you cant. better find some dungy small apartment. unless you live in a home naked, and never eat or have no car or phone

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I have decided to buy a brand new $350,000 single-family home near sacramento, ca. i want to know if it makes more sense to do a down payment (ie: 20%....$70k for this scenario) and take advantage of the interest tax advantages a $280k mortgage will bring... or should i buy the house outright (i have $400k cash saved up) and save money by not having to pay mortgage payments? my wife and i both have fico scores above 750, and we make a combined total income of about $500k every year. please let me know which scenario you think will save us the most money. thanks! also, i've been told that doing a 20% down payment (avoid paying pmi) is the way to go since i can invest the other cash in a vehicle that is likely to give me a bigger return that the interest rate of my mortgage (would be 6% or so). this seems to make sense. thoughts???

Without a doubt paying cash (and NO interest) will save you more money. Even in your tax bracket the mortgage interest savings isn't much. Consider that you and your wife would get the standard deduction for a couple ($10,500) and only interest above and beyond that saves you any tax money. Even then it would save you about $0.30-$0.35 for every dollar you spend on interest... A dumb way to save... Again, no question that you would spend less money (or save more money) by not having a mortgage and paying no mortgage interest. good luck!

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I made an agreement to mortgage my residential house for 200,000 pesos then later to sell in staggard payment for 1.5m. the mortgagee/buyer assured me that in 3 mons. time they'll (she and her daughter) buy it, but she failed to pay me in full the said amount of mortgage so i decided to withdraw the agreement for fear that she might not be able to pay me the total purchase price of the said property of 1.5million pesos. now she wants me to pay her the full refund of her money which is 123,500, but i could only pay her 70,000. the agreement was just handwritten by me as acknowledgment receipt, to wit: received from ______ the amount of 83,500.00 + 40,000.00 as partial payment of kasunduan ng sangla for a residential house at ______. sgd. nagsangla can the mortgagee force me to pay immediately the balance of 50,000 by threatening to sue me in court? what is my legal stand? or could you refer me a lawyer for legal advice?

Please answer this: Did this person and her daughter live on the property for any amount of time? If so, some of the money owed could be considered "rent" for the time the property was used. ( The proper way would have been to set up payments higher that your mortgage payments, and then if she fell 3 months in arrears, you could evict her, no matter how large her down payment was. And you would owe her nothing. ) If she lived there, she owes for the time that she lived there. Deduct that from the 50,000. She broke her agreement by failing to pay within the time allotted. Agree to pay the balance if any, (after the rent charge) on paper in regular payments. Have it included with the receipt for the 70,000. Such as: Return to Buyer _________ for money paid on the property at ___________. Cash returned: 70,000. Payment for time property was used: _____ The property owner agrees to pay ___ a month for __ months on the balance of____. Full refund to be credited to Property owner: 123,500. Signed: Buyer _________ Signed: Property Owner_________

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I have more than enough money to afford to pay for a house in full. however, i think i can get better returns on my money than the cost of a mortgage. what is the most aggressive mortgage i can get, knowing that i can always pay it down in the event that i need to?

Get an interest only loan or consider an ARM, or a 40-year fixed, a 30-year fixed or lesser year fixed. If you can put your lump sum of money in a (safe) investment that can consistently get higher returns than the interest rate you're having to pay on the loan... good idea. If you're considering putting the lump sum in an investment that would spit out the mortgage payment each month, you're credit rating will go up too. If you're considering putting the lump sum in a tax-deferred retirement account, like a variable annuity, just consider what monthly mortgage payment you can afford until you're 59.5 years old.

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I have decided to buy a brand new $350,000 single-family home near sacramento, ca. i want to know which scnario makes more sense: 1. down payment (ie: 20%....$70k for this scenario) and take advantage of the tax advantages a $280k mortgage will bring. also, invest the other 80% cash that would have went towards the mortgage. 2. or should i buy the house outright (i have $450k cash saved up) and save money by not having to pay mortgage payments? my wife and i both have fico scores above 750, and we make a combined total income of about $500k every year. please let me know which scenario you think will save us the most money. thanks!

I would consult with your investment advisor to see what would be the best scenario. You may be able to invest the 80% at a higher interest rate than you will be paying for the mortgage. In this case, I would just put the 20% down and finance the rest, and then invest the 80% in something else which will bring you a better return. Diversify your portfolio.

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As posted earlier: i have $30,000+ student loan debt to begin accruing interest in 2015 - currently a graduate student with a full time job (not making much, but steady income). i also have $10,000 in savings - what should i do with this money before i pay it towards my loans? it makes sense to me to do something constructive with it so that at least it is earning interest before my loans do. my boyfriend suggesting purchasing a house to rent out to friends (already have tenants interested...). purchase price: 70,000. was approved for a fha loan @ 5% & required a 3.5% down payment. the cheapest home in the area code of this home is the house next door, listed at 85,000 (virtually identical home). neighborhood was named in january by southern living as one of the top 10 "comeback neighborhoods" of the south. so... i am aware that there are huge risks (hence, my question) and am prepared to spend money to make money... but what would you do in this situation? my boyfriend has offered to cosign on the loan and has agreed to help pay for repairs if i cannot afford them (he owns several properties already -including the one i live in) as well as cover the mortgage/taxes/insurance for two years if it is vacant. monthly payment would be approx. 450, and would ask 650-700 for rent. that's about all the info i forgot to include last time, thank you all for your detailed answers, let me know if this additional information changes anything...

Interesting. I would talk to your CPA or local advisor to go over this with you. Based only on what you have said, and assuming you have no other debt or other mitigating issues, I'd buy the house and immediately put it up for sale and see if you can clear 15k, then pay off 25k of that student loan perhaps (15k sale and 10k savings that is earning close to 0%)? Negotiate a deal in writing with the real estate agent on buying and if you resale to lower the commission rate. You'll prob have some taxes to pay on the sale, which is why talk to a CPA. Mitigating issues includes but is not limited to that there is no material costs in doing this deal on the buy or resale side. If you have to spend thousands in inspections, repair etc. than it is not worth it. I am amusing best case scenario as you laid out here.

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My mother-in-law informed my husband and i that she is losing her house. i'll give you the info she gaves us and maybe someone can tell us what can be done? a little over a year ago the home was refinanced (the second time in a little over 5 years) for the full purchase price and equity (a total of a little over 120 grand). she claims that she made a payment plan with the mortgage company (cant say how true that is) and went yesterday to make the first payment according to the plan. the mortgage company told her that in essance it was too late and that the home was/will be auctioned thursday. apparently it has been in the paper for this auction for the last month (we knew nothing of this). the mortgage company also told her that she would have to pay $4,000 to stop the auction sale. so if she doesn't come up with this money and the home is sold at auction, how long does she have to stay in the home? can she try and sell it herself?? is there still a chance to save the house?

It depends on what you mean by 'save'. MI foreclosures have the right of redemption. Even after the auction the borrower/owner can redeem the property by paying all the back payments, the full debt and all the costs. It might not make sense financially to save the house. It might cost a lot more to do so than just finding a new home. Clearly you are coming late to the discussion. I would speak with the lender ASAP. You likely will need to get a signed copy of a release form so that they will discuss your MIL's situation as you are not the borrower (privacy issues). Check to see what the $4K covers. Is that a fee, the back payments and legal costs or something else? There should be a lawyer handling the foreclosure. You want to know that they are not adding in things that should not be included. Not all that likely but you need to check the facts to be sure. Below is an outline of the generic foreclosure process. Written for investors but it will give you an overview. Consider hiring a lawyer but with so little time you will need to get one that can move quickly. Clearly your MIL does not understand so even when the dust settles she has to agree to advice on future matters. She made some mistakes and does not seem to know how she arrived in the present situation. She needs an education or someone else to manage her affairs.

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Does anyone think that the price of housing and land is far to overpriced and over-rated. i know that people with mortgages to pay off would prefer the prices to go up as they are trapped in an overpriced situation and the only way out for them is a sale on there property to make a profit and perhaps a bigger house. on the other hand people with no property would like the prices to go down in order for them to purchase a home to live in. is there a housing shortage, well i think the answer is no, the only reason people are homeless is due to overpricing, as there are thousands and thousands of empty homes, waiting on the market conditions to pump up the property prices again. also the number of property's that change ownership without even getting inhabited is disgrace-full. it makes me wonder if these people are in the same league as the greedy bankers and politicians. i suppose if you could buy a house on taxpayers money, through expenses e.t.c then you would probably wish an increase in property prices, what a killing to be made. me personally i wish my kids to be able to buy a home to live in at a reasonable price, or to rent at a reasonable price. is the governments new policy on council homes of sound judgement, i think not. if everyone has an affordable home without paying a very large part of their income on it then the financial situation of this country would be a lot better , but then that would in the eyes of some make us all to equal

All Tory housing policies have always been designed to cut supply and drive up the costs to the consumer. All of their new 'policies' are again geared to creating yet another bubble.

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I am going to graduate college in december, i am working part-time at the moment (around $13,000/yr earnings), but will be going full-time at the same job in december (around $24,000 salary). right now i am renting, but i have found a townhouse that i am very interested in purchasing. here is the breakdown: renting costs: $385/month (studio apartment, bad neighborhood) townhouse value (according to pva): $60,000 townhouse asking price: $64,000 assuming that i could negotiate a deal somewhere around $60,000, should i try to get pre-approved for the mortgage? i have a credit score of around 720, and no debt except for about $6,000 on a credit card. my vehicle is paid off, and like i said, i have a job lined up already for after graduation. i would rather purchase a townhouse at a good price, and be investing monthly payments instead of giving my money to a slum lord. can i get pre-approved based on my income now or in the future? or do i have to work full-time first?

you need to work full time...but lenders do make exception. look at the mycommunity programs...it's zero down fha may have better rates...but you will need 2.25% as a down payment. have the seller pay closing costs to avoid coming to the closing table with a lot of money

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I am purchasing a short sale property (everything is done, offer accepted by the bank, inspection, and appraisal complete) however the underwriting system is having a problem because the downpayment assistance for closing costs and downpayment (roughly 4500) (purchase price = 20,000) makes the loan look very risky when it really isn't (the downpayment assistance isn't due until the mortgage is paid in full or the property is sold so with taxes the mortgage payment will be around $330 (which is nothing for a house that went for 80,000 4 years ago). how much downpayment assistance money do banks typically allow people to use (what are the loan ratios specifically because mine are about 23%. thanks i am in michigan and they definitely allow down payment assistance here. it's through mshda (up to 7500) the problem is my closing costs (i.e. the dpa amount = 4500) is nearly 25% of the value of my home. not in michigan! http://www.michigan.gov/mshda/0,160 7,7-141-45866_45870-175332--,00.htm l it's only 1% here thanks everyone! the bank has decided to continue the process and i close friday

You are taking part in a state government program. Government programs are always very hard to understand because they are very convoluted. It says you had to take a class that would explain home ownership (and hopefully this program). It is terrible that you don't have a good enough loan officer that can help you understand this. The program that you are taking part in is effecting this loan in dozens of ways. A good loan officer that knows your credit, knows the program real well and knows this particular contract could unravel all this for you. We can't because we don't have that data. (as you can tell from the response).

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Okay, here's the situation. i signed paperwork to have a house built that probably isn't going to be started until late next month and won't be done until the nov/december time frame (the builder won't commit to meeting the 1 dec deadline for the $8k credit, which has me nervous). i paid a $2000 deposit and the $350 loan appraisal fee. my paperwork went through earlier this week and i qualified for the loan. things were good until i got called today about this week's mortgage rate spike. i'm financing through the builder to take advantage of the incentives offered, and naturally their quotes are running about 1% higher than the bankrate.com average at about 6.25%. i'm starting to get concerned now. i figured with all the stimulus spending, the fed meddling, and inflationary effects wouldn't start hitting until i was within 120 days and able to lock without paying fees. well that's out the window. all signs point to rates steadily going up for the rest of the year, possibly 7-8% and i wouldn't rule out double digits. so the lender offered several lock-in options, one for 2 1/4 points. now, i just don't have that money to commit at this time because i'm a full time graduate student and my guaranteed job doesn't start until mid-august, and i've been supporting myself on savings since january and setting a strict budget out to meet expenses and qualify for the home loan and take advantage of the credit. while i've been told that my debt to equity is okay to sustain the rate increases, i'm concerned because when i start my new job, my goal is to try to replenish the savings i've lived on as quickly as possible. with just the basic neccessities, at a 6.5 or 7% rate, i feel like i'm going to be barely breaking even based on the salary of the new job. this is not what i exactly had in mind. so my question is this. they haven't started building the house yet. i know there's provisions in the contract that allow me to back-out upon the completion, or if the va doesn't appraise the house for at least the purchase price, but what about now? i thought rates were good, and if i could afford the points to buy down, i probably would, i just don't have the money at the moment, and will just be starting to once again bring in steady income upon the expected closing. i know i'll have to go through the purchase agreement again, but i figure that this has to be something pretty common and that i wasn't the only one affected by the transactions this week. i really feel bad for the people that thought on tuesday they were going to get to refinance. that's just horrible. ps> the builder is ryland, if that helps or anyone has experience with them. valerie - it's va. not too concerned about the $2k, although i'm supposed to also make $500 deposits per month for the next 5 months. i know i signed some form that doesn't let me transfer the loan.

What state are you in? Many real estate laws vary state by state. I'm a real estate broker in NY, and unless one of the conditions that is a contingency in the contract fails to be met, a buyer generally have to forfeit downpayment money to get out of a contract. It might be worth your while to have an attorney review the contract and see if there is another out. If you don't want to walk away from your $2000, it also might be possible to assign the contract to another purchaser, who will assume all the conditions and put up the same downpayment. You have to read, or have a professional read, you contract carefully to see if you have a legal out. Bright side, if you walk away from your $2K, it won't impact your credit.