you cant. better find some dungy small apartment. unless you live in a home naked, and never eat or have no car or phone

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I just bought a home last october. i signed a single 30 year mortgage for 280,000. my interest rate is 6.75%. i have only made 3 payments on this mortgage. with interest rates dropping when is a good time to refinance?

You must have heard about the Fed cutting the interest rates again today :) The quick answer on refinance timing is that you are not required to wait any period of time before refinancing your current mortgage. However, most home owners do wait until they have some equity in their homes before refinancing. When making loan decisions, one of the most important factors potential lenders review is the loan-to-value ratio, or LTV, of the proposed loan. This ratio compares the amount of the loan you are trying to obtain to the current value of your home. The interest rates charged on 100% loan-to-value refinance loans, are generally higher than the rates charged on loans with a with lower loan-to-value ratios (it's intuitive, since they are riskier loans for the lender). However, if your credit score has increased significantly since you first purchased your home (or if your income has risen), you may be able to obtain a lower interest rate. You should contact several potential lenders to discuss the loan terms they can offer you on a refinance loan. After speaking with several lenders, you should be able to determine whether or not a refinance loan is a financially viable option for you. Another problem encountered by many borrowers trying to refinance their home loans are early refinance penalties charged by their current lenders. Many loan agreements, especially “sub-prime” loans designed for borrowers with credit problems, state that borrowers must pay a penalty to their current lender if they wish to refinance their loan before the expiration of a certain period defined by the loan agreement. These “penalty periods” vary from loan to loan, but are frequently between two to five years from the date of the original mortgage. Before you attempt to refinance your current mortgage, you should contact your current lender to discuss whether or not your current loan agreement includes a prepayment penalty, and if so, its amount and when you can refinance without penalty. These penalties can be quite costly, and can easily make a refinance loan too expensive to save you money over your previous loan. Again, you should find out the amount of the penalty, if any, on your current loan, then contact several potential refinance lenders to discuss whether or not a refinance loan is a practical solution for you.

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I have a small home at the shore with 29 yrs left on a $207,000 mortgage (est worth $280,000). my aunt in-law has a large home (est worth $300-500,000). she wants a small home at the shore - i want a large home. seems like a match made in heaven but we are unsure of how to go about switching. due to a recently failed business i have no saving, very bad credit, just enough income to pay my current mortgage, and have already been turned down for refinancing or the possibility of a new mortgage. i would guess since she has lived there all her life she owes little to nothing on her mortgage, and i know her income is basic. her nest egg is the equity in her home. we thought about having her hold the note on her house with a "rent to own" deal but that still leaves our mortgage. a realtor said to sell out right to each other but without the ability for us to get a new mortgage we wouldn't be able to afford her home. she doesn't want to lose her equity either. any advise?

Why don't you just move into each others houses for a while. You can then save up a little of money and get your credit back on track. Then you can purchase each others houses. This may be a little bit a trial period and make sure both of you are happy with the ones homes. If her home is worth $500K I dont think you will be able to afford that kind of payment so you may have to purchase it for $500K but take a mortgage out for $300k and have her put a lien on your new home for $200k for 5 years until you can start making more and refinance to pay her back.

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Kim and dan bergholt are both government workers. they are considering purchasing a home in the washington d.c. area for about $280,000. they estimate monthly expenses for utilities at $220, maintenance at $100, property taxes at $380, and home insurance payments at $50. their only debt consists of car loans requiring a monthly payment of $350. kim's gross income is $55,000/year and dan's is $38,000/year. they have saved about $60,000 in a money market fund on which they earned $5,840 last year. they plan to use most of this for a 20% down payment and closing costs. a lender is offering 30-year variable rate loans with an initial interest rate of 8% given a 20% down payment and closing costs equal to $1,000 plus 3 points. before making a purchase offer and applying for this loan, they would like to have some idea whether they might qualify.

Thank you for setting out the parameters so well here. There are a few things that I would need to know to know if a better option is available to them. Given what you've put here, the family you're talking about should be able to see a better loan (fixed rate for example) and lower loan costs (fewer points to pay) from most lenders or brokers. A lot depends on their credit histories. Since they only have 1 item of debt, one concern would be if they have enough trade lines (sources of credit available to them right now) to qualify. Most lenders require 3. If they have open credit cards that carry no balance, that works great. If all things that aren't mentioned here are as well planned as the items you have listed, they should qualify quite easily and for better terms.

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George plans to sell his customers a special for a ski package weekend. he is able to purchase the package from the providers for $175 each. the ticket packages will be sold for $225 each and the ski resort and lodging facilities intend to reimburse george for any unsold ticket packages. fixed costs include $4,000 in advertising costs. how many ticket packages will george need to sell in order to achieve $60,000 of operating income?

The contribution margin per ski package is (sale price - variable costs) = ( $ 225 - $ 175 ) = $ 50 per package. To break-even, he needs to cover the fixed costs of $ 4,000 with the total contribution margin. That is, to break-even, he needs to sell ( $ 4,000 / $ 50 ) = 80 ski packages. ------- To achieve his goal of $ 60,000 of operating income, he needs to sell an additional ( $ 60,000 / $ 50 ) = 1,200 ski packages. ------ All together, he must sell enough to break-even, and then sell the additional packages, so the total number of packages he must sell to meet his goal is ( 80 + 1,200 ) = 1,280 ski packages.

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I am curious as to the most expensive car my parents can afford.. just curious. don't judge, just give me the facts, and i will vote you best answer! thank you for asking for clarification, it helps. income very secure. work for hospital. 800k in retirement 250k in savings? but prefer not to touch it that much.

With that kind of income, they have far too little in retirement savings and investments. They need at least 2 - 3 times that much. As for an affordable car, figure a year's salary, minus $5000 per child, minus $5000 per job (do both parents work? have a biz on the side?), then take half of that. That's the max purchase price (including taxes, dealer prep, license, etc) for one car kept a minimum of 5 years. If they need two cars, that's the total for both cars. So 280,000 - 10,000 (both work) - 5000 (you) = 265,000/2 = 132,500. That will get you one Mercedes or a couple of Audis or BMWs. That's all. And don't touch that savings or retirement! It's nowhere near enough!

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I heard a short sale in when you can pay or can sell your house for the amount you bought it for... for example i bought my house for $235k and now it cost between $170k to $190k, so it is upside downs for around $60k. i heard that i can hire a realtor he will sell it for a less amount and the rest the bank will "eat it". but i have to wait certain years to buy another house again. how many years do i have to wait to buy again?

As others have mentioned, a short sale occurs when the lender agrees to let you pay less than the actual loan amount when you sell your home. You have the general idea right but it is somewhat more complicated and there are some negative consequences that you should be aware of. First, if you are not having problems making the payments each month then your lender will probably not allow you to do a short sale. Why would they if they believe that you can keep making the payments on the full loan amount? So, most banks won't even consider a short sale until you have missed a few payments. These missed payments will show up on your credit report as "lates" and will have a negative effect on your credit score. Second, the bank may or may not accept the loss which, in your case is around $60,000. While most lenders will not pursue a deficiency judgment they do have the ability to do so in some states. Usually if the mortgage was used to actually purchase the home they will not pursue a deficiency and cannot in CA but if it is a refinance then they can pursue a deficiency judgment by suing you in court. It's not likely that this will be the case but you should be aware that there is the possibility. When conducting the short sale negotiate with the lender to make sure they are not going to pursue a deficiency. Third, it is also possible that the IRS will want you to pay taxes on the $60,000 "debt relief". The IRS sees it as income because it is money that was given to you and you had it at your disposal. There are ways to avoid this tax. There is an "Insolvency Exclusion" that occurs when your liabilities/debts are larger than your assets. If this is the case at the time of sale then it's possible the IRS will exclude the shortfall ($60,000) from taxation. You definitely need to talk to an experienced accountant or tax attorney about this before the sale occurs as it could save you quite a bit of money and needs to be done correctly. Lastly, your credit report will be affected negatively by a short sale. While each case is different and no specific numbers are known, the general consensus is that a short sale will cost you 100 points on your credit score and stay on your credit report for anywhere from 18 months to 4 years. However, it is still better than an outright foreclosure which can cost up to 280 points on your credit score and stay on your credit report for up to 10 years. So, with a short sale it may be possible to purchase another home in a couple of years - depending upon the circumstances. You would have to work on improving your credit over that period of time and you would also be subject to poor loan terms when you do get a loan ie. a higher interest rate and larger down payment. In the end a short sale is a better alternative than a foreclosure. If you don't have to sell your home perhaps you should contact your lender to see if they will consider a forbearance or modification of your existing loan terms. If so, then you might be able to lower your payment or skip a few payments until your financially back on your feet. Good Luck!

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Is $1.4 million too much?my total monthly expenses are $6,500.i have a excellent credit score. thank you very much,spalmer

1.4 million is not too much for that income. However, before you purchase, I would make sure that you have at least 8-months of living expenses in your savings (in addition to your down payment). For your living expenses that would be: $52,000 + whatever your mortgage payments would be each month (probably an additional $80,000). If you lost your job, you would have to insure that you would be able to afford all of your expenses and mortgage. In that price range it would be a lot harder than a $100,000 home. Obviously it is much more difficult to come up with $10,000 mortgage payment than a $700 mortgage payment. Good luck! Make sure you have your $280,000 down payment + at least $132,000 in an emergency fund.

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My current auto lease company has been charging me $ 778 a month for the past 2 years, we are on the final year ( less than a year) more like 8 months. my boss has told my area that the lease company upped the monthly payment $ 50.00 can a lease company legally do this, change the month to month original agreed contract payment? or is it more likely my boss just wants an extra $ 50 to line his pockets?

You don’t make it clear if you are leasing directly with the auto lease company,or doing the lease through the company you work for. An auto lease is a contract that can’t be changed. But, if you are leasing though your employer, he may be adding on something. I would take a real close look at your lease contract to make sure there is not some provisions in there for your employer to tack on fees. I would ask why the increase. Also check and make sure your were not late on a payment, some companies have late fees, but it should be listed as such on your statement. I can see from a couple of comments to your question, that people just don’t understand how a lease works. You are being criticized for having an expensive lease. But, they don’t under stand the net cost of the lease. It let’s you drive more car for less money. More car more often. Fewer Maintenance headaches. Lower upfront cash outlay. Lower tax bite. You only pay state sales tax on the lease value, not the new car value. No used car hassles. Gap coverage included. If you use your car for business, you can tax deduct the business portion of the lease. This makes the net cost of the lease much lower. In fact, the government is in a way, making part of your lease payment. You can get a much better lease deal or purchase deal on an expensive car because of the higher profit margin. I have been leasing cars since 1980, and since I use my car for business, I have been deducting my lease payments on my taxes as a business expense. Here is how I do it. With my first lease in 1980, I took the tax credit at the end of the year and invested it. So if I was paying 400 a month, and I was in the 30% tax bracket, I got $1,440 back on my taxes. So the car really cost me $280/month, not $400. I kept investing the difference each year. I now have $70,000 in that account, earning an average over the years of 5%. So the account is now generating about 300/month in interest. I now use that interest to supplement my monthly payment. So if my payment was 800/month like yours, it is costing me out of pocket $260/month. $800/month in the 30% tax bracket give me a $240 a month tax deduction plus the $300/months in interest from the invested account is $540/month. $800-$540 = $260. The IRS does have a lease add back that you need to figure on your taxes, but it is considered income, not tax owed. So the amount is rather small. I know people will say, well you are using the $300 per month in interest, so it is costing you that $300. But, my answer is, If would have bought the car, the I would have lost all the money in depreciation and would have never had the $70,000 in the car account. It all depends on if you use the car for business, how many miles you drive,(for some a lease is not practical because they drive too many miles a year), how tough you are on your car, whether you want to customize the car, (lease company do not like car customizations, you just plain like the feeling of owning the car. But if the lease is closed ended, you can just walk away at the end or if you like, or buy the car if the deal is good. Here is how your lease payment is calculated: The payment is made up of three parts. Depreciation Fee Finance Fee Sales tax Let’s assume you are leasing a 24,600 dollar car for 46 months and you have negotiated a purchase price of $23,000 . (cap cost) You are trading in a car worth $5,000 so the net cap cost is $18,000. You ask the dealer what the monthly factor is, (it does not have to be on the lease agreement, but he has to tell you if you ask.) He tells you it’s .00375. and your residual percentage is 60% of MSRP. To convert to a money number you multiply .00375x2400= 9% and your residual amount is $24,600x60%=$14,760. So your monthly depreciation fee is ($18,000 - $14,760) /36 = $90.00 Your finance fee is ($18,000 + $14,760) x .00375 = $122.85 Your fixed lease payment is $212.85. To this number you add the sales tax for your state. I would really ask somebody some hard questions. You have a lease contract. You also want to check the lease laws in your state. I have never heard of a lease contract being changed, but I guess there is always a first time for everything.

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My current auto lease company has been charging me $ 778 a month for the past 2 years, we are on the final year ( less than a year) more like 8 months. my boss has told my area that the lease company upped the monthly payment $ 50.00 can a lease company legally do this, change the month to month original agreed contract payment? or is it more likely my boss just wants an extra $ 50 to line his pockets?

You don’t make it clear if you are leasing directly with the auto lease company,or doing the lease through the company you work for. An auto lease is a contract that can’t be changed. But, if you are leasing though your employer, he may be adding on something. I would take a real close look at your lease contract to make sure there is not some provisions in there for your employer to tack on fees. I would ask why the increase. Also check and make sure your were not late on a payment, some companies have late fees, but it should be listed as such on your statement. I can see from a couple of comments to your question, that people just don’t understand how a lease works. You are being criticized for having an expensive lease. But, they don’t under stand the net cost of the lease. It let’s you drive more car for less money. More car more often. Fewer Maintenance headaches. Lower upfront cash outlay. Lower tax bite. You only pay state sales tax on the lease value, not the new car value. No used car hassles. Gap coverage included. If you use your car for business, you can tax deduct the business portion of the lease. This makes the net cost of the lease much lower. In fact, the government is in a way, making part of your lease payment. You can get a much better lease deal or purchase deal on an expensive car because of the higher profit margin. I have been leasing cars since 1980, and since I use my car for business, I have been deducting my lease payments on my taxes as a business expense. Here is how I do it. With my first lease in 1980, I took the tax credit at the end of the year and invested it. So if I was paying 400 a month, and I was in the 30% tax bracket, I got $1,440 back on my taxes. So the car really cost me $280/month, not $400. I kept investing the difference each year. I now have $70,000 in that account, earning an average over the years of 5%. So the account is now generating about 300/month in interest. I now use that interest to supplement my monthly payment. So if my payment was 800/month like yours, it is costing me out of pocket $260/month. $800/month in the 30% tax bracket give me a $240 a month tax deduction plus the $300/months in interest from the invested account is $540/month. $800-$540 = $260. The IRS does have a lease add back that you need to figure on your taxes, but it is considered income, not tax owed. So the amount is rather small. I know people will say, well you are using the $300 per month in interest, so it is costing you that $300. But, my answer is, If would have bought the car, the I would have lost all the money in depreciation and would have never had the $70,000 in the car account. It all depends on if you use the car for business, how many miles you drive,(for some a lease is not practical because they drive too many miles a year), how tough you are on your car, whether you want to customize the car, (lease company do not like car customizations, you just plain like the feeling of owning the car. But if the lease is closed ended, you can just walk away at the end or if you like, or buy the car if the deal is good. Here is how your lease payment is calculated: The payment is made up of three parts. Depreciation Fee Finance Fee Sales tax Let’s assume you are leasing a 24,600 dollar car for 46 months and you have negotiated a purchase price of $23,000 . (cap cost) You are trading in a car worth $5,000 so the net cap cost is $18,000. You ask the dealer what the monthly factor is, (it does not have to be on the lease agreement, but he has to tell you if you ask.) He tells you it’s .00375. and your residual percentage is 60% of MSRP. To convert to a money number you multiply .00375x2400= 9% and your residual amount is $24,600x60%=$14,760. So your monthly depreciation fee is ($18,000 - $14,760) /36 = $90.00 Your finance fee is ($18,000 + $14,760) x .00375 = $122.85 Your fixed lease payment is $212.85. To this number you add the sales tax for your state. I would really ask somebody some hard questions. You have a lease contract. You also want to check the lease laws in your state. I have never heard of a lease contract being changed, but I guess there is always a first time for everything.