Posted on: 29th Apr, 2008 07:48 pm
hi i'm a was a first time homebuyer who rush on what i thought was a good deal but it wasn't i bought a duplex for 150,000 with no equity and i have a first and second mortgage one of them is interest only and its killing me since their is no equity no one wants to refinance me at 100% can someone help me
Yes, sending extra cash to your mortgage is always the best thing to do, but when you send the extra cash and realize in a day or 2 that you needed that money, its not feasible to call your mortgage company to get that money back.
Using a line of credit with my method is the safest way I have seen to be able to pay down your mortgage and still obtain the safety of an emergency fund.
Using a line of credit with my method is the safest way I have seen to be able to pay down your mortgage and still obtain the safety of an emergency fund.
I think talk to lender and settle the issue.
That is better option for such queries.
That is better option for such queries.
hi guys
i was just passing by when i came across this post and for the life of me
i cant understand why anyone in their right mind will opt for a monthly repayment over a biweekly ones here is the reason why!
lets take an example for $300,000 mortgage @6.86% interest (current variable loan in Australia). Over a 30 year term you will be paying the following
MONTHLY REPAYMENTS OF $1968 pm over 30 years with over all interest payments of $408,220 over the term of the loan
BIWEEKLY REPAYMENTS OF $984*2=$1968 the same amount as your monthly repayments. with over all interest payments of $309,348 over the term of the loan
if you paid biweekly your term of your loan will be reduced to 23y and 11months that's a reduction of 6 years from the overall term of your loan.
More so the difference in your total interest paid is $408,220-$309,348= $98,872
SO BY REPAYING THE SAME AMOUNT WITH BIWEEKLY OPTION.
you save your self 6years and 1 month and $98,872 in interest .
I'm sure you can find better things to do with nearly $100k then give it to your lending institute .
Here's another way you can reduce your mortgage.
assuming you can a hold on a 0 apr c/card loaded with $30,000
@ 6.86% (the same interest as the example above) that's nearly $2000 pa you can add to your repayments, simply cancel your card and get a new one every year and keep reducing you mortgage using these types of balloon payments (i think that's what you call them in the US)..
another option if you have some spare cash: Take that saving that you made on the interest $98,872 and split it over the term of the loan and pay that as extra repayments just think of it as the money that you would have spent if you didn't change over to biweekly repayments i can guarantee you will put a serious dint in your mortgage if you did that .
All an all you first priority is to change your payment structure from monthly to biweekly even if it cost $1000 you will still save tens of thousands of dollars.
if you can get a 0% apr c/card use it to your advantage and if you can make some extra payments do it ,even $20 weekly debited automatically from your account makes a different for most of us we will not notice it.
Cheers
jacob
i was just passing by when i came across this post and for the life of me
i cant understand why anyone in their right mind will opt for a monthly repayment over a biweekly ones here is the reason why!
lets take an example for $300,000 mortgage @6.86% interest (current variable loan in Australia). Over a 30 year term you will be paying the following
MONTHLY REPAYMENTS OF $1968 pm over 30 years with over all interest payments of $408,220 over the term of the loan
BIWEEKLY REPAYMENTS OF $984*2=$1968 the same amount as your monthly repayments. with over all interest payments of $309,348 over the term of the loan
if you paid biweekly your term of your loan will be reduced to 23y and 11months that's a reduction of 6 years from the overall term of your loan.
More so the difference in your total interest paid is $408,220-$309,348= $98,872
SO BY REPAYING THE SAME AMOUNT WITH BIWEEKLY OPTION.
you save your self 6years and 1 month and $98,872 in interest .
I'm sure you can find better things to do with nearly $100k then give it to your lending institute .
Here's another way you can reduce your mortgage.
assuming you can a hold on a 0 apr c/card loaded with $30,000
@ 6.86% (the same interest as the example above) that's nearly $2000 pa you can add to your repayments, simply cancel your card and get a new one every year and keep reducing you mortgage using these types of balloon payments (i think that's what you call them in the US)..
another option if you have some spare cash: Take that saving that you made on the interest $98,872 and split it over the term of the loan and pay that as extra repayments just think of it as the money that you would have spent if you didn't change over to biweekly repayments i can guarantee you will put a serious dint in your mortgage if you did that .
All an all you first priority is to change your payment structure from monthly to biweekly even if it cost $1000 you will still save tens of thousands of dollars.
if you can get a 0% apr c/card use it to your advantage and if you can make some extra payments do it ,even $20 weekly debited automatically from your account makes a different for most of us we will not notice it.
Cheers
jacob
why is it that hard-working americans who have maintained good credit but have lost all-equity due to the economy can not refinance to take advantage of lower interest rates. the cost of real goods is going through the roof yet because i have done the right thing i can't take advantage of lower interest rates.
some of you offering advice have no clue. the question was simple that was asked by several individuals. is there anyone who will refi a home that has no equity?
if the payment is more affordable then why not refi at a lower rate?
some of you offering advice have no clue. the question was simple that was asked by several individuals. is there anyone who will refi a home that has no equity?
if the payment is more affordable then why not refi at a lower rate?
Hi Guest!
Welcome to forums!
If the property does not have any equity, then the lender won't refinance it. The borrowers should have at least 20% equity in the property to get a refinance.
Sussane
Welcome to forums!
If the property does not have any equity, then the lender won't refinance it. The borrowers should have at least 20% equity in the property to get a refinance.
Sussane
owe 180,000 on 1st mort. at 7% home will probably be appraised below that any chance of refinance
Hi kathi!
Welcome to forums!
If your property value is less that your present mortgage balance, you won't be able to get a refinance. The lenders will not be ready to refinance the mortgage unless you've equity in your property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If your property value is less that your present mortgage balance, you won't be able to get a refinance. The lenders will not be ready to refinance the mortgage unless you've equity in your property.
Feel free to ask if you've further queries.
Sussane
Your best option (if you qualify) when your home value is close to or less than your current loan amount is the DU Refi Plus Program. It will enable you to refinance and possibly without PMI too.
I have been over my head with properties, I file a personal BK chapter 11 .
I was 1,000.000.00 + in dept. In the BK my principal mortgages have been(cramed down) reduced to current market values. This is allowing me to keep all of my investment properties as rentals. You may not cram down you principal residence.
I was 1,000.000.00 + in dept. In the BK my principal mortgages have been(cramed down) reduced to current market values. This is allowing me to keep all of my investment properties as rentals. You may not cram down you principal residence.
Post Your Comment