Is it better to pay more money to the principal or the escrow on my Home Mortgage Loan?
954898
Escrow is simply a holding company that acts as intermediary between you and the lender.  You pay escrow fees when you close a mortgage deal, and they can put aside an account for you to pay taxes and insurance, known as impounds.\n\nBut paying principal refers to paying off equity in your home.  This is ideally what you strive to do as a homeowner.  Once you pay off all the principal, the home is yours, free and clear.  You own it!\n\nYou can also pay interest-only, which means you're only paying the interest, and gaining no principal, or ownership in your home.\n\nIt's great to pay off more principal if you can...it gets you that much closer to owning your home.  If that is your desire.  Some people don't care about ownership, and prefer to leverage their money elsewhere, such as in other investments.  These people just pay off the interest, or even less than interest with negative amortization loans.\n\nEducate yourself about credit, finance, and mortgage at:\n\nhttp://www.thetruthaboutmortgage.com
507226
im not familiar with get a home loan net- make sure they are a responsible lender-sanctioned by your state dept of banking and ins. or something like that--now-to answer your ?--4% fixed for a 15 yr loan is excellent-- make sure there are no loan origination fees, or hidden fees- a 1% origination fee could be common, yet that is 1,000 on a 100K loan--you are 25 now-your home would be free and clear by age 40--very good idea- only if you plan on marriage and a large family with lots of other obligations would a 30 yr mtg have some appeal as the payments would be lower, yet the rate would be higher- the 4% rate is because it is a 15 yr loan !! take the deal and run as long as the company issuing the mortgage is reputable !! i am a retired CPA & CFP ( certified financial planner)
1130648
Your deed of trust probably contains a clause that asserts the lender's right to establish an escrow account if you allow your property taxes or home owner's insurance to default. \n\nSince property tax liens take precedence over the lender's first lien position,it endangers their interest in the property.  This is how they protect their position on the property title.\n\nOnce you have an escrow account, the tax and insurance portion of the payment becomes a part of the entire payment.  Any shortage is just that, a short payment and you will be reported delinquent accordingly.\n\nSorry, I know this isn't what you want to hear but they wouldn't have forced an escrow if you had maintained the payments necessary to protect their lien position.
1020723
I think you are thinking of the realtors fees.  Escrow wil hold the fees.  I do not think it is an official state function but I could be mistaken.
1087325
A home equity loan, because the loan is secured by the value of your house.  Obviously this only works if you have a house.  In general secured loans are easier to get, because they are less risky for the lender.
977405
It seems like you have equity in your own home. If that is the case, then use hard money lenders to finance 65% of your deals and use a HELOC on your home to finance the other 35%.\n\nRegards
895577
If you are trapped in an interest only mortgage you will have to pay penalties for paying off the principal.  It is not a good idea.  Hopefully your loan guy is part of a big bank.  That is where you will get the best deal with no funny business!
1081219
Make sure your loan contract says that excess goes to principle, which is the more favorable option.\n\nMost, not all, loan agreements are written this way, so double check.  Ask to see the language in the document if you are currently loan shopping.
101150
You should go to a mortgage broker. They help you find the best mortgage lender for your situation. \n\nThey don't cost any extra as they just get a cut of the money the mortgage lender makes. At least that is the idea, you still have to be a wise shopper.
502213
If you are getting a higher interest rate from your IRA, then put your $ in to the IRA.  If the interest rate on the home loan is higher than the IRA, then put the $ on the home loan.  Which ever is going to return more $ to you.
643649
I'd be careful with how much the seller is willing to pay.  Lenders have a limit to how much the seller can contribute towards your closing costs, usually either 3% or 6% of your purchase price depending on the type of loan you get.
1015760
You will generally get a better rate from a cash-out refi than from a home equity loan, but the equity loan will be paid off sooner.\n\nHowever, if you already have two mortgages, it sounds like you're overextended and probably should not be taking more equity out of your house.
662291
Depending on your needs (and credit rating!), you may find that a home equity loan is more appropriate than a total refinance.  You would save on closing costs and be able to choose how much to take out and when.  These loans are typically higher interest rates, but the savings may work out for you.\n\nAt 8%+ that loan sounds very high.  I would shop it at several lenders until you get the best rate for you.  If you can find a reputable mortgage broker/lender you may be able to submit to several companies at once. (Yes I know "Lend Tree" has the same service, but I've found their lenders are all very similar). \n\nDon't give up! With prime rates still in the 5% range, you can probably save 2-3% by being thorough.\n\nMy company does NOT make or sell loans, but I will be glad to help you find a lender if you run out of resources. If you're looking to resolve a load of debts I can help you with that decision as well.  Call 888-221-2711 and ask for the Director.
554511
That depends on if the bank you got your loan through will penalize you if you pay it off faster- sadly a lot of banks do that. Try calling the bank, explain you have a loan through them, and ask them if you can pay extra on your principle amount each month. If they say yes, then when you write your check for the payments, make sure to include an extra note which says, "Please apply any extra amount to my principle".\n\nIt also matters on how big your payments are- how much you can afford to pay per month.
57948
It is true that a normal origination fee is about 1%.  For that price they need to be doing all of the work, however people a lazy, so...? Anyway, I have digressed.  You should know that a mortgage broker is not just getting that 1% from you.  Your broker is also getting discount points on the back end of the deal.  The bank that he is getting your loan from is paying him extra money for any higher interest rate he can charge you.  So it is in his best interest to charge you the highest possible rate he can get you to pay.\nSolution- Find a dicount or wholesale lender.  These lenders are people who make their money selling the mortgages directly to the secondary market. Eliminating the middle man they will usually give you the  best rate.
24208
I agree with Angel. \n\nIt depends if you like living in CA...\n\nBuying is always better if you can afford to. You will build equity in your home and also enjoy nice tax breaks. It's basically "forced" savings :)\nRenting is basically paying someone else's mortgage. \n\nIt's always better to buy the smallest home in the best neighborhood...as opposed to the best house in the worst neighborhood.
908153
Your best bet is to go to a local bank.  Local banks are much more likely to loan on smaller amounts (I know, $50,000 is not a small amount) than other lenders.  If you go local, they are much more likely to want to work with someone who is moving in.