence service.

    Thanks.

  6. #16
    MRD
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    FORT Fogey MRD's Avatar
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    With a HUD loan, they are going to inspect the place you buy within an inch of its life and if anything is wrong, they are going to require it be fixed before they loan the money. They are pretty strict about things and these loans can be a nightmare to get closed, but after that, they are good loans.

    I'd look into the SHIP program. It is a program that helps first time homebuyers get into a home. Just remember that the more credit checks that go on your credit rating, the worse it ends up looking, so be careful about pre-qualifying with too many mortgage companies.

    Honestly, a good real estate broker can help you decide what you need to do. And I mean GOOD. Get recommendations. They want to help you buy a home because they get part of the commission on it, so they will be able to guide you to which mortage may be best and help you find programs like SHIP that will help out. But there are some that don't care as long as they sell you a house so ask around to people you know that have used realtors to both buy and sell homes.

    I'd do some web research on HuD, FAnnie-Mae and SHip mortgages and when in doubt, talk to an expert. Talk to a real estate lawyer, or even someone in the Title insurance business that has been in business for a long time. They see every kind of loan that comes down the road and they also know which real estate agencies are the good ones and which agents to choose. I know because I worked for 15 years in title insurance and we pretty much could tell a person which bank, which type of loan and which realtor to use just from what we closed in our offices.

    Good luck.
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  7. #17
    Dreamer rt1ky's Avatar
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    Just remember that the more credit checks that go on your credit rating, the worse it ends up looking, so be careful about pre-qualifying with too many mortgage companies.
    I did not know this. Thanks! So far I only spoken with one potential lender.

    I will look into the SHIP program and other programs.

  8. #18
    Scrappy Spartan Broadway's Avatar
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    rt1ky... is it your realtor that wants you to get a commitment letter from the mortgage company that's pre-qualified you? And are you just in a low income situation, or do you have bad credit, too?

    In my opinion, and that's all that it is, the first thing I would do is figure out exactly how much per month you can afford (and make sure you take into account property taxes.. so many people forget and then they have no money for them!!!) and then calculate, using today's interest rates, how much of a house you can afford. If that first person that has pre-qualified you has done so at the rate of what you can afford, then there's really no need to get multiple pre-approvals. Also, if they have approved you for MORE than what you've calculated, do not try to buy a house at that higher value as you know that you can't afford it. It'd be tempting (well, they qualified me for that amount), but don't get yourself into trouble.

    I believe my first loan was a Fannie Mae. My mortgage company also had to set me up with two mortgages in order to afford my first place... the first was at 7% and the second was at 12%. I can't remember what they call that type of thing, but it was a good deal for me at the time (2000).

    Ask the mortgage company whether they keep your loan, or whether they sell it. That might be a deciding factor as to whether you get another pre-approval.... as it's beyond a pain in the ass to get involved with a mortgage company that sells your loan. The next company might raise rates, change the deal, or sell it again, etc... Dangerous.

    I don't know anyone that has bought a foreclosed house, but it does seem like it would have risks. I'm not sure if you have an opportunity to inspect foreclosed homes before you buy them or not. If not, stay far far away.

    And, if you're looking at condos (I'm on my third!), then make sure you take into account the association fees when you look at them. You may qualify for $150,000 house, but $100/mth association fee can turn that into being able to afford $130,000 place if you do your calculations. But they're definitely a great, great option if you don't want to do your own lawnwork and outdoor maintenance.

    Lastly, this might be the perfect time to get into a deal with the expectation of refinancing in one year. It would appear that the rates will start dropping again due to the inflation that's setting in. Ask your mortgage lender if you can refinance in 6-12 months if that's the case. Some let you do it once a year, but if you've got a credit situation right now... getting into a place at a slightly higher rate and then proving that you'll be able to keep up with payments will encourage them to lower your rate.

    Good luck! It's a fun time!
    Never let the things you want make you forget about the things you have.

  9. #19
    Dreamer rt1ky's Avatar
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    Quote Originally Posted by Broadway View Post
    rt1ky... is it your realtor that wants you to get a commitment letter from the mortgage company that's pre-qualified you? And are you just in a low income situation, or do you have bad credit, too?

    In my opinion, and that's all that it is, the first thing I would do is figure out exactly how much per month you can afford (and make sure you take into account property taxes.. so many people forget and then they have no money for them!!!) and then calculate, using today's interest rates, how much of a house you can afford. If that first person that has pre-qualified you has done so at the rate of what you can afford, then there's really no need to get multiple pre-approvals. Also, if they have approved you for MORE than what you've calculated, do not try to buy a house at that higher value as you know that you can't afford it. It'd be tempting (well, they qualified me for that amount), but don't get yourself into trouble.

    I believe my first loan was a Fannie Mae. My mortgage company also had to set me up with two mortgages in order to afford my first place... the first was at 7% and the second was at 12%. I can't remember what they call that type of thing, but it was a good deal for me at the time (2000).

    Ask the mortgage company whether they keep your loan, or whether they sell it. That might be a deciding factor as to whether you get another pre-approval.... as it's beyond a pain in the ass to get involved with a mortgage company that sells your loan. The next company might raise rates, change the deal, or sell it again, etc... Dangerous.

    I don't know anyone that has bought a foreclosed house, but it does seem like it would have risks. I'm not sure if you have an opportunity to inspect foreclosed homes before you buy them or not. If not, stay far far away.

    And, if you're looking at condos (I'm on my third!), then make sure you take into account the association fees when you look at them. You may qualify for $150,000 house, but $100/mth association fee can turn that into being able to afford $130,000 place if you do your calculations. But they're definitely a great, great option if you don't want to do your own lawnwork and outdoor maintenance.

    Lastly, this might be the perfect time to get into a deal with the expectation of refinancing in one year. It would appear that the rates will start dropping again due to the inflation that's setting in. Ask your mortgage lender if you can refinance in 6-12 months if that's the case. Some let you do it once a year, but if you've got a credit situation right now... getting into a place at a slightly higher rate and then proving that you'll be able to keep up with payments will encourage them to lower your rate.

    Good luck! It's a fun time!
    My credit is good, but my income is low. I'm in grad school right now. The mortgage lender wants me to have the committment letter. My real-estate agent said I could still look around if I wanted to, although she did recommend this mortgage place to me.

    Now I am going to sound REALLY stupid here, but what is refinancing? I've heard of it. I guess they should require people to learn these things before they hand out college diplomas.

    Thanks.

  10. #20
    Scrappy Spartan Broadway's Avatar
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    Noway... if you have never been involved, you wouldn't know. No worries.

    Refinancing is where at some point in the future you can renegotiate your mortgage at a different interest rate. So you might get a higher loan rate right now because you're an unknown, and then at some point down the road your lender would be willing to refinance you and lower your rate once you've proven your ability to pay and pay on time.

    It's not as big of an issue if you don't have credit problems, but sometimes unknowns can be risky, too.
    Never let the things you want make you forget about the things you have.

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