Hello Anon, breaking your mortgage with Home Trust means you will have to pay the mortgage out completely or move the mortgage to another lender called a switch. Home Trust has different guidelines for their different mortgage products. Some products do not allow you to break the mortgage unless you are selling your house. You may only be allowed to break without sale after a part f the mortgage term has expired. Please dig up the papers you signed with Home Trust back when you got the mortgage to confirm the options you have. If they do allow you to break the mortgage you may have to pay a penalty which can be as low as 3 months interest penalty or the often larger calculation of Interest Rate Differential . Even if you have to pay a penalty you often are able to realize a healthy savings when breaking a mortgage and moving it to a lower rate elsewhere. Please speak to a Licensed Mortgage Agent who can do the calculations for you. Unless you are getting a better rate elsewhere do not think of leaving Home Trust because that penalty should be avoided if possible. As for Bank of Montreal, and this goes for the big 5 banks in Canada, all are relatively equal in their products, rates and guidelines with varying differences at each level. The truth of the matter is that EVERY lender in Canada is a good choice as long as the interest rate is low and the details and conditions of the mortgage agreement are acceptable to you. After all once the deal closes the lender is just there taking your mortgage payment, they really do not do anything more for you during the life of your mortgage term other than that. The details and conditions I mentioned are the only things that may be important to you but as long as you reviewed them before signing for the mortgage you should have no problems taking advantage of things like pre-payment of your mortgage or changing your mortgage payment frequency. A Mortgage Agent is able to breakdown all of the features and conditions of the many mortgages products out there. They have access to multiple big banks and smaller lenders and can advise you of which lender has the features you want at the lowest available rates. I hope this helped. If you or any other reader would like some more info on this or any topic please do not hesitate to contact me at any time. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 x 115 www.centum.ca/abraham_niyazi/ I deal with 25 Lenders/Banks and can do mortgages across Canada except Quebec.

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I have heard this has been done. i am willing to even pay for half out of pocket. im in canada b.c.

While a lender cannot pay the penalty directly, if they want your business bad enough they can shave some fees off your loan. Not a whole lot of that going on in this environment though. Lenders are overwhelmed and some have stopped taking new applications

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Assuming you moved because your job moved you, can you claim the penalty fee paid to the bank for ending your mortgage as a moving expense on your income tax return. if you can claim it, how much can you expect to get back?

Assuming that you qualify (Your new home must be at least 40 kilometers closer to the new place of work) then yes, mortgage penalty is an eligible moving expense. How much you get back depends on what tax bracket you are in, but it would be at least 20% of the total moving expenses.

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I've read about hundreds of people that have been forced to pay a prepayment penalty fee but has anyone ever been refunded this money? these banks have dozens of pages to protect their astronomical assets, but what about us the customer? is there any such paperwork that myself as a customer and a borrower can bring with me and have the bank sign on my behalf? to protect my home to protect my family? do we have any protection whatsoever? has anyone ever fought the bank and won? i haven't read much about the mortgage company being "screwed over" by the customers? i feel like i've been scammed. legally scammed. i've been robbed, robbed by bankers...lol.................. damn bank robbers.

I live in North Carolina, and prepayment penalties are illegal here. If you are in another state, sorry, it depends on the state. In NC, if you send in extra principal with your regular payment, there is no fee, but if you send in extra payments, they can hit you up for a service fee. The financial institutions write the contract, just like all business. It would be really stupid of them to include a clause to let their customers "screw them over".

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...amounts, it's all the unethical, immoral interest, penalties, fees, late payments... multiplied by the number of financial institutions who have had their paws on it?? look at the proposed bank buy-outs being discussed in congress right now. the american taxdollar is actually expected to shoulder the consequences of the greed of the finanancial institutions in this country - that is all it boils down to. if the banking/mortgage industries just "forgave the debt" of those homeowners 2 or 3 or 4 or however many months they were behind, and re-financed the loans at reasonable interest rates, the so-called "problem" would be solved. but noooooooooooo. the banks/mortgage industry is not interested in that in the least. they want you to pay for all those fees and late payments and penalties which have accrued under the defaulted mortgages, plus the fees and late payments and penalties which have accrued each time that mortgage was bought and sold and passed around to a dozen other lenders. it's freaking ridiculous. it's pure greed. to happy bolshevik: i think you made a typo. the actual figure is $100 billion. this is the actual dollar amount of the defaulted loans. the rest of it is interest, late fees, penalties, and the cost of the "buying and selling" of these mortgages. do they really expect the taxpayer to pay that???? to conspiracy buster: how in god's name would this be a "conspiracy?" go back to bed, they'll be around shortly to change your bed linens. you'll feel much better.

American taxpayers are $9.7 TRILLION in debt because of an illegal, unconstitutional, immoral 'war' against another sovereign nation that did not threaten, provoke or attack the United States of America. American taxpayers have already been put an extra $11.3 TRILLION in debt to help bail out big business. While the big brouhaha over the $700 BILLION bail out made headlines over these past few days, Congress quietly also gave up $25 BILLION of taxpayer dollars to bail out an incredibly greedy, irresponsible, incompetent auto manufacturing industry in the U.S. KA CHING: $21,725,000,000,000.00 grand total in war and bail out costs. (that's twenty one TRILLION, 725 BILLION dollars). Taxpayers have bailed out the most reckless investment firms, the most incompetent banks, the swindling mortgage lenders and the greediest hedge fund speculators. They've put the monkey on the taxpayers' backs without any consequences to be paid by the CEOs of these 'big' companies. Oh yeah.....they put a 'cap' on executive salaries, which means that most ceos will stay on, continue to 'manage' these 'big' companies at multi-million-dollar salaries. When Lee Iaccoca went to the taxpayers to bail out Chrysler, he and his executives took $1 a year salaries until the loan was repaid. Not one of these greedy cretins today had even bothered to volunteer to reduce their salaries - and Congress has not insisted that these bas*ards be held accountable for their incompetence and greed. Who are you kidding, Congress? You've protected your rich friends at the expense of struggling taxpayers. This 'bail out' will not solve the current economic crisis. It only sends a message that it's "okay" to accept corporate welfare from the taxpayers, even while there are millions of Americans whose social welfare programs have been cut or abolished....millions of Americans who are underprivileged, sick, under-educated, disadvantaged, elderly, poor, disabled, homeless or hungry. But the fat cats continue to stay shamelessly fat. -RKO- 09/29/08

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We were 4 days away from closing when it came out the seller hadn't paid property taxes since 05, hadn't paid her mortgage for 5 months and had a pre-payment penalty on her 3 loans. our offer didn't cover all these extras. she decided to walk away and let the banks foreclose. we had signed all the real estate contracts and were in escrow. what are my options to still get the house without paying all her extra fees?

Get her back to the table! Don't know about other states but in illinois... the seller needs a negotiator or an excellent atty. to negotiate with the lender (short sale) or the realtors if they have experience could help (keep in mind that walking away is not the answer!) the seller's best course of action is to sell it to you provided that the price is fair in this market - if the lenders still can't workout a deal then pick it up after the sheriffs sale - re-offer on it (2 months to get listing back on the books and for you to be able to offer on it with the lender now being the owner) This time after the sale has occurred- there will be no junior liens, or things to consider, the lender will be responsible for delivering a clean title to you and will now have to pay to transfer it to you. (the 2nd and 3 lenders should be shaking in their boots- basic settlement offers these days are $1,000 no matter what the 2nd mtg. amount was. Who knows that the 3rd lender gets anything except a Thank you card!) keep in mind your realtors might not be very happy about taking reduced commissions to confirm the sale but if it's gonna get done- somebody's always getting the stick!

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Dear mates, can anybody please help me regarding early redemption penalty? i am on tracker mortgage and with bank for two and half years. if i pay, say pound 100 extra a month, and i can check online, that this pound 100 has actually got less from original amount, will it be possible for bank to deduct early redemption fee afterwards? how much extra can somebody pay on tracker mortgage a year? many thanks

The only way to answer this question is to look at the terms of your mortgage , because this is detemined by your particular agreement and not by any outside standards. Where there is an early redemption in place most banks allow a certain amount of overpayments, maybe 10% of the outstanding balance per year. In this case, unless your mortgage is tiny then £100 per month would be OK. Some banks allow unlimited overpayments, provided you don't clear the debt completely. So you could leave a nominal balance (say £10) and avoid the penalty. But on the other hand, you may find that no overpayments are allowed at all if you want to avoid a penalty.

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Any experts, mortgage for closures, real estate, as i have heard several different answers, opposite answers from realtors. in michigan, i have tried to sell my home for 6 years. all payments and taxes have been paid on time. each month the home falls in value and its value now is about 50% of what it use to be. if it does sell, i would need to bring to closing more than $400,000, that would include realtor fees, because i owe much more than it is worth now. i do not have any of the $400,000 needed to bring to a closing. only what i could borrow without collateral. i have a little money in a 401k, and that is it. i am paying living expenses for the family, costs to run the home etc. and bills from a previous business from a failed michigan industry. i do not qualify for a bank short sale being told i cannot be approved for a short sale because of my income. the house is in need of much repair, so effects much including family health. when it sells, it will sell for land value. i do not have the money to fix it, so it cannot be leased out. i was also told by realtors not to put any money in the house even if possible, (which at this time is not possible) because of the falling prices and will only sell for land value in the end anyway. the taxes are approx. $20,000 a year and was told they will not be lowered, even though the home is worth land value, the city does not count it that way. if i find a home that is livable for my family, and start paying for that home, with a lease or what have you, - sellers in michigan will do pretty much anything to sell, because their homes have been for sale for so long now, or even if we live in an apartment. if i find a place for my family that is livable and pay for those living expenses and then if i stop paying the mortgage on the current home, and stop paying property tax, will my wages be garnished for the unpaid mortgage? will my wages be garnished for unpaid property taxes? what happens to the unpaid property taxes? if so, for either, is there a number of years that my wages will be garnished? or forever? are the penalties and interested added on? will there be any allowance for the new mortgage or apartment fees that i would be paying for my family to live in? i've tried to sell for several years, but now the value has dropped enough and the state of the home is not acceptable to live in and getting worse over the years along with family health. we need to move, but i don't know how to when i do not have the money to bring to a closing to sell and not accepted as a short sale canidate. i am open to hearing any solutions. in response to one of the answers. if i do not qualify for a short sale, then i don't think i would qualify for bankruptcy??? as suggested, if i walk away, looks like i will be sued for the $400,000 plus i assume the property taxes, plus by the time the mortgage company will be able to sell the home, which would be possibly a couple years or more,values will have dropped that much more and then penalties and interest on property tax and i assume penalities on mortgage, so lets say they end up suing me for $500,000. i think this would be garnished from my wages, correct? if that is the case, then it will be hard to pay for the new living expenses and housing. is there a limit of years that they could garnish my wages? can they take any of my 401k. bankrupt is much worse on a credit history than for closure i assume and since i have an income, i do not think i am allowed to go bankrupt, correct? is there a limit to how many years they can garnish my wages? a limit to how much per month that they can garnish? are interest added on for all the years it will take me to pay it back by garnishing my wages, or interest added on for the years it will take them to sell the property? if i do walk away, and my wages are garnished, is that money tax deductable because i am paying a mortgage back. if i have to pay the mortgage anyway on a for-closure, then is there any other solutions?

Property taxes of 20k a year? That seems high. If this is the same loan that you had when you brought the home it may be a nonrecourse loan. Home acquisition loans in CA are. That would mean you can walk away with no financial consequence to you. If it is a refi it is a recourse loan and technically you can be sued for the money but you cannot take blood from a turnip. The lender will send you a 1099C for debt cancellation. If it is a nonrecourse loan it wont matter. If you owe 400k on a refi and of that 300k is the orginal acquisition loan then you would have to pay income taxes on the 100k difference . Since you had use of the money it is claimed as income. This will, of course, be on your credit for several years but you do what you have to. Dont listen to realtors as they do not know tax law.

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We are planning on buying a home, but many people have warned us that we should reconsider because there is a penalty if you sell a home in less than two years after you buy it. this is an issue for us because my dh is in the army and we may be relocated sooner than the usual 3 yrs. but we do think buying is a good investment for us because it's cheaper than renting and we would be paying ourselves instead of paying rent... - is this logical? the several people who have warned us to be careful of this also don't have any detailed info on the penalty - most think it is either a tax issue or a stipulation on the mortgage. our realtor is finding us a home with the number one feature being resale potential. he said the government may tax 3% (?) on any profit we make in the resale, but our bank says there is no fee for paying off the mortgage early. does anyone here know what this penalty is about or has anyone experienced this before? i just want to make sure we are making the right decision in buying a house (the whole point is to save or make money - not get into debt!) thanks in advance!

It's called a capital gains tax. Basically the government assumes that if you sell a house in less than two years, you only bought it to flip it and make a profit, so they tax you on the profit. Most mortgages are written without a penalty for early pay-off, but the tax is unavoidable. 3% sounds about right, too. If you are worried about being relocated in less than 2 years, don't bother buying a house, unless you want property for investment/rental use.

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Arts and culture increased funding for the national endowment for the arts (nea) to the highest level since 1992. created an artist corps for public schools. championed the importance of arts education. promoted cultural diplomacy. banking and financial reform broad policy established the national commission on fiscal responsibility and reform. established president’s advisory council on financial capability to assist in financial education for all americans., restoring american financial stability act of 2010., dodd-frank (df) wall street reform and consumer protection act, the biggest financial reform law since the great depression. managed the troubled asset relief program (tarp) assigned a special inspector general for the troubled asset relief program act of 2009. pension relief act of 2010. fraud enforcement and recovery act., played a lead role in g-20 summit re: financial crisis. reformed deferral rules to curb tax advantages for investing overseas. established new offshore investment policy that promotes in-sourcing., funding cut salaries for 65 bailout executives (pay czar). banks have repaid 75% of tarp funds, bringing the cost down to $89b as of june 2010. closed offshore tax safe havens, tax credit loopholes. , targeted actions created the financial stability oversight council to monitor stability of the financial system and individual firms (df). new requirements for reporting financial data (df). created self-funded office of financial research (ofr) to collect information from financial firms (df). ofr employees must wait a year before working for certain financial firms. provided for orderly liquidation of financial companies (df). limited trading activities of banks (volcker rule) beginning 2 yrs after passage (df). swaps pushout rule prevented federal assistance to swaps (including derivatives) traders (df). derivatives must be traded transparently through a clearing house (df). defined the amount and nature of assets required to meet capital requirements (df). originators of asset-backed securities must retain 5% ownership/risk (df). bureau of consumer financial protection (df). stronger client fiduciary duty for broker-dealers (df). higher standards for securities advertising and disclosures (df). expanded “insider loans” (df). higher standards for sytemically important ($50 billion assets+) institutions, including annual stress tests and restrictions on bank acquisitions (df). executive compensation must be determined by an independent committee (df). issued compensation guidelines for bank executive salary and bonuses. financial agencies must establish offices of women and minorities to promote more diverse hiring (df). credit card accountability, responsibility and disclosure act., credit card technical corrections act of 2009. established a credit card bill of rights. reformed credit card swipe fees. created new criminal penalties for mortgage fraud. congress pursued goldman sachs for securities violations. permanently extended research and experimentation tax credit for domestic investments. results (treasury) sold 1.5 billion shares of citigroup at a profit. g-20 summit produced a $1.1 trillion deal to combat the global financial crisis. negotiated deal with swiss banks to permit us government to gain access to records of tax evaders and criminals. financial reform has ‘strongest consumer financial protections in history.’ civil rights funding provided $12.2 billion in new funding for the individuals with disabilities act though the american recovery and investment act. targeted actions lilly ledbetter fair pay act; instituted equal pay for women. presidential memorandum extending benefits to same-sex partners of federal employees. , presidential memorandum protecting gay and lesbian partners’ visitation/healthcare decision-making rights (4/15/2010). matthew shepard and james byrd jr. hate crimes prevention act to include gender, sexual orientation and disability. supported the repeal of don’t ask don’t tell (dadt). ryan white hiv/aids treatment extension act. established white house council on women and girls (executive order 13506 ). financial agencies must establish offices of women and minorities to promote more diverse hiring. increased minority access to capital. pushing through settlement in the black farmers lawsuit against usda., signed the un convention on the rights of persons with disabilities. increased federal employment of individuals with disabilities (exec order)(celebrating 20th anniversary of the ada)., more here: http://www.blueoregon.com/2010/12/o bamas-accomplishments/

Not everyone feels that way just those religious fundamentalist who are running for president against him. Isn't it ironic that those who love to invoke the name of Jesus and profess to be so pious are those who do the most muck racking and the most grinning while they do it. I think that the humble Obama will easily win this election.

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I have a problem with the seller's second lender and didn't get to close two weeks ago and now my 45 day locked interest rate is about to expire next week and i see that the today and tomorrow's rate might be lowered than my locked and might be lower than next week's rate. i can float-down once but my lender's rate is always higher than anybody else. as an example, i contacted two other lenders, they offered $4.125 for today but my bank is at %4.35. when my rate expires next week and the rate is higher than today's and my current locked rate, either i have to pay penalty to keep my locked rate or get next week's rate. so my question is q1: is it possible for me to start a new loan with another bank? i believe i will have enough time to process a new loan,

Id like to know what bank you are getting 4.1% from, today's rates are average 5.5 for 30 and 4.9 for 15