A house is refinance for $199,000 and the payoff is $159,750. What exactly is intended by "payoff"?
I was at a foreclosure training session and the speaker be speaking very nifty and time was fixed. He shared information on a real operation that actually took place. He give the refinance amount, the payoff cost and cost of repairs which was $5,897. Whomever this woman was he said she also get cash out (equity) of $33,353. Can you please explain what this speaker be saying? Thank YouAnswers: There be an existing mortgage on the house. The owner still owed $159,750 on that loan. When he re-financed, that is, made a tentative loan against the house, he borrowed $199,000.
He was obligated to use the first $159,750 to "earnings off" the old loan. So, he walk out of the closing with a check for $39, 250.
Of that $39,250, he spent $5897 on repairs to the house. That gone $33,353 to keep.
Seems close to there's no good purpose to do that on your home, but if it's rental property, and the rent will carry the different $199K note, that give you money (all debt) to invest in other things.
the $159,750 is how much the borrower needed to settle up on the original loan. If utter the Original loan was $200,000, the borrower have paid stale $40,250 and still owes the bank the remainiing $159,750.
In foreclosure you are hoping to buy the property from teh personality for what they owe - about $160,000. consequently you do the repairs of $5897 and sell the property for $$199,000. If that adjectives happens you would pocket the $33,353.
it not often works out that simply. good luck
When you nouns a house, the mortgage balance also reflect the interest costs associated with the principal loan amount.
If you wage off a mortgage hasty, you don't have to nouns the loan as long and so you wouldn't have to clear the interest that would accrue in the time remaining on the mortgage.
If the house have a forclosure value of 159750 and you re-finance for 19900, you would own over $38,000 in after paying sour the loan. Spending part of that "adjectives savings" on repairs makes perfect sense!
Based on the information provided, I hope this answers your question properly.
It seem like the buyer of the foreclosed home be able to purchase the home for $159750. After the purchase, they be able to do a lolly out refinance of the property because the actual value of the home be significantly higher than the purchase price. Hence why the buyer be able to secure $33353 in dosh after the purchase. Hope this helps...
The payoff is the amount due the lender on that dedicated day. Since interest compounds day by day, and more fees can be added as time goes on, it will amendment.
The speaker was recounting you that the lady put $33,353 of the investigational loan in her pocket at closing.
What I don't get the drift here is the part going on for "refinancing." You can't re-finance something that you don't already own.
Not sure where that fits into purchasing a foreclosure property. Generally a lender won't distribute you more than the purchase price plus the closing expenses.
Where is the best nouns to rent a house/apt if I'm going to be working within redwood shores, california?
am new to california, will be working within redwood shores/city, California. Which is the best area to be looking for apartments 2/3 bedroom next to 2/3 baths?Answers: Define best, are you saying the affordable place or the most convenient place. If your looking for affordability your contained by a very expensive nouns. But, if you dont mind the travel South San Francisco and Daly City are probably the two cheapest places in the Bay Area. If you want to dance down South, San Jose and Milpitas are also affordable.
Sunnyvale, Mountain View, Palo Alto, Menlo Park, Redwood City, San Mateo, Foster City.
Real Estate Commissions?
I was wondering, )with a 3-6 % Commission from selling a piece of property) if you put up for sale a (for example); $550,000 house what is the commission you might recieve for this property if you were the Agent selling and what do they rob out, and what will you get within the end?I specified this is allot of information but just womdering..
Thank you al for looking and answering..
Answers: If I remember correctly from my escrow days, the commission is calculated similar to this:
6% on first $100,000.00 = $6,000.00
3% on remainder ($450,000.00) = $13,500.00
Total commission = $19,500.00
I don't know what is taken out of that.
OK lets break this down. We will pretend that you are the information bank agent. If the house sold for 550k and you had a 6% register the total commission would be 33k. (550,000 * .06)
So if you had both sides, the buyer and wholesaler your office would recieve the 33k. Now if you are on a split near the (lets ay 60/40) you would get 60%of the 33k. (19,800) Not to fruitless. Now this can vary base on you office split.
If you do not obtain both sides, and need to share near a buyers agent, the your office would grasp half of the 33k (16,500) and consequently your office split from in that. It always seem like we realtors obtain these huge commissions, but as you can see they get chipped away at a bit quickly.
The first to answers are incorrect base on how it works in my nouns. And I have no clue what the second female is talking in the order of. I have never hear of this sliding scale type of commission.
RE Agent,
Remax
it depends on what state your contained by
if the commission is 6% then it is split down the middle, if anything else is taken out that would be between you and your broker