2006-08-17 03:30:53 · 11 answers · asked by rose b 1 in Business & Finance ➔ Renting & Real Estate
I mean get a mortgage for more than I owe on a house so you can pay off existing debt? I am a first time home buyer.
2006-08-17 07:14:21 · update #1
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2006-08-19 15:14:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You can always add money to your mortgage payment. Make sure it is being credited to your principle. This can exponentially shorten your mortgage term.
Example on a 30 year mortgage, where your monthly payment is about $800. Your monthly payment may start out as $700 to principle and $100 to the actual value of your home (or principle). If you add $100 and pay $900 instead, you will be putting $200 to principle instead of just $100. That's two months worth of principle. If you do that for 15 years (pay double the principle) your house will be paid off instead of having to make payments for 30 full years.
WAIT!
Do you mean get a mortgage for more than you owe on a house so you can pay off existing debt?
Yes. You can do that with a simple re-finance. Just tell the person doing the refinancing what you are trying to do, they will work with you.
2006-08-17 03:37:12 · answer #2 · answered by cirestan 6 · 0⤊ 0⤋
usually that doesn't work...trying to get a loan bigger than the purchase price.Most loans are a percentage of the house value to start with. thats why we have to put so much down...you don't get one hundred percent. If you debts are less that ....say....40% of your income...they may let it slide as interest rates(not charging you a higher) maynot be effected. But if it is close to 50% or higher...you will have to pay something first. This is Washington St. law...i am not sure about where you are, Also if you have old debts as far as two years ago...and lag on those ...you may have a problem. If you face this..ask them if they would settle out on having you pay some of them off.... If you try to borrow more than the market value...which is how banks rate a loan for you....they pretty much wont do it...because if you lose your house...they can't get all that money back....sorry guy ...but this is our law here...hope things are better for you where you are.....
2006-08-17 10:26:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes, unless there is clause forbidding it in the mortgage. You can usually pay extra interest or principal with no problem. In the first years of a new mortgage you are only paying a few dollars against the principal (most is interest). Put in extra money against the Principal and you will be reducing the total amount of interest you will pay in the life of the mortgage.
2006-08-17 03:36:02 · answer #4 · answered by Michael B 5 · 0⤊ 0⤋
It would dpend on the type of mortgage you have.
Some let you pay off extra and reduce the length of time you're paying the mortgage. Others let you pay off extra but don't reduce the length of time you're paying, instead the monthly payment is reduced. Others don't let you pay anything extra.
You need to speak with your mortgage company to find out.
Bear in mind that if you're getting a bad deal with your current lender you may be able to switch to another lender and get a better deal (there may be costs involved in switching - check these carefully). A reputable financial adviser is the best person to speak to regarding getting a better deal.
2006-08-17 03:37:24 · answer #5 · answered by Trevor 7 · 0⤊ 0⤋
it truly is a pity you probably did not provide any figures, as i might want to have executed the calculations for you. definite, it truly is an awesome theory to improve your loan and pay off the different loans, because mortgages have the bottom prices of interest. also, you may save the loan funds the same by technique of extending the time period (years) of the loan, yet do no longer over do it because the entire will be more effective eventually. the in uncomplicated words draw back of increasing your loan is in case you ever won't be able to save up the funds, your position will be in threat.
2016-11-25 22:22:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋
yes - you can always send in more money than what is required, but why would you want to do that - if you have a large mortgage you will always have debt.
2006-08-17 03:34:52 · answer #7 · answered by Fenris 3 · 0⤊ 0⤋
Yes you can. Most lenders, however, only allow you to contribute a certain amount annually, for example, 15%.
2006-08-17 03:36:52 · answer #8 · answered by Gur8 3 · 0⤊ 0⤋
Yes. It's called a cashout.
2006-08-17 03:35:46 · answer #9 · answered by Anonymous · 0⤊ 0⤋
yes,we did this a few months ago,and it made us much better off each month,
2006-08-17 03:35:59 · answer #10 · answered by Anonymous · 0⤊ 0⤋