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  • December 31, 2008 at 9:42 PM #322173
    j
    Participant

    Just go FHA, because there is no PMI required.

    Remember mortgage brokers are only out for the commission, and they are not not any kind of advisor. Most don’t have any kind of degree, let alone a degree in finance or accounting. Beware the mortgage broker!

    Look at all the people that listened to their mortgage brokers over the last five years.

    January 1, 2009 at 8:50 AM #322773
    HLS
    Participant

    J,

    I’m not sure what the source of your information is, but it is WRONG. Please correct me if you have FACTS that are different.

    On an FHA loan PMI IS REQUIRED for 5 years, regardless of a down payment. Even with 50% down, FHA loans have PMI, for 5 years.

    Just to make sure that you understand, EVERY 30 year FHA loan has PMI for 5 years.

    (If you get a 15 YR FHA loan with up to 10% down the PMI is less. If you get a 15 YR FHA loan with at least 10% down there is no PMI)

    EVERY FHA loan comes with an upfront 1.75% fee.
    On a $400K loan that is $7000.00. This fee doesn’t exist on “conventional” financing. (FNMA & Freddie)
    FHA rates are not better than conv. A waste of money, but the price to pay for help from the govt.

    You are partially correct that MOST mortgage brokers are out for the commission and MOST are not any kind of advisor.
    In every industry/profession there are incompetent, dishonest people, many have degrees.
    Many employees are lazy & useless too

    The problem is the profit that most mortgage people want to make.

    The fact is that a good mortgage consultant can save people a lot of money in various ways.
    Yes they make money by doing it.

    Do you REALLY think that you are going to get a loan anywhere that the originator is going to lose money on ?

    Banks make profits on loans and you often deal with a clueless bank employee who is told what to say and only offers the bank RETAIL products. They mislead people by telling them that they have no fees, which is misleading. They charge a higher rate which leads to a higher payment for the life of the loan, costing the borrower a small fortune in the long run.

    Mortgage brokers have access to money at wholesale rates, not retail. If their markup is reasonable, you can get a better loan from a broker.

    Believing that FHA is the best loan is wrong. For most people, FHA is the WORST loan possible.

    If you have a crappy credit score and only 3% down, then FHA might be your only option.
    In my opinion if you only have 3% down you shouldn’t be buying a house.

    FHA is a govt program which supposedly helps people. Over the years it has allowed many people to buy a house, but for the uneducated consumer they may have had better options.

    Yes, I am in the business. I’m a mortgage consultant who educates people of their options and has a very reasonable fee to do it.

    Anyone that you have given your opinion to is now misinformed, spreading more ignorance and myth rather than facts. BEWARE OF IGNORANT PEOPLE…
    HLS

    January 1, 2009 at 8:50 AM #322270
    HLS
    Participant

    J,

    I’m not sure what the source of your information is, but it is WRONG. Please correct me if you have FACTS that are different.

    On an FHA loan PMI IS REQUIRED for 5 years, regardless of a down payment. Even with 50% down, FHA loans have PMI, for 5 years.

    Just to make sure that you understand, EVERY 30 year FHA loan has PMI for 5 years.

    (If you get a 15 YR FHA loan with up to 10% down the PMI is less. If you get a 15 YR FHA loan with at least 10% down there is no PMI)

    EVERY FHA loan comes with an upfront 1.75% fee.
    On a $400K loan that is $7000.00. This fee doesn’t exist on “conventional” financing. (FNMA & Freddie)
    FHA rates are not better than conv. A waste of money, but the price to pay for help from the govt.

    You are partially correct that MOST mortgage brokers are out for the commission and MOST are not any kind of advisor.
    In every industry/profession there are incompetent, dishonest people, many have degrees.
    Many employees are lazy & useless too

    The problem is the profit that most mortgage people want to make.

    The fact is that a good mortgage consultant can save people a lot of money in various ways.
    Yes they make money by doing it.

    Do you REALLY think that you are going to get a loan anywhere that the originator is going to lose money on ?

    Banks make profits on loans and you often deal with a clueless bank employee who is told what to say and only offers the bank RETAIL products. They mislead people by telling them that they have no fees, which is misleading. They charge a higher rate which leads to a higher payment for the life of the loan, costing the borrower a small fortune in the long run.

    Mortgage brokers have access to money at wholesale rates, not retail. If their markup is reasonable, you can get a better loan from a broker.

    Believing that FHA is the best loan is wrong. For most people, FHA is the WORST loan possible.

    If you have a crappy credit score and only 3% down, then FHA might be your only option.
    In my opinion if you only have 3% down you shouldn’t be buying a house.

    FHA is a govt program which supposedly helps people. Over the years it has allowed many people to buy a house, but for the uneducated consumer they may have had better options.

    Yes, I am in the business. I’m a mortgage consultant who educates people of their options and has a very reasonable fee to do it.

    Anyone that you have given your opinion to is now misinformed, spreading more ignorance and myth rather than facts. BEWARE OF IGNORANT PEOPLE…
    HLS

    January 1, 2009 at 8:50 AM #322614
    HLS
    Participant

    J,

    I’m not sure what the source of your information is, but it is WRONG. Please correct me if you have FACTS that are different.

    On an FHA loan PMI IS REQUIRED for 5 years, regardless of a down payment. Even with 50% down, FHA loans have PMI, for 5 years.

    Just to make sure that you understand, EVERY 30 year FHA loan has PMI for 5 years.

    (If you get a 15 YR FHA loan with up to 10% down the PMI is less. If you get a 15 YR FHA loan with at least 10% down there is no PMI)

    EVERY FHA loan comes with an upfront 1.75% fee.
    On a $400K loan that is $7000.00. This fee doesn’t exist on “conventional” financing. (FNMA & Freddie)
    FHA rates are not better than conv. A waste of money, but the price to pay for help from the govt.

    You are partially correct that MOST mortgage brokers are out for the commission and MOST are not any kind of advisor.
    In every industry/profession there are incompetent, dishonest people, many have degrees.
    Many employees are lazy & useless too

    The problem is the profit that most mortgage people want to make.

    The fact is that a good mortgage consultant can save people a lot of money in various ways.
    Yes they make money by doing it.

    Do you REALLY think that you are going to get a loan anywhere that the originator is going to lose money on ?

    Banks make profits on loans and you often deal with a clueless bank employee who is told what to say and only offers the bank RETAIL products. They mislead people by telling them that they have no fees, which is misleading. They charge a higher rate which leads to a higher payment for the life of the loan, costing the borrower a small fortune in the long run.

    Mortgage brokers have access to money at wholesale rates, not retail. If their markup is reasonable, you can get a better loan from a broker.

    Believing that FHA is the best loan is wrong. For most people, FHA is the WORST loan possible.

    If you have a crappy credit score and only 3% down, then FHA might be your only option.
    In my opinion if you only have 3% down you shouldn’t be buying a house.

    FHA is a govt program which supposedly helps people. Over the years it has allowed many people to buy a house, but for the uneducated consumer they may have had better options.

    Yes, I am in the business. I’m a mortgage consultant who educates people of their options and has a very reasonable fee to do it.

    Anyone that you have given your opinion to is now misinformed, spreading more ignorance and myth rather than facts. BEWARE OF IGNORANT PEOPLE…
    HLS

    January 1, 2009 at 8:50 AM #322692
    HLS
    Participant

    J,

    I’m not sure what the source of your information is, but it is WRONG. Please correct me if you have FACTS that are different.

    On an FHA loan PMI IS REQUIRED for 5 years, regardless of a down payment. Even with 50% down, FHA loans have PMI, for 5 years.

    Just to make sure that you understand, EVERY 30 year FHA loan has PMI for 5 years.

    (If you get a 15 YR FHA loan with up to 10% down the PMI is less. If you get a 15 YR FHA loan with at least 10% down there is no PMI)

    EVERY FHA loan comes with an upfront 1.75% fee.
    On a $400K loan that is $7000.00. This fee doesn’t exist on “conventional” financing. (FNMA & Freddie)
    FHA rates are not better than conv. A waste of money, but the price to pay for help from the govt.

    You are partially correct that MOST mortgage brokers are out for the commission and MOST are not any kind of advisor.
    In every industry/profession there are incompetent, dishonest people, many have degrees.
    Many employees are lazy & useless too

    The problem is the profit that most mortgage people want to make.

    The fact is that a good mortgage consultant can save people a lot of money in various ways.
    Yes they make money by doing it.

    Do you REALLY think that you are going to get a loan anywhere that the originator is going to lose money on ?

    Banks make profits on loans and you often deal with a clueless bank employee who is told what to say and only offers the bank RETAIL products. They mislead people by telling them that they have no fees, which is misleading. They charge a higher rate which leads to a higher payment for the life of the loan, costing the borrower a small fortune in the long run.

    Mortgage brokers have access to money at wholesale rates, not retail. If their markup is reasonable, you can get a better loan from a broker.

    Believing that FHA is the best loan is wrong. For most people, FHA is the WORST loan possible.

    If you have a crappy credit score and only 3% down, then FHA might be your only option.
    In my opinion if you only have 3% down you shouldn’t be buying a house.

    FHA is a govt program which supposedly helps people. Over the years it has allowed many people to buy a house, but for the uneducated consumer they may have had better options.

    Yes, I am in the business. I’m a mortgage consultant who educates people of their options and has a very reasonable fee to do it.

    Anyone that you have given your opinion to is now misinformed, spreading more ignorance and myth rather than facts. BEWARE OF IGNORANT PEOPLE…
    HLS

    January 1, 2009 at 8:50 AM #322675
    HLS
    Participant

    J,

    I’m not sure what the source of your information is, but it is WRONG. Please correct me if you have FACTS that are different.

    On an FHA loan PMI IS REQUIRED for 5 years, regardless of a down payment. Even with 50% down, FHA loans have PMI, for 5 years.

    Just to make sure that you understand, EVERY 30 year FHA loan has PMI for 5 years.

    (If you get a 15 YR FHA loan with up to 10% down the PMI is less. If you get a 15 YR FHA loan with at least 10% down there is no PMI)

    EVERY FHA loan comes with an upfront 1.75% fee.
    On a $400K loan that is $7000.00. This fee doesn’t exist on “conventional” financing. (FNMA & Freddie)
    FHA rates are not better than conv. A waste of money, but the price to pay for help from the govt.

    You are partially correct that MOST mortgage brokers are out for the commission and MOST are not any kind of advisor.
    In every industry/profession there are incompetent, dishonest people, many have degrees.
    Many employees are lazy & useless too

    The problem is the profit that most mortgage people want to make.

    The fact is that a good mortgage consultant can save people a lot of money in various ways.
    Yes they make money by doing it.

    Do you REALLY think that you are going to get a loan anywhere that the originator is going to lose money on ?

    Banks make profits on loans and you often deal with a clueless bank employee who is told what to say and only offers the bank RETAIL products. They mislead people by telling them that they have no fees, which is misleading. They charge a higher rate which leads to a higher payment for the life of the loan, costing the borrower a small fortune in the long run.

    Mortgage brokers have access to money at wholesale rates, not retail. If their markup is reasonable, you can get a better loan from a broker.

    Believing that FHA is the best loan is wrong. For most people, FHA is the WORST loan possible.

    If you have a crappy credit score and only 3% down, then FHA might be your only option.
    In my opinion if you only have 3% down you shouldn’t be buying a house.

    FHA is a govt program which supposedly helps people. Over the years it has allowed many people to buy a house, but for the uneducated consumer they may have had better options.

    Yes, I am in the business. I’m a mortgage consultant who educates people of their options and has a very reasonable fee to do it.

    Anyone that you have given your opinion to is now misinformed, spreading more ignorance and myth rather than facts. BEWARE OF IGNORANT PEOPLE…
    HLS

    January 1, 2009 at 11:36 AM #322788
    Ex-SD
    Participant

    HLS: Well stated! And right on the money………………as usual.

    J.: You are the kind of guy who thinks he knows everything and winds up getting fucked over for thousands of extra dollars in fees, points, PMI, etc.

    I’m not in the mortgage business (like HLS) but I have friends who are and your source (or sources) for mortgage information are grossly misinformed.

    January 1, 2009 at 11:36 AM #322707
    Ex-SD
    Participant

    HLS: Well stated! And right on the money………………as usual.

    J.: You are the kind of guy who thinks he knows everything and winds up getting fucked over for thousands of extra dollars in fees, points, PMI, etc.

    I’m not in the mortgage business (like HLS) but I have friends who are and your source (or sources) for mortgage information are grossly misinformed.

    January 1, 2009 at 11:36 AM #322285
    Ex-SD
    Participant

    HLS: Well stated! And right on the money………………as usual.

    J.: You are the kind of guy who thinks he knows everything and winds up getting fucked over for thousands of extra dollars in fees, points, PMI, etc.

    I’m not in the mortgage business (like HLS) but I have friends who are and your source (or sources) for mortgage information are grossly misinformed.

    January 1, 2009 at 11:36 AM #322630
    Ex-SD
    Participant

    HLS: Well stated! And right on the money………………as usual.

    J.: You are the kind of guy who thinks he knows everything and winds up getting fucked over for thousands of extra dollars in fees, points, PMI, etc.

    I’m not in the mortgage business (like HLS) but I have friends who are and your source (or sources) for mortgage information are grossly misinformed.

    January 1, 2009 at 11:36 AM #322690
    Ex-SD
    Participant

    HLS: Well stated! And right on the money………………as usual.

    J.: You are the kind of guy who thinks he knows everything and winds up getting fucked over for thousands of extra dollars in fees, points, PMI, etc.

    I’m not in the mortgage business (like HLS) but I have friends who are and your source (or sources) for mortgage information are grossly misinformed.

    January 1, 2009 at 12:07 PM #322808
    j
    Participant

    Well, I am technically right. There is not PMI on FHA loans; there is FHA mortgage insurance. Which is cheaper than PMI for people that only have 3% down payments. Yes, with 10% or 15% equity PMI is cheaper than FHA insurance. But the fact is that most mortgage brokers do not know or choose to not tell their “victims” of the best loan in many cases. Plus not many have 10% to buy a house with that do not come to this blog. Many here actually have 20%(Crazy housing bubble people 😉 ).

    I personally think a 3% down payment is an awful idea, but it is better than a 0% down payment.

    And where did 50% come from?

    Oh, and the minimum is 1.25% not 1.75%: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/08-16ml.doc

    January 1, 2009 at 12:07 PM #322727
    j
    Participant

    Well, I am technically right. There is not PMI on FHA loans; there is FHA mortgage insurance. Which is cheaper than PMI for people that only have 3% down payments. Yes, with 10% or 15% equity PMI is cheaper than FHA insurance. But the fact is that most mortgage brokers do not know or choose to not tell their “victims” of the best loan in many cases. Plus not many have 10% to buy a house with that do not come to this blog. Many here actually have 20%(Crazy housing bubble people 😉 ).

    I personally think a 3% down payment is an awful idea, but it is better than a 0% down payment.

    And where did 50% come from?

    Oh, and the minimum is 1.25% not 1.75%: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/08-16ml.doc

    January 1, 2009 at 12:07 PM #322711
    j
    Participant

    Well, I am technically right. There is not PMI on FHA loans; there is FHA mortgage insurance. Which is cheaper than PMI for people that only have 3% down payments. Yes, with 10% or 15% equity PMI is cheaper than FHA insurance. But the fact is that most mortgage brokers do not know or choose to not tell their “victims” of the best loan in many cases. Plus not many have 10% to buy a house with that do not come to this blog. Many here actually have 20%(Crazy housing bubble people 😉 ).

    I personally think a 3% down payment is an awful idea, but it is better than a 0% down payment.

    And where did 50% come from?

    Oh, and the minimum is 1.25% not 1.75%: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/08-16ml.doc

    January 1, 2009 at 12:07 PM #322650
    j
    Participant

    Well, I am technically right. There is not PMI on FHA loans; there is FHA mortgage insurance. Which is cheaper than PMI for people that only have 3% down payments. Yes, with 10% or 15% equity PMI is cheaper than FHA insurance. But the fact is that most mortgage brokers do not know or choose to not tell their “victims” of the best loan in many cases. Plus not many have 10% to buy a house with that do not come to this blog. Many here actually have 20%(Crazy housing bubble people 😉 ).

    I personally think a 3% down payment is an awful idea, but it is better than a 0% down payment.

    And where did 50% come from?

    Oh, and the minimum is 1.25% not 1.75%: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/08-16ml.doc

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