Hello Mariah, there often will be a penalty to break your mortgage with the lender you are with. Unless you have an open mortgage which does not carry a penalty to break. If you are not sure if you have an open mortgage or closed mortgage, chances are you are in a closed mortgage. (Open mortgages have higher interest rates and are not often offered by lenders unless the client specifically asks for them due to the chances of breaking the mortgage) The exact calculations vary from lender to lender and are spelled out in the terms of the mortgage agreement you received when you set up your mortgage to begin with. The basics are as follows. For a variable rate mortgage you will most likely be charged 3 months interest penalty (The next 3 months interest due on your mortgage payments basically). If you have a fixed mortgage rate then things get tricky. You will be charged 3 months interest penalty or Interest Rate Differential (IRD). The first is the same as before but IRD is a whole different animal. It can get quite costly and is designed to prohibit movement of the mortgage to another lender due to a better rate environment. If the rates in the marketplace are higher than the rate you currently have on your mortgage you will be most likely charged the 3 month penalty. If the rate environment is such that rates are lower than what you have currently the IRD is often charged. The IRD calculates how much money you will save at today`s rates on your current mortgage balance and remaining term and charges you roughly that amount to break. In this way clients don`t jump ship when the rates get better. The calculations are not perfect however and many of my clients have broken their mortgage and taken it to another bank even though they are not selling or moving. Just how much you save varies on your specific mortgage and the rates available. Only specific calculations to your current mortgage situation can tell you if it makes sense for you. I hope this information has been helpful Mariah, I would be happy to do some calculations for you or any reader, no obligations. Please do not hesitate to call. 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.

Yes, there is a penalty to break your mortgage before term is up. However there is no penalty for selling your home. You can sell your home and move to another one, then you can port your mortgage to the new property and avoid the high penalty for breaking the mortgage.

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I bought my house in 2007 with an fha loan. i believe the terms of the loan state that the house must be my primary residence for 5 years before selling it or refinancing. i would like to buy a condo and relocate to new york in the next 3 years. i'm saving money to do that and working on other aspects of planning (job, etc). i want to rent out my house, but due to the stipulations of the fha loan, i can't just go renting it out all willy nilly without getting in trouble (with the irs or with the state that gave me the money). is it wise to refinance the loan from an fha loan to a conventional loan and then rent it out? i did some research on this, and it seems that my pmi should be paid in full within the 5 year period, but i may get charged for the refinancing, and possibly a penalty from fha. or should i just sell the house, buy another one with a conventional loan and rent that one out instead? either way, i'm considering having two properties, a primary residence in nyc and a rental property in my current state. thanks for the help! are the terms the same for a cda loan?

Unless you have an FHA loan insured by Bond money, you only have to live in it for one year before it can become investment property. Unless you put a lot of money down or are paying extra, the mortgage insurance will not be paid in full in 5 years with the FHA loan. Your LTV has to get down to 78% for it to drop off. Five years is the minimum amount of time you must keep MIP on an FHA loan. If you refi to a Conventional loan you must live in it for one year as your primary residence. It is much cheaper to refi as a primary residence than investment property. There should be no penalty for refinancing from an FHA loan. Just plan the closing so the payoff is received by the 1st day of the month or you will have to pay a full month's worth of interest. There are lots of headaches with rental property, especially if you are out of town. I would sell & use the equity as a downpayment.

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I found a for sale by owner piece of property. i contacted the owner and ask if they would be willing to do a contract for deed with me. i offered 25k for the land, 2500 down, at 5% for 5 years. i met the lady at a local restaurant and she had the contracts already with her which was the first sign to me that something wasn't right. we don't know each other from eve. she agreed to my terms but at the end of the payment period, she wanted to "gift" me the land so she didn't have to pay taxes and so the income didn't affect her social security disability. she also wanted me tmake my payment checks out to her boyfriend so ssd wouldn't find out about it. second, third and fourth light bulbs going off in my head. she claimed she had been to the courthouse the day before to make sure she had the title free and clear and she claimed she did. something was telling me wait and i told her we had to wait until we got our taxes back then we would finalize the deal. the next day, i called the county and found out there are 3 liens on her property. one from 2003 for 15k from the irs, and two more liens from the home owners association the property is located in for about 5k. the property is worth about 25k and i don't mind paying what it is worth. what i do mind is someone trying to rip me off so i don't think anything is wrong with legally getting back at her. she is the property owner. the home owner association president identified her. how can i buy that house and get out of paying the irs lien? i want her to pay her own bills. i was right to wait. so, she blatently tried to rip me off. i get that. there are people out there who will sell their own mother's for a buck. what i want to do now is offer her 2500 total for the property. ideally, i'd like to settle with the irs for a much smaller amount and have them keep going after her for the rest. the home owners association will let me pay out what is owed and will even reduce the amount by removing the late fees and penalties but this thief of an owner doesn't need to know that. i don't know how the irs liens work. if i buy this land am i responsible for the entire lien? can the irs still go after her for the amount as well? i've already spoken to the hoa. they are willing, in writing, to settle with me. i'm just wondering if i go ahead and get her to sell to me for 2500 or so, will the irs immediately come after me and demand i pay in full or confiscate the property altogether? does it make any difference knowing that i also am on ssd so could the irs even come after me?

Run from any deal like this. Any real estate purchase you make should be handled through a title company and title insurance purchased on it to ensure that all existing liens are paid in full. You are asking for trouble by asking for a contract for deed without legal protection. Do not attempt to deal with the IRS or HOA on someone else's issues.

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Every one says option arm loans and negative am loans are bad. i know negative am's are bad. i was going to youe an interest only or a fixed option arm for 5 - 7 years. i plan on keeping the proerty for a short term. and theres no pre payment penalty. im using the interest only and option arm fixed, but i plan on selling the house in 1-4 years. im buying the houses 10-20% below value and am putting money down, and the neighbor hood is apprechating at 10% rightnow.

Appreciation is never guaranteed, so be careful......As fast as prices can go up 10%, they can surely fall..... However if you started out buying it way below value, then the option ARM might not be a bad idea. Try to make at least that interest only payment every month (not the minimum interest payment that can add "negative" equity). If your situation holds like you explained, I think you'll be ok with that option ARM.

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1. for petra to recover the benefit of her bargain from a breached contract to buy a boat docking facility from quayside properties, the most appropriate remedy is (points: 2) damages. reformation. rescission. specific performance. 2. erte holds 1,000 pounds of perishable fruit in storage for fresh stuff corporation. fresh stuff does not pay for the storage. erte sells the fruit to green grocers, inc. this sale represents (points: 2) a breach of contract. a mitigation of damages. rescission and restitution. specific performance. 3. dina contracts to repair a computer for earl for $100. if dina does not perform, earl must pay (points: 2) $100. $50. $10. $0. 4. a contract between e-debits and first credit includes a provision excluding liability as a result of fraud. this provision is (points: 2) enforceable because the parties are protected from liability. enforceable because the parties consented to it. enforceable if the parties have equal bargaining power. not enforceable. 5. xavier enters into a contract to operate a yummy yogurt franchise, which yummy agrees to support as long as xavier maintains his business license. yummy's duty to perform is (points: 2) absolute. conditional. licentious. operational. 6. yvon enters into a contract to manage the operations of zack's bank for one year, renewable for subsequent one-year terms. if this contract is discharged like most contracts, it will be (points: 2) canceled. delegated. litigated. performed. 7. drew contracts to sell a house to evan. the contract provides that if drew does not sell the house by february 10, he must pay evan one-half of the contract price. this provision is not enforceable because it is (points: 2) a liquidated damages clause. a material breach. a mitigation of damages. a penalty clause. 8. on may 1, cy's auto sales agrees to sell a car to dino. five days later, dino refuses delivery and cancels the contract. cy's is entitled to (points: 2) force dino to accept the car. recover any damages from dino but not resell the car. resell the car and recover any damages from dino. resell the car but not recover any damages from dino. 9. the government in the sunshine act relates to (points: 2) environmental laws within the u.s. global environmental laws. public disclosure of meetings. the prohibition of government officials from tanning. 10. which one of the following is an example of a street crime? (points: 2) robbery embezzlement mail fraud bribery 11. nevada has just passed a statute that conflicts with the u.s. constitution. which one takes priority, and why? (points: 2) nevada's statute because states are sovereign. the u.s. constitution because the u.s. is a democracy. nevada's statute because the u.s. is a democracy. the u.s. constitution because of the supremacy clause. 12. great internet, inc. (gii), is an internet service provider. gii's tech support employees are on strike. six of the workers are blocking gii's door. to get them away from the door, gii should obtain (points: 2) a decree of specific performance. citation. an injunction. a rescission. 13. jill vasquez is an appellate court judge. in this capacity, she establishes a rule of law. under the doctrine of stare decisis, the principle must be adhered to by (points: 2) all courts. courts of lower rank only. that court and courts of lower rank. that court only. 14. the authority of a federal court to hear a dispute comes from (points: 2) article iii of the u.s. constitution. a writ of mandamus. a writ of certiorari. federal legislation. 15. quality products, inc., files a suit against retail sales corporation. sid is a witness for quality. tod is a witness for retail. quality may direct interrogatories to (points: 2) retail only. retail, sid, or tod. sid only. sid or tod only. 16. kelly files a suit against lewis in a state court. the case proceeds to trial, after which the court renders a verdict. the case is appealed to the state's highest court. after the state's highest court's review of kelly v. lewis, a party can appeal the decision to the u.s. supreme court if (points: 2) a federal question is involved. a question of state law remains unresolved. the party is unsatisfied with the result. the state trial and appellate court

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