Forum Replies Created
-
AuthorPosts
-
HLS
ParticipantFROM & SD R,
I’m not ignoring you, just swamped since yesterday.I’ll answer the OP when I can, next day or so.
Not to bang the gong, but I price ALL my loans for any client at the PAR rate. This is a rate that pays NOT A PENNY to the originator. This is why a fee needs to be charged. It’s the BEST rate for the borrower without a buy-down. Assuming that loan will be kept at least 2 years, it’s what every borrower wants, but doesn’t usually get.
Even major banks have wholesale and retail rates. The PAR rate is the back door wholesale rate. See my separate post about rebates and YSP.
What you see on Yahoo or any other site is just estimates and averages. Just an indication.
Depending on what you qualify for, every lender has different rates and programs with PAR rates.
10 diff lenders could have 10 diff PAR rates for 30 yr fixed. There are specials and loans ARE still being underwritten and funded.
By the way, SD R, You don’t know me and I don’t know you, but I respect YOU… I have thick skin, and am not stressed over the current market conditions. I’ve predicted this for 4-5 years, and am well prepared…I have nothing to lose by telling the truth. It’s how I conduct my life.
However, I will tell you that there are several real idiot morons with conspiracy theories posting on this board that accuse me of having an agenda.
I’ll pick and choose who I reply to, and will call a spade a spade. Everyone’s entitled to their opinion, but I don’t deal well with ignorance and stupidity.
You told me that my type didn’t stick around long, and I know why. I can spend my time better than posting with complete honesty here and being accused of lying.
I really do have better things to do.
Participant%$#!@!(*&* I AM NOT TOUTING THEM,
(exclusively ?? that’s FUNNY)I simply stated that they should be CONSIDERED and can be helpful.
It makes NO DIFFERENCE to me what loan someone gets.I’m tired of TRYING to tell the truth. Maybe I should just be like the 99 others and lie to all of you, then you will be happy.
HERE YA GO: Interest only loans are TERRIBLE. Don’t ever get one. You should only get a 15 YR fully amortized loan. Pay extra EVERY payment. If you cannot afford to, you are a loser and shouldn’t live in this area. Go to a bank. Believe what the $8 an hour employee tells you. They ALL have great loans and can discuss your financila situation
with you. They have BANK CD’s, and BANK savings accounts.Have fun with your conspiracy theories.
You’ve proved your point. People don’t want the truth.Participant%$#!@!(*&* I AM NOT TOUTING THEM,
(exclusively ?? that’s FUNNY)I simply stated that they should be CONSIDERED and can be helpful.
It makes NO DIFFERENCE to me what loan someone gets.I’m tired of TRYING to tell the truth. Maybe I should just be like the 99 others and lie to all of you, then you will be happy.
HERE YA GO: Interest only loans are TERRIBLE. Don’t ever get one. You should only get a 15 YR fully amortized loan. Pay extra EVERY payment. If you cannot afford to, you are a loser and shouldn’t live in this area. Go to a bank. Believe what the $8 an hour employee tells you. They ALL have great loans and can discuss your financila situation
with you. They have BANK CD’s, and BANK savings accounts.Have fun with your conspiracy theories.
You’ve proved your point. People don’t want the truth.ParticipantDPS, I AM a “loan agent” today.
I don’t care what 99 others do. I just might be 1 in 100.Regardless of what you THINK, The FACT is that there is no commission AT ALL when you get quoted the right rate.
Think whatever you want about conspiracies, coincidences, and theories. I KNOW what the truth is.
Most people want to hear payment amounts, and obviously I/O is lower than full am. You can THINK whatever you want.
I KNOW what I am talking about, but you probably don’t believe me anyway.
I am almost afraid to ask if you found the right loan.
ParticipantDPS, I AM a “loan agent” today.
I don’t care what 99 others do. I just might be 1 in 100.Regardless of what you THINK, The FACT is that there is no commission AT ALL when you get quoted the right rate.
Think whatever you want about conspiracies, coincidences, and theories. I KNOW what the truth is.
Most people want to hear payment amounts, and obviously I/O is lower than full am. You can THINK whatever you want.
I KNOW what I am talking about, but you probably don’t believe me anyway.
I am almost afraid to ask if you found the right loan.
ParticipantIF you qualify, that’s the key, and when govt is involved, there are lot’s of hoops to jump through.
Average Joe’s/Jane’s don’t understand finances, but are good for the economy.
ParticipantIF you qualify, that’s the key, and when govt is involved, there are lot’s of hoops to jump through.
Average Joe’s/Jane’s don’t understand finances, but are good for the economy.
ParticipantThis lender was previously very competitive with 2nds, If not combined with a 1st, they are known as “stand alone 2nds”..
At this time,they are no longer offering 2nds.
This only applies to THIS one lender right now.As the market contracts, rates will rise from those that still offer them.
These loan portfolios get sold off on Wall St., there were NO buyers for a strong package this week, so stop immediately.The only guarantee is that there will be changes.
This is due to liquidity crunch on Wall Street for the secondary market.
Several hedge funds declaring bankruptcy this week have created a fear not seen in awhile.Guidelines can change at any time, better or worse, but programs that were available Monday just aren’t available today.
ParticipantThis lender was previously very competitive with 2nds, If not combined with a 1st, they are known as “stand alone 2nds”..
At this time,they are no longer offering 2nds.
This only applies to THIS one lender right now.As the market contracts, rates will rise from those that still offer them.
These loan portfolios get sold off on Wall St., there were NO buyers for a strong package this week, so stop immediately.The only guarantee is that there will be changes.
This is due to liquidity crunch on Wall Street for the secondary market.
Several hedge funds declaring bankruptcy this week have created a fear not seen in awhile.Guidelines can change at any time, better or worse, but programs that were available Monday just aren’t available today.
ParticipantDPS you’re entitled to your opinion.
Your statement that it’s “B.S. about a lending agent not making more one way or the other on interest-only vs. 30-year fixed” is COMPLETELY ignorant.
I don’t care what expert you have listened to or what books you read or what friend in the business you have spoken with. It ISN’T TRUE.
I’m in the business. I know how loans price out.
A PAR RATE INTEREST ONLY LOAN pays NOTHING, not a penny
Neither does a PAR RATE 30 YR FIXED.You may be dealing with loan agents that have some internal incentive to push those loans, or if you are dealing directly with a bank, same thing applies.
It’s myths, falacies and misinformation that make dealing with people like you impossible, even when you are told the absolute truth.
I’m sure that you think a financial adviser who tells you stay in the market and just keep investing is wise. Good luck to you.
You obviously read in between my post and picked out the words to make your case, and overlooked my point.
ParticipantDPS you’re entitled to your opinion.
Your statement that it’s “B.S. about a lending agent not making more one way or the other on interest-only vs. 30-year fixed” is COMPLETELY ignorant.
I don’t care what expert you have listened to or what books you read or what friend in the business you have spoken with. It ISN’T TRUE.
I’m in the business. I know how loans price out.
A PAR RATE INTEREST ONLY LOAN pays NOTHING, not a penny
Neither does a PAR RATE 30 YR FIXED.You may be dealing with loan agents that have some internal incentive to push those loans, or if you are dealing directly with a bank, same thing applies.
It’s myths, falacies and misinformation that make dealing with people like you impossible, even when you are told the absolute truth.
I’m sure that you think a financial adviser who tells you stay in the market and just keep investing is wise. Good luck to you.
You obviously read in between my post and picked out the words to make your case, and overlooked my point.
ParticipantDON, Will you have a prepayment penalty ??
That’s the first clue. A loan from a SP lender isn’t necessarily bad.Loans can be exact same terms from prime or subprime lender. 2/28, 3/27 5/25, 30 YR Fixed. I/O, full am, etc There aren’t really “subprime loans” there are subprime borrowers, and subprime lenders.
Your score alone tells me nothing about what you actually qualify for. Generally, the benefits of a SP are greater at lower LTV’s.
As stated earlier, it is possible to get a better loan from a SP lender, but usually only if you don’t mind the prepay penalty.If you pay upfront to avoid the PPP, it probably costs the difference to get back to a prime loan anyway, or higher.
If you need another quote, please let me know. I’m in north county.
ParticipantDON, Will you have a prepayment penalty ??
That’s the first clue. A loan from a SP lender isn’t necessarily bad.Loans can be exact same terms from prime or subprime lender. 2/28, 3/27 5/25, 30 YR Fixed. I/O, full am, etc There aren’t really “subprime loans” there are subprime borrowers, and subprime lenders.
Your score alone tells me nothing about what you actually qualify for. Generally, the benefits of a SP are greater at lower LTV’s.
As stated earlier, it is possible to get a better loan from a SP lender, but usually only if you don’t mind the prepay penalty.If you pay upfront to avoid the PPP, it probably costs the difference to get back to a prime loan anyway, or higher.
If you need another quote, please let me know. I’m in north county.
ParticipantRAYB, in financial terms, the neg am loan (IMO) is the worst loan ever invented for the average borrower, but the best ever for the lender and salesperson.
You are absolutely correct that it CAN serve a purpose for high net worth, savvy borrowers. As with many things, it’s been abused. Most people don’t know that neg am loans have been around about 25 years, started by World Savings as a portfolio product.
About 5 years ago, the mass rollout started, of offering the largest commission of ANY loan product to the salesperson.
A neg am loan consists of an index PLUS a margin.
The higher the margin you put the borrower into, the higher your commission was. Even a “good neg am” loan was bad.You may heve qualified for a fixed 6% interest only loan.
The true rate on your “good neg am” was 8%, a 33% premium.
A “bad neg am” could have you at 9%, a 50% premium.
The tradeoff was the option of a low teaser rate.When you made lowest payment #1, whatever you didn’t pay was added to your loan balance, so you were paying interest on top of deferred interest.
For those that don’t understand how they work, your lowest payment option might have been $1200, with a full interest only payment (at 8%) of $2300… When you only paid $1200, you would add $1100 to your loan balance.
Had you opted for the FULL interest only loan at 6%, your payment would have been $1725 (instead of $1200) and your loan balance wouldn’t grow.
So the cost of NOT paying the extra $525 a month, was $1100,(an extra $575)
Great financial decision?? Only for the lender..Add insult to injury, they usually come with 3 year prepay penalty, a cash cost of 6 months FULL interest, IF you realize how bad the loan is.
Try and find ONE person of the thousands that have these loans that was given this explanation.
Yes, it “could” serve a purpose, but not to the masses.
My apologies if you already knew this, but at least one person reading will learn something.The saddest thing is that many salespeople couldn’t explain the above because they truly didn’t understand what they were selling. They only understood the huge commissions, and the borrower didn’t know what to ask, they only saw the lowest payment option.
I once attended a World Savings Neg Am seminar just to watch the presentation. They wondered why I hadn’t ever originated one. The presentation was poor at best, and I didn’t want to embarrass the host. What I enjoyed the most was them saying that they do not like to use NEGATIVE AMORTIZATION, they prefer “Deferred Interest” (sounds better??) I saw glazed looks on faces all over the room, and there weren’t any intelligent questions asked.
The result is that most people have made the largest financial situation of their life guided by an uninformed knucklehead, with a crappy credit score, negative net worth, no mortgage, and very little financial background (if any)
There are still consumers that think they have a 2% loan.
There’s a sucker born every minute, and scammer will find them. -
AuthorPosts