Selecting a mortgage company to refinance.?
If you go with your existing Mortgage Company, they know you and know you are not shopping, so the price will be higher. You may have the right circumstances to buy a special type of mortgage, to save you money monthly (WHICH IS MOST IMPORTANT), so you should have a knowledgeable Broker and a bank that specializes in that type. Or your situation has changed or is better, so you want to study the market and shop. Do not worry a lot about one time payments like settlement or closing costs, or other costs as they are only one time payments and you do not pay these monthly. I am not saying ignor other costs, DO NOT ACCEPT GARBAGE COSTS, but if you have a good broker, pay for his work. If you save any percentage on the rate, it translates to monthly savings for the mortgage term, usually 15 or 30 years. There is always a bank who will want your business to increase theirs and will give you a slightly better rate or conditions, than the others. The TRICK is you have to find that Bank. So you go to a good, straight mortgage broker to shop the market for you and see what happens. If you feel the broker is not doing a good job, get another who WILL shop for you. There are some companies, and not just the brokers, I would not touch with your pole. They lie about the way they do business, so they can lie about anything. Check Newspaper stories over the NET in the area of your house back for 2 years, when you have a short list of banks, so you make no mistakes. You are right, rates are fixed by banks and some banks fix higher requirements than others. It is complicated and that is why Banks have Actuaries. But your credit score will help determine your rate (which if you think about it is sensible), the higher your score the lower the risk a bank faces in loaning you money. There is always someone who wants to do business and it does not cost you anything more than time, so look around. And there are companies who specialize in cleaning up your credit so your score is at it's highest. One such company I would recommend, who as far as I know is the cheapest of them all, is Ideal Credit Score at 718-502-8800.
Is it legal to rent out a house to pay the mortgage?
As others have mentioned here, it depends when the house becomes a rental. If you buy a house strictly to rent it out, then you MUST inform the mortgage lender, and they will charge you a higher rate. Also, they may not take the proposed rental income as qualifying income if you have been a landlord for less than 2 years.Now, if you buy a house and live in it as your primary residence for a while, and then decided to rent it out, it's a bit easier. You should inform your mortgage lender and they may charge you a fee but probably won't raise your rate or deny you.One small wrinkle. If you are still living in the house but decide to rent out a room or two while you are still living there, this is OK (though you should get some extra landlord's insurance), but should you wish to refi the mortgage you cannot use rental income from your primary home to qualify. You can use the rental income to pay the mortgage, but it can't be counted as qualifying income for a new loan on that house.
What is best bank or mortgage company for home loan?
I do not have great credit history and would like to apply for a home loan to see if I qualify, but I want to know who is best to go threw for a good shot if my history is poor?
What is the difference between a home loan, mortgage loan and a loan against property?
There is a very thin line between home loan, mortgage loan and a loan against property when it comes to the Indian context. Home loans are essentially loans given by the bank for the purpose of acquiring a home or a residential property. Banks give the loan but the home or property is served as collateral to secure the loan. In case of non-payment or default, the bank can liquidate the property and get back its used loan amount. Mortgage loans are loans in which the loan applicant is supposed to give a property or any security as mortgage. The mortgage can be land or assets like gold, securities, insurance etc.There are very few mortgage free loans, one example being personal loans. Most other loans require a mortgage or security to facilitate a loan request from the bank or NBFC(non banking financial companies). Home loan is a type of mortgage loan.Loans Against Property The loan is given against a property which is held as a security. Loan can be against any property of the loan applicant and not necessarily against a residential property. It can be facilitated by mortgaging any property which stands in the name of the loan applicant. Here, the amount given as loan is irrespective of purpose and can be used for any immediate financial requirements, unlike a home loan.Hopefully your doubts about the difference between the three have been resolved. In case you want to explore the possibility of taking a home loan, it would be helful to calculate the EMI beforehand, so this link might come in handy-> Home Loan EMI Calculator
What is the difference between collateral and mortgage?
Collateral is a security or a guarantee which is secondary in nature, for a instance lets take a example, "if a business man is going for a project loan his primary security will be land on which project is built along with that plant and machinery. But sometimes looking at his financials like ITR/P&L/Balance sheet lender might have some reservations whether business man could repay or not, so to have more comfort and as a additional security he can ask for business man's house as an additional security cover in case he makes any default lender can have right on his house". so this is collateral. Now mortgage is a secured loan given against a fixed asset, to further simplify if you watched Bollywood movies, what LALA done to hero. HE takes HERO's farming land or Behen ke kangan (bangles) and give money against thoes assets. If hero can not pay money in given years LALA can liquidate hero's assets and have his money back. Hope this might help :)
Does the IRS know you bought a house with cash? (No mortgage)?
Not immediately at the time. The IRS is not the Secret Police. Depending on how you got the cash. My son’s friend just got a $140,000 gift from her parents as the down payment on a house. If she takes a suitcase of cash to the closing, the IRS will probably know soon after the transaction. Cash transactions of $10,000 or more are required to be reported to the IRS on Form 8300 https://www.irs.gov/pub/irs-pdf/...If she writes a check from a Bank, and if she is not on the IRS radar, the IRS is not going to know.If you are audited (the odds of which for most taxpayers are pretty slim right now) the IRS will perform a “cost of living” analysis. I’m not sure what their official jargon is for this technique. They look at 14 months of bank statements. You better have a good explanation for how you got the cash. Drug dealing is not a good explanation. If you have a good explanation you have no problem.