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HLS
ParticipantHe actually did qualify for the 6.74% payment, the lender approved it and locked it that way. On day of drawing docs, lender called me and said that program didn’t allow lender paid MI…which was an add of .49%
So they changed it to 6.25%, with an MI payment.It was lender mistake. I got my borrower a $1,000 credit for their mistake. He was OK with it, still a great loan for 95%.
His payment will be about $120 a month higher until MI can be removed, and then he will save $130 a month at the lower rate for the life of the loan.
He plans on staying there a long time, so it may actually work out better for him in the long run.With a 30 YR amortization, a loan is at 80% after 10 years, and about 78% after 11 years.
He may be paying the loan down sooner, and get rid of the MI.ParticipantHe actually did qualify for the 6.74% payment, the lender approved it and locked it that way. On day of drawing docs, lender called me and said that program didn’t allow lender paid MI…which was an add of .49%
So they changed it to 6.25%, with an MI payment.It was lender mistake. I got my borrower a $1,000 credit for their mistake. He was OK with it, still a great loan for 95%.
His payment will be about $120 a month higher until MI can be removed, and then he will save $130 a month at the lower rate for the life of the loan.
He plans on staying there a long time, so it may actually work out better for him in the long run.With a 30 YR amortization, a loan is at 80% after 10 years, and about 78% after 11 years.
He may be paying the loan down sooner, and get rid of the MI.ParticipantHe actually did qualify for the 6.74% payment, the lender approved it and locked it that way. On day of drawing docs, lender called me and said that program didn’t allow lender paid MI…which was an add of .49%
So they changed it to 6.25%, with an MI payment.It was lender mistake. I got my borrower a $1,000 credit for their mistake. He was OK with it, still a great loan for 95%.
His payment will be about $120 a month higher until MI can be removed, and then he will save $130 a month at the lower rate for the life of the loan.
He plans on staying there a long time, so it may actually work out better for him in the long run.With a 30 YR amortization, a loan is at 80% after 10 years, and about 78% after 11 years.
He may be paying the loan down sooner, and get rid of the MI.Participant5 year,
The answer to your question is just above your repost.Did I overlook something ? It is CRUCIAL how the accounts are titled.
EACH SSN is covered to $100K.
I even posted a link to try and help you out. Go figure.
Maybe only Cashman speaks your language.Participant5 year,
The answer to your question is just above your repost.Did I overlook something ? It is CRUCIAL how the accounts are titled.
EACH SSN is covered to $100K.
I even posted a link to try and help you out. Go figure.
Maybe only Cashman speaks your language.Participant5 year,
The answer to your question is just above your repost.Did I overlook something ? It is CRUCIAL how the accounts are titled.
EACH SSN is covered to $100K.
I even posted a link to try and help you out. Go figure.
Maybe only Cashman speaks your language.August 19, 2007 at 12:57 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #77997ParticipantGreat question.
If credit scores didn’t exist, they would ONLY be lending based on property values, which is EXACTLY what hard money lenders do.
They want at least 25% equity and will lend at 12%+, gambling on property values.With higher credit scores, regular lenders are lending based on credit profile of the borrower AND ability to repay, with the loan secured by the property.
Based on lender experience, (which is what lending is ALL about) less people with higher credit scores will ever walk away.
They are aware of the risks, don’t kid yourself.
August 19, 2007 at 12:57 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78122ParticipantGreat question.
If credit scores didn’t exist, they would ONLY be lending based on property values, which is EXACTLY what hard money lenders do.
They want at least 25% equity and will lend at 12%+, gambling on property values.With higher credit scores, regular lenders are lending based on credit profile of the borrower AND ability to repay, with the loan secured by the property.
Based on lender experience, (which is what lending is ALL about) less people with higher credit scores will ever walk away.
They are aware of the risks, don’t kid yourself.
August 19, 2007 at 12:57 PM in reply to: What’s with the Kool-Aid doom-and-gloom “Jumbo loans are going to disappear” #78144ParticipantGreat question.
If credit scores didn’t exist, they would ONLY be lending based on property values, which is EXACTLY what hard money lenders do.
They want at least 25% equity and will lend at 12%+, gambling on property values.With higher credit scores, regular lenders are lending based on credit profile of the borrower AND ability to repay, with the loan secured by the property.
Based on lender experience, (which is what lending is ALL about) less people with higher credit scores will ever walk away.
They are aware of the risks, don’t kid yourself.
Participant$417K is LOAN AMOUNT, has nothing to do with property value.
GSE’s don’t buy loans above this amount, except if the property is in Hawaii or Alaska, then the limit is $625,500.
Go figure.Loans that are above 80% of the appraised value (but still under $417K) will require mortgage insurance.
I had a borrower sign docs on Friday, 95% loan. 30 YR Fixed, 6.25% PLUS MI payment.
He didn’t qualify for 6.74% without separate MI payment because he went stated.
Participant$417K is LOAN AMOUNT, has nothing to do with property value.
GSE’s don’t buy loans above this amount, except if the property is in Hawaii or Alaska, then the limit is $625,500.
Go figure.Loans that are above 80% of the appraised value (but still under $417K) will require mortgage insurance.
I had a borrower sign docs on Friday, 95% loan. 30 YR Fixed, 6.25% PLUS MI payment.
He didn’t qualify for 6.74% without separate MI payment because he went stated.
Participant$417K is LOAN AMOUNT, has nothing to do with property value.
GSE’s don’t buy loans above this amount, except if the property is in Hawaii or Alaska, then the limit is $625,500.
Go figure.Loans that are above 80% of the appraised value (but still under $417K) will require mortgage insurance.
I had a borrower sign docs on Friday, 95% loan. 30 YR Fixed, 6.25% PLUS MI payment.
He didn’t qualify for 6.74% without separate MI payment because he went stated.
ParticipantBorat, where you getting your information ?
It’s not as dismal as you say. I’m in the lending biz.
Conforming loans have NOT gone up and they are NOT harder to get.The thirst for returns from Wall Street is NOT going to disappear, and conforming rates will NOT be out of whack.
Everything to a lender is risk/reward. Until they sort out the new guidelines, it was easier to just say no for now, which created the current situation. It ISN’T permanent.
The mentality of a primary residence as an investment needs to go away. It’s a life style choice like buying a car.
Your math is perfect for an investor, and of course it doesn’t make sense in our area. NICE ?
ParticipantBorat, where you getting your information ?
It’s not as dismal as you say. I’m in the lending biz.
Conforming loans have NOT gone up and they are NOT harder to get.The thirst for returns from Wall Street is NOT going to disappear, and conforming rates will NOT be out of whack.
Everything to a lender is risk/reward. Until they sort out the new guidelines, it was easier to just say no for now, which created the current situation. It ISN’T permanent.
The mentality of a primary residence as an investment needs to go away. It’s a life style choice like buying a car.
Your math is perfect for an investor, and of course it doesn’t make sense in our area. NICE ?
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