Compare Mortgage Quotes

askoulos · Joined: 10 Jan 2008 Posts: 1 1.62 Dollars($)

Hi

I have a unit that i live in worth 200K. I took a loan out 6 years ago for 140,000 , and have 100K owing on that. I make these repayments with my fiance quite easily

When is a good time to look for another property. Should i continue paying off the 100K on the current loan , getting more equity or start looking at purchasing an other unit with the 100K equity already built up

We are getting married shortly and dont know how to spend any money given to us at the wedding. Do we lump it on to the current loan, or use it as a depoist on mortgage number 2

We dont owe any money to credit cards etc.....We are a young couple looking at exploring our property options

any info would be great

blue · Posted: Thu Jan 10, 2008 6:31 pm Post subject:

Hi,

Welcome to Mortgagefit discussion board.

Do you wish to buy another house? So can you afford two mortgages at the same time?

You are on the mortgage for 6 years and now you have gathered good equity on that property. You don't have any credit cards debts. You also earn enough. So you should not have any problems to refinance that mortgage. If you get lower interest rates and preferable terms, you can go for it.

But before buying new home think twice whether you can afford two loans at the same time or not.

Do let me know if you have any other questions.

Thanks
Blue

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi askoulos,

Welcome to the forum.

You have not made any late payments and already have enough equity on that property. So no problem to refinance.

You don't have ant financial problems and can earn well. So you can be even approved for another mortgage to buy a new home. Shop a bit and hope you will get most favorable interest rates.

Feel free to ask if you have any further questions.

Best of luck,
Larry

ckalvesmaki · Posted: Fri Jan 11, 2008 10:17 am Post subject:

Hi

I have a unit that i live in worth 200K. I took a loan out 6 years ago for 140,000 , and have 100K owing on that. I make these repayments with my fiance quite easily

When is a good time to look for another property. Should i continue paying off the 100K on the current loan , getting more equity or start looking at purchasing an other unit with the 100K equity already built up [color=Red]What are you planning on doing with this home? If you are planning on selling it......then you are far better off setting aside any extra money to your savings acct and then using it for the down payment or reserves on the new house. [/color]
We are getting married shortly and dont know how to spend any money given to us at the wedding. Do we lump it on to the current loan, or use it as a depoist on mortgage number 2

We dont owe any money to credit cards etc.....We are a young couple looking at exploring our property options

any info would be great

gmakerley · Posted: Fri Jan 11, 2008 10:57 am Post subject:

it would appear you are thinking of retaining the existing home while purchasing a new one. you have several choices, all good.

if you can afford to rent out the existing home and keep it as an investment, then you can certainly go make a purchase and get a new mortgage on the new property. you can always sell the existing home, as well, but that's your choice, of course.

as for the wedding presents, i think you may want to simply deposit them in a high-earning account until you decide for once and for all what you plan to do about buying a new home.

you're in a good position - way to go. i think, based on what you have told us, that you are likely to get what you want reasonably easily.

yourbestmtg · Posted: Fri Jan 11, 2008 3:50 pm Post subject:

Dear askoulos,

I would like to put my 2 cents worth in & give you some food for thought and tell you how wise you & your soon to be wife are for not entering the marriage with credit card debt. Your ability to pay reduce your mortgage $40k in 6 years is impressive.
How long do you plan to stay in your home & the 2nd home you are looking into buying, is that for rental income or is it a fixer upper you will renovate & resell (flip) for a profit? If you are considering renting, make sure you know what the rental market is like because you may end up coming out of pocket for some of the mortgage payment after you tack on taxes & insurance - this is happening to a lot of land lords in the area I live in. Before you plunk money down, tell the seller you want a home inspection done (pay for it yourself) - this way you will know if there are any unforseen repairs if any you may have to do.
Extra money you are not sure what to do with? As a second time around married woman I can tell you this - you & your new wife sit down & write out (yes, on paper) your current expenses & what your long term goals are - financially (ie. when would you like to retire & how much will you need to live comfortably?). Do you plan to have kids (I just had my first)? How about an interest bearing savings acct. or a college fund? CD's and savings accounts are yielding around 5.25% right now. Do you have an IRA? This can be a tax savings for you next year. Also having at least 6 months of savings (meaning you could live for 6 mo. if either of you lost your jobs or a tragedy happened) is another great way to save your extra cash. My point is, I wouldn't use the extra money to pay off the current home (just my opinion). If you do decide to use the extra money to purchase another home, sit down before hand and carefully consider - where the home is located (is it in a declining market or does it have resale potential), will you be living there and renting your other home & if so, is this a "move up" for you? If worse came to worse, could you really afford the 2 mortgages?
As for paying of the mortgage faster - are you familiar with the Money Merge Account software? It is web-based software that will assist you in paying off your mortgage in half the time and save you thousands in interest - if you are interested I will explain more - just let me know.

Well..I will rambling & say have a great weekend! Laughing

Guest

Hey Lisa! what is this Money Merge Account software? Will it really pay off the mortgage faster? Sounds interesting! Can you please explain it to me Smile

Looking forward to know more about this Money Merge Account software.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

You could use the money you receive from your wedding as a down payment on a new property. Right now there are plenty of deals out there with the housing market the way it is right now. You want to buy when there are more homes on the market and values are coming down as they are now in many areas.

gmakerley · Posted: Sun Jan 13, 2008 12:04 pm Post subject:

my (limited) knowledge of the money merge situation is that you end up paying someone to do something you can do on your own.

and the list goes on and on...

yourbestmtg · Posted: Tue Jan 15, 2008 8:01 pm Post subject: Repost

Hi Johnny,

Here is how the MMA works. It's called the Money Merge Account, basically it is a web based software program that accelarates your mortgage payoff. You obtain a HELOC (home equity line of credit) from the lender of your choice and this now becomes your checking account. When you start the software, you will enter in your financial profile - enter your income and all your expenses including your mortgage into the "program" - it's "smart" software so it automatically will calculate the amount of money you need to pay on your mortgage and when to pay it, thus significantly reducing the amount of interest you would normally be paying. You can knock 7 years off your mortgage in just the first 12 months of using the software. You deposit your income & pay all your regular bills through the equity line including your mortgage(the software will tell you how much to pay on the mortgage & when) and you then make the interest only payment on the line of credit which is very minimal compared to the thousands you save in interest on the mortgage. The software will calculate so that your balance on the equity is always very minimal. You are not changing your spending habits in any way. Someone commented this is something you can do yourself but unless you have significant income to pay towards the principal on your mortgage every month, it would be very difficult to balance your cash flow every month & get the results you get from this software - it is sophisticated in it's calculations.

Whew! having said all that which is a lot to digest, I would like to email you a video that you can watch - takes about 15 minutes & it will show you exactly how this works & will give you an example on how quickly a $200k mortgage can be paid off & how much you save in interest with this software is amazing. You can email me that way not everyone will see your address and I will forward the video to you.

Guest

Hello lisa

is the money merge equivalent to accelerator program?

evolovik26 · Posted: Wed Jan 16, 2008 7:22 am Post subject:

To the original poster its all about risk factor vs reward.
You seem to be financially well off and on your way to financial independence.
You can continue paying down your home so that you own the house free and clear and dont have to worry about thouse payments.
Another way to do this is if you planning on getting a bigger home for you and your spouse anyways is to buy a new bigger home and to rent out the property you have. The money you recieve from the wedding can go towards your downpayment in this case. Right now is a great time to buy if you can afford it. This will carry a bigger risk with 2 mortgages but also can net greater reward down the line as thouse properties go up in value.
As far as MMA i wouldnt suggest it. You much better off talking to a financial planner.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

The money merge account is different than the mortgage accelerator. The mortgage accelerator is usually a term for paying bi-weekly. There is one mortgage company that calls thier money merge account a mortgage accelerator so the terminology can be confusing. A money merge account is when you basically have a line of credit that you deposit all of your money into and draw from that when needed. You pay your mortgage and all of your bills with that account. It is basically a mortgage and checking account in one. Most of them even come with a debit card. It is a good mortgage for someone that may have large amounts of cash going in and out and can benefit from the money that would be sitting in thier checking account being applied towards the morgage balance until it is time to be used. You can also apply your savings since you can always draw from the account later. So this can work for some people.

The money merge account that the other Lisa is referring to is a program that just has you take out a line of credit (second mortgage) and you deposit your checks into that account to reduce the average balance.

If you are interested in this type of thing, I would suggest looking into a mortgage that is designed for this instead of just software that charges you to explain how to apply your money towards your line of credit.

AlaskaDES · Joined: 04 May 2008 Posts: 28 12.75 Dollars($)

Before I offer advice, I would like to state that I am not affiliated in the "MMA" program or a mortgage representative.

I personally feel that the concepts of the Money Merge account is possible if used correctly. I show my clients the same things.
1) Ensure you have a budget that has more money coming in than going out.
2) "Invest" your money to work for you. Savings vs. Debt
3) Use the banks money to pay the bank back

The calculation of loans such as personal loans, student loans, car loans, and mortgages on an amortization schedule for the most part. Usually front end loaded, and takes about a portion of time into that loan commitment before making any headway on that loan. The way credit cards and line of credits are calculated is Average Daily Balance. The concept of using these is to keep the balances low, and to be able to account for the interest when using the banks money.

The funny thing about a "low interest rate" is that if you still pay the 30 years, in most cases you pay 160-200% in interest compared to the original loan.

[Edited promotional texts as per forum guidelines]

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

Mortgage Advice