HereAndThere asked:


I am still holding shares of American Home Mortgage which declared bankruptcy several weeks ago. The share price has plummeted and is almost worthless at this point. Do I continue to hold this position? Do I sell these shares that are worth just a few bucks? Will I recover anything as part of a class-action suit, etc.? I’m ready to just write this off as an almost total loss but I’d like to find out if I’m entitled to anything.

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Julian Lim asked:


ome mortgage refinancing? In simple definition, home mortgage refinancing is paying off an old mortgage and getting a new one. You can also define it as a new loan which substitutes an existing mortgage that is guaranteed by your same assets. Why would I want to pay off my old mortgage loan just to replace it with a new one? What will I benefit from this financial action? 1. Home mortgage refinancing can be very helpful to those with existing mortgage loans as acquiring such refinancing will provide the borrower with many benefits. 2. First of all, interest rate costs can be dramatically reduced. This can be done by the replacement of the original loan with the refinance mortgage loan that has a much lower interest rate. 3. If you get a new mortgage loan that has a much longer term, your payment obligations can be reduced. 4. If by any chance, your existing loan is one with a variable rate, the risks that go with it can be reduced if not totally eliminated by replacing it with a fixed interest rate mortgage loan. 5. Home mortgage refinancing can also be done to transform available equity of a property into quick cash that can be used for other expenses. It is also likely that a home mortgage refinancing will lower the already owed monthly payment on the mortgage loans. This can happen by changing the loan’s interest to a much lower rate or by extending the loan’s term thereby spreading the payments over the extended period of time. The cash that is saved can be utilized eventually to reduce your loan’s principal and consequently lowering your payments further. More Reasons to Consider Refinancing Mortgage Another reason why you might to consider refinancing mortgage is to lower whatever existing risks there are in an existing loan. Loans with adjustable rates actually have interest rates that fluctuate, meaning their values go up and down depending on a number of prime rates. By changing an adjustable rate mortgage loan (or Balloon loan) to a fixed rate mortgage loan, it eliminates the risk of increment of the interest rates and a stable conditioned refinance mortgage rate is achieved over time. If you have a debt with a high rate of interest, for example your credit card debt, such debt can be possibly refinanced with a loan having a lower interest rate, an example of which is a home mortgage loan. Another reason for considering home mortgage refinancing is to be able to utilize your improved credit report. For example if you have gotten a bad and undesirable loan because of a poor credit history, you might want to try bad credit home mortgage refinancing in case your credit rating has improved some time after you got your original mortgage loan. And most probably you are bound this time to enjoy a lower rate of interest and better loan term.

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John Marshall asked:


You should not pay those high amounts of installments towards home mortgage any more. Why should you? Especially when you have the option of easy home mortgage refinancing under which you can smoothly switch current mortgage to another won of better rate of interest. Clearly, through refinancing the mortgage you save lots of money and also you are in a much better position of paying off mortgage.

Easy Home Mortgage Refinancing means you are no longer paying huge amount of money each month towards existing mortgage and instead you make lower payment per month because of lower interest rate. This is called easy as you can refinance home mortgage without hurdles from lenders. Usually online lenders make it easier for the borrower as they always have lower rate of interest on home mortgage refinancing as compared to other lenders. Also online lenders will approve home mortgage refinancing easily to bad credit borrowers as well thanks to growing competition amongst the lenders. So lower interest rate, convenient repayment and smoother approval for even bad credit people makes home mortgage refinancing easy.

The main aim behind home mortgage refinancing is that you lower monthly payment for clearing the mortgage installments or you may want the refinancing for releasing equity in home for paying child’s education, home improvements, wedding, holiday tour, buying a dream car or for debt consolidation.

However, do not right away believe claims of the lenders providing easy home mortgage refinancing. Instead take rate quotes of such lenders first, to find out which one suits best to your circumstances. For instance you may be having a bad credit history or your debts may be too huge. So go through terms-conditions and interest rate of home mortgage refinancing lenders minutely and then only it will be real easy to refinance home mortgage.



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pandit ji asked:


What do i need to have a joint ownership(joint equity), with another person, on my home for which i currently have a mortgage? I want to have this other person as 50% owner of the home and as well as the loan liability.
The house is located in Orlando FL. US

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Sylvia asked:


my friend’s primary home mortgage is paid off. she want to take a mortgage on the primary home in order to buy a second/vacation home. Can he deduct the taxes?

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Andrew Mason asked:


If you are considering a second home in a state different from where you are living now, processing your mortgage loan would be easier if you let a nationwide home mortgage loan company finance your home.

It makes sense also if you put your first mortgage with the same nationwide company-otherwise, tracking your payments can get pretty confusing. When at all possible, make sure you make all your payments at the same time, as if you have to do this at different intervals throughout the month, it can become hard to keep up with.

Your second home mortgage application would be approved more speedily if your mortgage company has immediate access to your credit score and financial information. Many borrowers tend to use in-state or local mortgage company.

If you are purchasing a primary residential house, there’s really nothing big to worry about. But if you’re planning to purchase a second home in a different state, you can’t expect your local mortgage company to help you.

This is how using a nationwide home mortgage loan company can be extremely beneficial. The more states your lender covers, the less it would be a hassle for you to get a second home loan in a different state.

When shopping for your mortgage loan, send a select number of companies a copy of your financial and credit. Gather and compare quotes based on the information you’ve sent them.

When considering another mortgage in another state, check the number of states the nationwide home mortgage loan company have offices in. Do they have an office in the state you consider for your second mortgage?

To get quotes the fastest, you can either go to each individual companies site and find their quotes, or you can take the fastest (and smartest route)-going to a site that has different quotes from a bunch of different companies.

There are many companies that will immediately give you quotes from ten or fifteen different companies when you give them your information, and basically work as an online mortgage broker-the only difference is, unlike a physical broker, you don’t have to pay them for this service.

This is a quick and relatively easy way to quickly narrow down which companies have the cheapest quotes, and while the exact price you pay might be a tad different, at least it will show you who to start with. This is a much quicker method than going to each individual site and filling out the same information over and over, as these sites are basically a one stop source for all your mortgage quote needs.

Find out also if you can roll the two home loans into one, and if that would mean lower payments for you. You can call their toll-free number and talk to their representative if you have questions.

With the same mortgage company providing a potential second home loan, you expect that your application would be approved in a shorter time than if you apply at another mortgage company. Apart from selecting a nationwide home mortgage loan company over a local one, it should also be your priority to get the best rate from them.



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Kristin Abouelata - Home Loans asked:


You hear quite a bit lately that “the Fed is cutting the interest rate.” Maybe you’ve been considering a refinance, and you’re waiting to move forward till the Fed takes action again. But be smart about waiting and watching. A Fed cut doesn’t directly affect long term rates (for instance a 30 year fixed mortgage), but it does impact long term mortgage rates. The problem is the impact might not have the result you’ve been waiting for.

Who is the Fed? Well, it’s really the Federal Reserve. And when the Fed cuts rates, it usually cuts the Fed Funds Rate, which is the rate banks lend each other money. However, when the Fed lowers the Fed Funds Rate, Prime Rate, the rate banks give their best customers, usually drops as well. Ok, that’s great. But what does that really mean to the average person on the street? It means that anything that has an interest rate tied to Prime is directly affected by the Feds’ rate cut. Typically, these are short term loans. For instance: a credit card or a Home Equity Line of Credit (HELOC). In general, these rates decline when the Fed lowers rates. On the flip side, a Fed rate cut means your savings will perhaps not yield as much interest and your CD (certificate of deposit) won’t be at such a great rate. So, it’s not all good.

Why aren’t mortgages directly affected? Because mortgage rates are typically longer term rates and are influenced by buyers and sellers in the bond market. Daily movements in the bond market cause mortgage rates to change. That’s why you might get a quote from a loan officer on Tuesday, and on Wednesday, your quoted interest rate has increased .125%. The Fed lowers rates to help stimulate the economy. Ultimately a healthy economy is good for the real estate market. Jesse Lehn, Senior Vice President for Mortgage Investors Group, believes, “…a liquid real estate market is beneficial for the mortgage market and that keeps rates competitive.” So, when the Fed lowers rates, indirectly it can help mortgage rates, but there is no direct correlation.

Another misconception is that mortgage rate changes occur in direct relation to when a Fed rate cut happens. In actuality, most mortgage rate changes, positive or negative, occur regardless of whether the Fed is actually meeting. That’s because the mortgage market anticipates what the Fed is going to do.

A good loan officer should have their finger on the pulse of the market, but again it’s a gamble. Remember to have a target interest rate in mind if you want to lock a loan but are watching the market. Trying to lock an interest rate on the day the mortgage rates have reached their lowest point in a year is like trying to get a royal flush in poker. It happens, but it’s not a realistic goal. It just means you were lucky. Just stick to your home financing goals and consider the big picture, and you’ll be fine.



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Dean Shainin asked:


Mortgage interest and real estate taxes are tax deductible and any one with a mortgage can enjoy this tax benefit.

Taxes can be complicated, and it is recommended that you learn about the benefits, the drawbacks and how to file your taxes properly. To enjoy the tax benefits, you can either wait for a big payout after you file your income-tax return, or adjust what is withheld from your paycheck each month.

During the early years of the home mortgage, most of your monthly repayments go towards your interest, with little payment towards the capital. Tax benefits are therefore very useful for first-time home buyers, especially during the early years of acquiring the mortgage.

As you pay more on the amortized home mortgage over a longer time frame, more of each monthly payment goes towards paying the principle, and less towards interest. This means that with time, you lose some of your interest write-off as your equity in the property increases.

It is important for you to note that you can take these tax deductions if you change from standard deduction, which all tax payers are entitled to, to itemized deductions. In the case where your itemize deductions, including home mortgage interest and property taxes, do not exceed the standard deduction amount, it is better for you to take standard deduction.

The following three components of your home mortgage are tax deductible:

1. Interest on your home mortgage

2. Property taxes

3. Loan points for a purchase mortgage fully deductible in the year that they are paid. It is noteworthy that in refinance, the points are written off in increments over the term of a home mortgage.

What five components of your home mortgage or home ownership related costs are not tax deductible?

1. Expenses relating to home improvement

2. Insurance

3. Loan application fees, home inspections

4. Real estate commission paid to real estate or mortgage loan brokers

5. Homeowner and co-op dues and costs relating to home inspections and appraisals, and home loan application fees

Some penalties on a home mortgage can be incurred from IRAs. You are not able to use a conventional IRA account or 401-K plan for a down payment without paying high penalties and taxes on the gains that accrued while the money was in your saving plan. Nonetheless, if you are saving to become a first-time home buyer, it is recommended that you consider a Roth IRA. Roth IRA was created by The Taxpayer Relief Act of 1997 and it allows penalty-free withdrawals for first-time home buyers. It is recommended that you know all the fine details of Roth IRA before you use it for a home mortgage down payment.

What are the two key factors to consider with deductions?

1. It is important that you convert your existing IRA cautiously. Under the tax law, if your adjusted gross income is les than $100,000, then you can convert your existing individual retirement account into a Roth IRA if your. One must wait 5 years to qualify for a Roth IRA, and a distribution must be made five taxable years after the first contribution to the account was made.

2. Contributions to a Roth IRA are not deductible, but no taxes are paid on qualified distributions. So one can deduct income but not contributions. A limit on the contribution of up to $4,000 a year can be contributed to an account, but only by single tax-filers with adjusted gross income of less than $95,000 and joint-filers with a combined income of less than $150,000.

A home mortgage has several tax benefits which you can enjoy if you get a mortgage and own a home.



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rhonda_good2006 asked:


they live on 1250 a month… and that is ssd for the both of them? what mortgage company would give it to them? they just got their bankruptcy papers about 6 months ago.. they live in 1,250 a month? and they get a 45,000 home loan? HOW?

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