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HLS
ParticipantYou NEVER get the best rate when you get a no cost loan.
It is a very misleading concept.There are no fee loans, there are no cost loans.
They are not the same thing. With either of these you are getting a higher rate, which equates to a higher rate and a higher payment for 30 years.There are retail rates and there are wholesale
rates. Most people pay retail.I explain this to anyone who wants to listen and give them the choice of the best rates that they might actually qualify for, rather than general rates in the media.
99% of people looking for a loan have no idea where they fall in the matrix of qualifying by FNMA guidelines.
1 point difference in credit score can cost thousands of dollars over the life of a loan.
There may be ways to raise scores quickly, but they aren’t told that because their “friend” doing their loan doesn’t know it either.There is also the option of getting the lowest (wholesale) rate possible, and paying for the costs, which results in the lowest rate and lowest payment possible for the life of the loan.
It generally takes 3-4 years to come out ahead, then you are saving for the balance of 30 years.Many people want to assume that they will just get a free loan and refi if rates drop.
They are now stuck in a higher rate loan or an ARM that is going to explode, AND UNABLE TO REFI.Never before in history have such a large % of “homeowners” been unable to refinance.
They no longer qualify for a loan, at ANY rate.With rates now just above historical lows, I think it is extremely foolish to want a no cost or no fee loan, gambling that rates will go lower.
They don’t know if they will qualify.Banks will tell you that they have no fees. It’s a lie. The fact is that the rate that they quote you (retail)is higher to compensate for fees. It’s simply a retail rate.
In general, you have clueless consumers (who think they understand loans) going to clueless salespeople (who think they understand finances & loans) for the largest financial transaction of their lives. Neither one seem to want to learn what they don’t know.
This is a recipe for disaster resulting in the simple fact that 99% of borrowers did not get the best loan that they could have on the day that they chose to lock.
Higher retail rates may not change as often as wholesale rates which can change at any time.
This morning’s opening rates for 30 YR fixed are well off the lows of several days ago. What was 5.00% is now 5.25 They could end the day higher or lower. Right now, by paying an additional .75%, the rate is 4.875% saving .50% HLS
ParticipantDWC,,
Anything is possible. I don’t do VA loans.
They may have a rehab program. It’s sick.VA and FHA govt backed loans allow ppl with crappy credit scores to buy houses that may not be able to afford them.
THE RATES ARE NOT NECESSARILY BETTER.I don’t do loans for people that cannot afford to repay them based on current documented income.
FNMA will not do loans for major fixers.
ParticipantDWC,,
Anything is possible. I don’t do VA loans.
They may have a rehab program. It’s sick.VA and FHA govt backed loans allow ppl with crappy credit scores to buy houses that may not be able to afford them.
THE RATES ARE NOT NECESSARILY BETTER.I don’t do loans for people that cannot afford to repay them based on current documented income.
FNMA will not do loans for major fixers.
ParticipantDWC,,
Anything is possible. I don’t do VA loans.
They may have a rehab program. It’s sick.VA and FHA govt backed loans allow ppl with crappy credit scores to buy houses that may not be able to afford them.
THE RATES ARE NOT NECESSARILY BETTER.I don’t do loans for people that cannot afford to repay them based on current documented income.
FNMA will not do loans for major fixers.
ParticipantDWC,,
Anything is possible. I don’t do VA loans.
They may have a rehab program. It’s sick.VA and FHA govt backed loans allow ppl with crappy credit scores to buy houses that may not be able to afford them.
THE RATES ARE NOT NECESSARILY BETTER.I don’t do loans for people that cannot afford to repay them based on current documented income.
FNMA will not do loans for major fixers.
ParticipantDWC,,
Anything is possible. I don’t do VA loans.
They may have a rehab program. It’s sick.VA and FHA govt backed loans allow ppl with crappy credit scores to buy houses that may not be able to afford them.
THE RATES ARE NOT NECESSARILY BETTER.I don’t do loans for people that cannot afford to repay them based on current documented income.
FNMA will not do loans for major fixers.
ParticipantRayb..
You can contact me @ [email protected]
No newsletter. I have a radio show instead.
AM 1000 Sundays, Wednesdays and Fridays.
Schedule is on my website:
http://www.HomeLoanSheldon.comDonald,
At the moment you don’t get 5% without a cost.
It came close yetserday.
No point, no fee loans are a joke,
Unless you think rates are going much lower.Loan pricing depends on your credit score and the LTV (% of home value)
There is no base rate that applies to everyone.ParticipantRayb..
You can contact me @ [email protected]
No newsletter. I have a radio show instead.
AM 1000 Sundays, Wednesdays and Fridays.
Schedule is on my website:
http://www.HomeLoanSheldon.comDonald,
At the moment you don’t get 5% without a cost.
It came close yetserday.
No point, no fee loans are a joke,
Unless you think rates are going much lower.Loan pricing depends on your credit score and the LTV (% of home value)
There is no base rate that applies to everyone.ParticipantRayb..
You can contact me @ [email protected]
No newsletter. I have a radio show instead.
AM 1000 Sundays, Wednesdays and Fridays.
Schedule is on my website:
http://www.HomeLoanSheldon.comDonald,
At the moment you don’t get 5% without a cost.
It came close yetserday.
No point, no fee loans are a joke,
Unless you think rates are going much lower.Loan pricing depends on your credit score and the LTV (% of home value)
There is no base rate that applies to everyone.ParticipantRayb..
You can contact me @ [email protected]
No newsletter. I have a radio show instead.
AM 1000 Sundays, Wednesdays and Fridays.
Schedule is on my website:
http://www.HomeLoanSheldon.comDonald,
At the moment you don’t get 5% without a cost.
It came close yetserday.
No point, no fee loans are a joke,
Unless you think rates are going much lower.Loan pricing depends on your credit score and the LTV (% of home value)
There is no base rate that applies to everyone.ParticipantRayb..
You can contact me @ [email protected]
No newsletter. I have a radio show instead.
AM 1000 Sundays, Wednesdays and Fridays.
Schedule is on my website:
http://www.HomeLoanSheldon.comDonald,
At the moment you don’t get 5% without a cost.
It came close yetserday.
No point, no fee loans are a joke,
Unless you think rates are going much lower.Loan pricing depends on your credit score and the LTV (% of home value)
There is no base rate that applies to everyone.ParticipantSD,
What is your buyer thinking ??
The one that is getting a FHA loan but has a down payment.Do they have 20% to put down and decent credit to qualify for a good conventional loan ?
IF so, do they understand that they are probably getting a royal screwing by getting a FHA loan ??
Did their mortgage salesperson explain the real facts of the scenario or do they even understand what the better loan is for the buyer ??
Sounds like a complete waste of thousands of dollars. HLS
ParticipantSD,
What is your buyer thinking ??
The one that is getting a FHA loan but has a down payment.Do they have 20% to put down and decent credit to qualify for a good conventional loan ?
IF so, do they understand that they are probably getting a royal screwing by getting a FHA loan ??
Did their mortgage salesperson explain the real facts of the scenario or do they even understand what the better loan is for the buyer ??
Sounds like a complete waste of thousands of dollars. HLS
ParticipantSD,
What is your buyer thinking ??
The one that is getting a FHA loan but has a down payment.Do they have 20% to put down and decent credit to qualify for a good conventional loan ?
IF so, do they understand that they are probably getting a royal screwing by getting a FHA loan ??
Did their mortgage salesperson explain the real facts of the scenario or do they even understand what the better loan is for the buyer ??
Sounds like a complete waste of thousands of dollars. HLS
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