Hello Branislav, When a bank denies a deal for the 5 year mortgage there is little chance that they will approve a 1 year term. The qualifying income needed for a 1 year term is actually higher than a 5 year term. 5 year mortgages are qualified on the 5 year rate any shorter term is qualified on the bank of Canada rate of 5.19%. If it is a matter of qualifying for the mortgage then the best bet is to look to another lender and ask for an exception to the qualifying ratios. As a Mortgage Agent I can check with the 25 lenders that I deal with to see which Lender will approve the deal if you like. Please let me know if I can help. Contact me at any time. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 http://www.centum.ca/abraham_niyazi/ I deal with 25 Banks/Lenders and can do mortgages across Canada except Quebec." 01:20pm Feb 8, 2011

I doesn`t matter if you break 3 years later or 6 month before the term ends. You will pay the same mortgage penalty, 3 month mortgage interest or Interest Rate Deferential penalty.

A little clarification to mortgagepro`s comment. It is true that you will pay a penalty regardless of the months remaining but the penalty could be drastically different between a 3 year and 3 month remaining term. There are 2 calculations that the banks use for penalties. 3 months interest calculation and Interest Rate Differential IRD. If the conditions are right 3 months penalty for 3yr or 3month term should be close. If the conditions are such that an IRD will be used to calculate your penalty then you are looking at a huge difference in penalty. Talk to your bank and they will calculate the costs involved for you. My suggestion is to consider a port of your mortgage. A port is where you move the mortgage term rate and balance to the new property with no penalties. You can straight port it (no change in any mortgage particulars). You can port increase where you need more money (term remains the same, higher mortgage amount and the rate is blended with todays rate). Or do a port reduction (same term, same rate, smaller mortgage amount required for new house, some penalty may apply but much less than a complete break). One last thing I should mention. Once you bank gives you your options please contact a Mortgage Agent to do some further calculations for you. Many people have benefited from switching to a new bank for their new home. This is especially true today where rates are much lower than any mortgage started over 2 years ago. In the end what you end up doing with your mortgage must depend on how much money you will save going forward. That should be your #1 priority, mortgages are very expensive over time, you have to find ways to minimize your costs. I would be happy to consult with you if you have any questions. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 http://www.centum.ca/abraham_niyazi/ I deal with 25 Banks/Lenders and can do mortgages across Canada except Quebec.

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Yes, as long as you are not buried in other debt. If you review your budget, and you find that you are saving more than $1100 per month, then it should be easy for you. However, if you are living paycheck-to-paycheck now, and the $1,100 is significantly more than you are now paying for rent or housing, then you might not be able to afford it. The best way to know if you can afford to increase your payment is to look at your savings balance. If you have at least three to six months' worth of housing payments in your balance, then you are probably in good shape. Read the article below for more information on how to save for your first home.

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I also have a mortgage with claimable interest. this is my first year in this tax bracket. about 25% of my pay goes to taxes. i pay md state tax.

Go to www.irs.gov and click on the individual tab. There is a withholding calculator that can help you out a lot in determining what your refund/payment will be. You just need your last paycheck and a bit of other information. I have used it over the last few years and find it very helpful. I put the whole link in the source area.

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I have a 15 year mortgage on my house which i've been paying on for about 7 months. its fixed at 6.74% apr. initial amount borrowed was $65,016.24 and now i owe $63,674.81 after 7 months of payments. (my payment is $574.42 per month) my bank now is advertising a home equity installment loan for up to $10,000 at 4.99% apr. the question i have is would it be smart to take out this loan and pay off $10,000 of my original mortgage with the money since it is at a lower rate (4.99 vs 6.74)? in other words i'm not looking to use the money for anything other than paying off a large chunk of my mortgage in the hopes of saving some money over time. ps. i'm pretty sure there are no 'closing costs' involved with the home equity loan.

It can be a good idea "if" you can pay off all of the $10k before the 4.99APR teaser rate expires - understand that you will still have to make your regular $574 payment + $188 per month to pay off both loans (if the teaser rate is good for 5 years , more if the teaser rate is shorter than that), your first payment doesn't go down, so if the $188 will squeak you, then bad idea. What you COULD do, is take out the $10k at 4.99, invest it in GMAC demand notes @ 6%, and then take the tax benefit off of the loan interest and pocket the difference - so you make an extra 1% off of your money, no loss, and if you wanted to, you could make that $188 payment off of the demand note each month!

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I wont have a lot to put down on a home. will my mortgage be a lot? i want to bu a three family house and rent the other floors. how much will i qualify for ? or should i just buy a condo and call it a day? help i don't have a lot to put down. is there anythything i can do to get my mortgage payment low beetween say : 1,000-1,300 ?

You will qualify for the 150-170 range, if you have good credit. You have to have a good downpayment. 25% for investment property, like the 3 family house. 150k would buy a lot in some parts of the country, not so much in others. We can't really help you decide what to buy, do not know enough.

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Interest only for 10 years. recently my payment went up $200 a month due to the taxes increased. my credit score is 750. is there a way to refinance at the lowest interest rate available to get my payment down without buying points.who has the lowest rates at this time?

YES! I've seen as low as 4.75. Make sure you get a fixed rate 30 year so you have flexibility in payment (you can always pay more if you want). There are many banks out there, who is good depends on your area. Call around and get some input from people who've used those in your area. Good luck! Really you need to refi right now before rates go up because they are going to with this bailout plan sucking up all available capitol out to loan.

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When my in-laws were aged 63 and 67 their bank let them refinance their house into a 30 year plan. now that one of them has passed away, they can no longer afford the payments (5 years ago). they were not required to have insurance against one of them dying. is this legal? who would sell this product to a bunch of old people hoping they would pay it back in 30 years!?!?!?!? any advice would be great.

If you can determine the lender engaged in predatory practice, you would have a case. However, if your in laws wanted the mortgage, the lender can not discriminate against a person's age. You can still save your parents house if the living person qualifies for a Reverse Mortgage. This is a mortgage backed by the government that will not require your the persont to pay any payments as long as they live in the home. Wells Fargo and other national banks offer the product. You can go to hud.gov for more information. More than likely your in laws didn't get the best advice. Difficult to prove that bad advice is illegal. Check out information on the Equal Credit Opportunity Act before you spend a lot of money on a lawyer. You might be better off just trying to solve the problem with a Reverse Mortgage.

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I am taking out a mortgage on my own for a flat. i have a full time job that is temporary for 3 more years but likely to continue beyond that. apart from buildings and contents insurance, which other insurance products do i actually need? i'm not sure if i need life insurance at my age and i know that if i am off work through sickness, i get paid 63 days full pay and 63 days half pay.

Some of the pricing estimates being thrown around here seem a little high! Yes, life insurance may seem un-necessary if you have no-one to leave the house to. What you might want to think about though is what might happen down the road. Are you saying you wish to remain single with no children? If you develop a medical condition (I'm assuming you don't have one now) between now and the time you DO actually want life insurance then your premiums will be much higher and you may even be turned down for cover. And even though you get sick pay, critical illness cover is often much cheaper than you think and means you won't get kicked out your flat if you get something like cancer.