NLIC.org

Jerry Said:

Confused about mortgages: Do I need to take out a buy-to-let mortgage if I want to rent out my property?

We Answered:

If you are buying the property specifically to let you should get a buy to let mortgage. However if you aren't sure and don't currently have a residential mortgage then it would be in your interest to try and go down that route. Residential mortgages generally require less of a deposit. You are unlikely to get a buy to let for more than 85% of the value of the property. If you subsequentally decide to let the property you must ask permission of your lender. This won't change your mortgage to a buy to let as such but may affect the conditions by which you can get a second residential mortgage.

Wilma Said:

Insurance question? small double pane windows above my sliding glass doors at my condo shattered.?

We Answered:

No, mortgage insurance covers your mortgage payments, if you die. Renters insurance covers your stuff.

If you own a CONDO, you should have a CONDO UNIT OWNERS policy, not a renters policy. An HO6 form, instead of an HO4 form. THAT way, some structure is covered.

SO. If you REALLY have a renters policy and not a unit owners policy, you don't have any coverage for the glass. But even if you did, it's very possible that the cost to replace those panes of glass is cheaper than your deductible. Which is how you want it - filing a $100 claim is NOT worth being uninsurable in three years.

So, fix the glass. And buy a condo unit owner's policy.

Richard Said:

Can you ask for a mortgage adjustment if you are relocating for a year and are leasing your home out?

We Answered:

It isnt the lenders responsibility to insure that you can rent their collatteral at a break even or profitable amount per month. Calling them to ask might cause a recall on your "Owner Occupied loan" Ask yourself this, Can the lender call me when we return from a year and ask us to pay a non owner occupied interest rate ? You are of course free to ask them, but the potential negative aspects far outweigh the remotely possible benefits. Lenders know life happens and really just want timely payment as agreed but I wouldnt recommend giving them fuel for a potentially dangerous situation. Ask a fair market rent on a 1 year lease term with a moderate sized deposit. The renters might not make your total payments necessary but for the very small difference you will be gaining equity just the same. Plus writing off the 1 year trip / relo expenses if its a business trip that your leaving on. Ask a tax advisor or financial planner for their best advice regarding the real costs you are about to face. Most answerers here at yahoo will either want to list your house for you, or help refinance it. Neither is beneficial to you, by minimizing the negative cash flow you will be just fine. Too low of a rent for the property type will attract a bad renter so set a fair amount and learn to live within those means for 1 year. The lesson gained will be beneficial to you for life.

Katie Said:

Is it legal for the mortgage company to keep the insurance money?

We Answered:

You expected the house to be in the same condition as when the inspection was completed - you expected the inside to be in the same condition just as you expected the outside to be in the same condition - possibly a "good faith" agreement - they were not inclusive of all information regarding the house and I would get an attorney if I were you and let the company know that you are going to get an attorney. (You may be able to get out of the contract/signing and make the company give you back everything you've put into the house- plus cancel the mortgage)