Hawaii Mortgage

Archive for December, 2009

My partner and I are first time home buyers. We have saved almost 20% of the property and both have secure well paying jobs. Unfortunately we do not know much about mortgages and want to get the best deal possible. Should we see more than on broker? Should we get our own mortgage quotes as well? Do we have to pay trailing commissions?

Hello, do as much research as you can – brokers are great if you don’t have the time but if you do you are far more likely to understand what you’re getting into and find the best and most suitable product for you. These days, it’s so easy to get information from multiple banks – I’d recommend calling rather than going online as they can ask you questions about your specific situation and make recommendations, the information on the internet is onlyn broad.

You don’t have to pay any commissions to brokers – this is all paid by the banks. They pay an upfront commission then an annual trailing commission for each year you have the loan with them.

With your substantial deposit as well as strong employment you are also in a good position to negotiate with the banks – don’t be afraid to do this, you are stuck with this loan for a long time so spend the time now getting it right!

Be careful with what broker you choose – if you have to go with one only go with the mainstream broker companies (eg mortgage choice), there are some dodgy ones out there and lots who will just sign you up and then you’ll never hear from them again. To be honest you’ll often get the best deal going direct through the bank – they have more specific knowledge about their own policy/procedures whereas the brokers only have basic knowledge of maybe 10 – 20 different banks.

If you are borrowing over $250K, look for a package – this will involve an annual fee but the cost for this will substantially outweigh the costs saved in interest rates and fees on your home loan as well as all your other banking.

This site may help you to compare many mortgage companies at once http://easymortgageadvisor.blogspot.com/ fill the form and you can get a free quote from top banks, brokers and mortgage lenders

Good luck! Remember, the more research the better. Don’t just trust one specialist – if you are fully educated and informed then you will be the best specialist on your particular financial situation.

Hope this help,

I am planning to buy a home and wanted to know why everyone thinks that home mortgage loan is tax beneficial.

Example:-
If we are paying around $15,000 a year in interest+property taxes and in tax refund( 15% tax bracket) we get back around $2K-3K and we are happy.

Its like paying government $100 and getting back $15 and we are happy with that.

Correct me if I am wrong

You’re partially wrong.

If you pay $15,000 a year in interest and property taxes AND you are in the 15% tax bracket, you get to reduce that $15k from your income. This means you will pay $2,250 less in federal income taxes. So in other words, you are paying $15k to save $2k. It’s not good business sense, but it’s better than not saving anything…but that’s not the entire story…it gets worse.

You only get to deduct the $15k IF AND ONLY IF you itemize your deductions (instead of taking the standard deduction). If you are married, your standard deduction is $11,400 ($5,700 if you are single).

Since you are paying $15k in interest/taxes, you get to deduct an extra $3,600 than you otherwise would have been entitled to anyway. Therefore, your net tax benefit really isn’t $2,250. It’s only $540 (15% of $3,600).

But wait…it gets worse…

You are only paying $15k in interest/property taxes the FIRST YEAR of the mortgage. Keep in mind that part of your mortgage payment goes to principle. While your payment each year will be the same, the amount going towards principle and the amount going towards interest will change. Eventually, that $15k payment each year will only be a few thousand worth of interest…at which point there is ZERO tax benefit.

In the actual Subprime mortgage crisis in the US huge amounts of mortgage frauds were discovered. What’s the part that these frauds played in the actual mortgage crisis ? Thanks.

read on…

http://myfinancetimes.com/2008/05/24/subprime-mortgage-creditcrisis/

The above article elucidates you on the actual subprime mortgage crisis in us. and the persons behind the mortgage fraud and all those who are to be directly blamed for this financial catastrophe.

National Reverse Mortgage Lenders Association is you are on business side. http://www.reversemortgagepage.com if you are a consumer.

My mortgage is normally due on the first of each month . Do I have till the 15th. to pay ? Before they can say it’s actually due ?
Like many others , having financial difficulties .

Maybe.
READ you note, your loan documents.
It is DUE on 1rst, but may not be late until 15th.
Not late payment penalties until after the set date, but you pay interest for EACH of those days you don’t pay.

It is so hard to pick a mortgage lender. They can only give you a range of interest percentages. You don’t know the rate til you commit to them after you have already paid the application fees. What is the best lender in Florida for would-be homeowners?

An experienced loan officer who will work to find the best program for you is most important. The company which will offer you the best terms usually depends upon your specific situation especially income, savings and & financial history. Ask people if they can recommend one. Often, a quality real estate broker can be the best resource to recommend a few lenders or loan officers after learning a little about your circumstances. (Similar variables make it impossible for anyone to quote you a rate until they know your specifics.) Don’t pay any significant application fees in any case. Top lenders do not require you to commit by paying hundreds of dollars (although a few may charge up to $20 to pull your credit reports).

I see that Freddie Mac is a government-sponsored mortgage lender and promotes safe and responsible borrowing. Has anyone had experiences with them? Would I be more likely to be able to qualify for a house with them? Are there certain reasons for choosing them vs. traditional lenders?

Freddie Mac does not give you a mortgage directly as a "traditional lender" does. Instead, Freddie Mac buys the mortgages that you get from traditional lender, who processes your application and gives you the mortgage. You cannot apply for a mortgage directly to Freddie Mac.

My wife and I own a home with $500K in equity. We are considering buying what will be our future retirement home in Hawaii. The purchase will leave us with a negative of about $1,500 per month. What are the tax consequences of the loan and the negative?

Assuming that the negative is including everything – rental income, prop taxes, mortgage interest etc.

The negative amount x 12 would be a loss on your rental property and should offset your taxes (providing you are not disqualified to take this deduction it due to other reasons). check with a tax pro.

The recession was caused by people being unable to pay back their home mortgages because the mortgage rates were too high?

Banks were not getting their money back from home owners, causing a credit crunch, thus they were unable to lend money to big businesses.

Big businesses then had to cut back on expenses and began to lay people off the the thousands.

So what caused the mortgage rates to go up so high that started this financial mess in the first place?

barney frank,chris dodd,ACORN,and all other democrats forcing banks to give loans to PEOPLE WHO COULD NEVER PAY THEM BACK..

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Duration : 0:4:55

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