All Posts Tagged With: "prepayments"
Caution: Refinancing with Low Mortgage Rates May Not Work
I got a letter from my mortgage lender offering to refinance my home. I could lower my rate, said the letter, and I might save money. Actually, both claims are correct but the bigger issue is whether refinancing is actually worthwhile. According to the letter my mortgage rate would drop from 4.63 percent to 4.46 [...]
30Jan2012 | Peter G. Miller | 0 comments | Continued
Adjustments At Closing
Question: We’re selling our home and have prepaid our property taxes through June — two months from now. How do we get this money back? Answer: A sale agreement should contain a clause that deals with adjustments. The prepaid property tax, for example, should be a credit to you at closing and a cost to [...]
31Aug2008 | Peter G. Miller | 0 comments | Continued
Why Does Closing Cost So Much?
Closing is expensive for several reasons. First, state transfer taxes are typically based on the sale price of the property or the amount of mortgage debt. These tend to be very large sums, so even a small percentage can be a lot of money. Second, payment for many services occurs at closing — title insurance, [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
How Does The FHA ARM Program Work?
The FHA ARM is a 30-year mortgage with payments that adjust annually. The program uses a Treasury or LIBOR index and a margin to determine annual rates. Unlike toxic loans, with the FHA ARM there are no prepayment penalties and no exploding re-sets. While the FHA ARM is a better financial product than a toxic [...]
28Aug2008 | Peter G. Miller | 0 comments | Continued
Can loan pre-payments reduce my monthly mortgage costs?
If you have a fixed-rate loan, payments remain the same throughout the life of the mortgage. Thus, if you make prepayments, monthly costs will be unchanged but the loan term will be shortened. If you sell or refinance before the loan term is finished you will owe less to the lender at closing than would [...]
27Aug2008 | Peter G. Miller | 0 comments | Continued
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