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HLS
ParticipantPS: For your situation, the lowest borrower’s mid credit score (680-699, 700-719, 720-739)is crucial to pricing a NON FHA loan, as well as whether you have 10-14% equity OR 15-19% equity.
If mid credit score is below 680, FHA may in fact be your best option.
By planning in advance, it is possible to only use credit cards in the name of one spouse and possibly qualify for a loan with the other spouse’s income & credit.
Joint debt can be very hurtful, as in cases like this.People can still be on the deed to a property without being obligated on the loan.
ParticipantLPJ..
1. According to your figures you have plenty of equity to consider a NON FHA loan (and possibly a better loan) You will still need mortg ins without 20% equity, but you will not have the FHA funding fee with a conventional loan AND the possibility of mortg ins being removed sooner than with an FHA loan.2. Was your first payment in Dec or January ?
Your taxes/insurance portion of your payment are what they are. Don’t let this confuse your payment analysis.3. You will still be making your August payment which will reduce your loan balance even further, closer to $318K and cost you another $2000+/- out of pocket before this new loan closes next month.
4. By starting over with a new 30yr loan, you will be adding at least 9 payments of $1450 (P&I) that you no longer have on your existing loan.
If you only compare monthly payment savings,it’s $13,000 more in payments than the loan you have now,did you consider this vs.your savings ?My point is that the benefit of a Streamline might be no appraisal, but for a $385 appraisal fee, if you have the equity that you say you have you may have another option to consider, at a lower cost.
You are definitely going to be better off in a lower rate and you may decide to stick with FHA, but did you get a comparison of rate, cost and mortg ins payment ???
Participant[quote=bearishgurl]
I don’t think too many borrowers really pay attn to this.[/quote]It’s very unlikely that anybody with an FHA loan can increase the value of their property by 21% in 3 months. Possible perhaps, but highly unlikely.
Recourse debt is PROBABLY not going to be an issue for most people, but they should be aware of what it is and get advice from someone.
Unfortunately many people who have borrowed hundreds of thousands of dollars are very confused
about their situations and have received horrible advice about what to do about their situations.In some cases it’s a personal choice, but in many cases it’s a no brainer to refi but they are paralyzed by fear,confusion,and/or greed.
With FHA loans it is possible that MIP payments will go up, making a refi less attractive, even at a lower interest rate.
I believe FHA is a problem, not a solution.
ParticipantI’m troubled by the misinformation being thrown around here.
You will NOT get rid of MIP with a FHA refi, streamline or not.
FHA is a loan for those with either a very low down payment and/or crappy credit. You will always have MIP with a new FHA loan, and it isn’t going away for a long time, regardless of equity.
It is comparable to assigned risk auto insurance.
Possibly a product for those who are desperate OR do not understand other options.If you have great credit AND at least 5% down for a purchase (or at least 5% equity for a refi) AND a loan amount below $417,000 a FHA loan may not be your best option.
It seems that many people who can qualify for a better loan, end up with FHA at the urging of their mortgage ‘friends’ or bad advice on a blog.
Lpj, have you been told what your NEW MIP payment is going to be ?
I fully understand the benefit of lowering your rate to 3.50%, but I’m troubled by your $3600 net cost +/- and how much it is going to actually lower your total payment (AND extend your loan)Will your house appraise for more than $336,000 now? Are your mid credit scores above 740 ?
When is your loan scheduled to close and what is your exact current principal balance ?
Above or below $319K ?
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Mark, Do you have 5% equity (or more) AND mid credit scores above 740 ?
They can restrict you from doing a Streamline for 6 months but they cannot restrict you from paying it off if you find a better loan.Participant[quote=lpjohnso]
We owe $319,000 right now and after they roll the cost of the refi into our mortgage our new balance will be $323,000.We will need to bring $1,600 to closing, and they will time our closing right before our existing mortgage payment is due so we do not have to pay it. Then, we will receive $2000 back after escrow closes. [/quote]
You are not getting a no cost loan, you are adding
$4000+ to your balance.Did they explain where the $2000 is coming from ?
Why do you need to bring in $1600 if you are going to get $2000 back?ParticipantIf you are getting a 15/30yr fixed loan that is FNMA/Freddie/FHA in most cases BANKS ARE MORTGAGE BROKERS. It’s a division of the bank just like a credit card division.
Many think that bank have lower rates which may or may not be true. They usually don’t.Credit unions can do whatever they want and make their own rules if lending their own money for 30 years.
A good broker will get you very competitive pricing. Pricing changes almost every day.
There are some bad brokers out there.
Nobody can tell you that they always have the lowest pricing.A refi loan is NOT exactly the same as a purchase loan, it should be slightly easier.
‘Direct lenders'(which includes banks) can deceive you and get away with it, It is not possible for brokers to do this.
If you only care about price, you may find an internet lender someplace far away with lower pricing and you can take your chances if you wish.
It usually isn’t that much better.Participant1. When dealing with a refi of a purchase loan, speak to your tax advisor or a QUALIFIED party to explain recourse debt vs. non recourse debt and YOU decide whether this is a concern for you.
2. If recourse debt is not a concern, if you can qualify to refinance and save .25% or more on your rate, (which you should be able to do from 4.25%) at zero cost to you, there is absolutely no reason to not refinance.** Sadly, many people do not get this**
3. With an FHA loan, I assume that you had a very small down payment (3.50%?) Make sure that you compare your MIP (mortg ins) payment on the new loan to your existing payment.
Your payment should drop about least $125 a month.
Assuming that you still qualify, you should be able to get <3.75% at zero cost.There is no such thing as an easy loan today, but it should be easier than your purchase loan.
ParticipantDelete
ParticipantDifferent store cards have different values, based on demand and popularity.
There are stores in Carlsbad & Escondido malls
that buy and sell gift cards.
GIFT CARD KINGS http://www.cash4giftcardsnow.com/I don’t think there is any service that is going to trade gift cards without some sort of fee.
Cards are sold at anywhere from a 3% discount to a 20% discount (or greater)
Some are much more popular/in demand than others.You can stand outside a retail location and offer to sell a card at a discount for cash.
You can also sell them on eBay at a discount and pay the fees to get cash and then possibly buy
other cards that you want at a discount.**The premise of gift cards is idiotic unless you can buy them at a discount.
June 1, 2012 at 6:37 AM in reply to: How are people dumber than us going to make out with their 401(k)s? #744716ParticipantTwilight Zone scenario OR Reality ??
The 401K system is the largest Ponzi scheme in the history of the world, only 2nd to the US housing bubble that was engineered to occur.
It is naive to believe that generation after generation can benefit from the stock market yet tens of millions of people are counting on it 100% because *GASP* the govt condones/approves/suggests it, and makes it foolishly attractive with ‘pre tax dollars’
The reason that defined benefit plans were done away with is because it wasn’t possible for professionals to manage money with solid returns decade after decade for many thousands of people, yet it is now ‘expected’ that amateurs will have a better return.
Just as real estate ‘professionals’ were cheerleaders for the housing bubble and many were sucked in by their ignorance,(because houses never go down) those whose incomes rely on the financial markets are cheerleaders for the 401K system and convinced of its success, blinded by their income.
As long as leverage and derivatives exist, it is likely that the scheme will go on in one fashion or another for a long time.
The wake up call will be when something REALLY big happens and *ONLY THEN* 99%+ of the people will say that nobody could have seen this coming AND ‘poor me, just like everybody else’ and EXPECT a govt bailout.
The govt will not have the resources to bail these people out and perhaps it will be game over at that time.
Good luck to those who are COUNTING on this system.
Participant[quote=poorgradstudent]I’m confused, considering your 70% down payment should make you a great bet. Because if you walk, they get to keep the house, and your 70%… the market would have to crash a LOT for that not to be a good bet.[/quote]
YOU DONT UNDERSTAND THE SYSTEM.
Hard money lenders will take that chance at much higher rates.There are many ways to fight foreclosure.
Not so easy to get a house back and there are plenty of expenses involved and crazy moratoriums etc.Don’t be confused, just accept that’s how the system works. They are not in the business of foreclosing.
They ARE in the business of having clueless people overpay for houses with very small downpayments.
Do you understand that housing market is the greatest Ponzi scheme ever invented ?
ParticipantNot necessarily out of league, just not realizing:
1. A high credit score doesn’t make it any easier to get a loan, it only determines the pricing.
2. Lots of equity doesn’t make it any easier to get a loan, it only means the payment will be lower. (The lower payment will help you qualify, having lots of equity wont)
3. Having a million dollars in the bank (or assets) doesn’t make it any easier to get a loan, in most cases you only need to document the cash needed to close the loan, and excess cash doesn’t matter EXCEPT for rental properties reserves.
Loan approvals are based on valid/usable income VS. certain expenses.PERIOD.
Just a myth of people thinking they will have no problem getting a loan, but not having a clue what the guidelines are.
Absolutely ridiculous that 5% down can be an easier loan than 70% down BUT that’s the system.
Sad, pathetic, unreasonable & stupid, BUT the way that it is.
ParticipantStandard leases were written by lawyers to protect the landlord. State/local laws can control what is legal/allowed for a tenant, regardless of what the lease says. Most tenants dont know their rights.
LLC’s are in many cases a waste of money, but a personal choice.
There is something called ‘piercing the corporate veil’ which will not give you the protection that you seek or think that you have.1. Get legal advice about an LLC
2. Use a good industry standard preprinted lease or pay a lawyer to make it even more complicated.ParticipantHave you found a loan yet ??
You need to understand what loan approvals are based on and realize that nobody is a gift to a lender even though you think there is no risk to them.(There is)
Having a high credit score, large down payment and/or huge income doesn’t get you a loan….
Qualifying by the guidelines is what gets you a loan.
If your “whatever that thing is” is too high, you aren’t going to get a loan. Period.THE SYSTEM IS BROKEN. Someone with 5% down can get a loan if their ratios are OK, but you may not be able to get one with 70% down if your ratios aren’t OK.
THATS the system.
Designed and approved by genius idiots in govt that claim that they want to fix the housing ‘mess’Hard money lenders will give you a loan with 70% equity and not care about anything else, but you are probably looking at 10%-12% interest.
You have a slim chance of getting approved with a 60% ratio as most lenders will not accept this, but it may not be impossible.
Loan approvals are automated and the people you are talking to may all be using the same system.
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