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Question - If we get married can he get off his mortgage with his sister?
My boyfriend lives with his sister in her condo, and he pays rent to her to pay her current mortgage. She has asked him to be her co-signer to refinance and lock in a lower rate on a 30 year mortgage. He wants to do it not only to lower their shared monthly payments, but also, he says, to build equity. He doesn't want to live with her forever, though, and says they can rent out the condo or sell it if they wanted to.
What does this mean for us if he and I decide to get married and want to get a mortgage on a place of our own? Neither of us makes more than $40K per year right now. Would he get turned down for something else if he is already a responsible party with his sister on this mortgage? Is there any way that he could be removed from the mortgage with his sister later (would she even be able to refinance again to do that?)
Thanks for reading my question, I look forward to your answer.
Answer:
I'm not really sure about all of this but if your boyfriend wants to build equity with his sister then I think that's a better idea than paying rent. Now, will he have to be responsible for the debt 100% just like his sister? Yes. There is no difference between being the Co-Borrower or the Borrower. Both are equality responsible for the debt or more specifically the deed to secure that debt.
If your sister wanted to sell at some point in the near future it should make a big difference to your boyfriend. I hope that helped and good luck.
Question - Why won't Countrywide let me make weekly mortgage payments?
I would like to make WEEKLY mortgage payments in advance. For example, I would send in a check for 1/4 my mortagage each Monday in January toward my Feruary 1 payment, then in Feruary send in 4 weekly payments toward my March payment. I am not making any extra payments, just paying early. Countrywide wants to hold these payment in a partial payment account until all 4 payments are received, then apply as payment for principle & interest. This defeats the purpose. I want these weekly payments posted to interest & principle accrued up to the day of that payment. My loan documents clearly say that I have the right to prepay and have it applied on that day. What rights do I have to make Countrywide follow their own contract even though they are saying that their system is not set up for this. Am I the only one who has ever thought of paying weekly or even twice a month?
Answer:
Your right that their systems are set up to take pre-payments.
What they can't do is service your loan on a weekly amortization schedule. Maybe call them and ask if this would work:
(an idea only)
Make the total payment on the first of the month then make another payment marking it principle only (be clear). The amount of this check could be 1/4 of the total payment. Then on the 1st of the next month make the 3/4 payment marking it as "the amount needed to bring your account current". Then make the 1/4 payment for principle only again followed by the rest each month from then on.
At least this way you might see a little effect on the total term.
(important)
Ask if this would work because I'm afraid that that quarter payment would go to principle and then that 3/4 might go into suspense because their system would still be looking for the total amount due that month. This is because making a early principle payments doesn't allow you to stop paying monthly but only moves you ahead in the amortization schedule. A more common way to pre-pay is to really pre-pay. Get a copy of your amortization schedule and write two checks each month. One for the regular payment and then one for the next months principle portion only, (be clear). Mark off both payments. Doing this would cut your term in half.
All in all, it sounds like you should get an interest only loan and then you would be in complete control of your amortization or lack of it. Good Luck!!
Question - How do we prove rent paid in cash to a family member?
How do we prove Verification of rent to lender if we always pay in cash to
a family member who owns the home we rent? All we have are rent
receipts. Help we are set to close are loan by next week and V.O.R is all
we have left to prove! The Lender has already spoken with the owner, and
has a Form signed from her that states exact rental amount and that we
have never been late in the payments. Can they deny our loan because of
this?
Answer:
I wouldn't think that you would be denied for this alone. If your credit
is a mess then it would add a large problem. Providing them rent receipts
would be a good idea. They could be easy to forge so they will not help
much but so long as they are real it would be good to provide them.
Because you have been renting from a family member it would have been a
good idea to have written checks so there would be a real history of
payments. Maybe the family member deposited most of the cash each time you
paid. If so, get the family member to provide proof by providing their
bank statements circling the deposits even if some of them are missing.
Proving your mortgage or rent payment's pattern or history is a huge
element in getting a home loan. There is probably nothing more important
than a solid V.O.M or V.O.R.. Good Luck...
Question - Can I take my name off the mortgage?
My husband and I are both on our mortgage. I am so far in debt that I'm going to claim bankruptcy in the future. Can I take my name off the mortgage so my husbands's credit is not effected? I don't want to refinance because this would not help the amount I owe.
Answer:
As long as the mortgage payment is made timely then your husbands credit will not be effected by you declaring bankruptcy. The loan is in both your names equally and separately. You can't remove your name from the mortgage without refinancing in his name only. Good Luck!!
Question - Will the mortgage company re-request the payment?
My mortgage is due between 12-14 of this month, unfortunately there will be insuffient funds, will the mortgage company rerequest the payment?
Answer:
I would guess your payment is taken automatically from your checking
account. When the bank gets the request to transfer the funds they will
either pay it and overdraw your account or not. That will depend on the
bank and how much the overdraw will be. If they don't pay it the mortgage
company will re-submit the request. If I were you, I would call the bank
now and tell them that you know you are short and that you will be making
a deposit in a few days. Be specific.
The absolutely worst thing that you can do to ruin your credit score is
pay your mortgage 30 days late. Your payment is due on the 1st of the
month and there is a 15 day grace period to avoid a late payment fee of
5%. This is the case for any typical 1st mortgage today. Then if you don't
pay the payment and late fee with-in the next 15 days you will be recorded
with a late mortgage payment. A late mortgage payment will drop your
credit score by over 60 to 80 points. Then you will have a hard time
getting any new credit or mortgage for a while. You may not even be
eligible for some programs with a late payment in the last 12 months. The point here
is that you must never pay your mortgage 30 days late. It's not a problem
to pay it over 15 days late, just expensive. My suggestion is that you
borrow the money some how some way to avoid being thirty days late. Use a
cash advance on a credit card, call your family , your friends, go to a
pawn shop. Just do what ever it takes to avoid a late payment on your
mortgage. Good Luck!!
Question - Should I get a 2nd Mortgage to lower my payments?
I would like some info or help for my daughter, her taxes just went up on her house making her monthly payment higher. I would like to know if it is smart to have a double mortgage someone told her it would lower her monthly cost.
Answer:
It sounds like you're talking about getting a new loan - another mortgage. This new mortgage would be a 2nd mortgage. Then your daughter would have two mortgages to pay each month. How could that lower her payments. Your daughters taxes went up making her mortgage payment higher. Getting another loan can't help this. If she has other debt that could be paid off with a new loan, fine. Debt consolidation is a way to lower your monthly payments by extending the term or lowing the effective interest rate charged on the debt. It's not a way out of debt. It is only a way to make the debt you have more manageable. Getting a 2nd mortgage could be a good idea. It could also be a bad idea if after the consolidation occurs the credit card debt or whatever was consolidated is run back up. If you are consolidating fixed debt like a car loan or student loan then that would make the most sense. It might just be that you really need to lower your payments so the best way to do that is get a 2nd mortgage, but be careful not to run the debt back up. Promise, swear, and tear up the credit cards. I hope this helps and good luck!!
Question - Will I still qualify if I'm unemployed?
I have been at my job for 6 years, own my own home and am now in the process
of building a new home. I have the 20% for the down payment and great
credit. Will I still qualify for a loan at a low interest rate if I am
unemployed when I close on my new home?
Answer:
Unemployed - You are not really unemployed or how do you have great credit.
A lot will depend on your cash reserves. High reserves will offset income,
but you need to be employed at least on a commission basis. If I were you I
would start a company and after two years I'd be my own employer. You must
be making some money over time to keep that great credit. Tell the lender
that you don't want to document your income but have been in your line of
work for some time. Needs to be at least two years hopefully more. State
that you currently work for XYZ Corp making a monthly income of an amount
equal to your monthly expenses including everything; pizza, toys and the new
home. Then take your total income for the last two years and then divide it
by 24. A good idea here would see if these two numbers match. If your total
known expenses exceed your past two years average then you will have a hard
time maintaining your excellent credit. Know the difference is your cash
burn. Don't let yourself knowingly get over your head. Take advantave of the
lower rates now to get yourself a better financial situation for the future. Good luck!
Question - Can I petition the court to release a 2nd Mortgage?
I am going through a nightmare. This is an involved one. My husband and I
purchased our home 6 years ago. We realized that a second mortgage was
placed on the house for 15,000. The person (private lender) has never
collected on the second. There is no identifying information about him-
his address, phone number, etc on any of our paperwork so that we can make
the payments. Thus, he has never contacted us either for us to make
payments. We have contacted our Senator, the letter was forwarded to the
government office that was overseeing predatory lending because if is
believed that our house was 'flipped'It was also forwarded to the FBI. We
received word back that although they wanted to help us, there was nothing
that they could do because we have a conventional loan, not a federal
loan. We contacted a lawyer the lawyer said since this guy could not be
found, he recommends that we wait the statute of limitations 6 more years!
Last week we were approved for a refinance, howe!
ver the second mortgage came up. Unfortunately, there is no way to find
this guy. I'm sure he doesn't want to be found since the lawyer who did
the title was indicted for phoney mortgages. Finally, my question---- How
do I get this guy off of my paperwork since he can't be found. The new
mortgage company wants to help us but their hands are tied. They suggest
since we filed bankruptcy about 3 years ago and the 2nd was included in
the bankruptcy that we go back to him and ask if he can petition the court
to release this debt because of the nature of this problem. Do you have
any suggestions?
Answer:
This is a good example of why you should have purchased owners title
insurance when you bought your house. I don't know why this 2nd wasn't
found when you bought your home but since it wasn't it is now this lien is
in first position and in front of your current mortgage holder. The
mortgage company that provided you your loan did require that title
insurance be purchased when you purchased the home. Find your settlement
documents and contact the title insurance company that was used at the
original closing. I think they would be able to help you. Also, contact
your current mortgage company and explain that they didn't get or they
don't have first position on your home. They know who their title is
insured by and will want to fix this. Good Luck.
Question - How do I get my name off a mortgage?
How do I get my name off a mortgage from over fifteen years ago from my ex-wife, we legally divore and I quick-deed the house to her. I also included the mortgae over to her in the divore degree. I now recieve a credit bureau report that I'm still on the mortgage which I shouldn't be.
Answer:
Unfortunate as it may be, you borrowed money. The fact that you have given up any interest in the lender's security has nothing to do with the loan. Also, the fact that you are not having to pay the loan back because you have gotten an agreement from your ex-wife to pay the loan, has nothing to do with your ultimate obligation to your lender or making timely payments. You are just as obligated today as you were when you originally agreed to the loan. The only way you would not be obligated for this loan would be for the loan to not exist. Ask your ex-wife to pay off the loan or pay it off yourself. Maybe she could refinance the loan.
Question - Is there truly any difference to making an extra payment?
Is there truly any difference to making an extra payment and stating specifically apply this payment to principal and simply making an extra payment without any direction. I realize (having dealt with credit card companies) that if you do not direct the payment to be applied to principal that the bank will send your next bill indicating amount owed $0.00 hoping that you won't send in that month's payment. However, if you make an extra payment every year and never skip a regular payment won't that still have the same effect as saying apply this payment to principal. Is the interest really calculated differently somehow?
Answer:
The mortgage servicing industry performs it's service based on guidelines provided by the agencies, Fannie Mae and Freddie Mac. Mortgage interest is collected in the rears. This means each day the amount of interest due grows. On a fixed rate loan, when it was made, a mouthy payment amount was established which would pay the loan in full over the course of the term. Each payment made on a monthly basis would be equal to the amount of interest due for the last 30 days and then an amount to subtract form the principal balance each month. Because the new loan balance is lower each month, the amount of interest due is less and thus more of the payment is applied to the principal. When you over pay the lender or pay them more often than the required monthly payment, the extra amount is applied to the principal balance. This means that you have moved ahead of schedule in paying the loan off from the original term. The main problem you can run into by not making it clear when you make an extra payment is having the amount applied to your escrow account for Taxes and Insurance. If escrows are not set up and part of your payment then this isn't a problem, but anytime you are making a pre-payment it would be wise to make it clear to the lender. By paper clipping a note to the check, in my mind would be the clearest way. Using a separate check with a round amount noted to be applied to the principal or marked "Principal Only" should work. Good Luck and thanks for using LoanIcons.com!
Question - Sould I give them the Down Payment with out being approved?
My contract on a house was signed today, my lawyer advised me to give a down payment on the house without being approved for a loan, but i was pre-qualified for the house last month. Would it be a wise decision on my be half to give a down payment of six thousand, before being approved?
Answer:
It is normal to provide the seller with Earnest Money. In most cases, Earnest Money would be applied at the closing and become part of your down payment. The amount of Earnest Money is usually around 1% of the sales price but is certainly negotiable. The contact would normally provide for you to get your Earnest Money back if you can not get approved for the loan that is also described in the contract. You would lose your Earnest Money if you decided not to close after being approved. A stronger contract for the seller would be one know as and "All Cash" contract. This is where you agree to buy the property on a date with or without a loan. In this case, you would lose your Earnest Money if you failed to close for any reason. I would advise you to not do an "All Cash" contract. Bottom line is that you should tell your attorney that you are willing to put some money down for the seller to show them you are working in good faith to buy the house but you must be able to get this loan that you have been pre-approved for. If for some reason you are not able to get the loan then you must have your deposit back. Got it, Good Luck!
Question - Anyway around cosmetic repairs?
I was
approved for an FHA loan of 42,000. The appraiser came and said she would
not appraise the house due to cosmetic repairs in question (ie, torn wall
paper, closets needing paint, floor coverings. Is there anyway around this
snag in the process?
Answer:
Probably not and especially with an FHA loan. You need your house to be
complete and not in disrepair at closing. Your house needs to be in shape
where there would be no repairs needed to resale the property. The lender
needs to be in position to sell your home right after closeting in case
you are hit by a truck on the way out. There can't be things that would
need to be done to get your house ready to market. Sorry, but most likely
you will need to take heed to the appraisers concerns. Good Luck!
Question - How can my sister sell her half to
me?
I
bought a house with my sister. Both of our names are on it.
She is going to be moving out of the country and is going to sell her half
of the house to me or sign it over to me. What we need to know
is how do we go about doing that? We don't know where we need to
start. I would greatly appreciate any information you could provide
to me. Thank you.
Answer:
This is not really very hard to do if all you want
to do is take sole title to the property. If you want or she wants to be
removed from the mortgage, you will have to refinance your loan by
yourself. To have her, "sign it over to you", means to have her sign a
Quick Claim Deed as the grantor and you will sign as the Grantee. Call a
Real Estate Closing Attorney, maybe call the firm that did the original
closing and request them to prepare and then record a Quick Claim Deed
between you and your sister. The charge might be as high as $250.00 and
would be a good deal at $100.00. Shop around. You might call a Realtor to
personally refer you to their favorite closing attorney as a favor. This
way you might only be charged the hard cost of the $12.50 to $25.00 county
recording fee. Closing Attorney's make their living from Realtor
referrals. You could do it yourself by buying a Quick Claim Deed at an
Office Supply store and then taking it to the county court house to be
recorded. If you refinance the property, at that closing you and your
sister should sign a Quick Claim Deed. Unfortunately, a refinance is the
only way to remove your sister from the debt obligation of the mortgage.
This might not be of concern as she is moving out of the country. When she
decides to buy a property in the US she will have the mortgage debt
included in her debt to income ratios. This might create a problem for her
to qualify unless she just makes a ton of money and qualifying isn't an
issue. If it is an issue and you can provide her with your last 12
canceled checks proving that you have been making the mortgage payments on
time without her help, then her lender should remove the mortgage debt
from her ratios.
I hope this helps and thank you for using LoanIcons.com.
Question - Where can I find mortgages
that do not require PMI?
I have heard there are ways to get a mortgage
with-out paying for Private Mortgage Insurance. Where can I find mortgages
that do not require PMI?
Answer:
You may consider doing what is called an 80-10-10.
This is where you get a 1st mortgage for 80% and a 2nd Mortgage of 10% and
make a down payment of 10%. Might even find a 80-15-5. A lender that
offers high "Loan-To-Values", LTV's with-out mortgage insurance is, NBC in
Memphis, TN. Call 1- 866-452-6227. Good Luck!!
Question - Should I remortgage to fix
up my house?
I am a single mom, and purchased my first home 1 year
ago through the PHFA Homestead Loan. I got a 15,000 grant as a down
payment on my first purchase, with the option of having to live in this
house for 7 years. I am experiencing some really horrible problems with my
home and am interested in remortgaging so that I can fix it and pay off
some of my debts. Can I remortgage my home? How would I go about it? Since
the interest rates are low now, would it be a smart Idea?
Answer:
It sounds like you should
look into a 2nd mortgage. With this grant as your down payment having to
be repaid if you sell before seven years, it doesn't sound like you can
refinance unless you can pay back the grant. You should be able to get a
second mortgage for the funds you are looking. Good Luck and feel free to
reply if you need more information or don't understand my answer.
Question - Is my Loan Officer shooting
straight with me?
My wife and I have an existing mortgage loan on our
house of $95,000 and we just finished off our basement and would like to
refinance. Our existing mortgage rate is 6.625%. Our house was appraised
at $170, 000 and we would like to refinance for $150,000. A friend of mine
works for a mortgage company and said his company sells simple interest
mortgage loans with a higher percentage rate, around 8.5 to 9.0%. He said
that, typically, banks do not sell simple interest loans because they
don’t make as much money on the loan and that is why we would have to pay
a higher rate. And he added, if we pay off the loan in 15 yrs, by making
additional payments (we want to do this anyways) we would save tens of
thousands of dollars.
Is this true or not? What type of loans do banks
sell, simple or ???
Answer:
First off, most all Mortgage Loans are simple
interest. I don't understand the higher rate issue at all and the part
about banks not making as much money is garbage. Second, to do a 1st
mortgage refinance that provides cash out - (ie. a loan amount that would
exceed the pay off and closing cost and thus provide cash to you at
closing), would need to be at a maximum of 75% of your appraised value of
$170,000 or $119,000. If you can live with a new 1st mortgage of 119,000
then you might consider refinancing. You also could find a lender willing
to do 80% to 90% cash out with the rate being a little higher by .125% to
.375%. You have a decent rate now. I suggest you find a 2nd mortgage that
would allow for a combined LTV of 90% that is more in line with your
$150,00 number. After having this 2nd mortgage for 1 year you could
refinance both your 1st mortgage and 2nd mortgage and not receive cash so
the new 1st mortgage could be at a maximum of 90% LTV. By the way, LTV
stands for "Loan To Value". After 1 year your 2nd mortgage is "seasoned"
and that is why paying it off is not considered "cash out". Hopefully your
house would appreciate enough that when you refinance you could pay off
both mortgages and not borrow anymore than 80% LTV and thus avoid paying
MI - Mortgage Insurance which is required for on loans with LTV's higher
than 80%. All in all, this "friend" is misleading you and you need to
discuss your options with a lender that shoots straight quoting the
guidelines that I'm providing. You can easily find these lenders listed in
LoanIcons. Good Luck and thanks for using LoanIcons.com.
Question - I have proof, but they say
I've been late - help?
We need to refinance our home but have a major
problem. Our mortage company is in Cal. and they called me in March to
tell me they didn't recieve our payments for Jan. and Feb. Those have been
paid now but in Aug. they called to say they didn't recieve June or July's
payments! I have all money order reciepts showing they have been paid but
now they have reported it to the major credit adjencies as 120 days
late..We cannot find a lender because of this problem...can you help?
Answer:
You need to prove with your lender that you did pay
on time by providing them the all your money order receipts. They then
should call all three credit agencies to correct the information. You
should them call all three credit agencies and request an investigation on
this. Your lender should provide a fax number for you to request there
review and send the money order receipts. Once they correct their
reporting go to the three agencies Web sites to order the investigations
for the fastest service - http://loanicons.com/credit.htm. Good
Luck!!
Question - Can we move our current
mortgage to another house?
My husband and I presently own our home. We have 25
years left on a VA/FHA mortgage at 7%. We also have a second mortgage out
and the principal is 35,000 at 12% and we have 17 years left on that one.
We would like to sell our house now or in the next year or so. We have
already talked to a real estate agent and what price the house can sell
for will not cover both mortgages. Is there any type of program out there
that will help us either transfer the 2nd mortgage to combine with our
first, or a mortgage company that will accept the 2nd mortgage with
another house?
Answer:
You may have the option to move the 2nd mortgage to a
new home. If you do, you will find it spelled out in Note you signed when
you closed. This option is usually found on 2nd mortgages offered at
higher LTV's, "Loan To Value", than 100%. This program is referred to as a
125 which means the total LTV is allowed to be 125% of your homes value.
The reason the lender allows you the ability to transfer their security to
a new home is that they realize you are upside down and with out that
option you can't move. If you have that option, you will still have to
make a down payment on the new home most likely in the range of at least
5%. Now, if you don't have that option to transfer the 2nd, both your
loans are due on sale. The VA/FHA loan is probably assumable but someone
would have to payoff your 2nd. It sounds like you need to stay in the
house longer a wait for some appreciation. You will need some money to put
down on your next home. I suggest you either start saving or make
improvements to your current home. Adding square footage is the best
improvement if it can be done in a way that fits in and doesn't seem so
obvious. Other options would be adding a half bath, renovated kitchen,
renovated baths, deck or sun room. Don't add a pool or out buildings. New
paint and other cosmetic things should be done right before you try to
sell and do really help to increase your potential sales price. Good Luck
and thanks for using LoanIcons.com
Question - What can I do about phantom LATE
charges?
My mortgage was sold about seven months ago. The new
mortgage company sent me a statement last month showing an unpaid late
charge. When I called to question the charge, they claimed it was from
seven months ago and that they would waive it. I received a statement from
them this month that shows the previous charge as waived, but now has an
even larger amount showing for unpaid late charges (double the previous).
When I called on this, they said it was from the old mortgage company.
What can I do about this? How is it that these phantom charges can appear
after six or seven months? What are my options?
Answer:
Just call the company again and explain that you
haven't paid late. Show them prior statements that didn't have the late
payments on them. Ask them to waive them again. If you were in fact late
before then pay the late charges. You should be able to clear this up.
Good Luck and thanks for using LoanIcons.com.
Question - What happens to my mortgage
when I marry?
I am considering buying a townhouse as a single
person, but what happens when I marry? I am currently dating someone and
the subject is being discussed. My credit is good, his is not, although he
is actively working to improve it. If we do proceed to marriage after I
have purchased a house, will we need to add him to the mortgage and would
his credit rating have any affect at that time? Could the loan remain in
my name even though we are married?
Answer:
Nothing will happen when you get married. That is at
least as far as the Mortgage you would have. You will not be able to add
your husband to that Mortgage. If you allow him to make the payments or
part of them then the question and answer below might help you understand
how to share this. You could allow him to write the Mortgage check and pay
it from his own account. This might help him build his credit back in that
he could prove to a new lender that he paid a mortgage on time. It might
not help at all in that he is not the responsible party to that mortgage.
Anyway, both your credit and his would both be considered if you were both
to borrow in the future as a Borrower and a Co-Borrower.
Question - Current rates are 1 point better, should I
refinance?
My wife and I purchased our 1st home on Nov 30, 2000.
The house cost $235,000. We did not have the 20% to put down on the house,
so a mortgage company qualified us for the following. We put down 5% of
our own money, and mortgaged 80% at 8.05%. We then took a second mortgage
at 10.75% for the remainder 15%. This seemed smarter than paying PMI.
Rates have come down significantly. Is it possible to refinance & if
so does it make sense?
Answer:
It would seem unless your house has had some major
appreciation that you would be unable to refinance at this time. You can
only refinance in most cases with a 90% LTV (Loan to Value). Since you
just purchased the house a few months ago at a combined LTV of 95%, I
doubt your house will appraise for enough for a 90% loan to pay off the
1st and 2nd. You could ask the lender to allow you to subordinate the 2nd
mortgage but you would not be able to exceed the combined LTV of 90%. In
any case the 90% loan would include Mortgage Insurance that you have
avoided thus far. I suggest you give it some time for your house to
appreciate to the point you could refinance both loans at an 80% LTV. Good
Luck and thanks for using LoanIcons.com.
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