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December 22, 2008 at 11:28 PM in reply to: Lending guidelines for new JUMBO amounts $546K in SD County, $625K in OC/LA County #319598December 22, 2008 at 11:28 PM in reply to: Lending guidelines for new JUMBO amounts $546K in SD County, $625K in OC/LA County #319681
HLS
ParticipantAs far as I know 90% is still OK in SD, with mortgage insurance….
Hard to define their definitions (and reality)
ParticipantThe simple explanation is that a current 2nd lender does not have to agree to allow a new 1st to be replaced ahead of it.Subordination.
Even HELOC’s that have a zero balance are already recorded as a 2nd up the maximum amount of your line.
These normally need to be paid off and/or closed when you refi to a new 1st. You can get a HELOC again after you close on the new 1st.
If you are taking cash out from the refi to pay off the HELOC, you are subject to cash out refi pricing which is usually a higher cost/rate unless you have 40%+ equity OR the HELOC balance was used to purchase the property. (non recourse, acquisition debt)
1st Loans may also price out differently when you have a 2nd behind them.
This has nothing to do with prepay penalties or length of time that 2nd has been there.
There still are lenders for fixed 2nds. My best will only loan up to a max of 75% (in CA) including an existing 1st.
That was the simple answer. A particular situation could be more complicated… HLS
PS: You can argue with them for as long as you want.
ParticipantThe simple explanation is that a current 2nd lender does not have to agree to allow a new 1st to be replaced ahead of it.Subordination.
Even HELOC’s that have a zero balance are already recorded as a 2nd up the maximum amount of your line.
These normally need to be paid off and/or closed when you refi to a new 1st. You can get a HELOC again after you close on the new 1st.
If you are taking cash out from the refi to pay off the HELOC, you are subject to cash out refi pricing which is usually a higher cost/rate unless you have 40%+ equity OR the HELOC balance was used to purchase the property. (non recourse, acquisition debt)
1st Loans may also price out differently when you have a 2nd behind them.
This has nothing to do with prepay penalties or length of time that 2nd has been there.
There still are lenders for fixed 2nds. My best will only loan up to a max of 75% (in CA) including an existing 1st.
That was the simple answer. A particular situation could be more complicated… HLS
PS: You can argue with them for as long as you want.
ParticipantThe simple explanation is that a current 2nd lender does not have to agree to allow a new 1st to be replaced ahead of it.Subordination.
Even HELOC’s that have a zero balance are already recorded as a 2nd up the maximum amount of your line.
These normally need to be paid off and/or closed when you refi to a new 1st. You can get a HELOC again after you close on the new 1st.
If you are taking cash out from the refi to pay off the HELOC, you are subject to cash out refi pricing which is usually a higher cost/rate unless you have 40%+ equity OR the HELOC balance was used to purchase the property. (non recourse, acquisition debt)
1st Loans may also price out differently when you have a 2nd behind them.
This has nothing to do with prepay penalties or length of time that 2nd has been there.
There still are lenders for fixed 2nds. My best will only loan up to a max of 75% (in CA) including an existing 1st.
That was the simple answer. A particular situation could be more complicated… HLS
PS: You can argue with them for as long as you want.
ParticipantThe simple explanation is that a current 2nd lender does not have to agree to allow a new 1st to be replaced ahead of it.Subordination.
Even HELOC’s that have a zero balance are already recorded as a 2nd up the maximum amount of your line.
These normally need to be paid off and/or closed when you refi to a new 1st. You can get a HELOC again after you close on the new 1st.
If you are taking cash out from the refi to pay off the HELOC, you are subject to cash out refi pricing which is usually a higher cost/rate unless you have 40%+ equity OR the HELOC balance was used to purchase the property. (non recourse, acquisition debt)
1st Loans may also price out differently when you have a 2nd behind them.
This has nothing to do with prepay penalties or length of time that 2nd has been there.
There still are lenders for fixed 2nds. My best will only loan up to a max of 75% (in CA) including an existing 1st.
That was the simple answer. A particular situation could be more complicated… HLS
PS: You can argue with them for as long as you want.
ParticipantThe simple explanation is that a current 2nd lender does not have to agree to allow a new 1st to be replaced ahead of it.Subordination.
Even HELOC’s that have a zero balance are already recorded as a 2nd up the maximum amount of your line.
These normally need to be paid off and/or closed when you refi to a new 1st. You can get a HELOC again after you close on the new 1st.
If you are taking cash out from the refi to pay off the HELOC, you are subject to cash out refi pricing which is usually a higher cost/rate unless you have 40%+ equity OR the HELOC balance was used to purchase the property. (non recourse, acquisition debt)
1st Loans may also price out differently when you have a 2nd behind them.
This has nothing to do with prepay penalties or length of time that 2nd has been there.
There still are lenders for fixed 2nds. My best will only loan up to a max of 75% (in CA) including an existing 1st.
That was the simple answer. A particular situation could be more complicated… HLS
PS: You can argue with them for as long as you want.
ParticipantChris,,
Perhaps I am not understanding your question.If you want a credit/kickback, the rate is going to be higher than it should be, so the payment will be higher FOREVER, costing a fotune for a loan held 360 months…
The money to pay title, escrow, underwriter, notary, recording etc, has to come from somewhere.
It’s not free. If there is no upfront costs, then it’s built into the higher rate/higher payment, as long as you keep that loan.It’s worse than pay now OR pay later. Instead of paying $1 now you may pay $3 or $4 later.
Send me an email if you want to continue this, we can talk and I’ll use some actual numbers as an example, and perhaps understand your thoughts on this… HLS
ParticipantChris,,
Perhaps I am not understanding your question.If you want a credit/kickback, the rate is going to be higher than it should be, so the payment will be higher FOREVER, costing a fotune for a loan held 360 months…
The money to pay title, escrow, underwriter, notary, recording etc, has to come from somewhere.
It’s not free. If there is no upfront costs, then it’s built into the higher rate/higher payment, as long as you keep that loan.It’s worse than pay now OR pay later. Instead of paying $1 now you may pay $3 or $4 later.
Send me an email if you want to continue this, we can talk and I’ll use some actual numbers as an example, and perhaps understand your thoughts on this… HLS
ParticipantChris,,
Perhaps I am not understanding your question.If you want a credit/kickback, the rate is going to be higher than it should be, so the payment will be higher FOREVER, costing a fotune for a loan held 360 months…
The money to pay title, escrow, underwriter, notary, recording etc, has to come from somewhere.
It’s not free. If there is no upfront costs, then it’s built into the higher rate/higher payment, as long as you keep that loan.It’s worse than pay now OR pay later. Instead of paying $1 now you may pay $3 or $4 later.
Send me an email if you want to continue this, we can talk and I’ll use some actual numbers as an example, and perhaps understand your thoughts on this… HLS
ParticipantChris,,
Perhaps I am not understanding your question.If you want a credit/kickback, the rate is going to be higher than it should be, so the payment will be higher FOREVER, costing a fotune for a loan held 360 months…
The money to pay title, escrow, underwriter, notary, recording etc, has to come from somewhere.
It’s not free. If there is no upfront costs, then it’s built into the higher rate/higher payment, as long as you keep that loan.It’s worse than pay now OR pay later. Instead of paying $1 now you may pay $3 or $4 later.
Send me an email if you want to continue this, we can talk and I’ll use some actual numbers as an example, and perhaps understand your thoughts on this… HLS
ParticipantChris,,
Perhaps I am not understanding your question.If you want a credit/kickback, the rate is going to be higher than it should be, so the payment will be higher FOREVER, costing a fotune for a loan held 360 months…
The money to pay title, escrow, underwriter, notary, recording etc, has to come from somewhere.
It’s not free. If there is no upfront costs, then it’s built into the higher rate/higher payment, as long as you keep that loan.It’s worse than pay now OR pay later. Instead of paying $1 now you may pay $3 or $4 later.
Send me an email if you want to continue this, we can talk and I’ll use some actual numbers as an example, and perhaps understand your thoughts on this… HLS
ParticipantJosh,
THAT was great. Thanks for the laugh~! .. HLSParticipantJosh,
THAT was great. Thanks for the laugh~! .. HLSParticipantJosh,
THAT was great. Thanks for the laugh~! .. HLS -
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