If you sell a home with a fixed mortgage you are going to pay a penalty unless you port your mortgage to the next property you buy . If you are not buying a property and just want to cancel then you will pay a penalty of 3 month interest. Which could up quite a lot as most of the mortgage interest in paid within the first 5 years of your mortgage.

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Hi, to buy new house i took heloc against my old house which i planned to sell shortly to pay off heloc. i could not sell my old house so i am using it as rental property now. i want to convert heloc into fixed rate secondary mortgage. if i convert heloc into fixed rate mortgage, when i sell my rental property will the money from sale be transferred to my primary mortgage company without lump sum distribution to avoid tax penalty? thank you

You might be able to convert the heloc, but two items, one the rate on home equity loans are usually high, and two, home equities are tougher to come by, especially on a rental property. you could look into locking the rate like mary suggested, it depends on the lender and when you took out the heloc as the lock in feature has only been around for a few years. If you sell the rental, any proceeds will be given to you, other arrangements I would consult the irs or a cpa. you may want to look at bank of america for the home equity, I was just talking to a broker contact of mine and she claims they are doing home equities still, best of luck

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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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I do not understand the concept of it. let's use this example: if i buy a house for 150000 and get a 30 year fixed mortgage. let's say that i would pay around $900 per month. okay now it's been 2 months and i flipped it and want to sell it. how do i do it if i havent finished paying it off?

It is rare that people can consistently buy houses and flip those houses at a profit. There are unusual circumstances where a depressed market will turn around very quickly and appreciate at a rate of 10 to 20% per month for a few months. Under those circumstances it is possible to buy a house and have the houise increase in value by 10 to 20% by the time that you close escrow. In those rare cases you can sell the property for 10to 20% more than you paid for the property. However given the high costs to sell Real Estate I do not recommend Real Estate for those who want to flip houses. Real Estate only makes sense if you plan to buy Real Estate and hold it for a period of time. If you want something to trade I recommend that you look at the market for Stock Options or Currency Options. There is a great deal of activity in those markets. Just as mcuh leverage. You can make money no matter which way the market is going. The transaction costs are a much smaller percentage of the Transaction.

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I have a fixed rate with northern rock who have informed me i can move my mortgage to a new property, but if i sell my house for £150k, and buy a new house for £130k, what happens to that £20k difference?

Depends on the lender's criteria. Most lenders would allow you to pay off 10% of your original loan without penalty, though would impose an Early Repayment Charge (ERC) on whatever you pay off in excess of that. Northern Rock are an honourable exception to this rule - they do not enforce the ERC unless you pay off the whole loan (e.g. if you sell your property and move into rented).

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Ok, so this lady who works with selling houses and such told us to "miss a few payments" so that the credit card company or what ever see's that we aren't making the payments. then the plan entails to actually sell the house (which the people who sell homes do), which in this case is this lady. she said that in order to make it believable, they will have to "pretend" or play the role that we are selling the house. that means putting the sign up, letting people see the house and things of the like. she said she won't let people buy the house cause supposadly, she is the one who choses the buyer. (im guessing she is a mortgage consultant or real estate agent or something similar to that). the thing is, we sell the house to another family member. although doing this may ruin the owners credit since they are missing tax or mortgage payments or what ever. my question is, will doing thing help lower the high tax % that my parents have from 7.35% to about maybe 5% fixed. my dad wants to take this action, but i want to find out a bit more because it sounds a bit fishy. the ending result is to eventually after a few years to trade the house from the family members name back to us. sort of like re-buy the house back and put it under our name. so a) will this help? b) what are the benefits or downfalls of doing this? response is needed a.s.a.p! by percentage, im refering to interest rates and all. taxes or what ever it is refering to in a house. it's my parents decision, not mine. and refining is already not an option because they said that we spent too much or something last year. and we tried the bank, but the bank i doubt will lower the payment for such a high debt. our house was purchased about 5 years ago.

Wow, this is a convoluted scam to get your money. MAKE the payments, do not do what this woman is suggesting.

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I'm underwater in my mortgage but still want to sell it and get into a nicer home. i've considered trying to do a lot of enhancements to our house but its generally just an average house. i don't know that all the fix ups will pay off. should we just get an appraisal and try to pay off the rest? is there a way to roll leftovers into another loan? its interesting that people assume that we're in "trouble" - we're not. simply, i've had a mortgage on a house for four years, the value of the house has dropped due to current economic conditions. not unlike living in any other house my entire life and then getting bored with it and moving, i'm tired of this house. i just want a nicer bigger house and have done nothing to lower the value of our current home. i just want to sell it and move not because we're underwater in it, it just happens to be a fact.

yes, try and pay off the rest, otherwise you're going to be completely under water

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We are paying rent for 1800 a month for the last 5 years and we feel that we are really wasting our money . we have been offered a 300-350k for a mortgage on a fixed interest of 6.5%. our dilema is that how much will we get back after 10 years if we bought a 300k house and sell it in 10 years time. we need the cash then to start life in another country where cost of living is lower. what will actually happen if we can only sell the house at the price we pay for it when we buy the house. we really appreciate your response very much.

I guess the question is, what have you lost NOW for having paid $1800/month for the past five years..... I guess that is my Realtor talk there, but seriously, your value WILL increase unless you buy in a super high risk area like New Orleans or on a fault line or something and the place falls into the earth. Although most of the market in the US is slower now, it is still better than getting NOTHING while renting. You have just made someone ELSE rich. You ARE paying HIS mortgage AND taxes and HE gets the tax benefit of home ownership that YOU DON'T GET NOW!!! Just for the tax benefit alone, I would own!!! Ask your mortgage broker to show you the tax benefit of home ownership!!!! GOOD LUCK

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I owe $51,000 on my house and i had it appraised at $33,000 as is. i has several problems that i would have to fix before i could sell it. i have someone that would buy it at the $33,000 and would fix it up. it needs a new roof, new carpeting, patched holes, fixed plumbing, and a separate gray water septic tank (for laundry water) installed. basically, i would need about $18,000 to fix it up and sell it at the price of what i owe ($51,000), so i wouldn't make anything on it. plus, i don't have $18,000 or anywhere near it. should i sell it as is and then continue to pay on my mortgage? will my mortgage company let me do that without the house to have the lien on? any other advice and/or websites you can direct me to would be appreciated. i purchased the house 3 yrs ago and it was appraised at 55,000. i bought it for 54,900. i have already estimated the work that needs to be done with the people that i know and what i can do myself to be approx $15,000 to 18,000. however, in my neighborhood, houses are depreciating. i will be speaking to a relator this week as well.

$33,000 is far too low a price for a house and land! It's the most valuable family asset you could have, and you should never settle for just giving it away. In today's market, you should be able to put the money into it over time, do the work yourself, and sell it for $100,000 minimum. Don't settle for less! This may sound crazy and unrealistic, but this is what I've done with my own house. It's 101 years old, it's now fully insulated (walls and ceilings), it has a new furnace, a new 200-amp service, a 3-car garage (used to be a small barn), metal roof and siding, 20-year carpet and Pergo floors, high ceilings, ceiling fans, 5-foot fence around a large back yard, and just 2 years ago a bank "settled" for $66,000 (it was a repo) and they had left it half finished and pretty nasty inside. In total, I've paid the $66,000 + about $16,000 for improvements. I wouldn't let it go for under $150,000. If I were you, I would get a home improvement loan for $15,000 and give them a plan. 1) Roof first (always) 2) Plumbing and electrical next (update the box only if you need it) **the best time to do electrical work is when you anticipate tearing out walls. 3) Cosmetic repairs almost last 4) Outdoor repairs last Part of your plan should be a study for what other similar houses are selling for in the area so that you have an idea of what yours will be worth when its done.

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Myself girlfriend and i bought a new house 12 months ago for £167500. we borrowed the full amount on a 3 year fixed rate deal. our circumstances have changed and we now want to sell this property (valued at £180000) to buy a bigger house worth £300000. we have made payments of £13000 off of the mortgage. will the money we have paid off and the additional value of the property mean that we would only need a mortgage of £274500 (£300000 minus £13000 mortgage payments minus additional value of house at £12500)? any help would be appreciated.

Your forgetting the nasty sting of the 3 year fixed rate deal that you took out with the society, you have to repay the penalty for ending the fixed rate early which will be in the terms of the offer somewhere. I would look this up as it may be very hefty. Have you had the house valued, as most homes have gone down in value not up and it buyers within the last 2 years who are being hit the hardest by the drop in value, your mortgage statement is going to be a shock too, as the repayment wont have reduced your loan by very much either. Look at the statement and the terms of the loan its not going as well as you think it is.

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I am about to buy my first house and was told that in most cases, my lending bank will sell my mortgage to another company after i sign the paperwork. is this a common practice? do i have any risks as the borrower? does the new owner of the mortgage have the right to change my fixed interest rate or the terms of my initial contract?

Yes it is very common and is called servicing. The percentage of loans serviced by that lender is on the servicing disclosure in your paperwork. It is illegal for your payments, interest, payoff, or terms to change even if the loan is sold or serviced.