Forum Replies Created
-
AuthorPosts
-
May 4, 2013 at 11:58 AM in reply to: Why it no longer makes sense for young people to pay off their mortgage early #761791
HLS
ParticipantArtificial low interest rates are creating a bubble of a different kind.
Within reason, many people don’t care about how much they pay for a house, they only care about their monthly payment. Thus they are bidding up properties which benefits previous buyers.A $400,000 loan has an $1800 monthly payment today.
Depending on taxes&insurance, total monthly housing expense is $2500+/- ($30k annual) which is affordable for many, perhaps cheaper than renting.If interest rates were 6% payment would be $600 a month higher and would be harder for borrowers to qualify.
If interest rates were higher, would prices come down?ParticipantThat spread in beta is not that large.
It’s partially subjective.One possible explanation is that they use different indexes to determine the beta.
(one may use the S&P, the other may use the Nasdaq)Is beta an important factor for you ?
May 3, 2013 at 2:56 PM in reply to: Need Help! Rental Applicant filed a discrimination complaint #761773ParticipantCONSULT AN ATTORNEY.
Title VIII of the Civil Rights Act of 1968 is commonly known as the Fair Housing Act and was a follow‑up to the Civil Rights Act of 1964.
The Civil Rights Act of 1866 prohibited discrimination in housing, but there were no federal enforcement provisions.
The 1968 act expanded on previous acts and prohibited discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, and since 1974, gender; since 1988, the act protects people with disabilities and families with children.
I don’t think that pets & smokers fall into the above.
Being a landlord comes with huge responsibilities.Luckily for most landlords, most tenants do not know their rights.
It can be dangerous in casual conversation to mention sexual preference, religion, pregnancy, ethnic origin etc. and then deny an applicant.
ParticipantMany Thanks SDT,
still lots of confusion out there and many people do not understand the true benefit of refinancing.Unfortunately the borrower’s who need help the most cannot qualify and for those that do it’s just free money!
ParticipantCharts have different settings. AAPL hit a low of $385 intraday on 4/19 and has been in an uptrend since then.
This is perfectly clear on the 3mo, 6mo YTD and 1 year charts.If you only want the past week, just look at a 5 day chart.
Google and Yahoo charts look the same when the settings are the same.ParticipantBank probably does not own your loan.
FHA has MMI (Mutual mortgage insurance)
Fannie/Freddie use 3rd party companies for PMI (Private Mortgage Insurance)In most cases banks DO NOT own loans nor do they loan their money for 15yrs or 30yrs. They are the servicer of loans. They collect payments etc.
Banks may make their own rules but cannot ignore certain things. Banks originate loans just like mortgage brokers. In most cases 15yr/30yr loans are sold off to FNMA/FREDDIE who then bundle them into mortgage backed securities (MBS) and sold in the bond market.
At 80% LTV based on the value at the time the loan was originated, you have to fight to get MMI or PMI removed. At 78% it should be removed automatically.
There are loan programs for some that allow you to refi with less than 20% equity that don’t require mortgage insurance, but if you currently have mortgage insurance you cannot eliminate it if you don’t have at least 20% equity.
April 27, 2013 at 12:42 AM in reply to: Obama administration pushes banks to make home loans to people with weaker credit #761686ParticipantIt is not easier to qualify with an interest only payment and are not available to those with bad credit.
Talk of a housing recovery is foolishness.Programs like FHA do not make housing affordable.
They just allow people with crappy credit to buy houses at inflated prices and throw away more money on mortgage insurance.
They also punish responsible people with good credit who have saved up for a down payment.This is a very sick and twisted concept manipulated by the govt to make
people slaves to a mortgage in many parts of the country that most people accept/expect as normal & the ‘American Dream’ as outlined by the govt.April 27, 2013 at 12:31 AM in reply to: Short sale update: entered investor approval stage. Time table? #761685ParticipantThere is nothing short about a short sale.
Are you paying cash OR getting a loan ?
Is there a 2nd or HELOC on the property OR just a 1st?
Your loan process cannot officially start until
you have a fully executed purchase agreement signed by all parties. The typical timeline for a purchase loan from origination is about 30 days, depending on many factors that are out of your control. Escrow companies that they use are often
overwhelmed. Always best to have buyer’s choice of escrow rather than seller’s.One hang up with short sales is the the ability of the signing party/investor to prove that they have the authority to sell the house.
It’s often an LLC or similar, and the signer needs to prove to underwriter that they have authority.The deed is in the current owner’s name, their signature will be required as well.
1 month isn’t likely unless you are paying cash.
*HLSParticipantYour current ‘lender’ probably doesn’t own your loan, they just service it.
An old loan gets paid off and a refi is an entirely new loan that will be sold into a new mortgage backed security.
You usually do not get the best rate by staying with your current servicer and they cannot overlook any guidelines because of your current loan status.
It’s usually incorrect to think that you get any preferential treatment.
Qualifying is crazier than ever. If you can save .25% or more on a reasonable loan amount and it is at zero cost (or zero + a credit) there is no reason not to refi.
Realize that PMI is almost a complete waste of money and may not be tax deductible depending on your income.
If you can bring cash in to eliminate PMI it is a huge return on the investment.
If you don’t/can’t refi, at 78% of the original appraised value, PMI should be removed without a fight.
At 80% it can a bit tricky to get it removed.
*HLSParticipantZach,
You’re welcome. I analyze mortgage situations all day long (and sometimes in my sleep) Some people have options, many don’t.Without 20% equity you will not get rid of MIP/PMI.
Appraisals for loan purposes must be done as part of a loan application through a lender. Don’t waste money by paying for one on your own, it can’t be used for a loan. ANY appraisal is only the opinion of that appraiser.I’ve dealt with all levels of educated people who are really confused about their situations and don’t clearly understand them. There is plenty of really bad advice out there and there is not ‘one rate’ that fits everybody.
Rates/pricing changes a bit every day and often intraday. Do you understand what you are ‘shopping around’ for ? Nobody honors yesterday’s pricing (or last weeks) unless it is higher than today’s.
I have sent you a private message. If you contact me I can explain your possible options to you.
If you qualify, you can get a NO COST loan and save $2500 +/- in interest just the first year, and tens of thousands of dollars over the life of the loan compared to what you have now.Participant[quote=joec]Anyone know someone who is proficient with self-employed folks? We have some other debt that we need to work down first, but all these low rates seem to be tough to attain unless you are very cookie cutter in terms of w2/income/debt/job/reserves.[/quote]
See post above,, it has to do with guidelines.
Rates are the same for self employed vs. wage earner as long as you qualify.For self employed it requires 1 or 2 years federal tax returns, depending on the lender AND proof that
you are still active. There are always potential complications. If you own a corporation they need corp tax returns also.***You may not need to pay down debt. They don’t care how much you owe total, usually it just the minimum monthly payment obligation on a credit report that is crucial.
Unless you were told BY SOMEONE WHO KNOWS that you need to pay off the debt, do not assume that will make it any easier for you to qualify, and may not be necessary.
There are many other complications with loan approvals that have NOTHING TO DO with income, credit score, equity, assets, etc.
Participant[quote=flinger]For anyone who knows…stable/long-term single-job W2 income, no debt, perfect credit, 20% down, more-than-adequate reserve: as a percentage of one’s income (single person), how much can one borrow right now? Still the 28/36 front-end/back-end ratio?[/quote]
**************
Guidelines are guidelines. FNMA has about 1300 pages of them. NOTHING to do with common sense.Only being on a job for a month may not make it any harder than being on a job for 10-20-30+ YEARS.
Perfect credit? Not necessary. A score of 740 and 840 price exactly the same with 20% down.As long as you can document down payment CORRECTLY, you usually don’t need any reserves.
Loan approvals are automated,technically there is no maximum debt ratio, although many lenders impose one. The underwriters job is simply to make sure the items listed in the approval are met.
Front end/Back end ratio usually doesn’t matter, it’s just total debt that matters, possibly up to 50% +/-, based on the ‘findings’ of the automated approval.
Ratios haven’t been 28/36 in many, many years.
80% of borrowers in CA would have never been able to become mortgage slaves if that was in place.It’s a fallacy to think that ‘perfect credit’ or huge reserves make it easier to get approved for a loan.
In some cases it could be easier for someone with 3.50% down to get approved than someone with 20% down.
YES, it is insane.ParticipantRefinancing is NOT relatively simple but you may not be stuck. Maybe you’ve been talking to the wrong people.
With a balance of $470K you will need an appraisal of $587,500 to have 20% equity(not $570k)Only comparing the payment amounts is a HUGE HUGE HUGE mistake.
Historically 4.625% ‘ain’t so bad’ but in today’s market it is obscene.It is foolish to discuss averages.
If you don’t qualify, you have no option, period.
If you do qualify, you have the option of staying in a higher interest rate forever and wasting tens of thousands of dollars in interest
OR
Refinancing to a lower rate with the higher FHA MIP premium, that will go away some day, leaving you with a lower rate for the life of your loan.
(You can discuss the loss of deducting the interest
with your tax advisor)How long do you plan on ‘owning’ the house ?
Willing to bring in any cash to bring down your loan amount ?FHA is a disaster/train wreck.
If your house will appraise for $522K+ you may have
a better option IF you can qualify based on guidelines.ParticipantIs it prudent to tell someone not to worry about recourse debt at all OR is it better to let them know that it could be a problem and come to their own conclusion ?
To me, there is a difference between a situation that absolutely, definitely will not be a problem at all AND possibly being a problem, regardless of how unlikely that is.
Although I’m not aware of anybody who has ever had a problem with recourse debt, I’m not prepared to tell someone that it could never happen to them.
-
AuthorPosts
