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Home Equity and Refinancing
Home equity is the ownership value accumulated in a property. A refi involves restructuring a debt, usually to take advantage of lower interest rates.
5,740 Questions
The widow should arrange a consultation with an attorney who can review the title to the property and the mortgage. If the property was owned jointly or as tenants by the entirety and only the husband signed the mortgage the bank may be out of luck. If the property was in your son's name alone then his estate must be probated in order for title to pass to his heirs and the bank will take the property by foreclosure unless the mortgage is paid.
You need an attorney who specializes in real estate law and probate law to review the situation and explain the widow's rights and options.
How do you find Debt-to-income ratio?
A debt-to-income ratio (often abbreviated DTI) is the percentage of a consumer's monthly gross income that goes toward paying debts. (Speaking precisely, DTIs often cover more than just debts; they can include certain taxes, fees, and insurance premiums as well. Nevertheless, the term is a set phrase that serves as a convenient, well-understood shorthand.)
There are two main kinds of DTI:
1. The first DTI, known as the front-end ratio, indicates the percentage of income that goes toward housing costs, which for renters is the rent amount and for homeowners is PITI mortgage principal and interest, mortgage insurance premium [when applicable], hazard insurance premium, property taxes, and homeowners' association dues [when applicable]).
2. The second DTI, known as the back-end ratio, indicates the percentage of income that goes toward paying all recurring debt payments, including those covered by the first DTI, and other debts such as credit card payments, car loan payments, student loan payments, child support payments, alimony payments, and legal judgments.
Why are bank transfers not processed immediately?
Bank transfers, by federal regulations, cannot be processed immediately due to several reasons.
Depending on how much the transfer is, the bank may have to record the transfer for tax regulations and report the transfer to the IRS.
After new federal regulations on Terrorism Funding, banks have to cross reference all transfers and report large sums to the FBI.
Also, banks have to verify all transfers with the issuing/receiving bank, and verify the funds can be moved (i.e. the account isn't under scrutiny by the Courts for a divorce, the individual isn't trying to smuggle money, or hide money from the IRS).
Can the executor assume the mortgage of the deceased?
The executor must discuss that with the lender. If the executor is going to inherit the property the lender may agree to allow an assumption of the mortgage.
Is personal representative responsible for mortgage of estate?
They are responsible for paying it from the estate's funds. They do not have to pay it personally.
Can deed of trust be used as collateral for a Mississippi home equity loan?
No.
A deed of trust demonstrates that a bank (or other lending institution) owns the property, however, the bank may not sell or pledge the property unless the borrower had not met loan conditions.
Even if you are the lender (and, therefore, have been given a deed of trust), unless the people that you have made the loan to fail to meet obligations, you may not use the piece of paper or the underlying property as collateral.
Can you use a home equity loan for a down payment on a SBA loan?
Yes, one may use a home equity loan for a down payment on a Small Business Association loan, however, prior to doing so one needs to be sure that the change in leverage does not impact the structure of the SBA deal.
For example, the SBA may have approved the business for a certain amount of money based on both the cash flow profile of the business and the ability of the principal to pay back the loan (through existing assets like home equity). If the home equity loan changes the relative amount of perceived protection that the proposed structure has, one may (1) lose the loan or (2) have to settle for less.
Can we get out of buying new construction home if there is a problem with the house?
You need to discuss that with your attorney. It depends on the provisions of the contract you signed. The builder probably has the right to fix any problems.
What are the differences between refinancing a home and a home equity loan?
Refinancing a loan is replacing the original mortgage with a new mortgage. After the process, there will only be one loan outstanding. A refinance can only be undertaken if the home has enough appraised value to cover the outstanding principal on the original mortage. Many people refinance their mortgages to either take advantage of a lower interest rate (the rule of thumb states the rate must be at least 1% lower than the current mortgage rate) or to unlock equity derived from the increasing value of a house.
When a refinance is complete, there will only be ONE loan outstanding after the transaction has been completed. Most refinanced loans last 15 to 30 years.
Taking out a home equity loan is acquiring a second loan (sometimes known as a second mortgage) based on the estimated residual value of the home after taking into account the first mortgage's outstanding principal. Typically, home equity loans are taken to do home improvements, support debt consolidation (as most home equity loans, up to a certain loan to value ratio, can have interest written of on taxes), etc. The interest rates on home equity loans tend to be higher than those on first mortgages by 1% to 4%.
When a home equity loan is taken, there will be at least TWO loans outstanding after the transaction has been completed. Most home equity loans last 10 years.
Yes, however, the answer depends on specific situations associated with the partnership/marriage and the state in which they live in.
If the state is a communal property state and the surviving spouse that is not a borrower had ANY benefit from the loan, that spouse owes the money as a borrower (despite not being a borrowing party on the loan). In this case, if the surviving spouse is not in a position to pay for the loan, a negotiation would be warranted soon after the (within a month or two of) deceased spouses death.
If the state is a non-communal property state, the estate of the deceased spouse will first be looked to in order to provide the funds to pay off all debts. If there are enough assets to cover the debt, the loan will be paid in full, regardless of the surviving spouse's wishes as the lender's rights come before those that may be beneficiaries to any estate proceeds.
If there are not enough assets to cover the loan, the lender may look to liquidate the asset (the surviving spouse's home) in order to satisfy the debt. If the home is NOT in the surviving spouse's name (either through joint tennancy or named ownership), the surviving spouse may not be able to intervene.
It depends on which medication it is, whether or not you have insurance, and how much the insurance covers.
What is owner's policy title insurance?
An owners policy refers to a title insurance policy issued to the property owner not the lender. It provides protection to the owner of the property and is normally purchased at the time you settle on the purchase transaction. If the prior owner purchased an owners policy on the property prior to the new sale a discount called
reissue rate may be applied if you can provide the prior policy information. The discount can be significant.
I don't believe this is a legal term. It probably refers to a mortgage where the amount borrowed is small compared to the value of house. One reason for doing this would be to improve your credit score.
no, because they're lazy.
How does a loan modification impact the original loan?
The purpose of the loan modification is to renegotiate the terms of the original mortgage agreement. The objective is to ensure that your monthly payment is affordable. Consequently, your Lender may reduce some portion of your principle mortgage balance, extend the term of the loan, allow for a balloon payment at the end of the loan term, and/or lower the interest rate on your current loan going forward.
It may be the Positive Crankcase Ventilation (PCV) valve. This valve is usually installed into the valve cover and has a hose connected to it.
Is a home equity loan considered a long term debt?
Yes.
Home equity loans are generally ten-year loans. Any loan lasting longer than one year is considered a long-term debt.
Why do vampires have to be invited in by the homeowner?
they don't, it was later said the idea was made by vampires to give humans a false sense of safety.
