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HLS
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!
ParticipantNot recommended for most people..
For the long run, it’s a risky thing to do. If you have the assets/liquidity to pay it off if you had to, that’s different.
The trade off of a low rate for a year or two for the unknown over the long run could turn out to be a huge mistake (or brilliant)
It is harder to qualify for non owner loans today. It also depends on your credit score, income & equity.
What will you do if prime goes to 10% or more ?
Having a 30 YR fixed provides security..
For some price, you could buy the rate down and have a lower long term fixed rate if you qualify.Borrowing with short term rates for a long term horizon is just gambling.
ParticipantNot recommended for most people..
For the long run, it’s a risky thing to do. If you have the assets/liquidity to pay it off if you had to, that’s different.
The trade off of a low rate for a year or two for the unknown over the long run could turn out to be a huge mistake (or brilliant)
It is harder to qualify for non owner loans today. It also depends on your credit score, income & equity.
What will you do if prime goes to 10% or more ?
Having a 30 YR fixed provides security..
For some price, you could buy the rate down and have a lower long term fixed rate if you qualify.Borrowing with short term rates for a long term horizon is just gambling.
ParticipantNot recommended for most people..
For the long run, it’s a risky thing to do. If you have the assets/liquidity to pay it off if you had to, that’s different.
The trade off of a low rate for a year or two for the unknown over the long run could turn out to be a huge mistake (or brilliant)
It is harder to qualify for non owner loans today. It also depends on your credit score, income & equity.
What will you do if prime goes to 10% or more ?
Having a 30 YR fixed provides security..
For some price, you could buy the rate down and have a lower long term fixed rate if you qualify.Borrowing with short term rates for a long term horizon is just gambling.
ParticipantNot recommended for most people..
For the long run, it’s a risky thing to do. If you have the assets/liquidity to pay it off if you had to, that’s different.
The trade off of a low rate for a year or two for the unknown over the long run could turn out to be a huge mistake (or brilliant)
It is harder to qualify for non owner loans today. It also depends on your credit score, income & equity.
What will you do if prime goes to 10% or more ?
Having a 30 YR fixed provides security..
For some price, you could buy the rate down and have a lower long term fixed rate if you qualify.Borrowing with short term rates for a long term horizon is just gambling.
ParticipantNot recommended for most people..
For the long run, it’s a risky thing to do. If you have the assets/liquidity to pay it off if you had to, that’s different.
The trade off of a low rate for a year or two for the unknown over the long run could turn out to be a huge mistake (or brilliant)
It is harder to qualify for non owner loans today. It also depends on your credit score, income & equity.
What will you do if prime goes to 10% or more ?
Having a 30 YR fixed provides security..
For some price, you could buy the rate down and have a lower long term fixed rate if you qualify.Borrowing with short term rates for a long term horizon is just gambling.
ParticipantOne thing that they do is buy loans from originators that meet their criteria, and package them into bonds which are sold to investors.
They loan up to 95% LTV with a single loan, with mortgage insurance required on loans above 80%.
The limit was $417,000 with a minimum credit score of 620.Around 2002, one of the ratings agencies came up with the silly assumption that borrowers with a 1st and 2nd (to avoid mtg ins) were no more risky than single loans, which was the mistake of the century. They foolishly took it one step further and allowed 20% 2nds creating 100% financing, which FNMA & FHLMC never allowed.
FNMA mission:
Fannie Mae provides stability, liquidity, and affordability to the nation’s housing finance system under all economic conditions. We are a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market.
Fannie Mae has a federal charter and operates in America’s secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. Our job is to help those who house America.
Fannie Mae was created in 1938, under President Franklin D. Roosevelt, at a time when millions of families could not become homeowners, or risked losing their homes, for lack of a consistent supply of mortgage funds across America.
The government established Fannie Mae in order to expand the flow of mortgage funds in all communities, at all times, under all economic conditions, and to help lower the costs to buy a home.
In 1968, Fannie Mae was re-chartered by Congress as a shareholder-owned company, funded solely with private capital raised from investors on Wall Street and around the world.
Fannie Mae has a unique duty to the public it serves — and the private investors that fuel its service — to be a model company focused on service, reliability, and value.
Like all who participate in the housing market, Fannie Mae has a responsibility to help home buyers, homeowners, and communities through market challenges. We believe in the long term health of America’s housing market. The nation is growing and that growth will bring a renewed demand for housing and for responsible, sustainable mortgage lending. Fannie Mae will be there to help meet America’s changing housing needs.
ParticipantOne thing that they do is buy loans from originators that meet their criteria, and package them into bonds which are sold to investors.
They loan up to 95% LTV with a single loan, with mortgage insurance required on loans above 80%.
The limit was $417,000 with a minimum credit score of 620.Around 2002, one of the ratings agencies came up with the silly assumption that borrowers with a 1st and 2nd (to avoid mtg ins) were no more risky than single loans, which was the mistake of the century. They foolishly took it one step further and allowed 20% 2nds creating 100% financing, which FNMA & FHLMC never allowed.
FNMA mission:
Fannie Mae provides stability, liquidity, and affordability to the nation’s housing finance system under all economic conditions. We are a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market.
Fannie Mae has a federal charter and operates in America’s secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. Our job is to help those who house America.
Fannie Mae was created in 1938, under President Franklin D. Roosevelt, at a time when millions of families could not become homeowners, or risked losing their homes, for lack of a consistent supply of mortgage funds across America.
The government established Fannie Mae in order to expand the flow of mortgage funds in all communities, at all times, under all economic conditions, and to help lower the costs to buy a home.
In 1968, Fannie Mae was re-chartered by Congress as a shareholder-owned company, funded solely with private capital raised from investors on Wall Street and around the world.
Fannie Mae has a unique duty to the public it serves — and the private investors that fuel its service — to be a model company focused on service, reliability, and value.
Like all who participate in the housing market, Fannie Mae has a responsibility to help home buyers, homeowners, and communities through market challenges. We believe in the long term health of America’s housing market. The nation is growing and that growth will bring a renewed demand for housing and for responsible, sustainable mortgage lending. Fannie Mae will be there to help meet America’s changing housing needs.
ParticipantOne thing that they do is buy loans from originators that meet their criteria, and package them into bonds which are sold to investors.
They loan up to 95% LTV with a single loan, with mortgage insurance required on loans above 80%.
The limit was $417,000 with a minimum credit score of 620.Around 2002, one of the ratings agencies came up with the silly assumption that borrowers with a 1st and 2nd (to avoid mtg ins) were no more risky than single loans, which was the mistake of the century. They foolishly took it one step further and allowed 20% 2nds creating 100% financing, which FNMA & FHLMC never allowed.
FNMA mission:
Fannie Mae provides stability, liquidity, and affordability to the nation’s housing finance system under all economic conditions. We are a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market.
Fannie Mae has a federal charter and operates in America’s secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. Our job is to help those who house America.
Fannie Mae was created in 1938, under President Franklin D. Roosevelt, at a time when millions of families could not become homeowners, or risked losing their homes, for lack of a consistent supply of mortgage funds across America.
The government established Fannie Mae in order to expand the flow of mortgage funds in all communities, at all times, under all economic conditions, and to help lower the costs to buy a home.
In 1968, Fannie Mae was re-chartered by Congress as a shareholder-owned company, funded solely with private capital raised from investors on Wall Street and around the world.
Fannie Mae has a unique duty to the public it serves — and the private investors that fuel its service — to be a model company focused on service, reliability, and value.
Like all who participate in the housing market, Fannie Mae has a responsibility to help home buyers, homeowners, and communities through market challenges. We believe in the long term health of America’s housing market. The nation is growing and that growth will bring a renewed demand for housing and for responsible, sustainable mortgage lending. Fannie Mae will be there to help meet America’s changing housing needs.
ParticipantOne thing that they do is buy loans from originators that meet their criteria, and package them into bonds which are sold to investors.
They loan up to 95% LTV with a single loan, with mortgage insurance required on loans above 80%.
The limit was $417,000 with a minimum credit score of 620.Around 2002, one of the ratings agencies came up with the silly assumption that borrowers with a 1st and 2nd (to avoid mtg ins) were no more risky than single loans, which was the mistake of the century. They foolishly took it one step further and allowed 20% 2nds creating 100% financing, which FNMA & FHLMC never allowed.
FNMA mission:
Fannie Mae provides stability, liquidity, and affordability to the nation’s housing finance system under all economic conditions. We are a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market.
Fannie Mae has a federal charter and operates in America’s secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. Our job is to help those who house America.
Fannie Mae was created in 1938, under President Franklin D. Roosevelt, at a time when millions of families could not become homeowners, or risked losing their homes, for lack of a consistent supply of mortgage funds across America.
The government established Fannie Mae in order to expand the flow of mortgage funds in all communities, at all times, under all economic conditions, and to help lower the costs to buy a home.
In 1968, Fannie Mae was re-chartered by Congress as a shareholder-owned company, funded solely with private capital raised from investors on Wall Street and around the world.
Fannie Mae has a unique duty to the public it serves — and the private investors that fuel its service — to be a model company focused on service, reliability, and value.
Like all who participate in the housing market, Fannie Mae has a responsibility to help home buyers, homeowners, and communities through market challenges. We believe in the long term health of America’s housing market. The nation is growing and that growth will bring a renewed demand for housing and for responsible, sustainable mortgage lending. Fannie Mae will be there to help meet America’s changing housing needs.
ParticipantOne thing that they do is buy loans from originators that meet their criteria, and package them into bonds which are sold to investors.
They loan up to 95% LTV with a single loan, with mortgage insurance required on loans above 80%.
The limit was $417,000 with a minimum credit score of 620.Around 2002, one of the ratings agencies came up with the silly assumption that borrowers with a 1st and 2nd (to avoid mtg ins) were no more risky than single loans, which was the mistake of the century. They foolishly took it one step further and allowed 20% 2nds creating 100% financing, which FNMA & FHLMC never allowed.
FNMA mission:
Fannie Mae provides stability, liquidity, and affordability to the nation’s housing finance system under all economic conditions. We are a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market.
Fannie Mae has a federal charter and operates in America’s secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. Our job is to help those who house America.
Fannie Mae was created in 1938, under President Franklin D. Roosevelt, at a time when millions of families could not become homeowners, or risked losing their homes, for lack of a consistent supply of mortgage funds across America.
The government established Fannie Mae in order to expand the flow of mortgage funds in all communities, at all times, under all economic conditions, and to help lower the costs to buy a home.
In 1968, Fannie Mae was re-chartered by Congress as a shareholder-owned company, funded solely with private capital raised from investors on Wall Street and around the world.
Fannie Mae has a unique duty to the public it serves — and the private investors that fuel its service — to be a model company focused on service, reliability, and value.
Like all who participate in the housing market, Fannie Mae has a responsibility to help home buyers, homeowners, and communities through market challenges. We believe in the long term health of America’s housing market. The nation is growing and that growth will bring a renewed demand for housing and for responsible, sustainable mortgage lending. Fannie Mae will be there to help meet America’s changing housing needs.
ParticipantI expect the “happy talk” from Paulson, but not from Buffet..
I don’t think that the credit crunch is anywhere near over.It looks like you need at least 25% equity to do a NO CASH OUT “JC” refi at the lower rate but can still get the better rate with 20% down on a purchase. (An 80% refi is still pricing higher, same as yesterday about 6.125%)
It’s just one more attempt to save a few people from doom.
It’s not going to help anybody who is underwater or who cannot qualify full doc.
There has been a lower back end DTI ratio on JC loans, which I think is still in place.If I get updated specific guidelines I will post them later.
This is going to reward people with good credit scores who could actually afford a higher rate & payment to have a lower one!
ParticipantI expect the “happy talk” from Paulson, but not from Buffet..
I don’t think that the credit crunch is anywhere near over.It looks like you need at least 25% equity to do a NO CASH OUT “JC” refi at the lower rate but can still get the better rate with 20% down on a purchase. (An 80% refi is still pricing higher, same as yesterday about 6.125%)
It’s just one more attempt to save a few people from doom.
It’s not going to help anybody who is underwater or who cannot qualify full doc.
There has been a lower back end DTI ratio on JC loans, which I think is still in place.If I get updated specific guidelines I will post them later.
This is going to reward people with good credit scores who could actually afford a higher rate & payment to have a lower one!
ParticipantI expect the “happy talk” from Paulson, but not from Buffet..
I don’t think that the credit crunch is anywhere near over.It looks like you need at least 25% equity to do a NO CASH OUT “JC” refi at the lower rate but can still get the better rate with 20% down on a purchase. (An 80% refi is still pricing higher, same as yesterday about 6.125%)
It’s just one more attempt to save a few people from doom.
It’s not going to help anybody who is underwater or who cannot qualify full doc.
There has been a lower back end DTI ratio on JC loans, which I think is still in place.If I get updated specific guidelines I will post them later.
This is going to reward people with good credit scores who could actually afford a higher rate & payment to have a lower one!
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