Just bought a new house, questions on finance and home inspection

[CDMA ENG]

CDMA ENG…

Hey SD Realtor,

would you mind defining the word “soft” in this statement?

“1 – Have you verified that there is no soft prepayment penalty for the loan that you get from the in house lender?”

Thanks in advance,

CE

[SD Realtor]

CDMA –

There are different classifications/terminologies used to define prepayment penalties.

A prepayment penalty implies a fixed period of time that you must keep a loan. You cannot refi, you cannot sell your home, you cannot do squat otherwise you pay a prepayment penalty. A “hard” prepayment penalty means you cannot sell the home without paying a penalty. A “soft” prepayment penalty implies you cannot refi the home without a prepayment penalty.

Just about all hybrid loans carry a soft prepayment penalty for a fixed number of years. Some of them even carry a hard prepayment penalty as well.

I am not a mortgage broker so I am sure many who are more well versed then I can comment.

Wrangler good for you on the purchase as well. My only concern is that the refinancing strategy part concerns me. Honestly covering that “base” is a VERY important thing and I feel that this may be a portion of the purchasing process that was not as well researched as could have been.

The physical inspection part is a very good idea. No reason not to do it. For a few hundred bucks it makes sense to do on an investment that is at least several hundred thousand. As I said, the important thing to check is that the builder will indeed remedy findings that are brought up by the inspector. I would ASSUME they will BUT asking beforehand could not hurt.

[SD Realtor]

CDMA –

There are different classifications/terminologies used to define prepayment penalties.

A prepayment penalty implies a fixed period of time that you must keep a loan. You cannot refi, you cannot sell your home, you cannot do squat otherwise you pay a prepayment penalty. A “hard” prepayment penalty means you cannot sell the home without paying a penalty. A “soft” prepayment penalty implies you cannot refi the home without a prepayment penalty.

Just about all hybrid loans carry a soft prepayment penalty for a fixed number of years. Some of them even carry a hard prepayment penalty as well.

I am not a mortgage broker so I am sure many who are more well versed then I can comment.

Wrangler good for you on the purchase as well. My only concern is that the refinancing strategy part concerns me. Honestly covering that “base” is a VERY important thing and I feel that this may be a portion of the purchasing process that was not as well researched as could have been.

The physical inspection part is a very good idea. No reason not to do it. For a few hundred bucks it makes sense to do on an investment that is at least several hundred thousand. As I said, the important thing to check is that the builder will indeed remedy findings that are brought up by the inspector. I would ASSUME they will BUT asking beforehand could not hurt.

[SD Realtor]

CDMA –

There are different classifications/terminologies used to define prepayment penalties.

A prepayment penalty implies a fixed period of time that you must keep a loan. You cannot refi, you cannot sell your home, you cannot do squat otherwise you pay a prepayment penalty. A “hard” prepayment penalty means you cannot sell the home without paying a penalty. A “soft” prepayment penalty implies you cannot refi the home without a prepayment penalty.

Just about all hybrid loans carry a soft prepayment penalty for a fixed number of years. Some of them even carry a hard prepayment penalty as well.

I am not a mortgage broker so I am sure many who are more well versed then I can comment.

Wrangler good for you on the purchase as well. My only concern is that the refinancing strategy part concerns me. Honestly covering that “base” is a VERY important thing and I feel that this may be a portion of the purchasing process that was not as well researched as could have been.

The physical inspection part is a very good idea. No reason not to do it. For a few hundred bucks it makes sense to do on an investment that is at least several hundred thousand. As I said, the important thing to check is that the builder will indeed remedy findings that are brought up by the inspector. I would ASSUME they will BUT asking beforehand could not hurt.

[SD Realtor]

CDMA –

There are different classifications/terminologies used to define prepayment penalties.

A prepayment penalty implies a fixed period of time that you must keep a loan. You cannot refi, you cannot sell your home, you cannot do squat otherwise you pay a prepayment penalty. A “hard” prepayment penalty means you cannot sell the home without paying a penalty. A “soft” prepayment penalty implies you cannot refi the home without a prepayment penalty.

Just about all hybrid loans carry a soft prepayment penalty for a fixed number of years. Some of them even carry a hard prepayment penalty as well.

I am not a mortgage broker so I am sure many who are more well versed then I can comment.

Wrangler good for you on the purchase as well. My only concern is that the refinancing strategy part concerns me. Honestly covering that “base” is a VERY important thing and I feel that this may be a portion of the purchasing process that was not as well researched as could have been.

The physical inspection part is a very good idea. No reason not to do it. For a few hundred bucks it makes sense to do on an investment that is at least several hundred thousand. As I said, the important thing to check is that the builder will indeed remedy findings that are brought up by the inspector. I would ASSUME they will BUT asking beforehand could not hurt.

[SD Realtor]

CDMA –

There are different classifications/terminologies used to define prepayment penalties.

A prepayment penalty implies a fixed period of time that you must keep a loan. You cannot refi, you cannot sell your home, you cannot do squat otherwise you pay a prepayment penalty. A “hard” prepayment penalty means you cannot sell the home without paying a penalty. A “soft” prepayment penalty implies you cannot refi the home without a prepayment penalty.

Just about all hybrid loans carry a soft prepayment penalty for a fixed number of years. Some of them even carry a hard prepayment penalty as well.

I am not a mortgage broker so I am sure many who are more well versed then I can comment.

Wrangler good for you on the purchase as well. My only concern is that the refinancing strategy part concerns me. Honestly covering that “base” is a VERY important thing and I feel that this may be a portion of the purchasing process that was not as well researched as could have been.

The physical inspection part is a very good idea. No reason not to do it. For a few hundred bucks it makes sense to do on an investment that is at least several hundred thousand. As I said, the important thing to check is that the builder will indeed remedy findings that are brought up by the inspector. I would ASSUME they will BUT asking beforehand could not hurt.

[pk92108]

hey lendingbubble….No the pk doesn’t mean that i bought my home at the peak…You may be able to correctly pick the bottom and top of the market, but 99.9999% can’t do it…

Everyone’s situation is different…Maybe the person who stared the thread doesn’t want to be a serial renter and be at the whim of rent increases or an owner’s foreclosure…Maybe he has kids in school that he wants to provide some stability for…Even moving a few blocks can mean a change of schools if you go the public route (especially in C.V.)

Plus, just as one dollar cost averages with mutual funds, I do the same with investment property…Buying one every 5 years or so…I will get some near the bottom and maybe some near the top, but hopefully after 30 years of doing it I will be ahead….Maybe not, but I wish I had a crystal ball…..I would love to buy everything at the bottom but I can’t…

[pk92108]

hey lendingbubble….No the pk doesn’t mean that i bought my home at the peak…You may be able to correctly pick the bottom and top of the market, but 99.9999% can’t do it…

Everyone’s situation is different…Maybe the person who stared the thread doesn’t want to be a serial renter and be at the whim of rent increases or an owner’s foreclosure…Maybe he has kids in school that he wants to provide some stability for…Even moving a few blocks can mean a change of schools if you go the public route (especially in C.V.)

Plus, just as one dollar cost averages with mutual funds, I do the same with investment property…Buying one every 5 years or so…I will get some near the bottom and maybe some near the top, but hopefully after 30 years of doing it I will be ahead….Maybe not, but I wish I had a crystal ball…..I would love to buy everything at the bottom but I can’t…

[pk92108]

hey lendingbubble….No the pk doesn’t mean that i bought my home at the peak…You may be able to correctly pick the bottom and top of the market, but 99.9999% can’t do it…

Everyone’s situation is different…Maybe the person who stared the thread doesn’t want to be a serial renter and be at the whim of rent increases or an owner’s foreclosure…Maybe he has kids in school that he wants to provide some stability for…Even moving a few blocks can mean a change of schools if you go the public route (especially in C.V.)

Plus, just as one dollar cost averages with mutual funds, I do the same with investment property…Buying one every 5 years or so…I will get some near the bottom and maybe some near the top, but hopefully after 30 years of doing it I will be ahead….Maybe not, but I wish I had a crystal ball…..I would love to buy everything at the bottom but I can’t…

[pk92108]

hey lendingbubble….No the pk doesn’t mean that i bought my home at the peak…You may be able to correctly pick the bottom and top of the market, but 99.9999% can’t do it…

Everyone’s situation is different…Maybe the person who stared the thread doesn’t want to be a serial renter and be at the whim of rent increases or an owner’s foreclosure…Maybe he has kids in school that he wants to provide some stability for…Even moving a few blocks can mean a change of schools if you go the public route (especially in C.V.)

Plus, just as one dollar cost averages with mutual funds, I do the same with investment property…Buying one every 5 years or so…I will get some near the bottom and maybe some near the top, but hopefully after 30 years of doing it I will be ahead….Maybe not, but I wish I had a crystal ball…..I would love to buy everything at the bottom but I can’t…

[pk92108]

hey lendingbubble….No the pk doesn’t mean that i bought my home at the peak…You may be able to correctly pick the bottom and top of the market, but 99.9999% can’t do it…

Everyone’s situation is different…Maybe the person who stared the thread doesn’t want to be a serial renter and be at the whim of rent increases or an owner’s foreclosure…Maybe he has kids in school that he wants to provide some stability for…Even moving a few blocks can mean a change of schools if you go the public route (especially in C.V.)

Plus, just as one dollar cost averages with mutual funds, I do the same with investment property…Buying one every 5 years or so…I will get some near the bottom and maybe some near the top, but hopefully after 30 years of doing it I will be ahead….Maybe not, but I wish I had a crystal ball…..I would love to buy everything at the bottom but I can’t…

[temeculaguy]

I’m going to take the centrist route here, do get the independent inspector, but if you already have non refundable money down, you may have asked about condom brand preferences after a positive pregnancy test (shameless analogy, I know). I agree that at a certain point it isn’t worth it to many people to wait for the bottom, “better than most, not as good as some” is a good policy. I for one am not waiting five years and have already dealt with the foreclosed landlord thing, i only have patience for one more rental and that’s it. If you can completely afford what you want with conventional financing, even if there is no appreciation for a decade, have at it. Stability has it’s benefits and it’s costs. On another thread i posted a pad that I felt was fairly priced and a week’s pay would cover it for me, yet there will always be those who think that it is still overpriced and those who think it is a steal, the best wine is not the highest rated, it’s the one YOU like. I haven’t seen evidence of drastic reductons in SD yet so i think mid to late 08 would be better but the OP didn’t ask about that.

[temeculaguy]

I’m going to take the centrist route here, do get the independent inspector, but if you already have non refundable money down, you may have asked about condom brand preferences after a positive pregnancy test (shameless analogy, I know). I agree that at a certain point it isn’t worth it to many people to wait for the bottom, “better than most, not as good as some” is a good policy. I for one am not waiting five years and have already dealt with the foreclosed landlord thing, i only have patience for one more rental and that’s it. If you can completely afford what you want with conventional financing, even if there is no appreciation for a decade, have at it. Stability has it’s benefits and it’s costs. On another thread i posted a pad that I felt was fairly priced and a week’s pay would cover it for me, yet there will always be those who think that it is still overpriced and those who think it is a steal, the best wine is not the highest rated, it’s the one YOU like. I haven’t seen evidence of drastic reductons in SD yet so i think mid to late 08 would be better but the OP didn’t ask about that.

[temeculaguy]

I’m going to take the centrist route here, do get the independent inspector, but if you already have non refundable money down, you may have asked about condom brand preferences after a positive pregnancy test (shameless analogy, I know). I agree that at a certain point it isn’t worth it to many people to wait for the bottom, “better than most, not as good as some” is a good policy. I for one am not waiting five years and have already dealt with the foreclosed landlord thing, i only have patience for one more rental and that’s it. If you can completely afford what you want with conventional financing, even if there is no appreciation for a decade, have at it. Stability has it’s benefits and it’s costs. On another thread i posted a pad that I felt was fairly priced and a week’s pay would cover it for me, yet there will always be those who think that it is still overpriced and those who think it is a steal, the best wine is not the highest rated, it’s the one YOU like. I haven’t seen evidence of drastic reductons in SD yet so i think mid to late 08 would be better but the OP didn’t ask about that.

[temeculaguy]

I’m going to take the centrist route here, do get the independent inspector, but if you already have non refundable money down, you may have asked about condom brand preferences after a positive pregnancy test (shameless analogy, I know). I agree that at a certain point it isn’t worth it to many people to wait for the bottom, “better than most, not as good as some” is a good policy. I for one am not waiting five years and have already dealt with the foreclosed landlord thing, i only have patience for one more rental and that’s it. If you can completely afford what you want with conventional financing, even if there is no appreciation for a decade, have at it. Stability has it’s benefits and it’s costs. On another thread i posted a pad that I felt was fairly priced and a week’s pay would cover it for me, yet there will always be those who think that it is still overpriced and those who think it is a steal, the best wine is not the highest rated, it’s the one YOU like. I haven’t seen evidence of drastic reductons in SD yet so i think mid to late 08 would be better but the OP didn’t ask about that.

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