Why is the APR higher than the Fixed Rate % of a 30 FHA? Which one would you use to calculate the P&I?
Answers: Donald is right. Mary misread his answer. I don't know what Kat is saying -- P&I has nothing to do with API. Her method of calculating API would seem to apply only if points are paid by separate check at closing rather than deducted from loan proceeds.
API is calculated by taking points & other fees charged at closing & deducting them from the mortgage amount. Then calculating the payments (which were established based on the full mortgage amount) & dividing them by the net funds available to the borrower at closing (which is the mortgage amount less the points & fees stated above).
I also agree with Donald that API is a meaningless confusion introduced by the government. It was originally introduced to give consumers a comparison between different loans in the days when different lenders tacked on widely different charges & fees for the same things. They don't do that anymore -- thanks to other government regulations & the secondary market -- so API is just a useless calculation that confuses buyers.
Kat is right Donald is DEAD wrong.
The APR on the Truth-in-Lending is the 2nd most important document in your disclosure package.
It DOES include points, which can either be in the form of origination fees or yield spread premiums.
Loan officers that don't know what an APR is or how to read them, don't need to be working in the industry, because they like to tell customers that the APR doesn't mean anything so they can scam the customer into thinking they have a better deal than what they do.
The Annual Percentage Rate, which must be reported by lenders under Truth in Lending regulations. It is a comprehensive measure of credit cost to the borrower that takes account of the interest rate, points, and flat dollar charges. It is also adjusted for the time value of money, so that dollars paid by the borrower up-front carry a heavier weight than dollars paid ten years down the road. However, the APR is calculated on the assumption that the loan runs to term, and is therefore potentially deceptive for borrowers with short time horizons.
Use your interest rate to calculate you monthly P&I.
Make sure to price out your loan with your LOCAL banks and mortgage brokers only.
A lot people giving advice on here are also looking to give you a loan (its not advice, its advertising), if they are not local to you and you can’t get to them within 1 hour don’t fall for it. They say they are licensed in all 50 states, what does that mean? Which state do you have to look in first if something goes wrong? KEEP IT LOCAL; DON'T GET RIPPED-OFF BY SOMEONE IN WHO KNOWS WHERE WHICH YOU WOULD HAVE NO DIRECT ACCESS TO.
Remember Buddha's advice:
"Believe nothing, no matter where you read it or who has said it, not even if I have said it, unless it agrees with your own reason and your own common sense." You are the only "expert" you can trust: All brokers, and every other loan officer guru giving advice here with a .com or contact me at the end is "selling" you something (its not advice, its advertising). Don't buy "it."
I want to move to Denver. What is the best town to live surrounded by and angle my family unit?
I want to live in a apposite school district as okay as decent priced housing.Answers: You requirement to be able to afford to live surrounded by the best town...if you don't have the $$$$ you live where on earth you can...Denver is expensive.
Tenant near free rent...?
I helped out a 'friend of the family' who be down-on their-luck and let them use my rental home for free until they get on their feet, near the understanding that they would do any repairs contained by exchange for rent. They still have no opportunity and still aren't paying. The problem is that they are threatening me with legally recognized action because I beg to be excused to do repairs. I don't think I should enjoy to since they aren't paying anything. Any thoughts on what I should do?Answers: that will teach u presently its going cost you to get them out. get anything in writing, but for u r in double dutch. directory eviction with the local authorities and grasp them out b4 they do any more damage, and subsequent time think twice b4 one so friendly even to family.
Contact your local official help dash or the American Bar Association in your location for a referral to an attorney who specializes within landlord tenet issues. You may also contact the Attorney General of your state to locate info on the law of your state on how to get the free loaders to go off.
You have a accurate heart - sorry you were treated this route.
Don't argue with them, only concentrate on getting them out.
Go down to the courthouse and file for an eviction. You don't have need of an attorney for it and all you take-home pay is the filing allowance.
Don't bother serving one yourself, b/c if they don't leave at the finish of the 30-days, you still have to profile one with the court.
You do not own to have a defence to evict them, and the fact that you don't hold a written lease works in YOUR favor.
You are not obligated to variety ANY cosmetic repairs. If the heat works, ONE faucet operate, the front door locks, they have hot sea, the appliances work, and the toilet flushes, and the roof doesn't leak, and they don't enjoy pests, you DO NOT have to repair a single entry.
tenant at will..start the legal clock.Give them a 30 hours of daylight notice to move out..however, depending on your state.(like Mass), you may enjoy to do the repairs just to find them out..