[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.)

[Deal Hunter]

Time and Twenty

Time is the only thing that will improve his credit score – provided he starts paying and continues to pay bills on time.

Twenty – even someone with poor credit can get a home loan with 20% down. If parent doesn’t want to co-sign, they can lend the son $8K for his downpayment and put a lien on the property after closing for $8K plus interest.

Note: With a score of less than 700, he’ll end up with a higher interest rate.

—–

Oh and also, TX prop taxes may be high, but property taxes as well as mortgage interest is tax deductible, while rent payments are not. I suggest doing the numbers to see how it pans out. Take total of property taxes and mortgage interest for 1 year and divide by 3200. The result is the number of exlusions he can claim on his W4. (For instance, if the answer is 6, that equals 6 dependents he can claim on his W4. So he gets to net more from his paycheck each month.)

[Deal Hunter]

Time and Twenty

Time is the only thing that will improve his credit score – provided he starts paying and continues to pay bills on time.

Twenty – even someone with poor credit can get a home loan with 20% down. If parent doesn’t want to co-sign, they can lend the son $8K for his downpayment and put a lien on the property after closing for $8K plus interest.

Note: With a score of less than 700, he’ll end up with a higher interest rate.

—–

Oh and also, TX prop taxes may be high, but property taxes as well as mortgage interest is tax deductible, while rent payments are not. I suggest doing the numbers to see how it pans out. Take total of property taxes and mortgage interest for 1 year and divide by 3200. The result is the number of exlusions he can claim on his W4. (For instance, if the answer is 6, that equals 6 dependents he can claim on his W4. So he gets to net more from his paycheck each month.)

[Deal Hunter]

Time and Twenty

Time is the only thing that will improve his credit score – provided he starts paying and continues to pay bills on time.

Twenty – even someone with poor credit can get a home loan with 20% down. If parent doesn’t want to co-sign, they can lend the son $8K for his downpayment and put a lien on the property after closing for $8K plus interest.

Note: With a score of less than 700, he’ll end up with a higher interest rate.

—–

Oh and also, TX prop taxes may be high, but property taxes as well as mortgage interest is tax deductible, while rent payments are not. I suggest doing the numbers to see how it pans out. Take total of property taxes and mortgage interest for 1 year and divide by 3200. The result is the number of exlusions he can claim on his W4. (For instance, if the answer is 6, that equals 6 dependents he can claim on his W4. So he gets to net more from his paycheck each month.)

[Deal Hunter]

Time and Twenty

Time is the only thing that will improve his credit score – provided he starts paying and continues to pay bills on time.

Twenty – even someone with poor credit can get a home loan with 20% down. If parent doesn’t want to co-sign, they can lend the son $8K for his downpayment and put a lien on the property after closing for $8K plus interest.

Note: With a score of less than 700, he’ll end up with a higher interest rate.

—–

Oh and also, TX prop taxes may be high, but property taxes as well as mortgage interest is tax deductible, while rent payments are not. I suggest doing the numbers to see how it pans out. Take total of property taxes and mortgage interest for 1 year and divide by 3200. The result is the number of exlusions he can claim on his W4. (For instance, if the answer is 6, that equals 6 dependents he can claim on his W4. So he gets to net more from his paycheck each month.)

[Deal Hunter]

Time and Twenty

Time is the only thing that will improve his credit score – provided he starts paying and continues to pay bills on time.

Twenty – even someone with poor credit can get a home loan with 20% down. If parent doesn’t want to co-sign, they can lend the son $8K for his downpayment and put a lien on the property after closing for $8K plus interest.

Note: With a score of less than 700, he’ll end up with a higher interest rate.

—–

Oh and also, TX prop taxes may be high, but property taxes as well as mortgage interest is tax deductible, while rent payments are not. I suggest doing the numbers to see how it pans out. Take total of property taxes and mortgage interest for 1 year and divide by 3200. The result is the number of exlusions he can claim on his W4. (For instance, if the answer is 6, that equals 6 dependents he can claim on his W4. So he gets to net more from his paycheck each month.)

[Deal Hunter]

I like that…

“teaser rates…[lead to being] retired or retarded!” LOL!

[Deal Hunter]

I like that…

“teaser rates…[lead to being] retired or retarded!” LOL!

[Deal Hunter]

I like that…

“teaser rates…[lead to being] retired or retarded!” LOL!

[Deal Hunter]

I like that…

“teaser rates…[lead to being] retired or retarded!” LOL!

[Deal Hunter]

I like that…

“teaser rates…[lead to being] retired or retarded!” LOL!

[Deal Hunter]

Note: You have an IO for the first 10 years, so the only way to lower your balance is to make an EXTRA payment to principal that is above and beyond your minimum interest payment. The best source of a direct answer to your particular arrangement is with the lender. If the CS rep that you first talk to can’t help, then ask to speak to a supervisor.

Basically, it depends on when/how your mortgage calculates your interest on the principal. In the best case, your loan is re-amortized everytime you make a payment, meaning that the principal from which your interest is calculated is lower each time because of the previous payment that you made. But, this is generally only true of principal and interest payments.

In most cases, the loan is re-amortized only once a year, so you can lower your balance by simply making ONE extra payment at your anniversary date. The best thing to do is to call your lender and ask this directly. You could even request a payment option that lets you pay the payment in 2 monthly installments or on a bi-weekly basis.

[Deal Hunter]

Note: You have an IO for the first 10 years, so the only way to lower your balance is to make an EXTRA payment to principal that is above and beyond your minimum interest payment. The best source of a direct answer to your particular arrangement is with the lender. If the CS rep that you first talk to can’t help, then ask to speak to a supervisor.

Basically, it depends on when/how your mortgage calculates your interest on the principal. In the best case, your loan is re-amortized everytime you make a payment, meaning that the principal from which your interest is calculated is lower each time because of the previous payment that you made. But, this is generally only true of principal and interest payments.

In most cases, the loan is re-amortized only once a year, so you can lower your balance by simply making ONE extra payment at your anniversary date. The best thing to do is to call your lender and ask this directly. You could even request a payment option that lets you pay the payment in 2 monthly installments or on a bi-weekly basis.

[Deal Hunter]

Note: You have an IO for the first 10 years, so the only way to lower your balance is to make an EXTRA payment to principal that is above and beyond your minimum interest payment. The best source of a direct answer to your particular arrangement is with the lender. If the CS rep that you first talk to can’t help, then ask to speak to a supervisor.

Basically, it depends on when/how your mortgage calculates your interest on the principal. In the best case, your loan is re-amortized everytime you make a payment, meaning that the principal from which your interest is calculated is lower each time because of the previous payment that you made. But, this is generally only true of principal and interest payments.

In most cases, the loan is re-amortized only once a year, so you can lower your balance by simply making ONE extra payment at your anniversary date. The best thing to do is to call your lender and ask this directly. You could even request a payment option that lets you pay the payment in 2 monthly installments or on a bi-weekly basis.

[Deal Hunter]

Note: You have an IO for the first 10 years, so the only way to lower your balance is to make an EXTRA payment to principal that is above and beyond your minimum interest payment. The best source of a direct answer to your particular arrangement is with the lender. If the CS rep that you first talk to can’t help, then ask to speak to a supervisor.

Basically, it depends on when/how your mortgage calculates your interest on the principal. In the best case, your loan is re-amortized everytime you make a payment, meaning that the principal from which your interest is calculated is lower each time because of the previous payment that you made. But, this is generally only true of principal and interest payments.

In most cases, the loan is re-amortized only once a year, so you can lower your balance by simply making ONE extra payment at your anniversary date. The best thing to do is to call your lender and ask this directly. You could even request a payment option that lets you pay the payment in 2 monthly installments or on a bi-weekly basis.

[Author]

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