In Canada, If you are refinancing your mortgage and you have enough equity accumulated, you can consolidate other debts into your mortgage. However, if you are purchasing a home, you cannot roll other debts into your mortgage unless you get a 5% cash-back mortgage to pay off other debts. Call me to discuss. James Shinners. Mortgage Managers. www.mortgagemanagers.ca 1-877-996-6677.

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Just as a for instance...my husband and i are moving to florida. we owe $200,000 on our house but can only sell it for $180,000. renting is not an option and we have to face the $20,000 loss. we want to purchase a home in florida. what happens to that $20,000 loss? can we roll it into the new mortgage? would we have to get a personal loan to pay it off? what about handling the loss when it comes to filing our taxes? any help is much appreciated!

The $20K is the difference between what you owe and what the house will sell for. The term for this is "underwater" or "upside down" on our mortgage. Don't forget to also subtract 6-10% for selling costs. So if you owe $200K and sell the house for $180K, after subtracting just 6% for commission, the proceeds would be $169,200. Since you owe the lender $200,000, the shortfall is $30,800 which you now owe the lender. If you must sell, you are in a short sale situation: that is when the house is selling for less than you owe on it. You must get the lender's agreement to sell as a short sale. In that case, they would forgive the difference between what you owe and what you sell for. This is a negative on your credit but not as bad as a foreclosure. However, that probably would make it very difficult to buy a new home, and you would have to come up with a larger down payment and pay a higher interest rate. In the past that "forgiven" amount was a liability to you as taxable income, but recent legislation has temporarily done away with that obligation for home owners who are under water on their homes. You say renting is not an option, and you must have your reasons, but it is something to think about if you cannot get approved for a short sale or you cannot come up with the $30K plus you would owe the lender.

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I know the banks are being strict now, but is the following scenerio possible? if i owe $300,000 on my 1st. mtg. and i sell my property for $270,000 i am out $30,000. if i found a new home worth $320,000 would the bank be able to qualify me for that and roll over the $30,000 loss into this new loan? in the long run it would still be beneficial b/c i would still be able to tap into the affordable housing market. the problem is even if people wanted to buy most likely they can't b/c they owe more than their homes are worth. any information is greatly appreciated. :)

No, it's not possible. If the new home is worth $320,000, the lender will lend a percentage of that amount. Generally 80%-90%. In the case of an FHA loan, up to 97%. If they didn't, then there'd be no equity in the new property. So, if you found a new home worth $320,000 and rolled your $30,000 loss into it, you'd have to borrow $310,000 (97% of $320,000) plus $30,000 rolled over from the previous home. So you'd have a mortgage of $340,000 on a house worth $320,000. That won't happen. You'd essentially be transferring your loss--your negative equity--from your old home to your new one. That doesn't benefit the lender at all. And it really doesn't benefit you. You still owe more than the property is worth. But with the transaction costs of selling, you'd actually owe more. To use your scenario, if you owe $300,000 but the property sells for $270,000, you won't net $270,000. Figure close to 10% in transaction costs--real estate commissions, repairs, transfer taxes, miscellaneous closing expenses, etc. So, in that scenario, you'd net about $243,000. Round it up to $245,000. That means you'd either have to come to closing with $55,000 in cash, or else (in your scenario) roll that $55,000 over into the new house. Now you're talking about getting a mortgage of $365,000 on a house worth $320,000. Lenders may be stupid (hey, the last few years shows they are stupid), but even they aren't that stupid, especially in today's market. Hope that helps.

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I am a first-time home owner and i have been in my house just under three years. i have good credit and i have never missed a mortgage payment. recently my lender contacted me about the new harp program urging me to refinance. i let them send me a good faith estimate and it looks like i do qualify for this refinance. here are my details - after our 10% down-payment, our loan came out to $200,700. our fixed interest rate is currently 6.375% and we pay approximately $1,570 a month including taxes, insurance and pmi. at our current payment rate we will be down to 78% base in about 2 years so we can look forward to a dropping that

Arbor and Age gave good answers. I have also heard that one extra payment a year - just one - will knock off 7-10 years on a 30-year loan. Keep in mind what the FMV of the house is, not just what you have put into it. If the market is down and the house is worth less, by all means skip the refi.

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We are 2 months behind on everything due to a job loss. everything happened at once! bought the home in nov of 06', bought a new car in dec of 06', aqquired 1 credit card for 2500 in jan 07. took a perosnal loan for 5k in order to visit family in europe, expecting a child now in sept - laid off from work in feb 07! depleted resources to keep up with bills and now we are emtpy! if we don't do something soon, i fear the outcome. i do have new work starting in 2 weeks, but then there will be another 2week delay before pay rolls in. you see the porblem i'm sure. of course we spoke to the mortgage company of course and all creditors infomred. regardless that does not prevent negative action on their part. we do not know what to do!!!!!!

Life happens like that. Do you have a 401(k) you can take a loan against? If your credit card is not maxed, ask for convenience checks to get you out of the mortgage hole. Call your bank and see what they can do for you.

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Can you please tell me if there are any flaws in the following scenerio? anything i missed? i can not find much information about refinancing an fha loan into an investment property loan. would this work? is there anything i am missing? such as you can't use a lump sum, or can't refinance from fha to investment, etc. the background + we purchased our townhouse at 150k 16 months ago. + have made some minor & cosmetic improvements to it such as nicer paint, better flooring, appliance upgrades, etc. it presents much better than before so i hope it would have slightly higher appraisal) + we bought using fha. home is legimately owner-occupied. i am just thinking ahead and really want a backyard soon. + husband is on the title but income could not be used at the time due to lack of 2-yearjob history (he was a new immigrant at the time) the plan + refinance as investment property down to 75% loan to value - paying a lump sum of about $35,000 - $40,000 to help it get there if home value is still appraised at only 150k + monthly payment (including taxes, pmi, etc.) would be reduced by about $200 a month. is currently $1035. + pmi would go away then right? reducing it by about another $50 a month? + credit is not very good does this matter in a refinance? + roll closing costs into the new loan + rent to husband's parents at $1200 which is slightly below fmv + can use 85% as future rental income (no 2-year history needed for fha) = $1020 + take a loss of about $93 per month (new mortgage including taxes of around $825 + insurance of $35 + hoa of $253) = 1113 and (expense 1168 - countable income 1020) = $93 + go out and qualify for a new fha loan on a sfr to be owner-occupied for good + this time include my husband's income assuming he then has a good 2-year work history

Better see what your credit score is & if you can do what you are proposing to do. Talk to a Loan Officer. I think there will be a red flag when your rental agreement has the same name on it as yours. If you have $35-45,000 plus closing costs to pay down the mortgage why is your credit bad? You should pay your bills. Credit standards are the same with a refi as with a purchase. Why not keep the current mortgage...after a year as primary residence it can be rented. Use your money for a down payment on the new house...if your credit is good enough.

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It just seems like if the govt was confident that their policies were working, they wouldn't extend an unlimited line of credit to fannie mae and freddie mac to cover future losses. http://online.wsj.com/article/sb100 01424052748703278604574624681873427 574.html on christmas eve, when most americans' minds were on other things, the treasury department announced that it was removing the $400 billion cap from what the administration believes will be necessary to keep fannie mae and freddie mac solvent. this action confirms that the decade-long congressional failure to more closely regulate these two government-sponsored enterprises (gses) will rank for u.s. taxpayers as one of the worst policy disasters in our history. fannie and freddie's congressional sponsors—some of whom are now leading the administration's effort to "reform" the financial system—have a lot to answer for. rep. barney frank (d., mass.), chairman of the house financial services committee, sponsored legislation adopted in 2008 that established a new regulatory structure for the gses. but by then it was far too late. the gses had begun buying risky loans in 1993 to meet the "affordable housing" requirements established under congressional direction by the department of housing and urban development (hud). most of the damage was done from 2005 through 2007, when fannie and freddie were binging on risky mortgages. back then, mr. frank was the bartender, denying that there was any cause for concern, and claiming that he wanted to "roll the dice" on subsidized housing support. http://online.wsj.com/article/sb100 01424052748704381604575005242824023 092.html the congressional budget office has reiterated its support for bringing the companies onto the federal budget—and onto the government books—which would effectively mean accounting for their operations in the federal budget as if they were federal agencies. "recent events clearly indicate a strengthening of the federal government's commitment to the obligations of fannie mae and freddie mac," the cbo said in a report.......................a treasury official said the administration had no plans to alter how it accounts for fannie and freddie in the federal budget. "i don't anticipate any change," said assistant treasury secretary michael barr. "they'll have the same appearance that they've had before in the budget books." a spokesman for the white house office of management and budget declined to comment.

Yep. The 5 year subprime mortgage loans are due to expire this year.