IRD or Interest Rate Deferential is a formula the banks use to calculate mortgage penalty if you decide to break the mortgage with your current lender. The IRD formula is used in a case where the current posted rates are lower then your mortgage rate. This is done in order to have a bigger penalty if you are breaking your mortgage for a better rate.

Powered by

We have a mortgage with halifax 5yrs fixed and are looking at moving house, we have 2 yrs left, will there be any penalties.. we are planning to stay with halifax, is this strightforward? cant seem to find a answer on the net!? thanks

You should have the details in your mortgage papers. Does it mention early redemption fees? Maybe Halifax will waive the fee if you are asking them to give you another mortgage ?

Powered by

House has both husband and wife on deed. husband has mortgage solely in his name and credit. few months ago husband refinanced house for a larger amount to pay down debts. wife then moved out of the house into an apartment of her own and filed for a divorce. wife doesn't have income or creditworthiness to refinance or pay for house. husband wants to remain living in home and continue to pay mortgage. house appraisal value is the same dollar amount as the loan/mortgage amount. wife wants her share of equity out of the house. does she have any "leg to stand on" so to speak and what could one reasonably expect her to "get" out of this house? how does a judge divide equity in a house that doesn't have any? buy out doesn't seem an option because loan is already soley in husband's name. husband doesn't want to sell property. there is a pre-payoff penalty on mortgage. is wife responsible for half of this penalty? how someone thinks the wife who left, no longer lived in the home, no longer payed for it, did not contribute to the maintenance or upkeep to the home nor it’s appreciation in the years following the divorce but thinks the wife should get 50% of the future sale value

My ex husband did the same thing and I fell for it! It is a common ploy to make sure wife gets nothing. It *seems* logical, doesn't it? There is nothing for her to get so she doesn't push for anything. Yes. she has a "leg to stand on." She needs a *good* attorney. At a *minimum*, she should ask for 50% of the future sale of the property. (Are you *sure* she is still on the deed? Or, did he trick her into signing off the deed when he re-mortgaged?) Also, she can ask for a settlement or payments. The wife *should* get her share of the equity of the house and it is most likely that the judge will support this request. Just because the husband doesn't have the money doesn't mean he doesn't owe her the money! Get a *good* attorney! ADDED: You don't get it. She could ask that she get the house and *you* keep paying for it! And, if she has *any* good reason for leaving to bring before the judge (Like physical abuse, financial irresponsibility, emotional distancing, etc.) she would get it! So... 50% of future equity is *better* for you than her getting *100%* of future equity! Right? Not so crazy!

Powered by

Hello, i have tried to pay my mortgage since june but the bank had increase my payments from 2,500 to 3,600 and havent received an explanation why?! i have called but they have different versions like: you dont have insurance, you need to pay last year taxes, your rate just increased ... and now they wont accept payments, visits or even provide solutions for this. what can i do ??!!! i am selling the house as a solution but the bank wants to charge a 2 year penalty !! i live in miami, the real estate situation here is bad ... but i am moving to solve this asap but they are killing me. please help !

I am willing to bet your credit score has already taken a hit. You can do one of two things. Try refinancing with a hard money investor IF your loan is not too large and you are willing to try and pay the high interest payment they will charge you. This will buy you time as far as selling or at least get you time to move out and find a tenant. Also, you may want to look into a yard sale or car sale to make that payment if it has not hit your credit yet just to keep your score decent so that you can find another lender to refinance for you so that you can buy yourself time to get out of that high mortgage. Other than that I don't know what to tell you. Lenders are not working with anyone really these days because so many people are defaulting on mortgages that they NEED the ones who THEY feel can makes payments to continue paying otherwise they will have to sell your loan and claim bankruptcy. I would try to refinance, contact a mortgage broker and ask about Private Investors or High Risk refi's. Good luck.

Powered by

At the moment we are 2yrs into a 3yr interest only mortgage on our first home. ideally we would like to move but there is a large penalty if we move before the end of the 3yr period. an option we have considered anyway is to rent out our current home to retain it as an investment and just to use the rental income to cover a majority of the mortgage. does anyone know if we will need to change our mortgage before renting it out (ie would we need to change to a buy to let mortgage) or would we be able to rent it out on the current mortgage???? if we cant rent wihtout changing mortgages then it would enable us to move quicker wihtout having to pay the penalty. any ideas??? thanks :) we cant remortgage as then we would have to pay the early repayment charge which si something ridiculous like £25,000!! we have had the house valued 6months or so ago and it has already increased in value by £20,000+ since purchase 18months previous (only bought for £150,000!) so no worries about losing value!! we are looking to retain the house for long term and also are not worried about rental covering mortgage repayments as we can afford the excess as the excess we would pay to cover mortgage compared to the increase in value works in our favour.

Your best bet would be to stay in the property for the 3 years. The reasoning behind this is Capital Gains for you (primary residence for at least two yrs and owning for 5 yrs). Also you would have to have the very best renters to make sure your mortgage payments could be covered. You could also just lease option which would give you one to two years for the buyers to decide if they want to buy it at the end of the contract while paying you rent, and you would still be able to get the Capital Gains as long as it was your primary residence for two years. I would do the lease option.

Powered by

Buyer suing seller (me) for $25 000 saying he couldn't find a house for the price i agreed to sell, he paid $13000 more for new house. is it allowed in small claim court he was looking for another house with leave from work cost him $1500 he rented an apartment where he was living before for 2 months more so lost another $2000 he spent some repairs in new house for $2000 legal cost on my home $1200 his small claim cost 1000 moving cost $1000 interest rate gone up by $4000 etc. grand total of $25 000 thats the maximum he can file in ontario toronto. are these numbers really make sense. ps i didn't close the deal because of bank's early payout mortgage penalty of $20000 house was already 100% mortgaged i had to bring the money to closing which money i didn't have still i have nothing but a big hole. how do you view this situation what is the justice can make sense.

You are most likely going to lose out on the case because you should have researched the payoff before you even put your house on the market. That is your fault, not the buyer's, and yes, you are in breach of contract. You are lucky you are not getting sued by BOTH Realtors for their commission as well.

Powered by

I purchased my first home a few months ago and will be moving to another state due to a better job offer. i know that trying to sell my home may not be in my best interest since i just got it, however, if i do - there is no pre-payment penalty on my loan. my question is: am i better off selling my house (have about $25k in equity) or renting it out and trying to buy a second home in the new state? would i be able to buy a second home with having this first one? i have been told that i should be able to as long as i can prove the first one is rented out. is this correct? i go back and forth with selling because if the job offer doesnt work out, then i would always have a place to come back to if needed. if this would help in providing your answer - i currently live in texas and will be moving to colorado. i would prefer answers from people who have mortgage/lending/real estate experience.

If you may return, keep it. Hopefully you can pretty much cover your mortgage with what you would charge for rent (and I think you might be able to, Texas still has low pricing, therefore your mortgage should be relatively low). And Texas is a long term state, but property value IS going up. Before you go, you can also interview and choose the renter yourself, which is nice, instead of relying on a property management company to find you one. Your loan for your new house (since you will be living there) will obviously be a primary residence loan, so that wold be up to a lender to work out the two. You have already closed escrow on your Texas house as primary, so yes, you would have to produce a rental agreement of some kind and let the underwriters at the bank sort it out. (You definitely have it in your favor that you are telling the truth on all this, most investors, myself included, have had to jump throughhoops and crazyness with double loans in other states and owner occupied clauses, etc.). You will also haveto show proof of work in the state, etc. to close primary on your CO home. Generally though, the most expensive of the two homes you own willend up being your primary residence (in the bank's eyes). You need to go over all of this with a loan officer (a smart and talented one who knows what they are talking about). The $25k in equity may not be as much as you think. Once you sell, minus 6% for brokerage fees and another $2k or so (I'm not familar with TX title fees) for sellers closing costs.

Powered by

My home is over 194k; i refinanced, w/ the help of my best friend. the loan is now over 212k, the house has been apraised for 230k. as of 6/2008, their will be 40k of equity available. i would like for an investor/buyer to take possession of the home, continue to pay the mortgage and give me 30k, leaving them w/10k of equity. i will give them gift of deed & they can sell or rent out the home. we refinanced in 6/2006, so if the house is sold before 6/2008 than a 2% penalty will apply. i wil move out as soon as the investor agrees to my 30k and contracts are signed. i do not wish to have any further compensation. the 30k will help for relocation of myself & family & paying off debt. the real estate agent that originally sold me this home stolel 20k from me; atty fees & closing cost was put into the new loan. the mortgage is 1500 monthly, this was fine, but my hrs @ work have decreased & i before it gets critical, i would like to be out of the situation. is option possible? thank you.

Well, when was the appraisal done, as appraisals do have a shelf life. If the appraisal is more than a year old, it is not worth the paper it is written on. Your post is very complex, although you seem to have it all figured out in your mind. Investors are interested in CAP rate, how much it will make them. That a realtor stole 20k from you seems strange. Attorneys fees and closing costs are typical to be put into a loan. You can't "gift" a deed, you have issues to settle on who holds the note. And you are speculating on how much equity will be available. You have so many things going on here, and you are running on speculation of what the market will do. You should offer the property for sale and take your chances. Do a FSBO, this sounds right up your alley.

Powered by

I bought my first house in june 2006-a beautiful, brand new 2200 square foot all brick home. i moved to another state(georgia) with my employer(from san francisco) at that time and was happy to be able to finally afford a house. but within 4 months my employer was announcing layoffs and i made the decision to start looking for other jobs rather than to come to work with a pink slip on my desk and a possibility of losing my brand new house. i was able to find a job back in san francisco and i moved back. but my poor house is all empty. i fly back to check on it once a month. i even set up a camera system in it so i can go on the web and check on it. i cant sell it because i have a 10k pre-payment penalty. if i rent it i am afraid it will get destroyed by someone and the homeowners wont cover it because it isnt supposed to be a rental property. i dont know what to do and my girlfriend an i cant continue to pay rent and mortgage forever.

If you a silicone worker may be you want to hold on the the Georgia house.. I think a lot of business in the bay is praying for an earthquake so that will have a excuse to close the doors.

Powered by

Please help. i have such a confusing situation. 3 yrs ago, i was living with mom and stepdad and my two kids. my mother was going through depression, they got divorced and both left the house so i began paying the mortgage. the taxes remained unpaid since no agreement was made that i would keep the house and they just gave up. mom got the house in the divorce, but dont i believe she ever filed to remove stepdad from the title. i guess the mortgage was a balloon so this year the loan matured with $40k left on the $88k property. (original loan $59k at 10.25%) i tried to refinance under my name but did not get approved. the bank said if the past due taxes were paid they would refinance mom and she would have to sign for a new loan at 9.25% for 7 yrs (back up to apprx. $54k) being that i did not want to move my kids to an apartment, i paid the taxes ($9k w penalties). we agreed the house would be mine but mom is a bit unstable (drinking, staying out late) and we have been arguing lately. she is waiting for a call from the bank to sign. 1. is this an excessive mortgage rate (despite our bad credit and no proof of income-i am a waitress making excellent tips)? 2. how can i make sure the house will be mine? i would have to wait until she passes if she wills it to me - how else could i be sure legally? 3. mom and stepdad may even have leins due to credit issues. he got all the other debts in the divorce - can they still apply to the house? i know i need to see an attorney but any advice i could get now would be greatly apprecated. thanks. since the loan matured, the full balance is due. if we do a quit claim deed, will i have interest in the house? do i need to be on the mortgage to be on the deed? i do not qualify for a loan - (co-signed for a car 5 yrs ago that was repo'd last yr + no other credit history). how can i buy the house- do i try to build my credit and then apply for a loan?

Someone gave you some very, very poor advice. So you had to pay the back taxes, so your mother could refinance the property, so you could buy it back from her? Nobody does that...that is why you got bad advice. It is an incredibly excessive mortgage rage on that amount and term. Why can't you just buy the house from her? That would be the easiest thing to do if she is willing to sell it to you. I wouldn't be investing anymore money into the house until you and your mother get some things in writing...you have sunk a small fortune into the transaction already. Even if your mom and stepdad have horrible credit, you need to do a title search on the property to see if the liens were actually filed against the house..if that has happened, and you buy it, they will have to be paid off before you can close. That seems to be the real reason why the transaction has been held up.

Powered by

We split in sept. he moved out in dec. we have joint mortgage and he pays nothing toward anything, he refuses 2 sell as we will have to pay penalties for selling early. everything comes out of my account and i am really struggling at the moment. i worry that when house is sold in future he will be entitled to half even though i haven't received a penny from him. i dont think this is fair. i mentioned transferring mortgage into my name as he says he wants out but there is a £260 administration fee which he is refusing to pay half of and i cant afford it on my own. we only bought the house july but things went drastically wrong between us. does anyone have any advice.

I recently was involved in a very similar situation. Unfortunately as far as I was informed, the only way out is to have your ex partner's name removed from the mortgage. The costs associated with this are ridiculous ("admin" fee for the lender and also solicitors fees) but it does seem to be the only way out. If his name stays on there you will need his permission to sell and he most likely will be entitled to a share of any profit. Also the cost associated with selling and moving again are prob far higher then the mortgage change charges. I was very lucky in that my parents are very supportive of me and they have lent me the money for my fees, as similarly now I am covering all the mortgage and bills I am very limited on funds. I will not be able to pay them back for a while, but they have understood that through this gesture they are helping me stay in my own home and on the property ladder. I wish you the best of luck. (PS, don't know where you are BTW, but I'm from the UK)