We are coming off the lowest interest rates in Canadian history right now. Rates have to go up from here, there is no doubt in the financial experts minds. The only thing that would stall this rate increase would be some real financial hardships in the future, and that may even backfire and raise rates. This being said if you ever wanted to lock your mortgage in this would be the time to do it. Sooner the better in my opinion. As for the effect on the Real Estate Market the increase in rates will cause a few buyers to rethink their future purchase BUT it will be temporary as we are still below the average fixed and variable rates and as the shock of any significant rate increase passes people will realize that the rates are still not that bad. If the rates start approaching double digits THEN we will see a significant effect on the Real Estate market. I hope this info helps, if you or any reader would like to discuss this topic or another in more detail please don`t hesitate to give me a call anytime. Abraham Niyazi - Mortgage Agent - Lic# M08010640 - Centum One Financial Lic# 10758 - Cell: 416-993-4082 - Office: 1-866-RATE-708 x 115 http://www.centum.ca/abraham_niyazi/ I have access to Banks/Lenders across Canada and 11 years experience in the industry.

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Here is my situation: i earn $110k a year, same company for 28 years. i have a credit score over 800 i have about $70k cash on hand. $750k in 401(k) $100k in roth ira no debt besides a half paid off house. the house is worth $200k and i own about $110k i want to buy a fourplex in my neighborhood. it is currently occupied with leases, the first lease ends in late 2011, so i should be set for a year. rent comes in at $3200 a month it costs $300k, so i want to put 10% down. the banks i called asked for 25% down because it is an investment property. honestly, if i get approved for a 30 year mortgage at 10% down i should be making money on this property from day one. is there any bank lending like this? i tried bankrate.com and called all those banks and they all insisted on 25%, which really ties up too much of my cash.

Google is your friend in this regard. Google "portfolio lender" and the name of your town. A portfolio lender doesn't sell their notes, they keep them and service them themselves. Because they don't have to fit your application to Fannie or Freddie criteria, they can be more creative. A good rule of thumb is if the bank is an S&L or credit union, they're probably portfolio lenders. You'll meet with a decision maker. Your deal looks good on the financials, he/she will probably be equally interested in your experience as a manager, and what plans you have for the property. You kind of have to sell yourself to the lender....as much as you try to convince them the property makes sense financially. They may make an offer right then, or they may take a drive by the property and make an offer later. A potential sticking point is these lenders usually want a building with 5 or more units. BTW, gone are the days of non-recourse loans on investment properties, you will have to sign a personal guarantee. These type of notes usually don't come with a 30 year amortization. They're more likely a 25 yr amort w/ first 10 fixed. After the ten years you'd either re-fi, or the note would adjust w/ a 2 point wiggle on the yearly adjustment tied to the 10 year treasury or the prime rate. I'd guess right now you'd be looking at 7.5 to 8% on this type of loan. To increase your chances of getting by with 10% down, you coluld look at a 15 year fixed which would give you $700+/- monthly positive cash flow after principal and interest, but before RE tax, insurance, any utilities, and maintenance reserve.

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Hi, i work part-time, and i have few financial commitments (i don't pay rent/mortgage - just a few bills). my employer has offered £10,000 as a year's salary from this july (2011). i was wondering, if you were in my position, and had the same circumstances as me, and someone offered you the choice to take a voluntary redundancy at work, would you take it? is that amount too little? would you risk unemployment or take the money?

whether you should take it depends on (a) how much redundancy payament your employer is paying to your-workers, if any, (b) what is the likelihood of your employer giving u an involuntary redundancy or lay off if you dont accept this offer, (c) how many months u think u will be able to find another job in this economy, (d) how long u have been with the company and what seniority, pension, and benefits u have accumulated. After considering the above, u make the decision.

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Ok, i feel dumb asking this, but here goes.... let's say it's 2011. my arm mortgage is set to adjust in 6 months. i owe $750k on a home that i bought in 2006 for $750k on a 5/1 interest-only arm (80/20). i've been paying 6.375 % to this point. my arm has a 5% first adjustment cap and a 2.75% margin. the libor is 8% in 2011. instead of paying down my second, i have tucked $37k (10% of home value) in savings to prepare for "adjustment day". my home value is appraised less than i paid. let's say $690k. what would be possible refinance options? how screwed would i be? would a refinance at that point be the dumbest thing ever? would it even be possible? what would be the smartest thing to do at that point? it's a situation that i could very well be in. i'm just trying to assess what a situation like that spells for me.

Im assumming that with that kind of mortgage you are making at least 10k per month. As long as you are getting raises of 2.5% every year for the next 3 years, I dont think you will even notice when they payments go to 8% So now you are paying 4679 P&I at 6.375 right? At 8% thats only 5503 a difference of only 824 dollars. Now assuming you dont make more money by 2011 and you dont put any more into your savings, by 2011 if you have that money in a high interest savings account getting 3%, you will have 40k by 2011 and then use that money for "Adjustment day" and that will keep you going until 2015. Median income goes up about 20% every 7 years, so in 7 years expect that if you are making 10k per month today, you will be making 12k per month then. So i would not really worry if i were you.

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Before reading this, please be aware that i have done research on all of the topics i am inquiring about, i am asking that you only share your answers to these questions if you have had real experience with these situations or if you are a professional in this field. i can get the "facts" from the internet about how much you should put down for a home, how to increase your credit, etc. i know where the information is, i am asking for advice from people who are experienced (have gone through this situation) or are professionals in the field/related field. thanks. here we go... im currenty putting money aside to try to get into getting approved for a mortagage. i know what everyone else "knows" about mortgages, credit scores and loans from doing research on the internet and these "answers". im looking to get a few questions answered: 1. is it a good time for me to do this? (im not asking if its a good time to buy a home in general, we all know the answer to this, im asking based on my situation after you read this) 2. am i likely to be considered for approval of a mortgage? why (not)? 3. is my credit score considered "reasonable" and if not, what can be done to get to that point? here is detailed information you should read before giving me a standard answer that i have already found online through research: ================= begin credit information ================= my current credit score is 660. i have had a capital one card for over 6-7 yrs that has not been used, i now have begun to use it in late 2010 to try to increase my credit score. i have had five credit inqueries reported, four of which all range from 3/30/2009 to 12/7/2009. i have two sallie mae student loans which i have consolidated and have never been late. i have one negative listing from an old navy card from 11/1/2004 which says "paid, was past due 90 days" in the status. so currently my only open items are my student loan which i owe $2300 on, and my credit card which i only use now to try to build up my score, my limit is $500 of which i use about $200 or less a month and pay enough so that i only owe about $60 of my balance (i keep hearing "never owe more than 30%, 20%, 9%" -- who's to know which of these is correct?) a few questions on credit: 1. once the credit inquiries are removed from my credit history (which i hear that they disappear after two years) will this increase my score, if so, what percentage of my score is based on this section. 2. after the negative entry from old navy disappears which i hear takes seven year, will this increase my score, if so, any ideas how it may impact the score 3. what do i do about further improving my credit score? 4. i can pay off my student loan, i have just chosen to pay $100/mo out of the required $65/mo. if i pay it withing the next 4-5 months, does this help me? i have a friend who recently purchased a home with his wife and he told me he increased his credit in a matter of 9 months by getting a secured loan and paying it off right away and writing letters to get negative items removed from his credit history (his case was a bit different since he went through identity theft). does a secure loan really help? ================ end credit information ================ ========================= personal info, mortgage questions ========================= i currently live with my mother. she has her job making just shy of $27k/yr (for over 12 yrs) and has a really great credit history and score of 860+. i run a small business (est. 10/2009) and in 2011 put myself on w2 at 41k/yr, i am going to speak to increase it to $50k-55k to see if it helps. i am interested in, and have been digging for information wherever possible about trying to become a home owner by end of 2011 <--> q1 of 2012. i have been getting a lot of mixed feedback from friends, home owners and people with legal experience (this just causes headaches-->but still focused on the goal) i will be looking to put down $30k if this works out and somehow using my mother to get approved for the mortgage. 1. should i request the loan and use my mother as a co-signer, or vice-versa, please share your expert/experienced opinion 2. what do you think about the whole idea of trying to do this by end of 2011/start of 2012 with the information i have provided? 3. any suggestions or ideas?

credit-report-score.10001mb.com - try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

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My loan amount is 88,500. at 5.5 % interest. i have paid for eight months. i was told if i pay 1 mortgage payment extra a year it will take 7 to 10 years off of the mortgage. i have been paying an extra 100 dollars a month towards the principal except for my first payment and when i do my taxes in 2011 i plan on paying an extra 1000 towards the principal. i plan on doing this every year. so if i pay 2200 dollars a year towards the principal on this mortgage how many years will it take me to pay this off? also my mortgage payment is $630 a month.

The best answer is to google "loan amortization" you will find a whole list of websites that will allow you to play with this. You can figure out dozens of what iffs and see what works best for you. Be absolutely certain the mortgage company is applying the money the way you intend them to. For instance my brother did something like this and they applied it to his escrow account- at the end of the year they returned the overage and of course it had not changed his loan amount at all! Have them apply it to the principal. Write that on the check and on a paper that goes with the check- then look up your payoff on line and see if they did it.

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Ok my fiance and i will be married late 2010 early 2011 we dont plan on having kids until im 25-26 (im 18 now 19 when married) i also am studying part time to be an accountant, i will be finished when im 20 what do you think is better to do, save up enough to buy a unit for about 350,000 or rent until we're ready to buy a home (for a family), and save up as much as we can towards that (hopefully we will have $150,000+ by that time to go towards a mortgage in australia you only need 10% deposit to get a mortgage.... we can support ourselves both ways, renting we would save alot more money, but mortgage, we would also have an asset.... what do you think is better?

Save up your deposit for a house. You really don't want to get stuck renting. How will you ever save for your own house if you are paying off someone elses mortgage ?

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Hi, i have a 99k mortgage........ evey year i have payed a additional 12k down onto the principal amount at the end of the year, a what they call a mortgage anveristy payment(a free payment of up to 15 percent of your mortgage) as of right now my mortgage is about 42 k left i have about 10 k right now saved , instead of putting the 12k down should i try to put like 20k down this year pay a little bit of a fee on top of that or should i go double payments, i dont no what to do i just want out of this mortgage fastest way i can. should i want till 2011 than i have to re do my mortgage rate, and i can go for a 5 year please help high rate its 5.25 its not that bad

I'm not from the UK so I do not entirely understand your question. The part I do think I understand is whether you should make double payments or a lump sum applied only to the principle. If I am correct, you will be much better off applying a lump sum to the principal. The less the principle, the less interest is charged. If you make double payments you could pay off your mortgage sooner but you will not be saving one dime in interest; I hope I answered at least a portion of your question.

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I just retired at age 37 after working in a factory for 20 years. i get a pension equal to $35 for every year of service that i worked ($700/mo). my15 yr mortgage will be paid off in 2011 and with taxes and insurance all combined is $293 a month. it is a cozy 2 bdrm home (a little less than 1,000 sf.) that i bought for $40,000. i have no other loans or debt and no credit cards. i have a car and a motorcycle that are both paid for. i am very frugal and have always live well below my means. everything else i pay, insurance, utilities, food gas and $10 every 3 months for a prepaid cellular phone all total less than $300 a month. i still have $100 bucks or so leftover after all expenses are paid (which after 2011 will be about $400 leftover once my house is paid off). i have never been married and don't have (and don't want to have) any kids. anyway, like i said i live comfortably on $8,400 a year which is about half of the "poverty line" for my area. i have six figures in a 401k all in an interest producing bond that yields from 3% to 8% (even in 2008). i have all the necessities and really don't see a need to take on any more debt whatsoever. it seems like monetarily most people say only $100,000 a year or more is successful. so, my question is at age 37, with very low income but very low debt...am i "successful" or not?

at age 37 having retired, with your own home, car and bike paid for mortgage paid in 3 years, and everything else you've described to be true i would say you are very successful. most people in their 50s and 60s can't say they are debt free, and will have their homes paid for in 3 years. there are so many people retiring only to have to find another job. so if your situation is as you say congratulations you are a success story. i'm 50 and would love to be where you are financially. if you start banking what you have left over along with your 401k you'll be fine. no matter what don't re-fi your home.