Hello Lemuel. If you are selling and buying porting your mortgage is one of your options. Porting is the process of moving your mortgage from one property to another. There are 3 different types of ports that can happen when you sell a home and buy another. Each one different. Your mortgage can be either a straight port, port-increase, or port-decrease. The simplest is the straight port where you are moving your mortgage from one property to another with the same amount of mortgage. The rate, remaining term, and amount stay the same, no penalties involved and the process is straightforward as there is no new money involved. The second option is a port increase where you need extra funds for the new home, (this is usually the case if you are buying a more expensive home and have less down payment) In this case the remaining mortgage term is moved to the new property, the mortgage amount is increased and finally the interest rate is blended with today`s available rates. If the rates available today are lower than your interest rate then your rate will be blended and reduced, if the rates are higher today your rate will be blended and increased. I can do a rough calculation for you if you like, see my contact info at the bottom of the reply. The final port is the port-decrease. In this case you need less mortgage than the remaining mortgage amount you currently have. Your mortgage term, and rate get moved to the new property only the mortgage amount is reduced. There may be a penalty involved in this reduction of mortgage. If you are reducing your mortgage amount by greater than the allowable yearly prepayment options that you have signed for on your mortgage documents you may be charged a penalty for the extra reduction. There is one more option that one can consider, if your bank is not going to offer you a good rate on your port (they already got you so they often don`t) then you can always consider a new mortgage at another lender at full discount. It may save you more than your penalty to break, the calculations often tell the tale if it is worth it. I can do these calculations for you if you like and get you information on the lowest rates available today. I hope this information has helped you Lemuel. I can go into more detail if you like, explain further, and do some rough calculations, no obligation if you like. Please don`t hesitate to contact me:Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 http://www.centum.ca/abraham_niyazi/ I deal with 25 lenders and can do mortgages across Canada except Quebec.

This is what you call bridge financing to allow for the purchase of the new house. Unless your old house is selling or closing at a specific date, they will not fund the new house. In the meantime you would have 2 mortgages, 1 for the new property - with interest only payments (bridge) and one for the old - full P I. It is always prudent to sell first before buying as this creates additional cost. You can also rent one of the properties if you plan to keep it longer.

As long as there is not too much time between the sale of your existing home and the purchase of the new home most lenders will allow you to port the mortgage . In other-words you keep your existing mortgage and add the extra funds you need to buy the new house on top. The interest rate is a blend between what you have already and the rate at the time for the extra money you need. Now you have one mortgage amount, a blended rate, one mortgage payment and a new house!! -Abraham Niyazi - Easyrate.ca x 115

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Hello, i have a 2/3 bedroom house in a small village in cambridgeshire, i have 2 young children and my partner is getting very depressed as she hates living in this village and this house! we live down a cul de sac where there is 4 houses all attached, we are at the end and have to allow access for next door (although she is like 90 and it's only really her carers that walk past) it's quite annoying when you are in your garden and get people walking through. i purchased the house 5 years ago for £91,000 it was valued at £120,000 so felt it was a bargain, we put it up for sale 2 years ago and it was valued at £115,000 we now have it as low as £96,000 and still no interest, as i took out a 100% interest only mortgage i still owe £91,000 plus my fees and crap so cannot sell it for less than £95,000, please help with any suggestions as to how i can get out of this situation, thank you. + our house has been totally revamped and looks like new in every room, we have no clutter and everyone that comes to view loves our home but is not keen on the access. does anyone know of anything we can do to sell this house? any kind of government schemes? anything? my partner is going to slit her wrists soon she is getting so down. whhy can't you just give these houses back to the mortgage companies when you no longer want them>dreamworld!

I don't see an easy fix for this, sorry. Being upside down in mortgages these days has become too common. Your only option in selling would be to consider a short sale, which is less than ideal and should be a last resort...it stays on your credit for years and despite it being more honorable than walking away, it basically reflects the same on your credit report. If you absolutely HAVE to move, you can consider getting a long-term tenant to at least cover the mortgage payments and you can consider selling again when the market rebounds. Then you're free to move to your desired location. The best advice is to forget the interest only payments and start dumping as much as you're able to directly onto the principle each month...it's the only way to get in front of things and start getting back on your feet. Otherwise, you will never make a dent and things will only get worse. You might also consider refinancing to a fixed rate, even paying extra each month on the principle under that loan to adjust your amortization schedule and get in front of things. Even $100/month makes an impact. Good luck.

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My husband and i want to buy a house that we found. the seller took a job out of town and needs to sell asap. the house is a great deal. the problem is we still own the home that we live in. we bought it 4 years ago as a foreclosure and redid the entire house so it;s practially brand new. we have at least 25,000 in equity. i'm wondering about getting an interest only loan on the new house until we sell our current home. is this possible? any idea how much an interest only mortgage would be for 190,000 dollar house? thanks

I recently bought a house and closed on it before we put our current home on the market. We moved in then turned around and quickly painted and cleaned then sold our old home. We looked at two main ideas for financing in the mean time. 1. Getting a 1st and 2nd lien on the new house. We would pay off the 2nd after the old house sold. The closing costs on this seemed high to me. 2. Getting a bridge loan on the equity in the old house. It was high interest (9%) but only for a short time and intrest only. The fees were low, and the payments were intrest only. I used the money to put 20% down on the new house and kept back some to help me make payments in the meantime. We took the bridge loan. I think that was wonderful

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This was my family's main residence in michigan for a year and a half. i was transfered to florida and we put the house up for sale. we moved to a rental house in florida two years ago, waiting for the house in michigan to sell. the house sold in january, 2010. can i take a home mortgage interest deduction for 2009 on this house?

You can take mortgage interest for your primary home OR SECOND HOME. The law is very vague on defining a second home, so yes you can call that your second home and take the deductions.

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I am planning to sell my extra house, for which i am paying a mortgage (15 more years to go). the mortgage rate is really low. can i sell the house without paying off the mortgage (i.e. can i take the mortgage as a low-interest loan), e.g. for a few years (my investment return should be much higher than the mortgage interest rate)? is this an option that i can negotiate with my lender?

No because to clear a mortgage you not only pay the outstanding sum left to pay but a proportion of the interest that the bank would have charged over the 15 years.Also you will never get a cash loan at a lower rate than a mortgage rate.And if you reckon your investment return will be higher than your mortgage charge then you are sadly misguided or misinformed.You would be far better renting the house paying the mortgage of as fast as possible and then selling .I reckon you could pay the mortgage of 8 years early without incurring penalty charges( but this does depend on your lender)then sell the house on the open market .

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Considering that interest is just as much, if not more than the mortgage itself, it's like paying 2 mortgages. the house has to double in value for a person to break even.

You're forgetting that interest is often tax-deductible. If you can take advantage of that, you aren't paying as much. And yes, some houses can double or triple in value in a relatively short amount of time. It all depends on where you buy.

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I sold my house in sept and therefore paid estimated taxes to the seller upon closing, can i deduct that estimated amount on my taxes even if i dont have a form 1098?

You can deduct what you actually paid.

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My ex-partner and i have separated a year ago. he got a job away and is now having to meet half the payments on our house as well as renting in the area he now lives. he constantly threatens to stop his contribution to the mortgage. we have a repayment mortgage. the house has been on the market for some time and it is becoming more and more difficult to manage these payments. lots of people i know for various reasons are on interest only. i contacted my building society to see if we could switch to interest only until the house is sold. they have refused but have given no reasons why. we have at least £140,000 equity in the house and owe them £55,000 - even if the house was to sell at a dramatic loss they will get their money...... the building society will not give me a reason but are willing to loan me another £50,000 to buy my partner out - which i do not want to do. on each occasion i have broached this subject i have been sidelined into the option of borrowing more money. i am totally fed up with this. i need to eat and live and with my contribution to the mortgage this is becoming more and more difficult. we are on a massive 5.99 interest rate... for five years on top of all of this. i have learnt recently that an investment we have on part of the mortgage will incur a penalty of a considerable amount... it is too complicated! but if someone can give me an idea of why they are so dead set against it i would be glad to hear from you. they will get the money they lent to us whatever happens so why are they being so obstructive. thanks for your help.... susan thank you for your answers. the situation on the interest only has now resolved and i have been granted my request. i discovered the mortgage lender had in fact mis-sold us a fixed rate which would incur penalties they had not advised us of. on confronting them with this information, they were only too pleased to help. i got what i requested. but feel their treatment of me up until the time i had this information has been obstructive.. i now hold a few of the cards and i am deciding whether to report them to the fsa, as it is a serious oversight on their part.

Its not as simple as just "switching". You have a legally binding contract for a particular mortgage on particular terms. To allow you to change would require that contract to be terminated and replaced by a fresh agreement on new terms. IE you would need to properly remortgage. This may seem pedantic, but the lender has to protect their interest in the loan, and you have to be protected by having legal certainty. Remortgaging would incur legal charges and other fees, although the lender could waive these if it wanted to. If you went on to interest only you would also need to have something in place (an investment of some sort) that is intended to repay the mortgage capital at the end of the term. Even if your stated intention is to sell ASAP the mortgage would be for term of many years, so the investment product would need to exist as well. Unfortunately, your intention to sell may be genuine, but lenders know that minds can change, so they need to protect themselves (and you) from this. Practically speaking, you should negotiate lower payments with your lender. And if you genuinely think you will sell soon, there is not much they can do if you stop the payments. However, this is a high risk strategy, because if you can't sell you may find yourself being repossessed and your credit score may be affected.

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I have a 30 year fixed at 4% (yes you read that right, it is fixed and it is four percent) i want to know if i sell in a few years can i keep that when buying my next house if the mortgage is exactly the same? i really dont ever want to lose that interest rate.

Technically no because the mortgage if for the particular property you are buying. If you change the property you will need a new mortgage. You can however talk to the bank about rolling over your rate when you get closer to selling.

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For example, if i purchased a house today for $100,000, at 6% interest, what could i sell the house for when mortgage interest rates hit 10%?

The intrest rate rising may cause property devaluation because fewer people will buy homes, and they will set on the market. Thats the only way I see that the % rate could effect values, but then again maybe a mortgage/realtor type will have a better answer.

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Why pay interest if the entire principle will be paid off in the near future?

because its your obligation. How about you decide not to pay and you house goes into foreclosure just before it sells.... hmmm...