Yes you can but there may be additional information needed. Your mortgage professional should be able to prove that this is an "arms length" transaction meaning the seller and the buyer are doing the negotiations and bargaining without one influencing directly the other party through blood relationship or extended degree of relationship, ie. this is not a sale within family members. The purchase and sale agreement needs to be crisp to get a mortgage that is not MLS. Also,. an appraisal may be needed especially if the price does not make sense.

do i need to close my home equity line before i sell my house

This is a tricky question and you should consult your lawyer. The issue it there maybe some financial remedy to take out the name from the title and the other person will sign a quit claim against the property. I am not an expert but sharing with you one of the discussions I had with a client in the past.

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The comps are averaging $415,000 and i got an appraisal of $408,000. i am doing an fha loan with 5% down. will i have pmi still because i am not doing 20% or is it based on the appraisal. i hope i do not have to pay that because that would be a huge savings for me.

You should NOT have to pay PMI. The 20% down payment is in the form of cash or equity. I had 20% equity in the house I built, based on the appraisal I received, due to the work I performed myself and the fact that I was my own general contractor. My bank was happy to give my mortgage with no PMI. Check with your banker for sure, but I didn't have to pay, thank goodness. Good luck, and congratulations.

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I am currently 40 years old.i work as a registered nurse in columbus ohio usa.i earn roughly $60,000/year.i rent currently and pay $675/month for rent.i would like to sell off so many shares pay off roughly $35,000.00 worth of nursing student loans and sell off enough to put a 20% down payment on a $300,000 condo/house...(avoid pmi insurance) then finance the rest of the mortgage @ 6.0% 30 year loan.then reinvest some of the stock in t rowe price international aka latin america...european invest ments and keep some invested in my fathers choice abbott labs...any advice?????..am i spending too much on a condo in columbus ohio usa..i mean there is a push to revitalize downtown area in columbus...i don't want to move way out in the suburbs of columbus..it seems the closer you are to downtown city center you pay more and get less space>

One responder suggested paying attention to the tax consequences of selling the shares. Your cost is the cost on the day you inherited the shares. Use that. To make your decission. Abbot is an excellent company. No doubt about it. Actually from you plan, you should be answering these questions instead of asking. Well thought out. I do however have some suggestions. Think carefully about the risk of investing in especially developing countries. It would be a pitty to take a big hit on your investments. Most advisors would recommend no more that about 10% of your investments in developing areas. They are very volitile. Chinese stocks lost 10% last week. Heck, I do not know beans about property values in Columbus. But with $300,000 you could buy 1/2 the town of Muncie. Or a large estate 20 minutes from Ball Hospital. Why don't you move here?

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I have seen mortgage calculators saying big loans are for small payments. how? i would like to know about 30 year fixed loans for homes between $100,000 and $300,000. how much is your loan and what is your monthly payment? including insurance, taxes and pmi (if applicable)? please say what city and state you are in. thanks!! extra advice appreciated.

140,000 pay 1200 a month for all in St louis mo

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Can you give me an idea of what i'll pay each month for private mortgage insurance (if i purchase a home with less than 20% down)? is it different in different states? for example, how much would i pay each month (in addition to the mortgage payment) if it's a $300,000 house? any help would be appreciated! thanks!! judy, thanks. is there some way that i can calculate this for myself? for example, is the monthly premium for pmi typically 0.1% of the purchase price of the house? btw, i live in socal, so i am already looking at the smallest house available! lol

With 10% down - if you qualify (0% down days are long gone). You'll pay $219.33 monthly on PMI Remember that this money is not tax deductible and does not apply towards principal or interest. PMI is also hard to remove once you reach 80% You may have to get appraisals or reach 25% equity to have this removed. Do everything you can to come up with 20% down - you'll thank yourself. Consider buying a smaller home. /

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My boyfriend in maryland has been paying $860.00 per month in pmi on a $260,000 mortgage!! this is just for pmi, and does not include mortgage or other escrow payments. his credit wasn't so good at the time he purchased the house and he had $0.00 for a downpayment. but, still we did some research and found out most people pay less than $300.00 per month on $300k mortgage with zero downpayment! is there a way to reduce this without refinancing or waiting until he has 20% equity? he can't refinance now because the house values are going down in the current market.

in his case there is little that can be done as PMI is risk=k based. You said his credit wasn't so good so he was probably a level 4 when he did his note and they do not even do these risk based level any longer . If he has been in the property for 12 months then he might get an FHA lender to look at it as he may squeak by and get it greatly reduced I am a mortgage banker in TN & KY

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I purchased my home in december of 2005. fixed for 7 years at 6.3% rate and then it becomes variable. i payed $5,500 in closing costs and 0 down. my purchase price was $255,000 of which only $3,000 has been payed off in principal ( i still owe $252,000). i am paying $300 in pmi. with the current housing market i don't expect the value of my home to go up 20% in the next year. i want to get rid of the pmi payment. my credit score last year was at 640, now it is at 675. my average household income for the last two years is around $150,000/year. what are my options?

You can probably get the 80/20 the first folks were talking about. You will get rid of the PMI if you do this, however, the second's interest rate usually makes up the difference in higher interest rates. This means even though you don't have PMI, your payments will be pretty similar to if you do have it. However, as long as you get fixed loans, at least you won't have to worry about the interest rate going up. The first guy mentioned the PREPAYMENT PENALTY. Make sure you don't have one. If you do, it could be in the $10,000 to $20,000 range, a lot of times with ARMs the penalty period is for two years. When looking to refinance, you should definately see what the closing fees will be. You need to determine if the price of the closing fees outweighs the benefit of the refinance. Rule of thumb is that you need to be getting at least a 2% better rate to make up for the difference (rates aren't 4%, but they could easily be 9%+ in 2012) Since you are being proactive, it will cost you a little more now, but save you a whole lot later. Things to consider are: 1) Will you being staying in this house for more than six years? If so, do it, if not, don't. 2) What are the closing costs? do you want them wrapped into your loan or will you pay them at closing? 3) Are you doing this to get a lesser payment now or is it because you are making sure your rate doesn't skyrocket in six more years? 4) Are you just trying to get rid of PMI? because the payments on the 1st and 2nd (which has a higher rate) usually equals about the same as a 1st with PMI - so no real advantage there.

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I was told i need to pay fees up front for a fha loan is this true? what are the pros and cons of a fha loan and will i need to pay pmi if i get 90 % of value i am looking at 5% interest. i am paying 5.75% on 300,000 and 6.75% on 80,000, planning on consolidating i only paid down 3 years and 1 year on my current mortgages.

First, yes you will have to have PMI. Any loan over 80% of the value of the home requires PMI. Second, it depends on what you mean by up front and what fees are being talked about. Up front could either mean before closing (appraisal fee) or it could mean at closing (title fees, down money, etc.) You need to compare GFE's. It is best to get 3 or 4 from reputable mortgage places on the same day. Also, always contact your current mortgage company. They will usually give you the best deal in order to keep the loan and a lot of the time they will waive some fees.

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I currently make 82,000 a year gross income and i am looking to buy a home. i consider my job to be a good one and i make more money then alot of my peers. everytime i use a mortgage affordability calculator it tells me i can only afford a house thats less then $200,000. now a house in westchester ny (where i live) under $200,000 will be in need of major repairs or located in a ghetto. i calculated my budget and all my current debts and according to my own calculations, i can afford a mortgage that is $300,000 if i get a 5% or lower interest rate. i also took into account property tax, pmi, home insurance, heat hot water and electric. i dont undertsnad why mortgage affordability calculators make it seem impossible to buy a new home (especially where i live)

Don't use a computer program to see how much a loan officer will qualify you for . Talk to a local and experienced loan officer. Not someone over the internet- not someone out of town that your local bank sends you to- but a local experienced loan officer.

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I am currently interested in purchasing a new home, to take advantage of the current buyers market. after the sale of our current home, we will only be able to have a down payment of about $15,000. we are currently viewing homes priced at $230-270,000. clearly we do not have a 20% down payment, but many of these homes are currently appraising at over $300,000. one in particular is a short sale, with an appraisal of $322,000 and asking price of $269,000. are we wise to jump in now with less than a 20% down payment? how would this effect our interest rate? if i'm doing my calculations correctly, it looks like we would still be financing <80% of the value, so we could avoid pmi. we have good credit (750+), our debt to income ratio is approximately 80/20 and our income is such that we would easily qualify for a loan in this price range. any opinions or suggestions would be appreciated. the main reason we do not have a large some of cash saved is because we have been paying $500-1000 per month(well over the min balances) toward credit card debt that i acquired in college, trying to hurry and get that paid off. not sure if that info is something that would be considered by the financing bank.

I have to disagree with the previous post. FHA loans do not have PMI or the life of the loan. FHA loans have mortgage insurance for a minimum of 5 years, or until the the loan reaches 78% of the original value of the home, whichever is longer. You can get into an FHA loan with only 3.5% and that sounds like it would be do-able for you. A 270k sales price would need apprx $9450 for a down payment. Interest rates are very comparable to conventional rates (just a tad higher). For example, today's rates with no points on an FHA loan are in the low 5's. The kind of payment you should expect on that size loan would be apprx 1450 in principal and interest payment and apprx 120 in monthly mortgage insurance. Add monthly taxes and insurance to those numbers to get your total monthly payment. You would probably be in the ball park of 1800-1900 a month in total payment.

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Hi, i'm planning to buy a condo for renting it out. here are some numbers for example: purchase cost: 100 000 down payment: 10 000 finance: 90 000 for 30 yrs at 6% mortage: 540 hoa: 300 pmi: 42 property tax : 168 which makes total payments : 1 050/month if i rent it out at 1100, what would be the taxable amount on this income 1100*12=13200 expenses 1050*12=12600 ????? or can i deducte everything execpt mortage (300+42+168)=510 * 12=6120 taxable income=13200-12600 or 13200-6120 (of course i can deduct other stuff) but the question is on the mortage itself. 2. using those numbers, how depreciation is done. i don't really understand the depreciation . considering that if i sell the condo at the end won't i be taxed more for the difference, if i used depreciation. thanks sincerely henri ============== the idea of "yahoo answers" is to get knowledge from other people who has done it. talk to a cpa is not an answer. answer only if you know . of course other stuff are deductible too (repair, etc) , but the mortage is or is not?

Definitely talk to a CPA but also consider doing a 1031 exchange when you do decide to sell it. It allows you to buy another property for investment without having to pay capital gains taxes at the time of the sale of the original property.