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Financing in 07302 : Real Estate Advice

  • All144
  • Local Info15
  • Home Buying75
  • Home Selling12
  • Market Conditions6

Activity 5
Fri May 6, 2016
Maria Tsabrova Buyers Rebate answered:
I tend to work with lenders tested by my numerous clients and time!
Besides I know my Buyer Rebate credit at closing would be approved by the lender I recommend and trust.
Always negotiate absolutely everything about home purchase - starting from Realtor commission cut to inspection costs to loan %. And shop around for the best deal. ... more
0 votes 11 answers Share Flag
Fri Sep 21, 2012
Shane Milne answered:
I've never heard of a loan that you could not make prepayments on. There are some loans that will impose a penalty if you prepay over a certain amount within a certain time period (such as paying 20% or more of a balance within a 1 year period) which is called a prepay penalty. But prepay penalties aren't very common on mortgages anymore. So unless the fixed rate mortgage specifically has a prepay penalty then you can still prepay on that loan without any penalties. Ask your loan officer if it has a prepay penalty or not, and if it does, how long the prepay penalty would be for (rarely over 3 or 5 years) and if it's a "soft" or "hard" prepay penalty. A soft prepay penalty would allow you to sell your home without penalty, but would impose the penalty if you were to refinance or pay your principal balance down by a certain amount... a hard prepay penalty would be imposed even if you sell.

Also if you make a large principal prepayment, most lenders will allow you to "recast" the loan to make your payment based on the new principal balance based on the remaining term of the loan. Like if you start out with a $800k loan amount over 30 years, and pay $150k towards it in year number 2, then your payment would be recast to be on a $650k loan amount over 28 years. Not all lenders permit that but most of them will as long as you discuss it ahead of time.

Rates can increase pretty quickly, they usually increase at a much more rapid rate than they decrease. I remember back in the summer of 2004 they increased over 1% in a little less than 2 weeks time period. Rates can also go up & down, just like the stock market, so there may be a period of a couple months where they rise but then the following couple months they could decrease down to where they were prior to them rising. There is also the factor of denial. Denying that rates will continue to increase, just like a lot of people were in denial that home values were going to significantly decline and thought they'd make a comeback to where they previously were.

Shane Milne | Lending in all 50 states | NMLS #81195
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1 vote 6 answers Share Flag
Wed Jun 2, 2010
Carrie Roberts answered:
Hello LPaige,

If you expect to be due a tax refund considering all your deductions including real estate tax, then yes you should change your withholding now so you can take home more money from your paycheck. Check with your tax advisor since I always do a tax projection during the year to see how I will come out when I file my taxes next year.


Carrie Roberts
Michael Saunders & Company
5100 Ocean Blvd
Sarasota, Fl 34242
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0 votes 5 answers Share Flag
Wed Nov 11, 2009
Bruce Levitt answered:
I hate to be redundant but stay with the fixed rate. Plans change for unforseeable reasons. The value of your home could devalue and you might need to stay. And you may discover that you are extremely happy in your new home and don't want to leave. Play it safe with your largest investment.....go with the fixed rate.

Bruce Levitt, Real Estate Agent.
973-710-2293 Cell phone
Weichert Realtors
273 Grove Street
Jersey City, NJ 07302
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0 votes 6 answers Share Flag
Thu Jan 15, 2009
Gina Chirico answered:

Thanks for the update.

Good luck to you.

Gina Chirico, Sales Associate
Prudential NJ Properties
973-715-1158 cell
973-992-6363 ext 116 ... more
0 votes 10 answers Share Flag
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