I need a mortgage genius

[Deal Hunter]

Chevy Chase was selling loans in 2005 that re-am’d only ONCE a year. The teaser rate was 1% over CODI. If you wanted the option of a re-am’ing more often (like every month) you had to pick the teaser rate of 2% over CODI. It was in the fine print underneath the fine print. And yes, it was insanity.

The lender is obligated by law to disclose every aspect of the loan to the borrower – including the re-am period and exact amount of each payment that is credited to interest and principal over the life of the loan. In fact, the escrow can’t close until borrower acknowledges receipt of the Truth in lending disclosure.

OP’s questions are straight-forward enough for a reliable answer from the lender. (I hope.)

[92024]

Thanks for the info everyone. I like the fact that this site, while sometimes a bit chippy in the bearish direction really tries to help people out when they ask.
I found out that with the first 10 years interest only, I need to make extra principal payments to bring down the balance. Thus, the best call would be to invest the extra, and then begin the new schedule after 10 years assuming I am still in the same loan. (unlikely).Plus the 3018 figure included embedded taxes in case you were wondering why the math was off.
P.S My loan is with BofA. I really like the online tools they have, plus all my banking is now free, which is saving me about $240 per year in Wells Fargo charges.

[92024]

Thanks for the info everyone. I like the fact that this site, while sometimes a bit chippy in the bearish direction really tries to help people out when they ask.
I found out that with the first 10 years interest only, I need to make extra principal payments to bring down the balance. Thus, the best call would be to invest the extra, and then begin the new schedule after 10 years assuming I am still in the same loan. (unlikely).Plus the 3018 figure included embedded taxes in case you were wondering why the math was off.
P.S My loan is with BofA. I really like the online tools they have, plus all my banking is now free, which is saving me about $240 per year in Wells Fargo charges.

[92024]

Thanks for the info everyone. I like the fact that this site, while sometimes a bit chippy in the bearish direction really tries to help people out when they ask.
I found out that with the first 10 years interest only, I need to make extra principal payments to bring down the balance. Thus, the best call would be to invest the extra, and then begin the new schedule after 10 years assuming I am still in the same loan. (unlikely).Plus the 3018 figure included embedded taxes in case you were wondering why the math was off.
P.S My loan is with BofA. I really like the online tools they have, plus all my banking is now free, which is saving me about $240 per year in Wells Fargo charges.

[92024]

Thanks for the info everyone. I like the fact that this site, while sometimes a bit chippy in the bearish direction really tries to help people out when they ask.
I found out that with the first 10 years interest only, I need to make extra principal payments to bring down the balance. Thus, the best call would be to invest the extra, and then begin the new schedule after 10 years assuming I am still in the same loan. (unlikely).Plus the 3018 figure included embedded taxes in case you were wondering why the math was off.
P.S My loan is with BofA. I really like the online tools they have, plus all my banking is now free, which is saving me about $240 per year in Wells Fargo charges.

[92024]

Thanks for the info everyone. I like the fact that this site, while sometimes a bit chippy in the bearish direction really tries to help people out when they ask.
I found out that with the first 10 years interest only, I need to make extra principal payments to bring down the balance. Thus, the best call would be to invest the extra, and then begin the new schedule after 10 years assuming I am still in the same loan. (unlikely).Plus the 3018 figure included embedded taxes in case you were wondering why the math was off.
P.S My loan is with BofA. I really like the online tools they have, plus all my banking is now free, which is saving me about $240 per year in Wells Fargo charges.

[HLS]

DH,
I think that you are referring to an annual (or monthly) payment recast, not the crediting of principal.

I still don’t believe that there is a lender on the planet that doesn’t credit extra principal monthly…

NO loan closes anywhere in the country without a signed TIL.. and with an ARM it isn’t possible to predict the exact amount of each payment over the life of the loan.

I now know that you have read a lot of bad information, and are only repeating what you think is true.

[HLS]

DH,
I think that you are referring to an annual (or monthly) payment recast, not the crediting of principal.

I still don’t believe that there is a lender on the planet that doesn’t credit extra principal monthly…

NO loan closes anywhere in the country without a signed TIL.. and with an ARM it isn’t possible to predict the exact amount of each payment over the life of the loan.

I now know that you have read a lot of bad information, and are only repeating what you think is true.

[HLS]

DH,
I think that you are referring to an annual (or monthly) payment recast, not the crediting of principal.

I still don’t believe that there is a lender on the planet that doesn’t credit extra principal monthly…

NO loan closes anywhere in the country without a signed TIL.. and with an ARM it isn’t possible to predict the exact amount of each payment over the life of the loan.

I now know that you have read a lot of bad information, and are only repeating what you think is true.

[HLS]

DH,
I think that you are referring to an annual (or monthly) payment recast, not the crediting of principal.

I still don’t believe that there is a lender on the planet that doesn’t credit extra principal monthly…

NO loan closes anywhere in the country without a signed TIL.. and with an ARM it isn’t possible to predict the exact amount of each payment over the life of the loan.

I now know that you have read a lot of bad information, and are only repeating what you think is true.

[HLS]

DH,
I think that you are referring to an annual (or monthly) payment recast, not the crediting of principal.

I still don’t believe that there is a lender on the planet that doesn’t credit extra principal monthly…

NO loan closes anywhere in the country without a signed TIL.. and with an ARM it isn’t possible to predict the exact amount of each payment over the life of the loan.

I now know that you have read a lot of bad information, and are only repeating what you think is true.

[ucodegen]

@HLS

Assuming that the OP knows their rate, they have an impound account of $505, which is what I already factored into my comment above. It’s not fishy at all…
and you don’t pay “points” in a monthly payment.

I was assuming the guy was talking about only the P/I (actually I in this case) portion of the costs, not the impound account for property taxes/insurance. Considering California at 1%, it may be a bit short for combined property taxes/insurance.. PMI too??

As for points, I was referring to amount added in for financing. The advertised/listed rate might have been 6.35%, but depending upon how financed.. there may have been points added. Too many people don’t go through their own loan documents and actually read them.

Note to the gallery on impound accounts:
http://www.escrowhelp.com/articles/19990604.html

Most loans that have a prepayment penalty allow for paying up to 20% of principal per year without any penalty, so there is never a problem paying an extra payment here or there.
I have seen more than one that has a severe prepayment penalty on any percentage. One of these was a Countrywide origination… In fact, on that one, the period for prepayment penalty was something like 7 years.

[ucodegen]

@HLS

Assuming that the OP knows their rate, they have an impound account of $505, which is what I already factored into my comment above. It’s not fishy at all…
and you don’t pay “points” in a monthly payment.

I was assuming the guy was talking about only the P/I (actually I in this case) portion of the costs, not the impound account for property taxes/insurance. Considering California at 1%, it may be a bit short for combined property taxes/insurance.. PMI too??

As for points, I was referring to amount added in for financing. The advertised/listed rate might have been 6.35%, but depending upon how financed.. there may have been points added. Too many people don’t go through their own loan documents and actually read them.

Note to the gallery on impound accounts:
http://www.escrowhelp.com/articles/19990604.html

Most loans that have a prepayment penalty allow for paying up to 20% of principal per year without any penalty, so there is never a problem paying an extra payment here or there.
I have seen more than one that has a severe prepayment penalty on any percentage. One of these was a Countrywide origination… In fact, on that one, the period for prepayment penalty was something like 7 years.

[ucodegen]

@HLS

Assuming that the OP knows their rate, they have an impound account of $505, which is what I already factored into my comment above. It’s not fishy at all…
and you don’t pay “points” in a monthly payment.

I was assuming the guy was talking about only the P/I (actually I in this case) portion of the costs, not the impound account for property taxes/insurance. Considering California at 1%, it may be a bit short for combined property taxes/insurance.. PMI too??

As for points, I was referring to amount added in for financing. The advertised/listed rate might have been 6.35%, but depending upon how financed.. there may have been points added. Too many people don’t go through their own loan documents and actually read them.

Note to the gallery on impound accounts:
http://www.escrowhelp.com/articles/19990604.html

Most loans that have a prepayment penalty allow for paying up to 20% of principal per year without any penalty, so there is never a problem paying an extra payment here or there.
I have seen more than one that has a severe prepayment penalty on any percentage. One of these was a Countrywide origination… In fact, on that one, the period for prepayment penalty was something like 7 years.

[ucodegen]

@HLS

Assuming that the OP knows their rate, they have an impound account of $505, which is what I already factored into my comment above. It’s not fishy at all…
and you don’t pay “points” in a monthly payment.

I was assuming the guy was talking about only the P/I (actually I in this case) portion of the costs, not the impound account for property taxes/insurance. Considering California at 1%, it may be a bit short for combined property taxes/insurance.. PMI too??

As for points, I was referring to amount added in for financing. The advertised/listed rate might have been 6.35%, but depending upon how financed.. there may have been points added. Too many people don’t go through their own loan documents and actually read them.

Note to the gallery on impound accounts:
http://www.escrowhelp.com/articles/19990604.html

Most loans that have a prepayment penalty allow for paying up to 20% of principal per year without any penalty, so there is never a problem paying an extra payment here or there.
I have seen more than one that has a severe prepayment penalty on any percentage. One of these was a Countrywide origination… In fact, on that one, the period for prepayment penalty was something like 7 years.

[Author]

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