Value of Future Payments » mortgage

What’s the formula to calculate the future value of a mortgage given current value, repayments, interest rate?

Editor — Thu, 20 May 2010 06:39:49 +0000

Calculate the future value of a deposit of $5,000 compounded annually at an interest rate of 6% over 23 years?
Write a method using Java code that computes future investment value at a given interest rate for a specified?
How to compute a future value if the given is only the interest rate, periods per year and the present value?
The relationship between the present value of a given payment in the future and the interest rate is an exampl

What do you think what could happen in the future of real estate and Loan Mortgage businesses?

Editor — Sat, 15 May 2010 08:35:50 +0000

It seems that foreclosures are all over california. I just felt for those homeowners that they have to go to foreclosure because they can’t pay their house payment everymonth. Some people who have 3 or 4 rental houses are foreclosing, is there anything remedy for these? What do you think they should do? Are these builders for new houses have something to do with the collapse or the realtors or the lenders? What does the government do to these houses that being foreclose, that no body seems to not interested in buying? There are thousands and thousands of them and they are very nice houses too???

How will renting versus selling my current home affect getting approved for another mortgage?

Editor — Sat, 15 May 2010 06:36:08 +0000

Will try to make a long story short here . . .

My husband is AF and we’re getting sent to another base sometime by the end of the year. We purchased our first home here knowing it would be a short assignment, planning on renting it out after we moved. We’ve been waffling now on renting out versus selling our current home, after seeing some rental houses on our block sit vacant or have what looked like skips/evictions.

When I tried to get preapproved for a mortgage for our next home they said it would need to be contingent on the sale of our current home. At the time we were focused on selling, but since then we’re back to wanting to rent our home. However, I don’t know if we’ll be able to get approved for our next mortgage if we don’t sell this home. Anyone able to give me some guidance on this?

Also, we’d like to have a temporary living situation in our new place so we can have time for me to get a job, and for us to learn the area and not be rushed to find the house that we are going to raise our future family in. Renting, however, is a major issue simply because we have a large number of pets and we really don’t want to break up our furry family (2 dogs, 5 cats). One of the options I am looking into is purchasing a less expensive condo (I’ve found a few that initially look nice in the 65-75k range) to live in for a year or so and then rent out after we’ve found our dream house. If we had TWO mortgages that were rental properties, would that totally kill our chances of getting approved for our forever home? Am I being completely unrealistic in thinking we could pull this off? We’ve got enough in savings, stocks and mutual funds that we could afford three mortgage payments if need be in times of vacancies, but I don’t really know if we’d be getting ourselves in over our head. Anyone with advice or experience in these matters, we’d really appreciate any input!!
We have a conventional 30 yr fixed on our current house but we’re interested in having a VA on our next home. I don’t know too much about the nuances of the VA loan other than you can’t rent out a VA house- does this make a difference? In particular- are VA loans stricter in their requirements for qualification?

When will the first mortgage payment be due?

Editor — Mon, 10 May 2010 23:39:31 +0000

We are closing on a house on July 29th. When will the first payment be due usually? Thanks!

Can I remove my name from the mortgage?

Editor — Mon, 10 May 2010 05:15:48 +0000

I’m in the process of buying a home. I live on Long Island (New York), and the reality is that I can’t afford a home by myself. With today’s market, I may never have a chance to buy a home on Long Island again. At the height of the market, homes were regularly priced above $450,000-$500,000– now they’re down in the low $300,000 range. By myself, I qualify for a home in the $175,000 range. But the nicer, move-in ready homes (and in the better areas) are $300,000+ So I have no choice but to include my brother on the mortgage since together we qualify for $350,000. Of course, I would rather own it myself, but that’s not a reality here. My question is this: If I decide to move out in 3-5 years (marriage, my own home etc), can I simply take my name off the bank note? A person at ColdWell-Banker told me that all I have to do is have my brother pay the mortgage for one year through his own checking account to prove to the bank that he’s the sole provider for the home’s mortgage. Is this true? Or, even if I pulled out my share of the equity to use as a down payment, would the bank hold it against me because I have another home in my name? My concern is being stuck in a house that I no longer want or need, especially when I would like to move on at that time in the future. I know we could simply sell the house, but do I have other options that don’t hurt my chances for a new house in the near future?

Question about how mortgage prepayment affects amortization schedule.?

Editor — Mon, 10 May 2010 00:37:02 +0000

So I’m buying my first house, its an FHA loan, and the biggest thing on my mind is figuring out how to pay as little interest as possible over the years. I’m buying a less expensive house that I could afford, so that I can have money left over to prepay on the principal as often as possible, and get the house paid off much quicker than 30 years. ( I know alot of people probably think, its my first house, I’m going to move soon, upgrade, etc, but I doubt it. I rarely move, I’ve been in the same 5 mile radius my whole life, I plan to be in this house for a long time)

Right now I’ve already got my minimum down payment/closing costs. I’ve also got enough money for an emergency fund. Then on top of that I’ve got around $4K extra that I can apply to the principal. Now since I’m not completely familiar with how the whole amortization schedule works, I’m wondering which way I’d be better off.

A) Just applying that extra directly to my down payment up front, which will lower my monthly payment by about $20 a month, but will still be amortized at 30 years (as far as I know).

B) Just putting down the minimum down payment, and then in about a month applying that $4K to the principle. That way the loan has already been amortized, and (if my thinking is right), I’ll be getting a jump start through the amortization schedule, so that on all my future payments, more of the payment will be going straight to principal and less towards interest. And in effect taking a year or so off the end of the loan. (that’s how i think it works, although I don’t fully understand how the ammortization works, so that’s why I’m asking the question)

So with overall interest savings throughout the years in mind, which is a better option, or are they both going to pretty much be the same?

Taking over father in laws mortgage?

Editor — Thu, 06 May 2010 04:28:53 +0000

I currently rent a townhouse from my father in law. He wants to give the house to me but I dont have good credit. My plan is to keep the mortage under his name, add myself to the deed and have him sign a quit claim deed. From my understandings this would mean i dont have to put any down payment, i would be taking over his mortage in the sense but everything would be in his name on paper untill i sell or i refinance in the future. Is this correct?
If I dont do the quit claim now could he sell it without my knowledge or because im on the deed i have to sign as well?

Selling a house and not having enough to pay off the mortgage?

Editor — Sun, 02 May 2010 03:44:04 +0000

My wife and I are currently in the process of building a home and we need to sell our home before we can close on the new loan. Before we got all involved with this we spoke with our realtor and she assured us that we could easily get $X of dollars out of our home, which would have been plenty to cover the down payment on our new home.

Well, low and behold, our realtor was way off on her assemsment and we don’t think we are going to be able to sell our home with enough to cover all of our expenses and may end up loosing a few thousand dollars that is already spent on down payment money.

If we end up selling short and not being able to fully cover our mortgage, do we have any options? Will our realtor alow us to pay our closing costs at a future time? Can we put our closing costs on credit? Can we take out a line of equity on our new home to pay off any difference from our old home?

Any other options I may have that I havn’t thought of?
There really isn’t a “problem”… worse case scenario we don’t sell our house… and we don’t buy the new house. We have no problem affording either mortgage, we are not risking foreclosure. But we are really looking forward to getting into a nicer house, when is much closer to work.

Do home mortgage lenders take into account annuity payments?

Editor — Thu, 29 Apr 2010 23:40:34 +0000

I get monthly checks for 2,634 every month that I am going to get for the rest of my life. I also have my job that I work at but it is only part time, plus my fiance’s income. So are lenders going to want documentation or will they consider it?
My employement isn’t even close to two years. Will they allow 6 months?

Getting 1st mortgage, tips on how to bring the monthly payment down?

Editor — Tue, 27 Apr 2010 08:36:40 +0000

Obviously putting as much down as possible lowers the monthly payment. I just heard that if you have them add a point and a half or so then monthly payments are cheaper then too. I ask because we are secure with money now, but we don’t know what the future will bring when considering our careers and don’t want to end up house poor, which is why paying that extra for the points is worth it to us. Any other things we can do? Thank you!

How soon after settlement is your first mortgage payment due.?

Editor — Tue, 27 Apr 2010 02:39:56 +0000

I am settling on April 1st, i was wondering if I will also have mortgage payment due that month

Is an annuity refundable against a reverse mortgage loan if the borrower dies before annuity payments are made?

Editor — Sat, 24 Apr 2010 09:40:50 +0000

My Mother had a reverse mortgage loan for about nine years. At the start of the loan ,an annuity premium of $3735.00 was added to the to the loan. This was to pay her if she lived 14 years into the loan.,but she did not . Should that amount be deducted from the total amount of her loan?

who can give money to me for mortgage down payment?

Editor — Sat, 24 Apr 2010 08:36:56 +0000

my husband and i are purchasing a house and we have some friends who are willing to help us with our down payment and in return we can help them with theirs in the future. I was wondering who can give money as gifts to me? is it limited to just family members?

mortgage problems?

Editor — Sat, 24 Apr 2010 02:38:32 +0000

im in florida. cannot sell or rent a house i own.have tried for over a year.if i default to mortgage co and bank can they garnish my pension,social security or annuity? i am 65 and retired.cannot continue paying $1300 a month for a vacant house.Any help or suggestions please!

Will having a paid auto loan in my credit history benefit when I try to get a mortgage in the future?

Editor — Thu, 22 Apr 2010 12:41:54 +0000

Right now my credit rating is a little over 800. The only things in my credit history are 2 current credit cards. I am also about to buy a new car and am trying to figure out if it will be better for me in the future (when I am trying to buy a house) if I get an auto loan or if I just pay the car myself.

So if I get the minimum car loan, and just pay it off over 2 years, it will cost me around $478 in interest. So, assuming the fact that for like the next 3 or 4 years my credit rating were to remain the same, which would be better for my credit when I try to get a home loan? Is paying almost $500 now (well, over 2 years) to get an auto loans payments/history in my credit report going to benefit me or not?

If it will get me a lower interest rate on a mortgage I’ll be all for it. If it won’t make a difference, then I probably wouldn’t want to spend the extra $500ish. Anyone happen to know? Thanks!
I never had any payments on my current car. It was gifted to me by my parents. (It is 23 years old)

I’ve heard both that having an auto loan can hurt you when you try to get a home loan and that it can help you because you have credit history in multiple areas. (ie. credit cars + loans vs just credit cards) So I’m not really sure which is true or if both are in different circumstances.

Annuity and mortgage problems — I have the formula but I don’t know how to apply it?

Editor — Tue, 20 Apr 2010 11:39:45 +0000

On the worksheet it says that the formula for finding

PN = “present value of annuity” is

PN = P ( (1 – (1 + i)^-n) / i )

And FN = “future value of annuity”

FN = P ( ((1+ i)^n – 1) / i )

But I don’t know how to apply it to the practice problem:

It says

The family have taken a 20 year mortage for 85,000 with an interest rate of 8.9% on their home.

a) what will the monthly payment for the principal be?

>> Where/what is a principal in this case? Where would I divide/times by twelve for the monthly payment?

b) How much will the family pay in interest over the life of the loan?

>> Again I’m not sure how to apply the above here. I think i is interest? But then do I put 20 as t? Is it that simple? Though which one do I plug it in?

In what case what I use the former, and in what case the latter?

How long can mortgage co charge me 1/6 extra on my monthly escrow amount to cover past & future tax increases?

Editor — Fri, 16 Apr 2010 08:39:31 +0000

My property taxes went up just after my mortgage company made the annual tax payment to the county. They’ve since raised my monthly escrow payment by 1) the amount of the tax increase and 2) an additional 1/6 of the new escrow payment to cover the past 11 months of increased taxes as well as “future increases”. I understand this is standard practice and legal, and I could see allowing it for a few months beyond paying for the past costs incurred, but how long can they continue to charge me this additional amount? Seems like after several years, they would have banked potentially quite a bit at my expense.

I am 27 days past due on my mortgage payment. How soon does a past 30 day show up on a credit report?

Editor — Fri, 16 Apr 2010 07:39:10 +0000

I am currently in the middle of a hopeful refinance. I have not paid my Sept 1st payment due to the ARM adjustment. I called the lender but they said they can not offer any help until I am at least 60 days past due. I am worried that they late payment will appear before my refi in complete and affect my credit score.

How does a short sale affect my credit if I am current on my mortgage payments?

Editor — Fri, 16 Apr 2010 00:36:37 +0000

My house lost $200,000 in value. I’ve been current on my mortgage payments. I want to do a short sale and buy a smaller cheaper house. How will a short sale affect my credit? and will this prevent me from buying a house in the future?

What is the average cost paid by someone in the secondary mortgage market for an existing mortgage?

Editor — Tue, 13 Apr 2010 20:38:39 +0000

I am curious as to what is the typical percentage paid on an existing mortgage in the secondary market currently. Is it merely a present value of money calculation, or is there more of a discount premium? For example, say you have a $300k 30yr fixed at 6%, by my calculations, over the life of the loan the lender would receive $347,515 in interest which would be there profit for lending the money, typically if a contract like this is sold as a right to receive these future payments they will not receive this entire amount due to present value calculations, but is there any more or less of a discount? So what is the rate or percentage a typical loan is sold for in a secondary market within its first few years? Also, do banks accept lower offers to get rid of loans now than the principle balance much as they are so willing to get rid of homes in short sale situations, etc. for banks that need cash and have obviously lent out most of their assets and want some cash assets back. The reason I am asking is, I know a personal lender who would possibly being willing to hold a mortgage for me at an equal or current rate as I currently have and that way I would be paying them a substantial and safe interest rate instead of a bank, and instead of me refinancing my current loan with a loan from this private individual I was thinking I could have them maybe make an offer to the current holder of my note to buy it, that way I would avoid closing costs, etc. And possibly they would give this person a good deal since so many banks are willing to liquidate loans for cash right now at substantial discounts to meet other needs even though they know I am a great borrower, I would think they may be willing to at least even take just the principal balance, or even less, and be happy with the interest they have received over the last 3 years, and enjoy having actual cash on hand since so many banks are hurting with other loans, though I don’t know my lender’s situation, they are a big bank/lender so I am sure they are experiencing difficulties with some borrowers and the economy as all others are. If anyone works or has personally held a loan and knows what type of value loans have in the secondary market compared to their principal balance and the expected income over the life of the loan I would greatly appreciated it. Also any tips if my thought is no good.
In response to Ronwhiz’s attempt at an answer, assume this is as low of a risk loan as there could be that the lender will recoup all the principal and interest, which it is. Borrower has great credit, solid income and assets, and the loan-to-value ratio is still only half since I paid half cash for the home. I am merely looking for a general answer such as, typically a loan that seems to be low risk for like this goes for about 90% of the present value of the future income, that’s all I am looking for, not more insight, just a generic answer, yes obviously, like most things, this will be evaluated on a case by case basis, I am just looking for a general average generic response, so please (Ron for example) don’t give me further advice, opinions, or insight into the issue, this is yahoo answers, not a forum for your opinion, so please if you can answer this question please do, but an answer would be in the form of a percentage or rate not an opinion or insight.

am i paying my mortgage in a smart way or not?

Editor — Tue, 13 Apr 2010 14:39:16 +0000

i bought a house about 10 months ago and I only plan on staying here for about 5 yrs. or so. I have a 30yr fixed rate mortgage. I have been paying extra in my principal every month and at the rate I’m going, I could possibly have my house paid off in about 15 yrs. Is it wise for me to keep paying extra if i only plan to stay about 5 more years or would i be better off saving the extra money I’m paying and investing it for a future down payment on another home? what would be the best thing for me to do? I haven’t been able to save as much money as I would like to be, so I didn’t know if maybe I shouldn’t pay the extra principal if it’s not going to even help me when I go to sell my house in a few years.

Getting divorced with car payment and mortgage payment on home?

Editor — Wed, 07 Apr 2010 03:49:45 +0000

Sadly, my wife and I are divorcing after 3 1/2 years of marriage. We have done what we could to save it but we have come to the realization it is over. We agree on everything and are not fighting one another over anything, even custody of our daughter (agreed on joint custody). The only thing the lawyer told me was what we plan to do with our home ($104,000), and our vehicle payment ($21,000). Our original plan was to sale the family home and use the proceeds to pay as much of the vehicle off as possible to lower the monthly payment. The lawyer told me that it is dangerous to agree to this because she could take advantage of the fact I am included in the debt. If she decides to not pay, I am the one the bank will go after. The thing is I trust my STBX (rare, I know). She has better credit than me and I dont see her just NO paying. He also said it is possible that we could actually be in the negative from selling the home and need to consider what we would do in that scenario? I have a Realtor coming soon and should find out how much I can sale my house for. I don’t know what to do. I just want to work this out where we take care of this mess now instead of dragging out in the future. I am giving my wife the car since she has primary custody of our daughter (09 Honda Accord, safer). Please, not snobbish idiotic comments, this is a serious matter to me.

Does a person need to be behind in mortgage payments in order to qualify for loan modification?

Editor — Tue, 06 Apr 2010 06:36:02 +0000

We are current on our home loan but our work has slowed considerably and we dont forsee being able to make our mortgage payments in the near future. Our loan is through Bank of America. Has anyone been able to qualify for a Loan Modification that has been in the same position? Any guidance would be apprecaited!

Website or math formula to configure mortgage payment based on my savings to be used as downpayment.?

Editor — Mon, 05 Apr 2010 08:35:59 +0000

I want to save money on payday, every two weeks, and configure biweekly how much my savings, that I will turn into a downpayment, will affect my future mortgage payment. Does anyone know how I can convert this savings amount easily?

We want to move but owe a current mortgage balance for a property that is not selling…are we stuck?

Editor — Sun, 04 Apr 2010 17:48:49 +0000

We have already begun a new home search and think we have found some viable options. However, there may be one hinderence to our future plans. We have no down payment money and currently own a condo that has an outstanding balance of $72 thousand with a market value of $85 thousand if lucky. We are desperate to get out because the building is turning for the worse, primarily because of a shift property management. This is no longer a place that we want to live and that feeling is shared by my most other property owners. There is more than 20 units for sale in the building I live and they are simply not selling. Are we stuck? Is there a way for us to free ourselves of this current situation that would still allow for us to move into a better suited property? Any professional expertise or similiarily survived scenarios are greatly appreciated and thank you in advance!

If I pay more than my monthly mortgage payment due, will it reduce my future monthly payments or…?

Editor — Thu, 01 Apr 2010 22:35:59 +0000

reduce the number of months that I have to pay? I’d like to lower my monthly payment to a comfortable level by paying off $10,000 cash I am hoarding. What effect will it have? Thanks.

will i be able to get a mortgage again in the future if my home is repossessed?

Editor — Tue, 30 Mar 2010 18:35:46 +0000

I am struggling to keep up my mortgage payments (due to health problems and loss of job) and have arrears and will be taken to court shortly and i dnt think they will side with me this time, im just wondering if i will b able to get another mortgage in the future as i would like to own a home again later again in life, im even thinking just giving up and letting them take it without a fight as im struggling as i could only get a basic job. The big problem is i cant sell as i bought it off my local council 2 years ago and wouldnt be able to sell and clear the arrears and pay back the discount.
any help would be great
thanks

Bridge loan on other house that we own (no mortgage) to buy a new home and we can’t sell old home. Fourclose?

Editor — Mon, 29 Mar 2010 06:58:19 +0000

Wanted to buy a new home (awesome deal, couldn’t pass up, $100,000 less than original asking price) we were currently trying to sell our other house we owned (no mortgage) so the bank talked us into a bridge loan for a year. We are having trouble selling the house and only have about 5 months to sell it before the bridge loan is up and we would have to take out another loan with a payment we can’t afford. Our loan officer told us we might have to foreclose and it would not hurt our new home because we are making the payments and are even ahead on the payments. We plan on staying at the new home and won’t be buying a new home anytime in the future. How will this affect our credit on other purchases? This is the last thing I want to happen is to fourclose.

How badly will forclosing on my house hurt my credit I can’t afford my mortgage?

Editor — Sat, 27 Mar 2010 12:36:55 +0000

I got divorced and am having a hard time trying to sell my house, in the meantime the mortgage payments are breaking my back and I can forsee that in a short while I will not be able to afford it. If I make arrangements with my mortage broker to take back my home, will that do irrepairable damage to my credit in the future?

If my mortgage company files for bankruptcy, where do I make my mortgage payment in the future?

Editor — Thu, 25 Mar 2010 08:36:34 +0000