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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As described above, i have a 2 year fixed mortgage with abbey. question: 1. can i sell the property? 2. can i move the mortgage to the new property i am thinking of buying even thogh the ltv is different?

many mortgages are portable these days, if yours is and the new LTV is within the range acceptable under the terms of your mortgage then you will most likely be able to move home and keep the mortgage. If not then you will be subject to paying the early redemption penalty specified in your documentation. Get yourself a decent mortgage broker who will be able to easily identify how your existing mortgage stacks up in relation to these aspects and your intended move and what the best case scenario will be for you in any case. If you need a recommendation I know lots of very capable brokers and can refer you to one if you like. hope this helps Darren

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I'm trying to make the smartest financial move. i bought condo in april 2006. buying the condo with interest-only payments was not the best move, but i wanted to flip it. however, the market tanked in 2006 and i got stuck with the condo. yes, i live in the condo. im living paycheck to paycheck right now. i do have reserve capital saved for a year. the mortgage interest is deductible. condo is in florida in a gated community with the best location. 1/1 bed/bath. 626 sq feet. i bought it for 100k. terms: fixed rate at 6.5% on the first mortgage, 80k. $605/monthly. adjusts after 10 years. 2nd mortgage arm on 20k. payments $178 montly. 9%interest. thinking of either selling, renting, or refinancing when the market turns around in future. holding right now. i cant keep making interest-only payments forever! i need an intelligent person to help me make the smartest financial move. i have 9 more years until mortgage adjusts. should i sell, refinance, or rent in the future? i want to profit $

I would keep it for now. You won't be able to sell it and make a profit until the real estate market begins to recover. If you rent it, you will have to move out and pay rent yourself. I don't see the need for you to refinance; you're in a decent position now, and you'll only add closing costs to your mortgage, if you even have the equity. Consider a second job, if possible, so that you can make principle & interest payments on your mortgage, instead of just interest. An extra principle payment a year will make a huge difference. Not only that, but the actual principle & interest payment would not be much more than you're paying now, because initially most of what you pay is interest on a 30 year loan. Working a second job might also enable you to pay off other debt to help ease your financial troubles. Good luck!

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The home is 2bed/2bath, about 2500sf, build 1980's. recent updates on roof and bathrooms. 2 car garage.it is sell by owner for 150k but negotiable. i want to propose 125k for the home for low fixed interst rate, but i don't konw how much the mortgage payment will be for 15 years,20 years or 30 years term?

Most real estate sells for 92-97% of asking price, depending upon the region of the country. Therefore, if the property is correctly priced, expect the owner to only accept an offer between $138K and $145K, without owner financing. Mortgage companies determine your maximum available loan amount by the following equation: Total Gross annual income X .28 = A A x .80 =B B Becomes the total annual payment for mortgage, taxes and insurance they will grant. Take this number, subtract the annual tax and insurance cost, then divide by 12. that will give you the monthly payment of the maximum mortgage. Then check an on-line amortization schedule and put in that number and the prevailing rate in your area and you will have the total $ amount. For example you make $50k A year. $50,000 x .8 = $40,000 $40,000 x .28 = $11,200 Annual taxes = $1200 and annual insurance = $500 total is $1700 11,200 - 1700 = $9500 annual, $792 monthly $792 a month = 125,000 mortgage at 6.5% for 30 years.

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I bought my primary residence 2 1/2 years ago for $60,000 and put $20,000 into it (it was a "fixer upper"). it now appraises at $145,000. i plan on refinancing my $60,000 mortgage to pay for the debt of $20,000 (mixture of credit cards with 0% intros that are running out!) and to make a 20% down payment on an investment property (so i can avoid pmi). i plan on getting another slight "fixer upper" and only want to put in 10-15k into it. i will rent it out for a year or so until i think ive reached a good profit and sell it. plus i only want to have to pay 15% tax rate instead of like 33% (long term investment). i am not familiar with refinancing. should i first get a contract on a property so i can refinance just enough to pay the debt, 20% to put down on the house and alittle money to fix it up? or should i just estimate and refinance now and keep that money in the bank. i would hate to pay interest on money just sitting in the bank. or do you know another way of doing it?

There is always a home equity line of credit you only pay interest on the portion you take out. ie 100k line of credit you pull out 50k you would only pay interest on the 50k you can usually draw on a line of credit for about 10years you can also convert it at any time to a fully amortized loan. If you would like to compare loans feel free to contact me directly I would be more then happy to help my website is http://homefrontmortgage.us

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Hi guys, here's my question. i have a mortgaged home since the last 2 years (jan, 2008 to be precise). i opted for a fixed rate 5 years term, which will expire in 2013 and the rate is 5.9% (fixed). now, i am thinking to sell my house. my question is if there would be any penalty apart from what i owe to the bank? if i sell my house, say for $350,000 and i owe bank $303,000 does it mean i will have a balance of $47000 in hand, or would i incur any penalty as i believe it's the case. i will also contact bank for all details, but want to ask some experts here first to have some opinions. what's the best way to go about in this situation? will i be in loss here? please suggest. thanks in advance.

You would have to look at your mortgage agreement/talk to your lender to determine if it has any pre-payment penalties. Other than a possible lender pre-payment penalty, there wouldn't be any other "penalty" that I can think of.

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Hi people i know what i'm asking is one of the most gambled financial questions many of us have to make a decision upon and ultimately only i can make the decision as there is no real fast or easy answer, but i am interested in your view and reason behind it. so if you have the time to give me your view it would be greatly received. i have held a mortgage with the halifax since 2002 and just finished my third mortgage product with them, a fantastic tracker at 0.69% above b.o.e base rate. i have reverted to the halifax svr of 3.5%. my payments have more than doubled, yet are still lower than they were 3 years ago when i was on a fixed product of 4.89%. i just don't know which way to go now, my choices are- 1) 2 year tracker +2.69% (so 3.19% at current rate) 2) 2 year fixed at 3.89% £999 start up fee 3) 3 year fixed at 4.79 no fee 4) 5 year fixed at 5.89% no fee or- 5) stay on the svr 3.49% as much as the svr seems appealing now, is that a short term gain given the economic climate? there seems to be much speculation as to what will happen with the bank of england base rate. i am no economist but the way i see it is, yes they may have to rise the base rate 1/2 a point, then perhaps two more half points to end up at 2% in the next two years. but they must do so with caution as no one seems to be buying much at present and if they increase too much then we'll have a static housing market. this is an educated presumption as i am currently trying to sell another property in nottingham for 90k, with not as much as a sniff of interest. the 4 bedroom, victorian house is very pleasant and priced fairly, the problem is no first time buyers seem to be able to afford the deposit and no investors want it either. would interest rates rise firther stagnate the market? having done some calculations, the tracker offered for 2 years would allow the rates to jump up by a point and remain cheaper, but if they move up further then the 3 year fixed appears the best option. i have not thought or looked at predicting the economy in 3 years time, this is beyond my knowledge or ability to site trends. so i hand the question over to you............

You have mentioned the mortgage fee in your list, but are you taking other fees into account. You will probably have to pay legal fees and a valuation fee, which may come to £500 or more. So you have to take this into account when considering the "savings". Mortgage rates are based on the rates banks can get when borrowing from each other. These are based on the Bank of England (BOE) rate, but will vary depending on the length of time you are borrowing for. This is because the rate reflects what the lender thinks BOE rates will do over that time period. So the mortgage rate you are offered is basically the inter-bank rate for that period, plus a profit margin. This margin depends mainly on how risky you are - the higher the risk the higher the margin. Your tracker rate gives a guide as the the kind of margin you are being offered - eg 2.69% above the baseline. I think this is about as low as it gets at the moment. My understanding (from news reports etc) is that banks have set their 3 and 5 year inter- rates based on an assumption that BOE rates are going to rise by 2 or 3% in the next couple of years. If this understanding is correct then fixed mortgage rates should not go up (straight away) if BOE rates start to rise, because they have already factored this in. But if it turns out BOE rates stay lower for longer the banks might actually drop their fixed rates in the coming months. Either way, you are better off staying on your SVR and jumping on to the fixed rate only when BOE rates start to rise, or when fixed rates drop a bit. Historically a banks SVR was their worst rate. But they got so much bad publicity a few years ago, that the SVR is currently not that bad compared to their other rates. I suspect that as the economy recovers the SVR will start to look bad as offers and competition comes back into the market. But for the time being the SVR is often just as good as the other rates you can get, and has the advantage that you don't need to remortgage and pay all the associated costs to get it. In general you don't necessarily save much, if anything, by jumping from one fixed rate deal to another. The banks want to make their money, so the average rate over the 25 years of your mortgage, is likely to be similar to the rate you would have got by staying on an SVR or a lifetime tracker. If you take into account the fees for continuously re-mortgaging you might end up paying more for regularly switching. The only benefit of fixed rates is that you know what you will be paying for the next 3 or 5 years, which some people prefer to the volatility of payments that could change each month. If you have the guts to stick it out for a bit you might find that long term trackers start to look like the best bet. I doubt you'll ever get as good a deal as you could have got before the credit crunch (I'm on a lifetime tracker 0.44% above base rate), but I'd like to think you'll get something better than 2.69% above BOE base rate.

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Question no: 1 - please choose one the accounting definition of income is: income = current assets current liabilities income = fixed assets current assets income = revenues current liabilities income = revenues expenses question no: 2 - please choose one what would be the capital spending for an organization who has purchased fixed assets of rs. 200,000 and sold fixed assets of rs. 45,000? rs. 245,000 rs. 200,000 rs. 155,000 rs. 45,000 question no: 3 - please choose one selected information from snt company's accounting records is as follows: o cash paid to retired common shares rs. 15,000 o proceeds from issuance of preferred shares rs. 20,000 o cash dividends paid rs. 8,000 o proceeds from sale of equipment rs. 25,000 on its cash flow statement for the year, snt company should report net cash flow from financing activities as: rs. 3,000 net cash inflow rs. 3,000 net cash outflow rs. 8,000 net cash inflow rs. 8,000 net cash inflow question no: 4 - please choose one snt company has a current ratio of 3:2. current liabilities reported by the company are rs. 30,000. what would be the net working capital for the company? rs. 45,000 rs. 15,000 ( rs. 45,000) ( rs. 15,000) question no: 5 - please choose one which of the following would not improve the current ratio? borrow short-term to finance additional fixed assets issue long-term debt to buy inventory sell common stock to reduce current liabilities sell fixed assets to reduce accounts payable question no: 6 - please choose one which of the following are incorporated into the calculation of the du-pont identity? i. return on assets ii. equity multiplier iii. total assets turnover iv. profit margin i, ii, and iii only i, iii, and iv only ii, iii and iv only i, ii, iii, and iv question no: 7 - please choose one the concepts of present value and future value are: directly related to each other not related to each other proportionately related to each other inversely related to each other question no: 8 - please choose one which of the following is a special case of annuity, where the stream of cash flows continues forever? special annuity ordinary annuity annuity due perpetuity question no: 9 - please choose one which of the following is an unsecured bond for which no specific pledge of property is made? mortgage debenture collateral note payable question no: 10 - please choose one which of the following type of return refers to the percentage change in the amount of money you have? nominal return real return inflation return none of the given option question no: 11 - please choose one when real rate is _____, all interest rates will tend to be _____. low; higher high; lower high; higher none of the given options question no: 12 - please choose one which of the following is the extra yield that investors demand on a taxable bond as a compensation for the unfavorable tax treatment? interest rate risk premium inflation risk premium default risk premium taxability premium question no: 13 - please choose one in which type of the market, previously issued securities are traded among investors ? primary market secondary market tertiary market none of the given options question no: 14 - please choose one place the following items in the proper order of completion regarding the capital budgeting process. (i) perform a post-audit for completed projects; (ii) generate project proposals; (iii) estimate appropriate cash flows; (iv) select value-maximizing projects; (v) evaluate projects. ii, v, iii, iv, and i iii, ii, v, iv, and i ii, iii, v, iv, and i ii, iii, iv, v, and i question no: 15 - please choose one an investment will be ___________ if the irr doesn t exceeds the required return and ___________ otherwise. accepted; rejected accepted; accepted rejected; rejected rejected; accepted question no: 16 - please choose one irr and npv rules always lead to identical decisions as long as : cash flows are conventional cash flows are independent cash flows are both conventional and independent none of the given options question no: 17 - please choose one a project whose acceptance does not prevent or require the acceptance of one or more alternative projects is referred to as : a mutually exclusive project an independent project a dependent project a contingent project question no: 18 - please choose one finding net present value comes under which type of capital budgeting criteria ? discounted cash flow criteria accounting criteria payback criteria none of the given options question no: 19 - please choose one ___________ cost is an outlay that has already occurred and hence is not affected by the decision under consideration. sunk opportunity fixed variable question no: 20 - please choose one which of the following is the overall return the firm must earn on its existing assets to main

Income=revenue- expenses. Thats the answer you're looking for

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I purchased my house for 240 k 2 years ago, and now the current market value for similar houses in the area is 170 k. my remaining mortgage is 200 k (30 year fixed). i face a very high likelihood my job will transfer from arizona to texas within the next 6 months to 1 year (the pay will remain the same in the short-term, but has high potential for larger future income). the job has excellent prospects for future growth and is a once in a lifetime opportunity; but i am concerned that i will be unable to sell my house, or will have to sell for much less than my mortgage balance. any suggestions?

If you sell the house now, you'll lose money so try renting it out to a family, professional, or a college student. Check references! Unfortuanately, housing prices are going to continue to decrease for years because they were inflated to incentivise people to buy them with low interest rates. The best thing to do is to rent it out until you can pay the mortgage down at least to the point where you can break even from selling it.

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This is a very trying personal situation for me. the note might be very lengthy but i would sincerely appreciate if someone can help me with this situation. i have an adjustable first and fixed second mortgage on my home where i have lived as a principal residence for 2.5 years. the following are from the mortgage agreements that i have: rider to note and mortgage - 1st mortgage if during the term of the loan, lender discovers property is not being used by borrower as primary or secondary residence but for rental purposes, then lender will have the option of immediately increasing the interest rate by 1%, margin by 1% and annual and lifetime interest caps by 1% certificate of residency i have signed that "during the term of the mortgage loan, i intend to use the property as my primary residence and it will be owner occupied". fannie / freddie mac - uniform instrument form 3031 occupancy - borrower shall occupy, establish and use the property as borrower's principal residence within 60 days after execution of this security instrument and shall continue to occupy the property as borrower's principal residence for atleast one year after the date of occupancy, unless lender otherwise agrees in writing, which consent shall not be unreasonably withheld or unless extenuating circumstances exist which are beyond borrower's control. occupancy statement i will occupy the subject property as my principal residence as required by and in compliance with the terms of the deed or trust / mortgage / security instrument relating to the subject property. now to my personal situation. i bought this property while i was married. around 1.5 years back, my wife abandoned me and is now in india. a divorce case is currently going on in india and we are negotiating a settlement agreement where she signs over the deed to me. but this has already taken 1.5 years and i think she might try to prolong the process. filing a divorce in the usa is not an option at the present time. she has not invested anything in the property. i have been paying my mortgage and all bills on time. additionally, i am commuting 2 hrs to work each day. i am finding the burden unbearable of paying the mortgage for such a huge house living as only one person in the house and commuting back and forth from work each day. i consulted attorneys in the usa and they pretty much told me that i can neither sell the house or refinance it without her signature even if she has lived with me for 1 day in the house. i have excellent credit and don't want to ruin it by going into foreclosure. as a result, i am renting out my property starting next week to minimize the burden on me. the rent will not cover mortgage and i will foot the difference but atleast i don't need to ruin my health by driving to and from work for 2 hours everyday. i have the following questions: 1. given the clauses in my mortgage agreement that i quoted above, am i ok with renting the property out? 2. i already have a lot of financial burden and instead of dropping the ball, i want to stick to my commitment and honor the loan but would like to wait for my wife to sign over the deed. in the meantime, i don't want my mortgage company to raise the rate on the loan. how do i ensure this? many people have told me not to tell my mortgage company that i am renting the place. 3. i am not planning on telling my mortgage company but how do i ensure they don't get any suspicion when i change my address? should i just tell them to use my office as the mailing address since its more comfortable to access mail? 4. my home and auto policy are with the same company. obviously i will be changing the address on my auto policy. but, i have a suspicion that if i change the address, the home insurance policy will know of the same and immediately notify my mortgage company. so, what is the option here? should i get a new home policy and ask them to use my office address as the mailing address and leave my car policy as is? thanks for your help. i said filing a divorce in the usa is not an option since there are existing proceedings going on in india.

How do I ensure this? Many people have told me not to tell my mortgage company that I am renting the place. ---isn't it fun being between a rock and a hard spot? tell no one anything if they hold power over you; thus, volunteer nothing to the lender. find work closer to you --2 hours each way kills a good day. you "only " work 8 hours, why add 4 to that? go to court and seek a judge who will judge in your favor to sell the house if that is what you want to do. Why a divorce is not applicable to you amazes me.......maybe your creed/religion/heritage or pride is in the way. no one can live your life; so, think TODAY, of you first, wife, mother, boss 2nd, 3rd etc. [as a cowboy psychologist said 40 yrs ago, or maybe it was a native American--today (maybe?) you become a man!