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Uncertain Optimist
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Post subject: Variable rate hloc vs fixed |
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| I have a variable rate hloc and no mortgage on a condo. Is it better to keep the rate variable or to lock it in? Is it quicker to pay off a fixed rate? |
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confused
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Post subject: escrow balance |
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| which is better to pay into the principal or escrow to pay off the mortgage faster? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12376
Location: bloomfield, ct
58.49 Dollars($)
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Post subject: |
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To Confused: you certainly hit that nail on the head! Your escrow account is only used for payments to real estate tax, hazard insurance and similar items. Thus, it is of no benefit to you to "pay into" the escrow. By all means, if you plan to pay extra amounts, have it applied directly to the principal balance, as that will reduce your interest costs and pay the loan off quicker.
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George M. Akerley
Mortgage Underwriter/Consultant
Word of Excellence- Writing/Editing/Proofreading
860-221-5044
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12376
Location: bloomfield, ct
58.49 Dollars($)
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Post subject: |
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As for UO, I suppose it will depend on the amount of money you owe on the condo, as well as what the interest rate is on your current HELOC. Of course, what limitations exist on the HELOC are also very important.
That being said, with interest rates at record lows these days, it might behoove you to look into an ordinary fixed rate mortgage loan. Keep in mind that condos are looked at more critically than other types of property and you won't get the absolute best rate available.
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George M. Akerley
Mortgage Underwriter/Consultant
Word of Excellence- Writing/Editing/Proofreading
860-221-5044
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Pat Griego
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Post subject: Extra payments |
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| Why did my mortgage bank apply the extra payments I made in 3 years($5,300.00) to the PAYOFF amount and not the principal? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12376
Location: bloomfield, ct
58.49 Dollars($)
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Post subject: |
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Principal curtailments would definitely make a difference in your payoff amount, so I'm not quite certain I understand what took place here. What gives you the impression that you've suffered?
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George M. Akerley
Mortgage Underwriter/Consultant
Word of Excellence- Writing/Editing/Proofreading
860-221-5044
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screenname
Guest
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Post subject: extra payment to principal |
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| I send extra payment to my lender to be used on my principal but they aply it as a regular payment then i complain and they credit it back to my principal,i have a clause that it says that any extra will be used for my principal ,however they seem to ignore it untill i call them to complain is there a law or agency where i can file a complain Im tired of this people. thanks. |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 12376
Location: bloomfield, ct
58.49 Dollars($)
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Post subject: |
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Screenname, it appears that they lack understanding. Your mortgage documents (originals) will spell out who their supervisory agency is - you could contact them, but don't expect a lot. I don't suspect that this sort of matter is looked at as a major priority by anyone other than you and other consumers in the same boat.
_________________
George M. Akerley
Mortgage Underwriter/Consultant
Word of Excellence- Writing/Editing/Proofreading
860-221-5044
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Houdini20
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Post subject: Principal Curtailment in HUD statement |
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| I am refinancing, and my broker has a $1,100 line item called Principal Curtailment. I understand what a curtailment does, but I have never seen a mandatory curtailment in a HUD when I refinance. I am told this curtailment will be applied against the loan when the account is set-up and my principal will be $1,110 lower, why is this necessary? Am I getting taken? Is the broker just trying to get me to pay his fees to the lender? Thanks in advance. |
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Post subject: |
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| Even I haven't seen a mandatory curtailment!! You should clarify the whole matter with the broker/lender and then sign on the dotted lines. |
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jec
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Post subject: Curtailment |
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My statement shows extra payments paid, but it is not applying directly to principle as noted in the definition. So my lender shows that I paid 1 month principle and 1 month interest. I was not paying a month ahead I wanted to reduce the principtle. Is this right?
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Need help choosing the right loan? Get free consultation from community lenders/consultant |
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jameshogg
Joined: 20 Dec 2005
Posts: 10460
Location: Nevada
987.57 Dollars($)
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Post subject: |
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Hi jec,
This is something your lender will be able to clarify. You should contact your lender and ask him to explain the whole matter and let him know that you want to reduce your principal balance by paying extra money toward the principal amount. This will help you resolve the matter.
Thanks |
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