[HLS]

I wouldn’t pay for the program to make bi-weekly mortgage payments. Just make extra payments IF you understand what you are doing and it fits your personal situation AND you can afford it.

You need to look at your TRUTH IN LENDING statement, to see what your payments will be and when they change. They should be clearly indicated.

From your scenario above, I’m guessing that you have a 40YR rate with a balloon payment in 30 years.

Your payment includes impounds. Your payment will be $3018 for the first 10 years, then it goes up to $3460 for the next 30 years (Yrs 11-40)
OR
you have a ballon payment of $260,000 due after 30 years.

Sounds like you need help just understanding what you have now, without worrying about bi-weekly payments.

If you have any other consumer debt at non deductible interest rates, it would be foolish to accelerate your mortgage payments.

If you make payments of $3500 from now on, you will pay it off in 30 years instead of 40, saving yourself 10 years worth of payments or over $300,000 in interest.

Your “financial planner” has the advantage of knowing your overall financial situation. Did you FP advise you to get into this loan ?? Are you paying him to tell you to figure out what’s best for you ? WTF ?
I do this stuff for people for free.

It isn’t possible to “figure this out” with any mortgage calculator that I know of because they don’t allow for paying principal on an I/O loan.

[HLS]

I wouldn’t pay for the program to make bi-weekly mortgage payments. Just make extra payments IF you understand what you are doing and it fits your personal situation AND you can afford it.

You need to look at your TRUTH IN LENDING statement, to see what your payments will be and when they change. They should be clearly indicated.

From your scenario above, I’m guessing that you have a 40YR rate with a balloon payment in 30 years.

Your payment includes impounds. Your payment will be $3018 for the first 10 years, then it goes up to $3460 for the next 30 years (Yrs 11-40)
OR
you have a ballon payment of $260,000 due after 30 years.

Sounds like you need help just understanding what you have now, without worrying about bi-weekly payments.

If you have any other consumer debt at non deductible interest rates, it would be foolish to accelerate your mortgage payments.

If you make payments of $3500 from now on, you will pay it off in 30 years instead of 40, saving yourself 10 years worth of payments or over $300,000 in interest.

Your “financial planner” has the advantage of knowing your overall financial situation. Did you FP advise you to get into this loan ?? Are you paying him to tell you to figure out what’s best for you ? WTF ?
I do this stuff for people for free.

It isn’t possible to “figure this out” with any mortgage calculator that I know of because they don’t allow for paying principal on an I/O loan.

[HLS]

HWG…
Fannie and Freddie are in HUGE trouble.

Although conforming limits have been raised (in theory)
there are NO loan programs available yet. Perhaps mid March, and as of now they will only be valid until 12-31-08

The “system” desperately needs to book some profits.
There are already billions in losses, and much more to come. The system is broken, and NOBODY knows where to get the parts to fix it.

I don’t know exactly what is going on, but see that the spreads are increasing.

Banks are talking about bailing out insurers, cuz if they don’t we will see that they are all insolvent. Better to cough up $500 million to keep them all afloat awhile longer instead of allowing the $10 Billion scam to be exposed.

Every amateur thinks that they can predict long term mortgage rates, but I can’t tell you what they will be tomorrow.

All the websites, all the averages, and internet quotes, it’s all CRAP. It depends what somebody actually qualifies for, and most people don’t understand that.

Most people who shop by rate get screwed. Rates change constantly, but people don’t see it.

On January 22nd, 30 YR fixed PAR rate was 5.25%. On Jan 23 it was down below 5% for about an hour and closed that day at 5.375%…It tested 5.25% again, and has gone straight up from there to around 6% now.

The no cost loans, the no fee loans, and the average rates do nothing more than fool people, who don’t understand the difference. (Many “no fee” loans still have costs)

The industry is still full of scum, misleading and overcharging borrowers in rate and fee, and not explaining the products, because they don’t understand it themselves.

I think that when the “new” conforming rates (NCR) finally kick in, people may be sorry that they waited, and find out that they don’t qualify anyway.

It’s only going to make borrowing cheaper for many people who qualified at higher rates.

The house of cards is collapsing. The powers are getting VERY desperate. The talk of “negative equity certificates”
is beyond rational.

I see so many people in trouble and/or denial.

[HLS]

HWG…
Fannie and Freddie are in HUGE trouble.

Although conforming limits have been raised (in theory)
there are NO loan programs available yet. Perhaps mid March, and as of now they will only be valid until 12-31-08

The “system” desperately needs to book some profits.
There are already billions in losses, and much more to come. The system is broken, and NOBODY knows where to get the parts to fix it.

I don’t know exactly what is going on, but see that the spreads are increasing.

Banks are talking about bailing out insurers, cuz if they don’t we will see that they are all insolvent. Better to cough up $500 million to keep them all afloat awhile longer instead of allowing the $10 Billion scam to be exposed.

Every amateur thinks that they can predict long term mortgage rates, but I can’t tell you what they will be tomorrow.

All the websites, all the averages, and internet quotes, it’s all CRAP. It depends what somebody actually qualifies for, and most people don’t understand that.

Most people who shop by rate get screwed. Rates change constantly, but people don’t see it.

On January 22nd, 30 YR fixed PAR rate was 5.25%. On Jan 23 it was down below 5% for about an hour and closed that day at 5.375%…It tested 5.25% again, and has gone straight up from there to around 6% now.

The no cost loans, the no fee loans, and the average rates do nothing more than fool people, who don’t understand the difference. (Many “no fee” loans still have costs)

The industry is still full of scum, misleading and overcharging borrowers in rate and fee, and not explaining the products, because they don’t understand it themselves.

I think that when the “new” conforming rates (NCR) finally kick in, people may be sorry that they waited, and find out that they don’t qualify anyway.

It’s only going to make borrowing cheaper for many people who qualified at higher rates.

The house of cards is collapsing. The powers are getting VERY desperate. The talk of “negative equity certificates”
is beyond rational.

I see so many people in trouble and/or denial.

[HLS]

HWG…
Fannie and Freddie are in HUGE trouble.

Although conforming limits have been raised (in theory)
there are NO loan programs available yet. Perhaps mid March, and as of now they will only be valid until 12-31-08

The “system” desperately needs to book some profits.
There are already billions in losses, and much more to come. The system is broken, and NOBODY knows where to get the parts to fix it.

I don’t know exactly what is going on, but see that the spreads are increasing.

Banks are talking about bailing out insurers, cuz if they don’t we will see that they are all insolvent. Better to cough up $500 million to keep them all afloat awhile longer instead of allowing the $10 Billion scam to be exposed.

Every amateur thinks that they can predict long term mortgage rates, but I can’t tell you what they will be tomorrow.

All the websites, all the averages, and internet quotes, it’s all CRAP. It depends what somebody actually qualifies for, and most people don’t understand that.

Most people who shop by rate get screwed. Rates change constantly, but people don’t see it.

On January 22nd, 30 YR fixed PAR rate was 5.25%. On Jan 23 it was down below 5% for about an hour and closed that day at 5.375%…It tested 5.25% again, and has gone straight up from there to around 6% now.

The no cost loans, the no fee loans, and the average rates do nothing more than fool people, who don’t understand the difference. (Many “no fee” loans still have costs)

The industry is still full of scum, misleading and overcharging borrowers in rate and fee, and not explaining the products, because they don’t understand it themselves.

I think that when the “new” conforming rates (NCR) finally kick in, people may be sorry that they waited, and find out that they don’t qualify anyway.

It’s only going to make borrowing cheaper for many people who qualified at higher rates.

The house of cards is collapsing. The powers are getting VERY desperate. The talk of “negative equity certificates”
is beyond rational.

I see so many people in trouble and/or denial.

[HLS]

HWG…
Fannie and Freddie are in HUGE trouble.

Although conforming limits have been raised (in theory)
there are NO loan programs available yet. Perhaps mid March, and as of now they will only be valid until 12-31-08

The “system” desperately needs to book some profits.
There are already billions in losses, and much more to come. The system is broken, and NOBODY knows where to get the parts to fix it.

I don’t know exactly what is going on, but see that the spreads are increasing.

Banks are talking about bailing out insurers, cuz if they don’t we will see that they are all insolvent. Better to cough up $500 million to keep them all afloat awhile longer instead of allowing the $10 Billion scam to be exposed.

Every amateur thinks that they can predict long term mortgage rates, but I can’t tell you what they will be tomorrow.

All the websites, all the averages, and internet quotes, it’s all CRAP. It depends what somebody actually qualifies for, and most people don’t understand that.

Most people who shop by rate get screwed. Rates change constantly, but people don’t see it.

On January 22nd, 30 YR fixed PAR rate was 5.25%. On Jan 23 it was down below 5% for about an hour and closed that day at 5.375%…It tested 5.25% again, and has gone straight up from there to around 6% now.

The no cost loans, the no fee loans, and the average rates do nothing more than fool people, who don’t understand the difference. (Many “no fee” loans still have costs)

The industry is still full of scum, misleading and overcharging borrowers in rate and fee, and not explaining the products, because they don’t understand it themselves.

I think that when the “new” conforming rates (NCR) finally kick in, people may be sorry that they waited, and find out that they don’t qualify anyway.

It’s only going to make borrowing cheaper for many people who qualified at higher rates.

The house of cards is collapsing. The powers are getting VERY desperate. The talk of “negative equity certificates”
is beyond rational.

I see so many people in trouble and/or denial.

[HLS]

HWG…
Fannie and Freddie are in HUGE trouble.

Although conforming limits have been raised (in theory)
there are NO loan programs available yet. Perhaps mid March, and as of now they will only be valid until 12-31-08

The “system” desperately needs to book some profits.
There are already billions in losses, and much more to come. The system is broken, and NOBODY knows where to get the parts to fix it.

I don’t know exactly what is going on, but see that the spreads are increasing.

Banks are talking about bailing out insurers, cuz if they don’t we will see that they are all insolvent. Better to cough up $500 million to keep them all afloat awhile longer instead of allowing the $10 Billion scam to be exposed.

Every amateur thinks that they can predict long term mortgage rates, but I can’t tell you what they will be tomorrow.

All the websites, all the averages, and internet quotes, it’s all CRAP. It depends what somebody actually qualifies for, and most people don’t understand that.

Most people who shop by rate get screwed. Rates change constantly, but people don’t see it.

On January 22nd, 30 YR fixed PAR rate was 5.25%. On Jan 23 it was down below 5% for about an hour and closed that day at 5.375%…It tested 5.25% again, and has gone straight up from there to around 6% now.

The no cost loans, the no fee loans, and the average rates do nothing more than fool people, who don’t understand the difference. (Many “no fee” loans still have costs)

The industry is still full of scum, misleading and overcharging borrowers in rate and fee, and not explaining the products, because they don’t understand it themselves.

I think that when the “new” conforming rates (NCR) finally kick in, people may be sorry that they waited, and find out that they don’t qualify anyway.

It’s only going to make borrowing cheaper for many people who qualified at higher rates.

The house of cards is collapsing. The powers are getting VERY desperate. The talk of “negative equity certificates”
is beyond rational.

I see so many people in trouble and/or denial.

[HLS]

DH,
The major shift that you are seeing now is on the back end for loans that were originated with loose standards. They are being generous on the back end now because they don’t want to foreclose if they can keep a FB buried in their debt. Mods are very different than originations.

On the current origination side, a low LTV, low DTI and high score doesn’t get a quicker approval than a marginal loan. Conforming approvals are computerized and the answers are spit out within 60 seconds, even for a 680 mid score, 50% DTI and 80% LTV… the rate is the same as a 780 score, 25% DTI and 50% LTV.

I don’t know if there are any conforming lenders that “carry their own loans” today,, virtually all get sold to FNMA, FHLMC or FHA. There are very few exceptions granted, if any.

There are people with high credit scores, low DTI’s.. BUT no equity. When upside down, there is no chance of a refi with a new lender. Many people have not grasped this reality yet.

[HLS]

DH,
The major shift that you are seeing now is on the back end for loans that were originated with loose standards. They are being generous on the back end now because they don’t want to foreclose if they can keep a FB buried in their debt. Mods are very different than originations.

On the current origination side, a low LTV, low DTI and high score doesn’t get a quicker approval than a marginal loan. Conforming approvals are computerized and the answers are spit out within 60 seconds, even for a 680 mid score, 50% DTI and 80% LTV… the rate is the same as a 780 score, 25% DTI and 50% LTV.

I don’t know if there are any conforming lenders that “carry their own loans” today,, virtually all get sold to FNMA, FHLMC or FHA. There are very few exceptions granted, if any.

There are people with high credit scores, low DTI’s.. BUT no equity. When upside down, there is no chance of a refi with a new lender. Many people have not grasped this reality yet.

[HLS]

DH,
The major shift that you are seeing now is on the back end for loans that were originated with loose standards. They are being generous on the back end now because they don’t want to foreclose if they can keep a FB buried in their debt. Mods are very different than originations.

On the current origination side, a low LTV, low DTI and high score doesn’t get a quicker approval than a marginal loan. Conforming approvals are computerized and the answers are spit out within 60 seconds, even for a 680 mid score, 50% DTI and 80% LTV… the rate is the same as a 780 score, 25% DTI and 50% LTV.

I don’t know if there are any conforming lenders that “carry their own loans” today,, virtually all get sold to FNMA, FHLMC or FHA. There are very few exceptions granted, if any.

There are people with high credit scores, low DTI’s.. BUT no equity. When upside down, there is no chance of a refi with a new lender. Many people have not grasped this reality yet.

[HLS]

DH,
The major shift that you are seeing now is on the back end for loans that were originated with loose standards. They are being generous on the back end now because they don’t want to foreclose if they can keep a FB buried in their debt. Mods are very different than originations.

On the current origination side, a low LTV, low DTI and high score doesn’t get a quicker approval than a marginal loan. Conforming approvals are computerized and the answers are spit out within 60 seconds, even for a 680 mid score, 50% DTI and 80% LTV… the rate is the same as a 780 score, 25% DTI and 50% LTV.

I don’t know if there are any conforming lenders that “carry their own loans” today,, virtually all get sold to FNMA, FHLMC or FHA. There are very few exceptions granted, if any.

There are people with high credit scores, low DTI’s.. BUT no equity. When upside down, there is no chance of a refi with a new lender. Many people have not grasped this reality yet.

[HLS]

DH,
The major shift that you are seeing now is on the back end for loans that were originated with loose standards. They are being generous on the back end now because they don’t want to foreclose if they can keep a FB buried in their debt. Mods are very different than originations.

On the current origination side, a low LTV, low DTI and high score doesn’t get a quicker approval than a marginal loan. Conforming approvals are computerized and the answers are spit out within 60 seconds, even for a 680 mid score, 50% DTI and 80% LTV… the rate is the same as a 780 score, 25% DTI and 50% LTV.

I don’t know if there are any conforming lenders that “carry their own loans” today,, virtually all get sold to FNMA, FHLMC or FHA. There are very few exceptions granted, if any.

There are people with high credit scores, low DTI’s.. BUT no equity. When upside down, there is no chance of a refi with a new lender. Many people have not grasped this reality yet.

[HLS]

DOJ, you’ve got some really bad info.
Loaning $12 on $1 of income was never possible.

Nobody on earth approves loans based solely on annual income, and there was never a time that even 10:1 was a measure.

Borrowers are qualified on gross income vs. total monthly debts, (minimum payments) including mortgage, property taxes, hazard insurance, HOA fees, credit cards, car payments, school loans, child support/alimony etc. Usually only monthly debts that are on a credit report are used.

The higher your income, the more disposable income you should have.

There is no exact ratio, but up to 60% of gross income is not impossible.
It’s more debt than I recommend, but many people don’t want to listen.

Lenders will approve people for more debt than they should take on.

Median numbers mean absolutely nothing, and are misleading.
Median income earners don’t buy median priced homes.

Your “potential outcomes” are the kind of misleading projections that the media loves.

[HLS]

DOJ, you’ve got some really bad info.
Loaning $12 on $1 of income was never possible.

Nobody on earth approves loans based solely on annual income, and there was never a time that even 10:1 was a measure.

Borrowers are qualified on gross income vs. total monthly debts, (minimum payments) including mortgage, property taxes, hazard insurance, HOA fees, credit cards, car payments, school loans, child support/alimony etc. Usually only monthly debts that are on a credit report are used.

The higher your income, the more disposable income you should have.

There is no exact ratio, but up to 60% of gross income is not impossible.
It’s more debt than I recommend, but many people don’t want to listen.

Lenders will approve people for more debt than they should take on.

Median numbers mean absolutely nothing, and are misleading.
Median income earners don’t buy median priced homes.

Your “potential outcomes” are the kind of misleading projections that the media loves.

[HLS]

DOJ, you’ve got some really bad info.
Loaning $12 on $1 of income was never possible.

Nobody on earth approves loans based solely on annual income, and there was never a time that even 10:1 was a measure.

Borrowers are qualified on gross income vs. total monthly debts, (minimum payments) including mortgage, property taxes, hazard insurance, HOA fees, credit cards, car payments, school loans, child support/alimony etc. Usually only monthly debts that are on a credit report are used.

The higher your income, the more disposable income you should have.

There is no exact ratio, but up to 60% of gross income is not impossible.
It’s more debt than I recommend, but many people don’t want to listen.

Lenders will approve people for more debt than they should take on.

Median numbers mean absolutely nothing, and are misleading.
Median income earners don’t buy median priced homes.

Your “potential outcomes” are the kind of misleading projections that the media loves.

[Author]

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