ON Canada - yes you still pay a penalty especially if you go to another lender. For a variable rate mortgage, normally it would be 3 months interest rate plus discharge/admin fee. You should be OK.

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I am refinancing a ballon to a fixed rate mortgage and in the agreement it says that i have to occupy the property for at least one year after refinance closing. can i start to look for a buyer now tho?

yes. you can sell it in a month if you want. that language is there so that you agree not to turn place into investment property. it does not prohibit you from selling in less than a year refi is expensive. usually the cost requires 2-3 years to break even.

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I closed on my house 2 months ago and have been living in it since. last week i received a call from my mortgage broker indicating that the lender cannot sell my 100% loan due to the declining market. therefore, he said my lender was willing to pay 5% of my mortgage to obtain a 95% loan to value ratio (all closing costs and fees paid by lender). a few days later he said that deal was "off the table" instead the lender was willing to drop my interest rate a quarter of a point (still nothing out of pocket for me) to restructure the deal (using my appraised value rather than the asking price to set the ltv). the appriased value would set the ltv at 83% rather than 100%. after a few days of thinking, i decided not to take the deal (just too good to be true feeling) and notified my broker. he sounded a bit upset but let it go. a little while later, i received a call from another agent saying that if the lender cannot sell my loan, they can demand an instant pay off. is this possible? i asked my broker to show me where/if that is in my contract. i am still expecting them to get back to me. since then, i have reviewed my contract and found nothing in the wording that indicates this. i am just curious if this is common practice for this to be written in or are they just trying to strong arm me into refinancing?

NO, the lender cannot do that. It's called accelerating the loan. There's only two things that would allow the lender to accelerate your loan and call it due. The first reason is due to default. If you're making your monthly on time, then you're not in default. The second is for fraud. If the lender determines you commited fraud when you applied for the loan, that could allow acceleration. The lender's inability to sell the loan isn't your problem. Period. Don't let them scare you into thinking it is. Hope this helps. Good luck to you. Elliot L

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I bought my home for $245,000 and put about $15,000 into it... if i could sell right now for $255,000-$260,000, and just lose money in interest and closing costs, would it worth it for me since i could talk a builder / seller down pretty good right now on another house.... since it is a buyer's market, i lose money selling but make it up where i buy? what's the downside to this? plus better mortgage rates....

Why are you wanting to sell? Is it just because you think you can get a better deal elsewhere and you think you can pull some slick financial move? If so - sounds risky and not likely to pay off. Now, if you have some crazy mortgage that is resetting and you can't afford it and are facing foreclosure - then selling quick and cheap is probably something to look at. You purchased your house for 245,000 have put 15,000 into it = so you have 260,000 in your house. If you sold now for 255,000 you would lose 5,000 Plus 15,3000 commission (6%) Plus additional closing costs on the old home. Since it's a buyers market - there is a good chance the buyer will want you to contribute some to their closing costs. Then you are going to incur commission and some closing costs on the new home. You would have to purchase the new house for 40,000 below value just to break even. Unless you have a reason to sell - I'd stay where you are. It will take a few years, but the housing market will rebound. It probably will not go back to the all time highs - but will stabilize.

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I am in process of selling my house in az. is it common in az that the seller have to pay 100% closing cost for the buyer? it seem like i have to pay someone to buy my house. will the mortgage rate will go up in 2007?? how will be the re market since many says that the democrats had won in the last election to the senate the economy will recover. thanks thanks for all of you, the deal did not go through the buyer wanted a new ac unit about $8,000, did not want to pay the asking price and wanted me to pay for all the closing about $7,300. i rejected them since their demand are ridiculous.

Seller normally pays some parts of the closing costs - talk to real estate agent. Yes, mortgage rates go up in 2007 but you don't care you just sold your house. The economy will get better under Dems because Bush is now grunting for the 2008 elections. Any other questions just ask

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If one is prime rate. credit score above 780. are the final interest rates they quote you lower than what is advertise on their website? i am considering using a mortgage broker however their rates seem higher than the bank + the cost seems higher. if the rate is what they advertise, i might just go to the bank directly first and save my time. the mortgage broker seems to be on top of things and most likely have better info on closing etc. which is their only selling point but if the interest rate is higher than the competitor i am reluctant to go with it since they will hit my credit score if i apply. simply put money is money a little .25% can equal 60k over the life of the loan. something that could sit in investment generating returns for me. in general what is the difference in the interest rate for prime/ a credit scores? are the advertised rates using prime rates or just average rates? thanks in advance

I work at a mortgage broker shop, and I believe that we can offer better rates to certain consumers then banks can. Sometimes they can offer better then we can. Also, watch the total closing costs as well. I know we get wholesale rates from lenders and offer these to the consumers and just add a small fee to it, but if you were to go to these lenders yourself they would offer you RETAIL rates. This is how my shop works we try to do as much volume as possible and work mostly off of referrals so we try to beat any deal out there, but different places go by different rules. The prime changes from day to day as well so keep that in mind when shopping. Do not let a lot of people pull your credit cause it could hurt you if you have excessive pulls, maybe only like 5 people in a months time or so. Good Luck!!!!

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I closed on a mortgage loan in march 2007. my lender inadvertantly did not request a copy of a paystub during the underwriting process. the lender realized this error when they were trying to sell my loan to an investor group. they say they cannot sell my loan until i provide this information. they acknowlege that i am under no obligation to provide this information at this time but the lender generally does not service loans and they say they could not service it as well as the investor (a well known investor in mortgages) on one hand i feel i should help them by sending a paystub. however, this is business. if i was 1 day late closing my loan and my rate lock expired, they would have charged me a fee to relock my rate. also, i am not sure if there are any issues i am not considering. any advice is appreciated.

They should have been more careful. Talk to your lawyer that you used for the transaction, just to protect yourself

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How does the 10 year arm work? does it vary after the 10 years or during the 10 years? i don't know if i trust well's fargo and their reps. she sold me a package that locks me into a 10 year arm for 6 months and 60 days from close i can lock into the lowest rate at a time i choose. it cost me 1% of the purchase price of my "soon to be built" home - non refundable. i heard alot of people getting in trouble with a arm. please any info would help.

The only reasons to go with an ARM are: 1) You are buying a property in which you expect to sell it in less than 18 months 2) You need the lowest possible payments now but can qualify for a fixed loan (but higher payments) within 12 months Otherwise, an ARM is just getting you into a loan that is fine now but will likely be a financial disaster down the road. Also, most ARMs have a 12 month fix. A 6 month fix is not good.

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I have recently received money from a deceased relative. we may be moving in the next year to a more expense area of the country (d.c). do i save the money in the bank for moving time/closing costs for new home? do i pay off bills and lower our debt ratio to try to get a better rate on a new house? or do i put it towards my current mortgage to increase equity when we sell our home? i don't know the must efficient way to use the extra money.

I'd suggest paying off bills to lower the debt ratio. Also, if you're moving to the D.C. area (which now basically stretches from Fredericksburg, VA, to Front Royal, VA, to past Baltimore, MD....) I'd suggest looking for a place near mass transit (the Metro, the VRE), and making sure your car(s) are in excellent condition. Housing near D.C. can be as much as 4-5x as expensive as the equivalent house 2 hours away. Longer drive, cheaper house, higher gas bills... More expensive house, quicker commute, if you're lucky you won't have to drive at all, but can use the trains...

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I can use a government program that will give me 4,500 grant for closing at a 6.6% rate or coventional mortgage at 5.87% rate? which is better if i plan to sell in 5 years? 10 years? thank you so much! and why which is better please loan amount 114,000 at 30 year fixed rate for both

Generally the simpler the mortgage terms the better the mortgage. You said both a fixed - that's good. The lower rate mortgage is better for any longer term residence (you will pay a considerable amount less interest at 5.875% vs 6.6% over the course of several years). If you were to sell in 3 years or less, go with the grant since you are getting the $$$ up front for closing fees. Word of caution: be sure you understand all the details of the grant if you choose that route. I see many grants (from state, federal, or local agencies) and they are not all alike. Some will not let you get a 2nd mortgage later on without paying back the grant first. Some grants state you MUST live in the residence a certain # of years or you have to pay it back. Knwow the details and ask questions if you are uncertain about anything.