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HLS
ParticipantNic,
What are YOU thinking ??
As a mortgage professional, I tell people that it’s just gambling to get a 5 YR ARM, unless you are 90% sure that you won’t have that loan in 6-7 years.
If you plan on keeping the property for more than 7 years, in my opinion it would be very foolish to get the ARM.
You cannot put a price on the stress that many people face because their ARM will be adjusting in 12-24 months. (Some are freaking out, as they don’t qualify for a refi today)
The security of a 30YR fixed is cheap insurance.You have no idea what any of the following will be in 5 YRS:
a) Interest Rates
b) Property Value
c) Your credit score
d) Your ability to qualify for a loanMortgage rates are historically low NOW. WHY GAMBLE ?
(For .005% for only 5 yrs ?)If you plan on keeping the property, you think that rates will be lower in 5 years ? Even if you are right then you have the added expense of refinancing again.
If you can predict interest rates, who cares what your mortgage rate is. You can make a fortune trading bonds on Wall Street and pay cash for your house.
At today’s rate, I don’t think that anybody is offering you a “no fee no cost” loan at 5.375%/5.875%.
Please correct me if I am wrong.Do you understand that if you plan on keeping the loan for more than 4-5 years, getting the “no cost” loan is a poor decision ? There are no FREE loans. You pay a higher rate for the life of the loan.
FNMA 5 YR JC ARM’s are a HIGHER rate than 30 YR Fixed.
Yes it is dumb. (Cheaper 5 YR ARM’s are only available below $417K)I cannot believe the number of people who want to play games with the largest financing decision of their lives, and some make choices based on the words out of a hotties mouth on CNBC or a misleading commercial.
ParticipantThat rate just doesn’t exist today for non owner, no points.
It was around there the last week of January…If you plan to keep the property long term, you should want the lowest interest rate possible for the life of the loan, and be willing to pay a fee to get it.
There are still WAY too many people playing games with ARMS that may get caught with there pants down when their rate adjusts and not be able to qualify for a refi. They could end up with a 10% loan in a few years.
Historically, rates are ridiculously cheap.
Most people who have the pay option arm~ Negative Amortization loans have NO chance of refinancing when their payment adjusts. They were screwed in to the worst loan ever invented for the borrower.
The loan is poison and in most cases was sold by predators.
People are/will be losing their homes and the worst is yet to come. Many high end homes were financed with these loans, and are worth much less than the principal balance owed.There may be a tsunami coming that few want to talk about because it isn’t here yet.
ParticipantThat rate just doesn’t exist today for non owner, no points.
It was around there the last week of January…If you plan to keep the property long term, you should want the lowest interest rate possible for the life of the loan, and be willing to pay a fee to get it.
There are still WAY too many people playing games with ARMS that may get caught with there pants down when their rate adjusts and not be able to qualify for a refi. They could end up with a 10% loan in a few years.
Historically, rates are ridiculously cheap.
Most people who have the pay option arm~ Negative Amortization loans have NO chance of refinancing when their payment adjusts. They were screwed in to the worst loan ever invented for the borrower.
The loan is poison and in most cases was sold by predators.
People are/will be losing their homes and the worst is yet to come. Many high end homes were financed with these loans, and are worth much less than the principal balance owed.There may be a tsunami coming that few want to talk about because it isn’t here yet.
ParticipantThat rate just doesn’t exist today for non owner, no points.
It was around there the last week of January…If you plan to keep the property long term, you should want the lowest interest rate possible for the life of the loan, and be willing to pay a fee to get it.
There are still WAY too many people playing games with ARMS that may get caught with there pants down when their rate adjusts and not be able to qualify for a refi. They could end up with a 10% loan in a few years.
Historically, rates are ridiculously cheap.
Most people who have the pay option arm~ Negative Amortization loans have NO chance of refinancing when their payment adjusts. They were screwed in to the worst loan ever invented for the borrower.
The loan is poison and in most cases was sold by predators.
People are/will be losing their homes and the worst is yet to come. Many high end homes were financed with these loans, and are worth much less than the principal balance owed.There may be a tsunami coming that few want to talk about because it isn’t here yet.
ParticipantThat rate just doesn’t exist today for non owner, no points.
It was around there the last week of January…If you plan to keep the property long term, you should want the lowest interest rate possible for the life of the loan, and be willing to pay a fee to get it.
There are still WAY too many people playing games with ARMS that may get caught with there pants down when their rate adjusts and not be able to qualify for a refi. They could end up with a 10% loan in a few years.
Historically, rates are ridiculously cheap.
Most people who have the pay option arm~ Negative Amortization loans have NO chance of refinancing when their payment adjusts. They were screwed in to the worst loan ever invented for the borrower.
The loan is poison and in most cases was sold by predators.
People are/will be losing their homes and the worst is yet to come. Many high end homes were financed with these loans, and are worth much less than the principal balance owed.There may be a tsunami coming that few want to talk about because it isn’t here yet.
ParticipantThat rate just doesn’t exist today for non owner, no points.
It was around there the last week of January…If you plan to keep the property long term, you should want the lowest interest rate possible for the life of the loan, and be willing to pay a fee to get it.
There are still WAY too many people playing games with ARMS that may get caught with there pants down when their rate adjusts and not be able to qualify for a refi. They could end up with a 10% loan in a few years.
Historically, rates are ridiculously cheap.
Most people who have the pay option arm~ Negative Amortization loans have NO chance of refinancing when their payment adjusts. They were screwed in to the worst loan ever invented for the borrower.
The loan is poison and in most cases was sold by predators.
People are/will be losing their homes and the worst is yet to come. Many high end homes were financed with these loans, and are worth much less than the principal balance owed.There may be a tsunami coming that few want to talk about because it isn’t here yet.
ParticipantDaniel,,
Until today, the JC loans have been a joke. I knew when they announced them that they wouldn’t be useful to most.Many people are in distress, many are not. Very few people have 50% to put down, but they are out there. It’s a tiny % though.
Most people didn’t qualify for JC’s. There was a limit of 45% total debts to verified income, and most people who need help don’t qualify based on income (or equity position) or both. (The $417K loans will allow up to 60% DTI)
They are still going to help a small % of people, but will make it a bit more affordable for some to buy…
MOST people who bought a house in CA the last 3-4 years have paid more than it’s worth today. That’s a lot of homes that are upside down.
As of today, there are some options for people with equity to get a better rate, but most people don’t have any equity unless they had a large down.
There are a large number of people who bought before 2002 and do not have a mortgage problem at all, but it’s still surprising that some people with equity have 7%+ fixed rates. They are paralyzed by fear..(ignorance in some cases)
The govt is scared and desperate. Any little thing that they do to avoid any foreclosures, is a tiny help. I still see this being a long downward slippery slope, with the average person clueless and in denial.
I see lots more foreclosures to come,, until the govt rolls out the red carpet to the irresponsible, and if they do that, I see riots coming from the responsible side.
ParticipantDaniel,,
Until today, the JC loans have been a joke. I knew when they announced them that they wouldn’t be useful to most.Many people are in distress, many are not. Very few people have 50% to put down, but they are out there. It’s a tiny % though.
Most people didn’t qualify for JC’s. There was a limit of 45% total debts to verified income, and most people who need help don’t qualify based on income (or equity position) or both. (The $417K loans will allow up to 60% DTI)
They are still going to help a small % of people, but will make it a bit more affordable for some to buy…
MOST people who bought a house in CA the last 3-4 years have paid more than it’s worth today. That’s a lot of homes that are upside down.
As of today, there are some options for people with equity to get a better rate, but most people don’t have any equity unless they had a large down.
There are a large number of people who bought before 2002 and do not have a mortgage problem at all, but it’s still surprising that some people with equity have 7%+ fixed rates. They are paralyzed by fear..(ignorance in some cases)
The govt is scared and desperate. Any little thing that they do to avoid any foreclosures, is a tiny help. I still see this being a long downward slippery slope, with the average person clueless and in denial.
I see lots more foreclosures to come,, until the govt rolls out the red carpet to the irresponsible, and if they do that, I see riots coming from the responsible side.
ParticipantDaniel,,
Until today, the JC loans have been a joke. I knew when they announced them that they wouldn’t be useful to most.Many people are in distress, many are not. Very few people have 50% to put down, but they are out there. It’s a tiny % though.
Most people didn’t qualify for JC’s. There was a limit of 45% total debts to verified income, and most people who need help don’t qualify based on income (or equity position) or both. (The $417K loans will allow up to 60% DTI)
They are still going to help a small % of people, but will make it a bit more affordable for some to buy…
MOST people who bought a house in CA the last 3-4 years have paid more than it’s worth today. That’s a lot of homes that are upside down.
As of today, there are some options for people with equity to get a better rate, but most people don’t have any equity unless they had a large down.
There are a large number of people who bought before 2002 and do not have a mortgage problem at all, but it’s still surprising that some people with equity have 7%+ fixed rates. They are paralyzed by fear..(ignorance in some cases)
The govt is scared and desperate. Any little thing that they do to avoid any foreclosures, is a tiny help. I still see this being a long downward slippery slope, with the average person clueless and in denial.
I see lots more foreclosures to come,, until the govt rolls out the red carpet to the irresponsible, and if they do that, I see riots coming from the responsible side.
ParticipantDaniel,,
Until today, the JC loans have been a joke. I knew when they announced them that they wouldn’t be useful to most.Many people are in distress, many are not. Very few people have 50% to put down, but they are out there. It’s a tiny % though.
Most people didn’t qualify for JC’s. There was a limit of 45% total debts to verified income, and most people who need help don’t qualify based on income (or equity position) or both. (The $417K loans will allow up to 60% DTI)
They are still going to help a small % of people, but will make it a bit more affordable for some to buy…
MOST people who bought a house in CA the last 3-4 years have paid more than it’s worth today. That’s a lot of homes that are upside down.
As of today, there are some options for people with equity to get a better rate, but most people don’t have any equity unless they had a large down.
There are a large number of people who bought before 2002 and do not have a mortgage problem at all, but it’s still surprising that some people with equity have 7%+ fixed rates. They are paralyzed by fear..(ignorance in some cases)
The govt is scared and desperate. Any little thing that they do to avoid any foreclosures, is a tiny help. I still see this being a long downward slippery slope, with the average person clueless and in denial.
I see lots more foreclosures to come,, until the govt rolls out the red carpet to the irresponsible, and if they do that, I see riots coming from the responsible side.
ParticipantDaniel,,
Until today, the JC loans have been a joke. I knew when they announced them that they wouldn’t be useful to most.Many people are in distress, many are not. Very few people have 50% to put down, but they are out there. It’s a tiny % though.
Most people didn’t qualify for JC’s. There was a limit of 45% total debts to verified income, and most people who need help don’t qualify based on income (or equity position) or both. (The $417K loans will allow up to 60% DTI)
They are still going to help a small % of people, but will make it a bit more affordable for some to buy…
MOST people who bought a house in CA the last 3-4 years have paid more than it’s worth today. That’s a lot of homes that are upside down.
As of today, there are some options for people with equity to get a better rate, but most people don’t have any equity unless they had a large down.
There are a large number of people who bought before 2002 and do not have a mortgage problem at all, but it’s still surprising that some people with equity have 7%+ fixed rates. They are paralyzed by fear..(ignorance in some cases)
The govt is scared and desperate. Any little thing that they do to avoid any foreclosures, is a tiny help. I still see this being a long downward slippery slope, with the average person clueless and in denial.
I see lots more foreclosures to come,, until the govt rolls out the red carpet to the irresponsible, and if they do that, I see riots coming from the responsible side.
ParticipantCV2.. I’m in the mortgage biz, so can give you all kinds of ideas about financing options, but I’ll hedge on the tax advice.
You can talk to your CPA, but if you can paper trail the funds and what they are being used for, you may still be able to take the direct deduction, otherwise you may still be able to deduct the HELOC interest with the same net result.
I’m not sure how many people have rentals with 30 YR fixed loans below 6%, but very few.
Without knowing how much equity you have,don’t fret over others with lower rates. If I knew more about your situation, I might be able to suggest some other creative ways to increase your cash flow, but having equity and a 7% loan is better than being upside down with a 6% loan!
ParticipantCV2.. I’m in the mortgage biz, so can give you all kinds of ideas about financing options, but I’ll hedge on the tax advice.
You can talk to your CPA, but if you can paper trail the funds and what they are being used for, you may still be able to take the direct deduction, otherwise you may still be able to deduct the HELOC interest with the same net result.
I’m not sure how many people have rentals with 30 YR fixed loans below 6%, but very few.
Without knowing how much equity you have,don’t fret over others with lower rates. If I knew more about your situation, I might be able to suggest some other creative ways to increase your cash flow, but having equity and a 7% loan is better than being upside down with a 6% loan!
ParticipantCV2.. I’m in the mortgage biz, so can give you all kinds of ideas about financing options, but I’ll hedge on the tax advice.
You can talk to your CPA, but if you can paper trail the funds and what they are being used for, you may still be able to take the direct deduction, otherwise you may still be able to deduct the HELOC interest with the same net result.
I’m not sure how many people have rentals with 30 YR fixed loans below 6%, but very few.
Without knowing how much equity you have,don’t fret over others with lower rates. If I knew more about your situation, I might be able to suggest some other creative ways to increase your cash flow, but having equity and a 7% loan is better than being upside down with a 6% loan!
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