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February 25, 2008 at 1:17 PM in reply to: Income to Mortgage Ratios in the new Banking System??? #159964February 25, 2008 at 1:17 PM in reply to: Income to Mortgage Ratios in the new Banking System??? #160040
HLS
ParticipantDOJ, 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.
Participant10 YR ARM rate is fixed for 10 years. It is bought by GSE’s.
For primary residence, it is usually available at the same rate whether you want interest only or a 30 YR amortization payment.
The rate will change in year 11 (Payment #121)For investment property, you MUST take the amortized payment.
There is no prepayment penalty.
When the rate is the same, I recommend taking the I/O payment as your obligation, but pay the amortized payment if you wish.
One never knows when they might run into financial difficulty, and the obligation of the lower payment is a benefit.
Other lenders might offer different terms, but the prime lender rates require the above.
I am also seeing that GSE’s will no longer loan on non-owner condos, regardless of credit score or LTV (at the moment)
This is NOT a good thing with those that have condo rentals.
Participant10 YR ARM rate is fixed for 10 years. It is bought by GSE’s.
For primary residence, it is usually available at the same rate whether you want interest only or a 30 YR amortization payment.
The rate will change in year 11 (Payment #121)For investment property, you MUST take the amortized payment.
There is no prepayment penalty.
When the rate is the same, I recommend taking the I/O payment as your obligation, but pay the amortized payment if you wish.
One never knows when they might run into financial difficulty, and the obligation of the lower payment is a benefit.
Other lenders might offer different terms, but the prime lender rates require the above.
I am also seeing that GSE’s will no longer loan on non-owner condos, regardless of credit score or LTV (at the moment)
This is NOT a good thing with those that have condo rentals.
Participant10 YR ARM rate is fixed for 10 years. It is bought by GSE’s.
For primary residence, it is usually available at the same rate whether you want interest only or a 30 YR amortization payment.
The rate will change in year 11 (Payment #121)For investment property, you MUST take the amortized payment.
There is no prepayment penalty.
When the rate is the same, I recommend taking the I/O payment as your obligation, but pay the amortized payment if you wish.
One never knows when they might run into financial difficulty, and the obligation of the lower payment is a benefit.
Other lenders might offer different terms, but the prime lender rates require the above.
I am also seeing that GSE’s will no longer loan on non-owner condos, regardless of credit score or LTV (at the moment)
This is NOT a good thing with those that have condo rentals.
Participant10 YR ARM rate is fixed for 10 years. It is bought by GSE’s.
For primary residence, it is usually available at the same rate whether you want interest only or a 30 YR amortization payment.
The rate will change in year 11 (Payment #121)For investment property, you MUST take the amortized payment.
There is no prepayment penalty.
When the rate is the same, I recommend taking the I/O payment as your obligation, but pay the amortized payment if you wish.
One never knows when they might run into financial difficulty, and the obligation of the lower payment is a benefit.
Other lenders might offer different terms, but the prime lender rates require the above.
I am also seeing that GSE’s will no longer loan on non-owner condos, regardless of credit score or LTV (at the moment)
This is NOT a good thing with those that have condo rentals.
Participant10 YR ARM rate is fixed for 10 years. It is bought by GSE’s.
For primary residence, it is usually available at the same rate whether you want interest only or a 30 YR amortization payment.
The rate will change in year 11 (Payment #121)For investment property, you MUST take the amortized payment.
There is no prepayment penalty.
When the rate is the same, I recommend taking the I/O payment as your obligation, but pay the amortized payment if you wish.
One never knows when they might run into financial difficulty, and the obligation of the lower payment is a benefit.
Other lenders might offer different terms, but the prime lender rates require the above.
I am also seeing that GSE’s will no longer loan on non-owner condos, regardless of credit score or LTV (at the moment)
This is NOT a good thing with those that have condo rentals.
Participant“With respect to why or why not to charge a point and rebate vs charging less it sometimes comes down to the lender”
OH really ?? Please explain THAT comment to me.
Participant“With respect to why or why not to charge a point and rebate vs charging less it sometimes comes down to the lender”
OH really ?? Please explain THAT comment to me.
Participant“With respect to why or why not to charge a point and rebate vs charging less it sometimes comes down to the lender”
OH really ?? Please explain THAT comment to me.
Participant“With respect to why or why not to charge a point and rebate vs charging less it sometimes comes down to the lender”
OH really ?? Please explain THAT comment to me.
Participant“With respect to why or why not to charge a point and rebate vs charging less it sometimes comes down to the lender”
OH really ?? Please explain THAT comment to me.
ParticipantRay,
I’m not doubting most of what you stated. I had a client sign loan docs this morning at 5.25% for a loan locked 2½ weeks ago…
Last week had a 5% NO COST 5 YR ARM, and a 5.375% cash out refi.There is NO reason to charge a point and rebate .70%. That’s nonsense , or it didn’t happen excatly that way.
(Just charge .30)You said that the 1pt is tax deductible, but forgot to mention that the .70 rebate is income.
I tell people 100% of the truth, 100% of the time, and can only laugh when people tell me what they were quoted a week ago but they didn’t lock, and can’t understand why my PAR rate is higher.
Most people don’t recognize (or understand) the truth, even if it smacked them in the face. MOST people get lied to and screwed on their loans in either rate, fees or both.
They go to friends and family members under the guise of a “free” or “no cost” loans, and get taken advantage of.
The fact is that 98% of the people don’t know their ass from their elbow when it comes to knowing what they qualify for and what the best rate is for their loan, but 100% of people think that they do know and that they got the best loan for their situation.
If your relative got that rate, they probably locked on Weds Jan 23rd. 30 YR rates were as low as 4.875% intraday, but closed that day at 5.375%. The intraday low was probably the lowest ever, and it wasn’t there long.
All the people that call around shopping by rate, end up with the biggest liar, but still get lucky once in awhile.
ParticipantRay,
I’m not doubting most of what you stated. I had a client sign loan docs this morning at 5.25% for a loan locked 2½ weeks ago…
Last week had a 5% NO COST 5 YR ARM, and a 5.375% cash out refi.There is NO reason to charge a point and rebate .70%. That’s nonsense , or it didn’t happen excatly that way.
(Just charge .30)You said that the 1pt is tax deductible, but forgot to mention that the .70 rebate is income.
I tell people 100% of the truth, 100% of the time, and can only laugh when people tell me what they were quoted a week ago but they didn’t lock, and can’t understand why my PAR rate is higher.
Most people don’t recognize (or understand) the truth, even if it smacked them in the face. MOST people get lied to and screwed on their loans in either rate, fees or both.
They go to friends and family members under the guise of a “free” or “no cost” loans, and get taken advantage of.
The fact is that 98% of the people don’t know their ass from their elbow when it comes to knowing what they qualify for and what the best rate is for their loan, but 100% of people think that they do know and that they got the best loan for their situation.
If your relative got that rate, they probably locked on Weds Jan 23rd. 30 YR rates were as low as 4.875% intraday, but closed that day at 5.375%. The intraday low was probably the lowest ever, and it wasn’t there long.
All the people that call around shopping by rate, end up with the biggest liar, but still get lucky once in awhile.
ParticipantRay,
I’m not doubting most of what you stated. I had a client sign loan docs this morning at 5.25% for a loan locked 2½ weeks ago…
Last week had a 5% NO COST 5 YR ARM, and a 5.375% cash out refi.There is NO reason to charge a point and rebate .70%. That’s nonsense , or it didn’t happen excatly that way.
(Just charge .30)You said that the 1pt is tax deductible, but forgot to mention that the .70 rebate is income.
I tell people 100% of the truth, 100% of the time, and can only laugh when people tell me what they were quoted a week ago but they didn’t lock, and can’t understand why my PAR rate is higher.
Most people don’t recognize (or understand) the truth, even if it smacked them in the face. MOST people get lied to and screwed on their loans in either rate, fees or both.
They go to friends and family members under the guise of a “free” or “no cost” loans, and get taken advantage of.
The fact is that 98% of the people don’t know their ass from their elbow when it comes to knowing what they qualify for and what the best rate is for their loan, but 100% of people think that they do know and that they got the best loan for their situation.
If your relative got that rate, they probably locked on Weds Jan 23rd. 30 YR rates were as low as 4.875% intraday, but closed that day at 5.375%. The intraday low was probably the lowest ever, and it wasn’t there long.
All the people that call around shopping by rate, end up with the biggest liar, but still get lucky once in awhile.
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