NLIC.org

Robert Said:

Buying a home; calculating mortgage payments?

We Answered:

If you can afford around $600 a month, then it's around a $300 mortgage because you also have to add in taxes and homeowner's insurance. This equates to roughly a $70,000 loan. Keep in mind these are rough estimates. With housing prices at an all time low, you can definitely get a decent house in this price range depending on where you want to live. Check in the sources section for a mortgage payment calculator, and keep in mind that taxes, fees, and insurance really make the mortgage payment a bit higher, so always leave yourself some room.

Ben Said:

Question about selling home with 2nd mortgage and buying a new one?

We Answered:

THERE IS NO CAPITAL GAINS TAX!!!!!!!!!!!!!!!!!!!!!! IT IS YOUR PRIMARY RESIDENCE, so with that said when your buyers mortgage goes through, the proceeds from that sale pay off the 1st lein first and then the 2nd lein and if there is any money left over it goes to you TAX FREE!!!! You can make up to $250K for a single person and $500K if married. Thats profit not sales price so unless you are selling a house where your profit is over $500K you will not be taxed. Capital Gains Tax is on investment properties. Good Luck 2 U!!

Nathan Said:

Is there as special type of mortgage available for buying homes that aren't built yet?

We Answered:

Its a "construction loan" After the home is finished, the construction loan is converted to a mortgage.

To find out more about it, I suggest one of two options:
1] Before going out to lock at any homes and getting your heart broken, sit down with your banker and get pre-qualified.

2] When you tour new construction sites, ask your particular Qs of the agent who is working at the Open House or who has the exclusive listing agreement for that builder's properties.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name

Miguel Said:

Any advantages of having my wife's name in the mortgage and home buying process ?

We Answered:

The obvious answer is that assuming your wife will be on the title, by not having her name on the mortgage, you assume the entire liability for the mortgage but in the event of you splitting up, you own only half the house. I know that is probably not something you or your wife are contemplating, but just something to think about. Other than that, nothing really provides an advantage or disadvantage.

One other advantage is that you help your wife's credit score by having her on the mortgage (joint accounts are reported under both names to the credit bureau), and assuming you continue to pay your bills as you have, increasing her FICO (both folks having good FICO is always helpful).

Miriam Said:

How do I calculate mortgage payments when buying a home from a family member?

We Answered:

Go thru a Title Company for the closing and have them prepare a amoritization schedule for you .....