In the United States their mortgages were set up to adjust after 1 or 2 years. In Canada you get a 5yr variable rate mortgage and the interest rate will only change when the bank of Canada changes their rates. In Canada its different though because when the Bank of Canada changes rates it affects visa cards and lines of credit for home and business so they cant jump too fast too high without heavy consequences to the economy. As for locking in your rates, the closed mortgages are at all time lows so its not a bad idea to seriously think about it. Contact me for more info. Abraham Niyazi - Mortgage Agent - Easyrate.ca - 1-866-728-3708 x 115.

The monthly mortgage payment on a 400,000 loan for 30 years amortization period for 5 year fixed mortgage 3.7% rate is $1,834.76. It will cost you 260,000 in mortgage interest if will take that long for you to pay the mortgage. Remember that most of the interest paid in the first 5 years of your mortgage. In order to speed up the payent process you can do double payments or biweekly. If you take the same mortgage with biweekly payments your biweekly payment will be $ 846.11 which is $142 less per month.

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My fiance and i are looking to buy a $15,000 home through the 184 housing loan through the seneca nation of indians. he is enrolled and the program is with an interest rate of 4.25% regardless of credit. we would like to have a 5 year mortgage as opposed to a 30 yr. my question is what happens after we pay for 5 years,obviously we would own the home. but how does that affect us tax wise? do we have to pay some kind of federal tax for the value of the home? also b/c he is an enrolled seneca we would be exempt from nys property tax. would it be better to own our house after 5 yrs or to take the 30yr? the loan is through the indian housing grant 184. i belive the seneca nation gets it through the goverment or from their own tribal profits either way its not meant to make them money. you have to make under so much.

If they will give you a 4.25 loan for only 5 years you need to jump on that. It is an amazing deal....as they will not even break even let alone make any profit from this. Since you are exempt from property tax you would own it free and clear with no bills other then insurance after the 5 years. I have serious loan envy. I would be buying everything I could lay my hands on if I had an opportunity like that, not something for 15k.

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I had a hard time getting a mortgage because my better half's credit was not so good so they had to base everything on me. the only type of loan we good get was a loan they called a balloon mortgage. it is fixed for 5 years at 7.25 and we were told we would be able to refinance after a couple of years. what happens if we don't refinance. will my monthly payment go alot higher.

A fixed rate balloon mortgage has a fixed rate for an agreed period of time, after which, the entire loan comes due. So, at the end of 5 years, the remaining balance of your loan will be due in full. You will need to refinance prior to that happening if you do not have the funds to pay the loan in full. It's a risky move and highly advised that you try and stick with a long-term fixed loan. Many markets are very volatile right now and riskier loans have been getting many consumers into financial trouble. Be sure you check out all options available to you before agreeing to one. Working with a large, national, direct lender is in your best interest. If credit is an issue, look into FHA loans. I'm including a couple links for you.

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I want to buy a house and i am confident that i can pay it the full amount in less than 5 years. ex, the house costs $ 100k and i make monthly payments. my question is that if i paid those 100k before 5 yrs what happens with the 5/1 arm? will the bank still be changing me though there wont be principal balance in the loan.

Youhave to check the paperwork... you may have a prepayment penalty... so it will depend on how they structure that and how you pay it back exactly. make sure to look over paperwork totally before purchases this will be an important part of your financial shopping.

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I live in idaho and have refied my loan, it is a nonrecourse state but they do offer judicial and non judicial foreclosure how do i know what may happen, i am confused any help would be great, thanks

If it's foreclosed then the bank claimed your property in place of money

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Say someone were to get an adjustable rate mortgage, locked in for 10 years (of a 30 year mortgage) at an rate of %5.125, what happens after 10 years? what are your options? i'm not sure how this works. any help would be appreciated. thanks!!!

OK there could be several things happening. If you get a Ba loon loan you would have to pay the remainder of what you owe after the 10 years. There is also a 10/30 where your rate is fixed for 10 years at a given percentage but after 10 years it adjusts to market value. This way for 20 years your rate would be going up and down depending on the market. The housing slum this year was because many rates adjusted and the payments increased. I don't know of any loans at 5.125 so if you are offered that ask for Goof Faith Estimate which is paper where in writing it tells you your rate and conditions. Some loans have teaser rates where it shows a low rate near 5. then after a month or 2 it goes up by at least a point.

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I have 3 years left on my repayment mortgage - can i remortagge now on a 5 year product? - what happens when i get to year 3 and my mortgage is repaid?. i have asked the nationwide but the adviser does not know> in theory i will have a 3% penalty - but my argument is 3% of nothing is nothing what are your thoughts

When you tie in to a fixed rate for however long you can leave the rate but there will be financial penalties, these will be in letter from the inital company you took the loan out with on the Nationwide site it states the following. Early repayment charges for fixed rate and tracker mortgages If you repay the loan or make an overpayment of more than £500 per month within the initial fixed or tracker term, within the first 5 years of a Lifetime tracker, or within the first 10 years of the 25 year fixed rate, an early repayment charge will be payable on the entire overpayment amount. The percentage charge payable is detailed in the table below. Deal Term Percentage Payable 2 years 1.5% 3 years 2.0% 5 years 3.0% 10 years 3.0% Redemption charge If you enter into a new mortgage with Nationwide and subsequently repay your mortgage more than ten years before the natural term, you will pay a charge (currently £90) unless you are taking a new Nationwide mortgage at the same time. 25 years 3.0% Lifetime 3.0% I suggest that you get this clarified as the financial penalty will be a nasty sting if you are not anticipating it, at present , Building Societies can pick and chose who to offer a mortgage to, if you dont want the product on offer you may find it hard to find another as deals are being withdrawn daily. With interest rates falling I would not tie in.

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Like michael did in the office?

By selling the house, you get the full value of the house from the new buyers, and you use that to pay what remains of your mortgage. Anything left after is yours to use as you want, including using it as a downpayment for another home. The problem comes if you can't sell your house for as much as you bought it for (specifically, how much you still owe on it), which is what's happening in the current depression in the housing market. Then you need to come up with extra money to pay the rest of the mortgage, or convince your bank to waive the rest of the payment (though it does still look bad on your credit history).

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I want to buy a home. the terms is 5 years interset only and then repaying the loan for 30 years. is this agood idea? what happens to the money taht i paid on the interest only after the 5 years, if the home dont appreciat it?

while you might have some equity in the home based on home appreciation, you will have paid NOTHING towards the principal of the loan. Five years can be a long time, but if you're careful and work the plan well this plan might work for you. Personally, I prefer the fixed rate 30 yr mortgage. After 5 years in my home, I have paid a bit on the principal, plus have built some equity in the home. But, that's for me. To answer the question about the interest. Well, that's what you paid to the lender to service you with this loan. In essence, it's gone -- all 5 years of it. Bear in mind that such interest may be deductible from your income when you file your IRS return. That might be a good thing. Please go talk with some other bankers, financial experts, and accountants, and ASK, ASK, ASK. They are used to it.

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If I knew the answer to that - I'd be a rich man in 5 years time... However, I would suggest that a 5.85% rate is a good rate to get fixed for as long as you can. Either that or look at a flexible mortgage like the First Direct Smartmortgage, if you have any savings - you could offset your mortgage with your savings, whilst keeping your savings available for a rainy day.

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This may be a dumb question but do i get the option of extending the fixed term or do i have to start a whole new arrangement? can i get a whole new mortgage with a different lender or is it best to continue with the current one? are the rates of mortgages at the moment terrible because of the financial climate? help!

Semantics. You were probably told it was fixed for 5 years. That's how the less than honorable mortgage brokers hook you in. All you heard was FIXED. My guess is you have a 5 year ARM. After the 5 year "fixed" period it can probably adjust every year. Rates are great right now so this is the perfect time to shop around. Do not go back to where you went before. Call some mortgage bankers, not mortgage brokers. There is a difference. And this time pay attention to what you are getting.