If i plan to move in 2 years, should I prepay my mortgage?
396013
There are a number of questions that would have to be answered before anyone could really give you advice on this.\n\nAre you definitely moving in 2 years?  When you move, will you sell the condo or rent it out.  Do you have a systematic savings plan right now?  Is your interest rate you're paying now fixed or variable?\n\nIf you are currently saving toward a down payment and are sure you'll have enough when the time comes to move, then it's fine to pay extra toward your 2nd mortgage.  Also, if your moving in 2 years is uncertain, then I would think about paying extra against the mortgage. \n\nHowever, if you are not currently saving toward a down payment, or if you are but you're not sure if you'll have enough, then I would contribute toward that savings instead of extra against the mortgage.  You want to make sure you have saved enough because you have no idea what the real estate market or interest rates will be like in 2 years.  The condo market may crash again like it did in the 80's.  It's always better to have the cash set aside.  It gives you more options down the road.
323723
Hmmm.  The REAL question should be whether to buy (at all) or rent!  (Three years might be too short to cover the costs of the buying and selling transactions.)  I'd guess if you're willing to buy a "fixer-upper" and put some time and money into it, then three years would be okay.  Lots of folks can make good money "flipping" houses like that.  Otherwise, you might be better off just renting.  If it was longer, I'd say go ahead, buy.  If it was any shorter, I'd say definitely rent.  You're really on the cusp with three years....   Good luck.
1004855
I'd put 15% of your monthly income into the retirement fund monthly, and if you have any extra left over, then apply it to your mortgage to pay it off faster.
307802
Sorry, the first answer is not correct.  In order to avoid capital gains tax, you must reside in the dwelling you are selling for a full 2 years of the last 5 you owned it.  The two years does not have to be consecutive.  But, since you have not lived there for two years, you do NOT qualify for the tax break, unless you are moving more than 50 miles to a new job or for unforseen health reasons.
880853
You asked questions that should be answered by qualified mortgage broker. If you are working with one ask him/her all of these questions and if you are not, than find some one in your area.  You should also consider talking to a financial planer, he/she will explain to you the benefits and pitfalls of investing your down payment.\n\nI would suggest that if you can afford making the payments for your new home without any financial hardship, invest the money into less risky investments. You will not get 10% as mutual funds would pay, but you may still be able to get good return on your money and have less risk involved. \n\nOne of the great benefits of home-ownership is having income tax deduction, which in the case of 100% or 80% / 20% financing would be substantial. \n\nDo not be afraid of PMI, if it would be a better deal for you to pay it (must have more info if it would be a better deal), you can always refinance at the later date when the property value will go up and you have 20% equity.\n\nYou can refinance both 1st and 2nd mortgage into one loan if it would make sense at the time.
227672
Actually, you have to live in the house for two of the last five years. If this is the case, then tax code allows you to keep $250K or $500K if married before capitol gains taxes apply.
839409
Dazed and Con has some very valid points. I would like to elaborate on them. Personally, I don't believe in the "rent to own" - it is a load of crap that doesn't give you any tax benefits. If you are able, take out a 5-year interest-only fixed loan. By that time, you will be out of school and can refinance the property. You should have built up enough equity by that time to not have to worry about a negative amortization. You can pay down the principal during this 5 year time if you wish. When you re-fi after you are out of school and working, you can roll some of the student loans intot he re-fi if you fix the house up enough to get a good high appraisal. This way, all of the interest including your student loan money would be tax deductible. This brings me to the last issue. Are you prepared to pay back student loans plus Uncle Sam after you graduate? If not, then having a house that is yours, not some "rent-to-own" nonsense, will give you the type of write-offs you will need to cut down or eliminate those tax checks. If the landlord is not willing to sell the house to you under a true normal sale scenario, then he/she is not serious. You never said whether or not you have a down payment. If not, then the rent-to-own may possibly work if you have an iron-clad conract with regard to your down payment coming from your rental payments of 4 years, an end date to the time when the property will be put into your name, etc. Take any rent&#92;-to-own contract you end up with to the local court house and record it against the property to stop anyone from selling it out from underneath you. Sorry to be so cynical, but I have seen many a rotten landlord on these. Buy it outright if you can.
482743
No, if it is your principal residence, and you sell within 2 years.  However, if this is an investment property, and you are using that money to buy another investment property.  The transaction could be set up as Sec. 1031 exchange, which will result in a tax deferral.
1071060
I'm not sure about your question--which is better?\n\nWhen you have a mortgage, early on the bulk of the payments are interest, and you can deduct that amount on  your income tax.  A good deal.
213627
how long do you plan to live in it? how important is it to be a homeowner? if you overpay 15% today and next year want to move to a different house, then chances are that it will also be cheaper and it won't matter to you.\n\nquality of life rules!\n\ni bought in Portland last year and the value has gone up 15% or more, depends on neighborhood.
1033413
bridge loan will secure the house you want but will be pricey after awhile. if you get a new loan/mortgage you'll get the house and will be able to use the money from the sale to help pay some of it off. make sure you get little or no prepayment penalties. your refinance will only be advantageous if your credit score is good. you will need some seasoning in order to get a refinance as most lenders will not loan you money right after you move in. some will but for a very high rate. either way, you're taking out more money than you need to secure what you want. my advice, get a new mortgage, I assume you've paid or are close to paying off your old one?, and secure your new house since it is very important to you. once you sell the house, retain a good majority of the money, pay off the old mortgage is you haven't already. if you rate and terms are good, then keep them for your new mortgage. if they're bad, wait at least 6-8 months before refinancing.
658369
There are some really good answers here.\n\nAs a former mortgage loan officer I would add to shop for your mortgage.  Your Buyers Agent will probably have their favorite lender but don't let them bully you on this.  \n\nPull your own credit bureau reports from all three national bureaus, (Experian, TransUnion, & Equifax) before you start the process and be sure that everything is reported as it should be.\n\nTake the credit reports with you when you visit different mortgage brokers or banks.  Don't let them pull new ones until they have Pre-qualified you (using yours) and you are ready to proceed with them as your lender.\n\nUnderstand that there is REALLY no such thing as a no closing cost mortgage.  The question is how you pay them.\n1. The lender can pay them but they do so out of what is called Yield Spread Premium--this is extra money their money source pays them for delivering your loan at a higher interest rate.\n2. You can pay them out of your pocket, mostly at the closing table.\n3. They can in some cases be rolled into the loan--this particularly applies in refinances.\n\nThe best choice for you depends on how long you plan to be in the home--or at least in that loan.\n\nThe way rates are trending now do NOT even think about any type of adjustable rate mortgage--you will live to regret it if you get one now.  TELL them Fixed Rate or nothing!!!  If rates improve enough in the future you can always refinance.  But with a fixed rate the only thing that can change is your property taxes and/or your home-owners insurance.  Your Principal and Interest payments will stay the same.  \n\nIf you can afford to do so get a 15 year fixed rate mortgage rather than a 30 year (by far the most common.)  Have the mortgage guys show you both and then play with the calculator.  The long term savings are enormous.  Just don't over extend to get it.  \n\nBe smart and buy below your limit.  I you don't live below your means you will never prepare for retirement.
742345
If you're planning to sell it in the next few months, no, since the costs to refinance would probably more than eat up any savings.  If you're planning to sell in a year, maybe.  Longer out than that, probably yes.
1130863
This question is easier than most are making it.  Two years is the magic timeframe with most mortgage lenders.  You should be able to qualify for a mortgage just as easily as someone else with the same credit score that hasn't had a bankruptcy.  \n\nThe usual disclaimer goes here: it depends on your entire financial position right now.  Your strong job history helps.  Having money in the bank or a 401k to show as assets also helps.  \n\nYou should work with a local mortgage broker.  They will be able to get conventional financing that any bank can.  If there is something in your financial picture that makes this kind of lending impossible, the broker can secure non-conventional lending.  These are loans that your local bank can't pull off.\n\nStart by educating yourself.  Check out this blog:  http://explaintome.blogspot.com\nIt explains the mortgage decision process and shows exactly what a mortgage broker does.\n\nBest of luck!
187359
You say your house "Will be" mortgaged by a finance company, does that mean you haven't bought it yet?  If that is the case then get a job or second job or wait until you can afford it.
382338
Yes and no.\n\nI have purchase a house in short mortage basis and another on a longer mortage.\n\nYes, it will put your payment issue over as quickly as you can, straight up your budget/finance and become liquid again in 2 years.\n\nNo, my opinion as a person having monthly paymnent on home, by paying off early, your business relation with your banker is only that long, not long enough to establish a better relation. \n\nOne thing I learn from a CEO, you don't always borrow money from the bank because you are financialy short, you borrow because you need to establish a relation with the bank, in a way that someday when you need to have a credit line, bank knows you enough that they can give you the loan instantly. By having a longer term payment, making your payment on time, keeping a good record, you become a favorite client of the bank.\n\nAnd someday, just maybe someday you have a good business opportunity, your bank will be your saviour.
149330
I dont think you have any time.  If the house was lived in less than two years, you always pay capital gains. Always check w/ your financial advisor or lawyer, but I think the min. is two years.