beaglesdoitbetter - 40% of my income would be somewhat of an improvement from the online calculators which I think are calculating 28%. For construction/morgage loans, is that how a co-signer works? Their income is added into mine to calculate the monthly payment/total loan amount? I have 3 family members that have already volunteered to be co-signers. I know this is typically not recommended to sustain relationships, but I've had excellent experiences with them in the past. One family member helped me pay my way through college and I paid her back immediately after graduation. The others I've loaned money to and had it back within a few months. beeps - At the moment I'm not actually paying the extra 2k a month on the land, it's just being saved. That way I can collect interest on it until I'm ready to pay it off completely. The loan isn't one that would save interest if I paid more per month, the interest has been added in a flat number for the extent of the loan, so as long as I pay it off early, I still save the interest, but it doesn't make a difference whether I do it in one lump sum or over several months. My retirement is already being taken care of through auto-deductions at work that I've set up. My payment calculations are based on what I bring home. Laura12 When do you plan on paying off the lot altogether? --In about a year (originally a 5 year loan). What do you expect the value of your home to be once it is complete? --250k - 300k, however, the area has a wide range and there are a few that are higher and lower, giving me room to work with Is the final payment 40% of your income or less? --Do you mean the $700 land payment? If so, it's less than 40% of my income. Are you self employed? --Mostly no. I make most of my income through 'normal' means, but do make some supplemental income through Adsense. It's my first year making anything significant through that though and from what I understand, I'll be sent a W-2 at the beginning of the year, so this probably doesn't count as self emplyed.

I'm nearly 80 years of age (and happy and thankful to be enjoying good health). I've bought stocks three times in recent months, and plan to go on doing so during coming months ... including borrowing to do so if I consider it wise. I don't know when the market bottom will occur, but it'll be sooner or later. The longer it's delayed, the greater likelihood that when the turn does take place, there'll be a more pronounced (and quite likely longer term) runup following the turnaround. If I'm not around to enjoy it, my beneficiaries are not in immediate need of money (and should they be, would likely use the stocks that were undervalued as collateral for a loan). My executor is smart enough to manage the assets skilfully, and there's enough available to satisfy the income tax people (I think). The charities that are to benefit may get some over the short term, but if the markets are low, my executor will have leeway to allow them to recover before making the major contribution ... ... even if she needs to use the assets as collateral to make a short- to medium-term loan to pay the charities earlier, in order to get the necessary receipts to enable there to be a substantial reduction in tax payable on the estate in the year of my death. My investing career, as far as stocks go, began about 45 years ago, so I've seen a few years of market fluctuations (and, dare I say, "shenanigans"?). I took the course that stockbrokers take over 25 years ago - and recommend it, for anyone who has enough interest in the field and the mental alacrity to make it worthwhile. I took the six courses that the Chartered Fiancial Planners take, as well. Many investors would learn a great deal about evaluating the market, and how to evaluate individual stocks, by taking those courses, as well. The whole deal would likely cost around $2,000. - and after 10 years or so (should you not die in the meantime), I suggest that you would think it to be one of the smartest investments that you'd have made in recent years. Have a lovely late-winter week, everyone. Don't let the weather freeze your investment smarts! ole joyful

For my first home in Canada, I paid my mortgage weekly and the payments were applied as they were received, hence reducing the amount of years in the loan as well as saving tonnes in interest. When I got a mortgage here in the US, I wanted to pay bi-weekly. However, most lenders will not apply the payment until the full monthly payment has been received. Say you pay $200 per week for an $800 per month mortgage. You're giving the lender $600 of your money, they're investing it, gaining interest and you're getting no benefit until the full payment is made. Essentially, you are paying interest on the mortgage, losing the interest on that money if it was in a savings account until your mortgage is due. There are also companies that will arrange for the biweekly payments for you, but for a fee. Usually several hundred dollars. If you were in Canada, I would tell you to go weekly or biweekly because the payments are applied as received. Here in the US, the best way to get the benefit of bi-weekly payments is to add 1/12th of your payment to principal when you pay monthly. This is like making an additional mortgage payment per year. The key is to allocate those extra funds to principal. So, if your mortgage payment is $800 per month. Divide 800 by 12 which equals $66.67 per month that you would allocate to principal in addition to your full mortgage payment. Instead of paying $800, you would pay $866.67, while allocating 66.67 directly to principal. This should take about 7 years off a 30 year fixed mortgage, depending on the interest rate, and save you thousands and thousands in interest. You can also make a lump sum payment directly to principal, effectively making 13 payments in one year instead of 12. The companies that offer these biweekly programs don't submit your payment on a biweekly basis. Just like the mortgage companies, they hold your money and then make one lump sum payment every year to the principal. You can do that yourself for free and save yourself the ridiculous fee they charge to hold your money while getting the investment income from it. Below is a link to a mortgage calculator where you will see the savings by paying additional principal. Make sure you look at the amort charts provided because they show new payoff dates with additional principal and the interest you pay. For a $60K mortgage at 6.25%, your payment is $390 and additional principal is $31, making your payment $421. According to the calculator, it takes 5.5 years off the mortgage with total interest paid $56,857. By only paying your mortgage without any additional principal payments, you will pay $72,994 interest and pay for 30 years. You also have another option if you can afford it and that is to take out a 15 instead of 30 year mortgage. The rates are a bit lower and you will save thousands in interest. If you prepay your principal like described above on a monthly basis, your mortgage will be paid off in 13 years. Your payment would be approx $510 per month plus $43 for additional principal. That is another option you may want to consider since it seems like you want to pay as little interest as possible. Here is a link that might be useful: Mortgage Amortization Calculator

Hi newbuyer, Question 1) Would you recommend negotiating on any of these fees? If so, what is the best area to negotiate? "Negotiation" requires that you have some kind of leverage... something to offer in return for a concession requested. At this point you're too close to your closing date, and don't have the rest of your terms locked down anyway, so you'll just be fighting against yourself & not gaining any benefits. Question 2) "PMI-UFMIP-VA Funding fee financed" Is the upfront mortgage insurance premium negotiable? Is this rolled into my mortgage? Depends on what kind of program you are using, conventional, FHA or VA. Question 3) I close on the 23rd of this month. How did the bank come up with a fee of "Interest for 15 days @ $26.30 = 394.50" ? What 15 days would they be referring to? You're looking at a GFE, its just an "estimate." They threw the numbers from a range in order to be compliant with the regulations that require it issued within 3 days of application (but which has no requirement regarding accuracy at all.) At THIS point, you're quite a bit "day late, dollar short" for any significant financial structuring. You're pretty much going to have to cross your fingers & hope you chose a trustworthy loan professional who respects you and wants a longterm relationship. If you chose a retail lender with a faceless clerk... pray. Luck! Dave Donhoff Strategic Equity & Leverage Planner