What exactly does it mean to "buy down points" on a mortgage?
Answers: Your essentially paying more up front to get a lower interest rate which in turn lowers your mortgage payment. On average it takes 8-10 years to recoup this money so if you only plan on living there short term(5-10years) It doesnt make sense to do. Good luck!
it s true that it doesn't make sense unless you plan on living in the home for a longer period of time. Each point is 1 percent of the entire note amount. However, if you need a set amount of money, adding points can raise the note amount., so keep that in mind. Ask the lender what your interest rate will be with each point paid. This will help you determine whether you should pay points. If the note amount is $200,000, then 1 point would be $2,000. , 2 points would be $4,000. But for example, if your rate with 1 point was 6.75%, your monthly payment on a $200,000 would be $1297.20. If you paid an extra $2,000 for that 2nd point your monthly payment would be $1,264.14. Thats only a difference of about 30 bucks, but when you multiply that by thirty years, you shaved off $11,901.60. Take away the extra $2,000 for the 2nd point, and you have saved $9,901.60. hope that this helped
I have recieved my mortgage offer through the post today. What happens next and how long does it take?
Answers: Tell your solicitor you've got the offer, they'll get things moving.
Don't be afraid to ask them anything you're not sure of. they are working for you!!
If you've not instructed a solicitor find one asap to get things moving. (best to choose one by personal recommendation)
From mortgage offer to completion can take anything from 4 to 8 weeks.. tell your solicitor you're looking for a quick completion. and then ring them often to remind them
I believe the average house move is meant to take 12 weeks from the moment you get your mortgage offer and instruct your solicitors to the point of moving in. However this can vary greatly depending on on a number of different factors. These can be anything from how complicated the chain you are in is, how effective your solicitors and the people your purchasing from solicitors are. When your seller wants to move etc.
In terms of what happens next you should have already instructed your solicitors if you have found a property. They will then begin by running some searches etc. They will also send a list of fixtures and fittings to be left to the owner of the property you are buying. Once all this is done and as long as there are no outstanding queries they will move to exchange contracts and agree a date for completion.
If it is a final commitment letter, then you need to sign the letter thereby binding the bank or mortgage company to those terms. Once they have received the fully executed final commitment letter from you (together with any additional payment you might be required to make), then the bank/mortgage company will begin preparations to close your loan.
The time involved in closing a loan usually reflects the amount of mortgage activity in the market. So you should be able to close fairly quickly.
Good luck.
You need to get in touch with your solicitors to get any searches carried out and reports done (i.e. coal mining searches), you need to make sure that all building works on the property have been completed and that contracts can be exchanged and funds drawn down, depending on the builders usually once a property has been completed they expect exchange of contracts within 28 days so just give your solicitor a call.
Do you enjoy a home that your paying a double mortgage on?
There's a house not far from me thats been on the bazaar for over a year, are you paying a second mortgage on another house?Answers: Yeah, it sucks. Our other house needs a bit fix up work before it can be market properly and we haven't had time to do it. So, surrounded by the mean time we are within that double payment trap. If you enjoy any equity in your first home, use that to make less burdensome your mind to remind you why real estate is honest investment, if done with investigation first.
I am not paying any mortgage.
Luckily, my home is salaried off.
I would love to purchase another home - a leave home - but I do not have the money!