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Mortgage advice

Questions and Answers

Mortgage Advice?

Q) I have signed a mortgage in principal agreement with my mortgage advisor to get a mortgage which at the time was the best on the market. However, as it took about a month for the actual mortgage offer to arrive, the interest rate on the offer has increased, and would work out to cost us about £700 over the lifetime of the agreement. This is despite the mortgage advisor guarantee us upon signing the mortgage in principal agreement that the rate was then secured. What can I do about this and who can I complain to?

A) I'm a mortgage broker from Edmonton, Alberta. Over here you have a guaranteed rate hold on a closed mortgage, this can be up to 120 days. If I was you I would look at who is the governing body for mortgage advisors in the UK. Then I would complain about your mortgage advisor to them in writing. If you do nothing then nothing will be done

mortgage advice?

Q) My job is fairly low paid (16k), I am in the process of looking for another one as is my partner. I have a reasonable deposit (20k). The thing I want to know is what companies are likely to take me on mortgage wise, also how easy/ difficult is it to get a mortgage. realistically I want to know what I'm up against and how to increase my changes (rather than the obvious of earn ££££££). I am a complete novice when it comes to this.

A) My mortgae was for £127,000.00 in February. Im on £13K a year for 1 job and £3000 for my second, totalling £16K. My boyfriend is on £18k. We had a £6000 deposit so we had a mortgage for £121,000.00. This was very easy to get as we both have no bad credit history whatsoever. If you have finace for a car this is in your favour as it proves you can pay money back. I have a car on finace so this helped! But if you have any other debts like Credit Cards the may be reluctant to let you borrow any more than £100,000.00. Hope this helps!

Mortgage advice?

Q) i am 38 and earn a fairly good income over 20k per year what is the longest period i can get a mortgage over and my wife who is a housewife is 7 years younger than me can i use my earnings but her age to get a longer period of repayment as she may be still be working then if and when she returns to work as we have young children , is it also possible to use Child allowance and Tax Credit income to bump up figures for Mortgage purpose ? Thank you .........................

A) A mortgage is 15 or 30 years. I hope you make more than $20K a year or I do not think you will get a mortgage at all.

mortgage advice?

Q) how much would the monthly repayments be on a £150,000 mortgage taken out over 20 years with a £4000 deposit

A) You don't tell us the interest rate. The following table shows the monthly repayment for different rates between 4% and 6.5% Interest %4Repayment £884.73 Interest %4.5Repayment £923.67 Interest %5Repayment £963.54 Interest %5.5Repayment £1,004.32 Interest %6Repayment £1,045.99 Interest %6.5Repayment £1,088.54 There will be small differences from one lender to another, depending how they calculate the monthly rate of interest, if they actually charge you per day, or if there is a management charge on top of the rate of interest. Generally, these figures will be correct to within £2.50 per month.

Mortgage Advice?

Q) How do you work out the amount likely tobe given for a mortgage? For example annual income of £26,000 x 5 = £130,000 Also it needs to be on a 100% Mortgage as 1st time buyers but have no deposit due to baby on way and another child.

A) Five times is quiote high, but sometimes you may get it. Normally 4 times, or 3 times a joint salary of you and a partner. They will also most likely want a 10% deposit, so £130K plus £13K savings.

mortgage advice?

Q) my boyfriend and I are saving up like mad and are hoping to buy a flat in June. My boyfriend is going to start working with his dad in his plumbing buisiness next week (his dad is self employed). What I want to know is what is the lending rate? Will he be considered as self employed himself (I.e. be lent 1.5 times his wages) or be lent the normal amount (3.5). This is an important question as this will severely affect the chances of us getting a flat. basically he is being given a basic wage and any job he does with his dad is split 50/50 he is legit so of course he is paying tax and national insurance!!!!!

A) I work for a mortgage lender, and I am somewhat of a junior underwriter. you need to be clear as to how you are employed, where your income is coming from, and how you are being paid, otherwise, you will not make it pass the approval process. Also, the lender will likely need to verify your employment. generally, if someone has 25% ownership in the business, they are considered "self-employed".

Mortgage advice?

Q) I want to remortgage as our current one is rubbish and costs a fortune each month but my husband thinks it will count against us on a credit score if we want to sell this year to get something bigger. Is he right, or are we okay to remortgage now?

A) If you're going to sell this year, how can you possibly justify the closing costs it would take to refinance? That alone can cost thousands. It usually takes about 2 years to recoup your refinancing costs. You don't have that kind of time. Is there really a possibility that refinancing can actually save you money? I doubt it. Check that thoroughly before you proceed.

Joint Mortgage Advice?

Q) Hi, I'm in a stick and would appreciate any advice or suggestions. I've purchased a house with a friend about 6 months ago and I though that this person knew the commitment involved she is saying that the house is too much for her and she wants to sell. We borrowed more than what we paid for the house and have only been in residence for 6mths. I'm not keen to sell the house and gain the debts as I have additional debts of approx. 10K, which I have taken on a second job to clear these off. I also realise that if we sell I will not be able to get back onto the property market for years to come. I’ve tried to work things out with the other person but she seems adamant to settle and quite frankly is making life a misery for her and me. I’m not struggling with the mortgage payments or bills and buying her out doesn’t seem to be an option, basically because I thing the mortgage company wouldn’t give me the full mortgage. I wish there were some way I could keep the place on

A) It sounds like financially, it is not good for either one of you to sell right now. Stand by your guns and sit down and spell it out to her. Write down the figures and go over them with her. You have both gotten into a commitment here and she wants to bail out. What was she thinking on the onset? I don't know where you live, but here buyers are just not buying. It's not like you snap your fingers and instantly you are out of the obligation. Talk to a real estate investor (usually a broker at a real estate office) and ask for advice from them what your house is worth. 6 months may have increased the value to your liking. If nothing else, put the house on the market for what you owe plus expenses and see how it goes. Tell her it will take time, she needs to stick with it until then.

First time buyers UK mortgage advice?

Q) A friend of mine is looking to buy a new build and really take advantage of the incentives they offer for first time buyers. Thing is for what he wants to buy he can only really afford to do it as a first time buyer with the included developers incentives. He doesnt want to move into the flat but let it out or give it to a letting agency to take care of. Are there issues with this in terms of buying on a first time buyers and than renting it out? Do you have to inform the mortgage company afterwards? Whats the best way to make it work out legally or in a way that he gets all the advantages of the first time buyers (i.e. live there for a few months then rent it). Anyone had experience in this? Ideas, advice, legal loop holes :).?

A) There shouldn't be a problem with your mate renting out his flat, the best thing to do is to inform the mortgage lender that he plans to let out the property and take out adequate insurance for the place. If he wants to manage it himself then I guess it is just a case of him making sure that he can take care of any domestic issues that arise like the boiler breaking down and collecting rent. The thing to watch out for is the new HMO's that have come in but this will only affect him if he has more than three tenants in the place. In terms of incentives he might want to check out the guarantees that come with buying a new build, I understand that some of them come with these so he might save some money in the long run.

1st Time buyer - Mortgage advice please!?

Q) Am a first time buyer, looking to buy a property on my own. (In UK )Can anyone give me advice where they got there mortgages, who does good deals, what repayments are like, how much they would lend etc. Thanks!

A) See which bank or building society offers the lowest APR. I know that in the UK, this rate floats around 6%. Check out this website, they offer 4.7% https://www.beatthatquote.com/apply/loans/compare_cheap_loans.html?source=google&keyword=loan If you want go to alliance-leicester in your town, they also have a good rate. Anywhere you go, read the terms and condition well since you may end up to pay higher payments, if they set the interest rate in the mannar that they like. good luck

Mortgage Advice?

Q) Here is the run down; A friend bought a home in 1980 for $45,000, he put $15,000 down. The mortgage was perfect for over two decades, the payment was not even $300 a month. he thought the mortgage would be over in 2010. Within the last 5 years things have made a turn for the worst. His wife has done things to the mortgage and he does not understand what has been done, nor is he being told what has happened. Essentially, the mortgage debt now stands at $73,000 and the past two years has paid very little off the total debt, it seems all that is being paid is interest and a small amount at that. So what has happened, what has she done? What amount likely was taken out in a Equity Loan and was a refinance done? What can I tell him to help him and what can be done. This is in New York State as well. She did trick him into signing docs once, he is a man who doesnt know english well and just goes to work everyday, this is all he has known for the last 35 years. Now he has this BIG problem at age 63 and wonders how to fix it.

A) She probably did refinanced and took proximately 65000.00 cash out. But if your Friend was on a mortgage, and she did this without his knowledge, this is 100% fraud done by his wife and mortgage co, who did the loan. He should call the bank and ask them for closing package on this loan, if they don't have the package, they will help you with information were to get. When you get the package check the signature and who did the loan. If this the fraud, report to police and bank and realestate department. People going to jail for doing this staff. Good Luck! I hope this will help.

Mortgage Advice?

Q) Here is the run down; A friend bought a home in 1980 for $45,000, he put $15,000 down. The mortgage was perfect for over two decades, the payment was not even $300 a month. he thought the mortgage would be over in 2010. Within the last 5 years things have made a turn for the worst. His wife has done things to the mortgage and he does not understand what has been done, nor is he being told what has happened. Essentially, the mortgage debt now stands at $73,000 and the past two years has paid very little off the total debt, it seems all that is being paid is interest and a small amount at that. So what has happened, what has she done? What amount likely was taken out in a Equity Loan and was a refinance done? What can I tell him to help him and what can be done. This is in New York State as well. Not playing dumb, his wife tricked him into believing something else was taking place. His english is not the greatest nor is his understanding of the US ways. His thing is to wake up early go to work, all he knows for the last 35 years.

A)

Mortgage advice??

Q) My partner and I have just been accepted for a mortgage, we're about to start looking for a new home just wondered approx how long it would take for everything to go through?(we have enough to pay fees ect) Im having a baby in december and would like to be settled by then!! It is a repayment fixed rate over 40 years and 102,000

A) Right , If you have alreday got mortgage offer , then you need to instruct the solicitor. Once you have done that Solicitor would do all searches and would be dealing with all legal matters related to the property that would roughly take 2 to 3 weeks. Once he has done that , you would be required to sign the contract if the other party is ready for that. Once you sign the contract and give your deposit money to the solictor, he would wait for your draft/cheque to clear. as soon as it gets cleared your contract can be exchanged and completion date can be decided. here is the whole point, of you give your solicitor certain date you want to move by, he would give instruction to the lender to release money. it normally takes 4 to 5 days for them to release money. If you do all things technically and carefully you wont waste much time. so al togather it takes roughly 2 to 3 months once you find the place you wanna buy as well as getting mortgage offer. Cheers.. any question let us know..

mortgage advice?

Q) Before everyone jumps the gun and says dont do it, please hear me out! Option Arm's?? How can I make this loan work for me! I have read several horror stories that people have lost thousands by choosing this type of loan. I would like to hear some success stories with individuals who have used a loan like this or similiar to this! I realize the risks involved, I am not trying to buy a bigger house than I can afford. I will be buying a home which the interest will only option will still be managable for us! But would still like the option of paying less so we can fix up the house we purchase. We plan on buying a home thats not cosmetically sound in a good neighborhood and fixing it up! I understand the market has cooled, but I don't believe this will stop people from buying a good home in a good neighborbood for a good price when I choose to sell a couple years from now! I am not trying to make a million, but would like to turn a good profit in turn so we can buy a better home!!

A) This is how it works, if you have an interest only ARM that adjusts you are banking on appreciation. Before you do this you need to seriously examine the market you are in. I really doubt a total collapse of the market will happen, but a stagnant market will also be damming to you. Lets say you buy a 200K home on this type of loan. Spend 25K fixing it up and can sell it for 250K in a few years. That gives you a 25k profit on price, but then you have to pay commissions which are being paid by the seller more and more which at 6% is 15,000. Plus other closing costs on the sale, lets just say 3k, which is probably low. of your gain 25k, 18k is gone, you are only up 6K. That is not very good return for an investment of that size of multiple years. This type of loan can work for you, but before if I where going to do it I would examine the best case and worst case senario. If the best case is great and the worst case is a disaster, are you ready to risk that, if the answer is yes go for it if it is no, consider other opportunities.

mortgage advice?

A) 15 year fixed is the best. If the payments are to high go for a 20 year fixed.

Mortgage Advice?

Q) I currently have an Option ARM with a 2.2 margin (MTA-based), and right now I am at about 6.4%. The balance is $535,000; the home has been appraised at $680K. I want to refinance right now for 3 reasons: 1) I want to buy out an investor for 67K; 2) I want to get something fixed for even a relatively short time, say a 5/1ARM, considering the rising rates; and 3) I want to pay off all other existing debt (~18K). I need a cash out of at least 111K. My problem I am seeing is my income (96K) and credit score (median of 645) may not be able to swing it. Unfortunately my wife's score (575) is too low to help out, although her income (65K) is pretty good. My score was around 700 when I bought the home in October, 2005, but since then I have opened up several credit card accounts, some of which are pushing the limit. Am I screwed here, and just have to wait for our scores to improve?

A) You have a lot of good responses here to take into account.. What i can say that i think all other responses are missing is the fact that EVERY LENDER HAS DIFFERENT GUIDELINES IN WHICH THEY LEND MONEY!! . Some lenders specialize with low credit, some only work with good credit, etc. I have lenders that will lend a 100% financing as low as a 600 credit score.. You are at a 645, and you make plenty enough money to qualify.. (As you can see it is very different then other banks that responded to your question) Your best bet is to talk with someone that has a portfolio of investors they work with. There are a couple reasons i suggest that: 1. If a loan officer can shop your loan to multiple lenders they are bound to find one or more willing tho lend to you. By looking at multiple options and programs you will be sure to find the lowest costs and rates... 2. As another response said if you on your own call multiple banks to see what you qualify for, EACH AND EVERY LENDER will HAVE to pull a seperate credit report. The more times it is pulled the worse your credit gets. Now, when you work with a loan officer that can shop among their investors, they only have to pull one credit report, and use that copy to shop mortgage lenders for you.. So not only do you keep your credit score where it is, you dont have to worry about any of the busy work..you let the loan officer do it for you.. My name is Jason Fry, and I am a loan officer with Providential Bancorp, a nationwide mortgage lender. I'd be happy to assist you in a refinance, or at least be able to let you know exactly what YOU QUALIFY FOR. You can then make a more informed, and educated decision whether it would be the right move for you. Feel free to give me a call at 312-264-6448, or you can email me at Jasonf@providential.com. Thank You, Jason Fry Providential Bancorp

I need some legal/ mortgage advice! please.?

Q) my wife died about 6 years ago and our house was in her name, but she didn't leave a will. We have 2 kids, both of whom are under 18. So we were appointed a guardian ad litem. 1/3 of the house will go to each of my kids when i sell it, but the guardian ad litem won't let me sell it until they are 18. My younger one is still only 16, but my oldest is turning 18 this month so I will be losing her social security and there is no way I can afford our mortgage w/o that. I've been through some steps none of them have helped. All I want to do is sell the house or even be able to refinance to get my payments down. He will not allow me to do either b/c the house is still in my late wife's name. Please give me some advice, I don't have long until my daughter turns 18 and the last thing I want is to lose my house. If you have any experience in this and have a solution please let me know. or email me at broll@yahoo.com . thanks

A) For all your mortgage questions Try http://www.platinumquestmortgage.com or http://www.mortgagerefinancingatlowrate.blogspot.com

Legal Advice - Mortgage - Child Custody?

Q) My son has a 3 year old daughter. He is living with his girlfriend and they are buying a house (1 year ago). Both of their names are on the mortgage. His girlfriend has not been paying anything toward the expenses. She spends all her money on cigarettes, fast food, and non essentials. She has decided she wants to move out and get an apartment for 1 year to try to learn to be responsible with her money. (Doesn’t make a lot of sense to me). My son doesn’t want to lose the house. What kind of advice would you give him regarding the mortgage, child support and if she leaves, child custody.

A) They are not married so there is no divorce, and therefore no divorce settlement. It means they are co-signers and each is responsible for half of the mortgage in legal terms. They probably have a common account to pay for expenses and she contributes little. Either way, stop the common account. Inform the mortgage owner so that your son will pay his share and he wants no responsibility of her share unless she forfeits the ownership. The mortage company will act and force her to declare her intentions to this financial commitment. So, you son will end up with ownership of the whole house and he has to pay for the whole thing. The point is at least he is not paying for her part and she still owns 1/2. Document all the expenses and who paid what. Your son can file for child support with the local court. Each parent with earning power is supposed to pay 1/2 of the amount decided by the court. Normally, the court favors the mother unless she is proven unfit (mental or drug problems). Be aware that he is setting a course of no return. Or if she returns, ask do you really want her. Living together unmarried with children is not exactly a stable home. Kind of hard for you as the father watching this unfold.

Mortgage advice for sticky situation?

Q) Two years ago we lived in California, where our mortgage was ASTRONOMICAL. We sold our house and paid off the loan. We moved to another state and bought our new house with cash. We are now in the process of getting a small mortgage to put toward home improvements. Yesterday, my husband's credit score came back as 744- yea! But also the report showed two late payments on the old house before we sold it. The mortgage company wants us to contact the old mortgage company and find out why those payments were late. The truth is I know they were late because we had a temporary employment issue- but then we got back on track for several payments before we sold the house- and then paid off the loan anyway. I guess, despite the excellent credit rating, this might affect our interest rate on the new loan. Please advise how I should approach the old mortgage company so we can get the best rate on the new loan. Thanks!

A) With a 744, you shouldn't get a bump in the interest rate, even if there was a late pay. You don't need to contact your prior lender. You need to shop for another new lender. The only reason for a higher rate should be going no doc or stated income, stated asset, both of which you should be eligible for, considering your credit score. Without going to more than two more places to keep your credit from being pulled multiple times, shop for a different lender. Feel free to stop by our website if you'd like at www.achievablemortgages.com. We may not be up in your particular state, but one of our Loan Officers can certainly tell you whom to shop it with. The easiest way to do this would be just to call a couple lenders direct, such as a Countrywide, WAMU, Wachovia, or Chase. All of these companies will give you a quote within minutes over the phone and won't be worried about a couple late pays that were over two years ago. It's when they are within one year that they are really worried about. I hope this helps. Good luck.

joint mortgage advice?

Q) If one party of a joint mortgage stops paying, what rights will i have in getting her off the mortgage? My ex cheated on me & now wants £5000 to get off the mortgage. What a f**cking Bi*ch. We aint married so that is one problem out of the equation, but does anybody have any idea's. She will move 200 miles away when this is resolved & i know she wants to go back home.I am thinking of saying fine stay in the house for 5 more years, (5 years fixed rate mortgage 100% no deposit involved). and am pretty sure she will bail.

A) just bite the bullet and buy her out -=== be mush cheaper in long run!!!