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Mortgages & Loans

How can I estimate how large a Mortgage I can afford ?

Asked Friday, December 01, 2000 by an anonymous user
Some banks use a 33%/38% ratio guideline. According to this guideline your monthly mortgage payment including principal, interest, taxes and insurance should not be more than 33% of your gross monthly income. Also your total monthly debt payments including the mortgage, credit card payments and installment loans should not exceed 38% of your gross monthly income.
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Mortgages & Loans

What are closing costs?

Asked Friday, December 01, 2000 by an anonymous user
Closing costs are one time fees associated with a mortgage. Generally, the amounts vary from 3-7% of the total mortgage amount. Closing costs may include attorney fees, title insurance and related charges, mortgage tax, recording filing fees, tax service fees. Other payments at the closing may include Real Estate tax escrows, homeowner's insurance escrows, origination points, private mortgage insurance fees. You should receive a estimated closing costs document from the bank prior to the actual closing.
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Mortgages & Loans

How are American Depositary Receipt dividends paid and taxed ?

Asked Friday, December 01, 2000 by an anonymous user
Dividends are paid in U.S. dollars and are generally taxable, similar to dividends paid on U.S. shares. Generally, taxes are withheld by the American Depositary Receipt company's local government. Usually, foreign taxes paid can be used to calculate a credit against U.S. taxes on IRS Form 1116 or Schedule A. Speak to your local CPA or bank about investments in American Depositary Receipts.
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Mortgages & Loans

What is a Overlying Mortgage ?

Asked Friday, December 01, 2000 by an anonymous user
A Overlying mortgage is a mortgage which is junior, having a subordinate claim to a senior mortgage on the same real estate.
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Mortgages & Loans

Are my parents responsible for the Educational Loans I have taken out ?

Asked Thursday, November 30, 2000 by an anonymous user
No. Parents will only be responsible for your educational loans if you are under 18 and they cosign your loan. In general you and you alone are responsible for repaying your educational loans. Parents are responsible for the Federal PLUS loans only. If your parents want to help pay off your education loans, you can have your billing statements sent to their address. Also, if your lender provides an electronic payment service where the monthly payments are automatically deducted from a bank account, your parents can agree to have the payments deducted from their account. Your parents are under no legal obligation to repay your loans. If they forget to pay the bill on time or decide to cancel the electronic payment agreement, you will be held responsible for the payments, not them.
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Mortgages & Loans

Do my parents have an opportunity to cancel their college PLUS Loan after they sign the promissory note ?

Asked Thursday, November 30, 2000 by an anonymous user
Yes, your parents will have an opportunity to cancel their loan after they sign the promissory note. Your college must notify your parents in writing whenever it credits your account with your PLUS Loan funds.
This notification must be sent to your parents no earlier than 30 days before, and no later than 30 days after the college credits your account.
Your parents may cancel all or a portion of their loan if they inform your college that they wish to do so within 14 days after the date that your college sends this notice, or by the first day of the payment period, whichever is later.
Your college can tell you the first day of your payment period. If your parents receive PLUS Loan funds directly by check, they may refuse the funds by not endorsing the check.
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Mortgages & Loans

How do I apply for a Student Loan for my child ?

Asked Thursday, November 30, 2000 by an anonymous user
The first step in the college loan process is to fill out the FAFSA form. This form can be obtained from your child's high school guidance office and can also be obtained on the web at www.fafsa.ed.gov. Once you complete the application, you will find out what loan programs you are eligible for. Please speak to a CPA in your area for other loan options.
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Mortgages & Loans

In relation to Student Loans , what is a Grace Period ?

Asked Thursday, November 30, 2000 by an anonymous user
Grace Period is a short time period after graduation during which the borrower is not required to begin repaying his or her student loans. The grace period may also kick in if the borrower leaves school for a reason other than graduation or drops below half time enrollment. Depending on the type of loan, you will have a grace period of six months for Stafford Loans or nine months for Perkins Loans before you must start making payments on your student loans. The PLUS Loans do not have a grace period.
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Mortgages & Loans

In the college application process , do I have to sign the Master Promissory Note each year ?

Asked Thursday, November 30, 2000 by an anonymous user
If your school is authorized by the Department of Education, and uses the Master Promissory Note as a multi-year note, you will only have to sign the note once as long as you don't change lenders. If you attend a two year or proprietary school, you will need to complete the Master Promissory Note each year. If your Master Promissory Note exceeds 10 years, you must sign a new Master Promissory Note.
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