Mortgage Lies and Truths

[NotCranky]

The gut instincts of the ever hyper-vigilant Rustico. This purported “Troll” is a saboteur of a recent new poster or it is that same recent new poster who wanted to see responses to the topic “Interest only loans”. My apologies in advance to all suspected parties if OP turns out to be legit and in that case Rustico opines,if you really have to have that house, “no choice” rob a bank.

[NotCranky]

The gut instincts of the ever hyper-vigilant Rustico. This purported “Troll” is a saboteur of a recent new poster or it is that same recent new poster who wanted to see responses to the topic “Interest only loans”. My apologies in advance to all suspected parties if OP turns out to be legit and in that case Rustico opines,if you really have to have that house, “no choice” rob a bank.

[(former)FormerSanDiegan]

Kid: “But Mom, everybody’s doing it. Even Jimmy”

Mother: “If Jimmy jumped off a building, would you do the same ?”

Kid : “I guess not.”

Mother : “Well then why would you go jumping into a mortgage product because everyone else did ?”

Kid: “I don’t know”

Mother: “You’re grounded. Go to your room and don’t come out until at least 2009.”

[(former)FormerSanDiegan]

Kid: “But Mom, everybody’s doing it. Even Jimmy”

Mother: “If Jimmy jumped off a building, would you do the same ?”

Kid : “I guess not.”

Mother : “Well then why would you go jumping into a mortgage product because everyone else did ?”

Kid: “I don’t know”

Mother: “You’re grounded. Go to your room and don’t come out until at least 2009.”

[cr]

I don’t get the impression this guy is a troll so at the risk of looking naive I’ll state the obvious:

Any Non-Traditional mortgage, Adjustable, interest only, or (the now defunct) negative amortization is essentially designed to do one thing: get you into a house you could not otherwise afford.

It may save money in the short term, but then what? If you don’t have a bulletproof answer to that, than you should go traditional. And “I will take my equity, pay off the loan, and buy something else” is not a bullet proof answer in today’s market.

[cr]

I don’t get the impression this guy is a troll so at the risk of looking naive I’ll state the obvious:

Any Non-Traditional mortgage, Adjustable, interest only, or (the now defunct) negative amortization is essentially designed to do one thing: get you into a house you could not otherwise afford.

It may save money in the short term, but then what? If you don’t have a bulletproof answer to that, than you should go traditional. And “I will take my equity, pay off the loan, and buy something else” is not a bullet proof answer in today’s market.

[NotCranky]

First of all my apolgies for insinuating that any regular poster here would be deceiptful(until it is more obvious at least). I think this person is a troll because it would seem that anyone who ever had been anywhere near the business, as OP claims to have been, would know a lot better.

[NotCranky]

First of all my apolgies for insinuating that any regular poster here would be deceiptful(until it is more obvious at least). I think this person is a troll because it would seem that anyone who ever had been anywhere near the business, as OP claims to have been, would know a lot better.

[NorthCountyMan]

Hmmm. I’ve never been called a troll before. And for your information, I’m not a troll. Maybe a better response would be to comment on the number of “reputable” lenders out there still pedaling these exotic mortgages.

When I was in the business, I never saw them so they are new to me. And I agree on the trust issue. I tell people make sure you trust your lender and your broker….so there.

[NorthCountyMan]

Hmmm. I’ve never been called a troll before. And for your information, I’m not a troll. Maybe a better response would be to comment on the number of “reputable” lenders out there still pedaling these exotic mortgages.

When I was in the business, I never saw them so they are new to me. And I agree on the trust issue. I tell people make sure you trust your lender and your broker….so there.

[HLS]

I am in the lending biz today, and just happen to know what ethics and integrity are AND I have them both.

Depending on you overall financial situation, I strongly suggest everybody CONSIDER an interest only loan. It’s a lifesaver for some, when understood.

Some people are just stubborn, and you can’t teach an old dog new tricks.

It makes no difference to me. I don’t make more on either.

Generalizations such as never and always that don’t address a borrwer’s overall specific situation are nothing short of irresponsible.

[HLS]

I am in the lending biz today, and just happen to know what ethics and integrity are AND I have them both.

Depending on you overall financial situation, I strongly suggest everybody CONSIDER an interest only loan. It’s a lifesaver for some, when understood.

Some people are just stubborn, and you can’t teach an old dog new tricks.

It makes no difference to me. I don’t make more on either.

Generalizations such as never and always that don’t address a borrwer’s overall specific situation are nothing short of irresponsible.

[CMcG]

NorthCountyMan, I apologize for thinking you might be a troll. I personally have a 30-year fixed at 6.25 with the first 10 years interest only. I pay a little bit extra each month. Every person’s situation is different. I did this kind of loan because my financial situation will change dramatically (in my favor) in the next couple of years. Please don’t be scared to post again.

[CMcG]

NorthCountyMan, I apologize for thinking you might be a troll. I personally have a 30-year fixed at 6.25 with the first 10 years interest only. I pay a little bit extra each month. Every person’s situation is different. I did this kind of loan because my financial situation will change dramatically (in my favor) in the next couple of years. Please don’t be scared to post again.

[Arraya]

That is true HLS, DEPENDING on your overall financial situation. However its very hard to justify an I/O arm in a down market on a purchase.

One justification is a definate income improvement or a large some of money coming you way.

The only other justification could be using the money that you would normally put down on principle and putting it into a very very safe investment that returns yields that are greater than the interest paid on the loan.

How likely are they?

[Author]

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