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HLS
ParticipantWith respect, I can only say that you wasted alot of your time.
An honest mortgage person will hide nothing, tell you the truth about everything, and there is no need to spend a month putting together a thesis.Nobody needs to see loan payoff statements or letters of recommendation. Your credit report and score tells the underwriter what they need to know about your past, and a W-2, reserve statement and your current income documents the present.
Amazon and the author of the book were happy that you made the purchase though.
I’ll be the first to admit that the industry is full of scumbags, but believe it or not, there are people like me that will tell you more than you want to know about a loan and are not looking to pull a scam or technique to separate you from your money.
Your one inch thick dissertation made you feel better, but I wouldn’t have treated you any differently without it.
Checking with someone like me would have saved you the same tens of thousands of dollars, but you may not have known it.
The only thing that matters is that you are happy. Nobody can know that they got the cheapest loan that day. It’s just unrealistic.
PS: Knowing that you are dealing with someone you can completely trust is not something that you will find in any book. Dealing with someone that tries to screw you and then says I’ll beat any other offers is not the kind of person that I want to deal with on one of the largest financial transactions of my life.
ParticipantThere are many excellent tenants that have power these days.
People forget that many things are negotiable.Some landlords today would love to have a multi-year tenant with a lease. It gives them some security that they will have income. Their loan increase isn’t your direct problem.
If I were going to rent today, I would ONLY agree to being compensated for having the property shown AND a set fee if property was sold during my tenure.
Another option is just reduced rent, but I’d rather have cash to move. I would offer that to a tenant if I was considering selling.Leases are written to protect the landlord in most cases. State laws can supercede them. A lease is a contract and negotiable before you sign. There is always room to write in additional terms 😉
You can ask for a multi-year lease with compensation too.
It never hurts to ask.It can be harder to get rid of a tenant than an employee.
ParticipantThere are many excellent tenants that have power these days.
People forget that many things are negotiable.Some landlords today would love to have a multi-year tenant with a lease. It gives them some security that they will have income. Their loan increase isn’t your direct problem.
If I were going to rent today, I would ONLY agree to being compensated for having the property shown AND a set fee if property was sold during my tenure.
Another option is just reduced rent, but I’d rather have cash to move. I would offer that to a tenant if I was considering selling.Leases are written to protect the landlord in most cases. State laws can supercede them. A lease is a contract and negotiable before you sign. There is always room to write in additional terms 😉
You can ask for a multi-year lease with compensation too.
It never hurts to ask.It can be harder to get rid of a tenant than an employee.
ParticipantRUST, do you mean 80/10 ?
Single loans over 80% either require a separate PMI payment OR can be “lender paid” (They say there is no MI, whether it’s factored in or not, you do pay a higher rate)
For the first time, separate PMI payments in 2007 are tax deductible. It is not been determined if this will roll over into 2008 AND their are income limitations.
It’s better to take an all inclusive loan and have the write off for sure.
I’m unclear on your request above. Are you putting 10% down or want 100% financing for non owner ?
Minor cosmetic fixers just appraise for less, but major structural fixers are a different breed. They can require a “cost to cure” analysis and can get a bit complicated.There are piles of money available for loans, at some rate. The less risk there is to the lender, the better your options get.
Can you imagine what would happen if lenders stopped lending more than 75%-80% on homes ??
Prices would plummet. It’s a way to control the market, however the opposite happened and the market became out of control.ParticipantRUST, do you mean 80/10 ?
Single loans over 80% either require a separate PMI payment OR can be “lender paid” (They say there is no MI, whether it’s factored in or not, you do pay a higher rate)
For the first time, separate PMI payments in 2007 are tax deductible. It is not been determined if this will roll over into 2008 AND their are income limitations.
It’s better to take an all inclusive loan and have the write off for sure.
I’m unclear on your request above. Are you putting 10% down or want 100% financing for non owner ?
Minor cosmetic fixers just appraise for less, but major structural fixers are a different breed. They can require a “cost to cure” analysis and can get a bit complicated.There are piles of money available for loans, at some rate. The less risk there is to the lender, the better your options get.
Can you imagine what would happen if lenders stopped lending more than 75%-80% on homes ??
Prices would plummet. It’s a way to control the market, however the opposite happened and the market became out of control.ParticipantI’m happy to figure out whatever..
Busy day, sorry.
I’ve only been on this board about a week. Is there a way to communicate directly/privately or do I post my contact info ?
I don’t want to SPAM or be inappropriate.The “general” track is the 10YR bond (TNX) and Prime lender rates change daily. or even intra-day. There are locks available from 15 day to 60 days with a .50% spread, although the great subprime deals are floor rates and didn’t change at all in last 7 days. (!?)
Without being funny, before being able to quote accurate rates, I need answers to about 20 questions.
Most people don’t ask these questions, and it just leads to misunderstandings and incorrect quotes.
If you plan on keeping a loan for at least 5 years, I strongly suggest looking at buying the rate down, if the funds are available. You lock in a lower rate and payment for the life of the loan. (Some make sense at 2.5 years others take longer to pencil out)
For a fixed amount, you get a lower fixed rate for the life of the loan. It’s all about security and insurance. You can buy rates down into the 5’s today, whether or not it makes sense is up to you. The long term benefit is there.
Example: 400K IO loan has payments of $26,000 YR
Is it worth paying $12,000
to have annual payments of $23,500 instead ?
You save $1800 YR (gross) Simple breakeven is almost 7 YRS, it’s actually better than that.
(The buy down could be as little as $2,000 to save $375 YR, gross breakeven of 5.33 YRS)If you plan on keeping the loan long term without refi’ing, it’s a great option.
Many/most loan folks make money on the back end of a loan without telling you (Rebate, YSP, etc) by overcharging in rate.
MORE IMPORTANT, If you buy the rate down, they CANNOT make a penny on the back end; it’s impossible to overcharge AND undercharge at the same time. Most people never get the option to buy down the rate because of this.So for a fee, you can get the long term rate and payment that you want, fixed for up to 30/40 years, without waiting for a market low.
As you know, timing the market is near impossible. Most people don’t get the lowest rate possible at the time they got their loan anyway.
My general advice to everybody is to ALWAYS have some liquid CASH funds that you can get to quickly, over and above Stocks, Bonds, CD’s and retirement accounts. There is a great sense of security in money in da bank. If it takes an I/O loan to be able to do this, so be it.
It’s amazing the number of people who are in a rush to pay off a mortgage, but have no cash and don’t enjoy their life.
IMO, it’s poor choice. Life is for living.ParticipantI’m happy to figure out whatever..
Busy day, sorry.
I’ve only been on this board about a week. Is there a way to communicate directly/privately or do I post my contact info ?
I don’t want to SPAM or be inappropriate.The “general” track is the 10YR bond (TNX) and Prime lender rates change daily. or even intra-day. There are locks available from 15 day to 60 days with a .50% spread, although the great subprime deals are floor rates and didn’t change at all in last 7 days. (!?)
Without being funny, before being able to quote accurate rates, I need answers to about 20 questions.
Most people don’t ask these questions, and it just leads to misunderstandings and incorrect quotes.
If you plan on keeping a loan for at least 5 years, I strongly suggest looking at buying the rate down, if the funds are available. You lock in a lower rate and payment for the life of the loan. (Some make sense at 2.5 years others take longer to pencil out)
For a fixed amount, you get a lower fixed rate for the life of the loan. It’s all about security and insurance. You can buy rates down into the 5’s today, whether or not it makes sense is up to you. The long term benefit is there.
Example: 400K IO loan has payments of $26,000 YR
Is it worth paying $12,000
to have annual payments of $23,500 instead ?
You save $1800 YR (gross) Simple breakeven is almost 7 YRS, it’s actually better than that.
(The buy down could be as little as $2,000 to save $375 YR, gross breakeven of 5.33 YRS)If you plan on keeping the loan long term without refi’ing, it’s a great option.
Many/most loan folks make money on the back end of a loan without telling you (Rebate, YSP, etc) by overcharging in rate.
MORE IMPORTANT, If you buy the rate down, they CANNOT make a penny on the back end; it’s impossible to overcharge AND undercharge at the same time. Most people never get the option to buy down the rate because of this.So for a fee, you can get the long term rate and payment that you want, fixed for up to 30/40 years, without waiting for a market low.
As you know, timing the market is near impossible. Most people don’t get the lowest rate possible at the time they got their loan anyway.
My general advice to everybody is to ALWAYS have some liquid CASH funds that you can get to quickly, over and above Stocks, Bonds, CD’s and retirement accounts. There is a great sense of security in money in da bank. If it takes an I/O loan to be able to do this, so be it.
It’s amazing the number of people who are in a rush to pay off a mortgage, but have no cash and don’t enjoy their life.
IMO, it’s poor choice. Life is for living.ParticipantHi SD…
Not sure what input you were getting. Rates ARE lower than last week. Definite improvement.
The 10YR (TNX) spike up was from mid May,and after 9 weeks it’s right back to 4.8.Rates are back to about where they were. Today, conforming FNMA-FHLMC 30YR Full Am are no more than 6.375% at par.
That’s .25-.375 less than a few weeks ago. 5YR ARM- 5.875%Long term mortgage rates are not directly related to moves in the TNX. There is still an iverted yield curve. 30 YR rates are often less than 7 & 10 ARMS..
Qualifying is THE big issue. Average Joe/Jane have NO clue about underwriting guidelines. One tiny issue kills the deal for them, and can push their rate a full point or more.
General Comments:
Loans up to 80% still price well. 2nds behind the 80% is where the problem starts. Credit Score becomes so important. Higher the LTV, higher the risk to lender.
Lenders still price out 80/++ loans, with higher priced 2nds, but also price out single loans above 80%, with PMI included.
There is no need to worry about selling off the 2nds this way, but rate is higher.There are zillions of dollars available looking for returns. There are crazy exotic loans being invented every week. Debt will bury people who don’t understand it, but it is an opportunity to wealth and a better life for those who do.
I don’t worry about trying to predict rate moves, it’s not fair to my clients. With a global economy, past trends mean little to me, and a quarter point move against someone can cost a small fortune over time, if I am wrong. Terrorists move 24 hours a day and so do the markets.
There are so many loan programs in the market, nobody can know them all. Prime loans don’t have prepay penalties, but today there is a low LTV subprime 5YR ARM that is cheaper than a prime loan, but it comes with a 3 YR prepay.
Giving people options so they can decide what’s right for them is what’s important to me, with the pros and cons.
Many people are in the wrong loan for various reasons, and many people have way too much equity tied up that they cannot get to. IMO they got bad advice.
Also amazing how many friends and family have screwed people on their mortgages.Most people don’t know how to shop for a loan, and think that they got a great loan(but probably didn’t)
Many loan folks should be ashamed of themselves but they aren’t. It’s a rogues gallery. Smart people fall for no cost loans, that end up costing them dearly. Too many “salespeople” pushing loans that are not in borrower’s best interest. Too little understanding of options.
My point is, it’s more important to get the right rate/loan at any point in time, instead of waiting for rates to drop a quarter point and getting screwed on fees, but happy with the rate.
Too many people have been a slave to their mortgage, which could have been avoided.
The amount of “equity” that is tied up that people cannot get to is staggering, also paper profits in the stock market. Many people have a false sense of security which concerns me.
Whenever possible, my goal is to get people into better overall financial situations, not just a home loan, and get them to realize the risks, which many are oblivious to.]
Don’t know if I answered you question, what was it? 😉
ParticipantHi SD…
Not sure what input you were getting. Rates ARE lower than last week. Definite improvement.
The 10YR (TNX) spike up was from mid May,and after 9 weeks it’s right back to 4.8.Rates are back to about where they were. Today, conforming FNMA-FHLMC 30YR Full Am are no more than 6.375% at par.
That’s .25-.375 less than a few weeks ago. 5YR ARM- 5.875%Long term mortgage rates are not directly related to moves in the TNX. There is still an iverted yield curve. 30 YR rates are often less than 7 & 10 ARMS..
Qualifying is THE big issue. Average Joe/Jane have NO clue about underwriting guidelines. One tiny issue kills the deal for them, and can push their rate a full point or more.
General Comments:
Loans up to 80% still price well. 2nds behind the 80% is where the problem starts. Credit Score becomes so important. Higher the LTV, higher the risk to lender.
Lenders still price out 80/++ loans, with higher priced 2nds, but also price out single loans above 80%, with PMI included.
There is no need to worry about selling off the 2nds this way, but rate is higher.There are zillions of dollars available looking for returns. There are crazy exotic loans being invented every week. Debt will bury people who don’t understand it, but it is an opportunity to wealth and a better life for those who do.
I don’t worry about trying to predict rate moves, it’s not fair to my clients. With a global economy, past trends mean little to me, and a quarter point move against someone can cost a small fortune over time, if I am wrong. Terrorists move 24 hours a day and so do the markets.
There are so many loan programs in the market, nobody can know them all. Prime loans don’t have prepay penalties, but today there is a low LTV subprime 5YR ARM that is cheaper than a prime loan, but it comes with a 3 YR prepay.
Giving people options so they can decide what’s right for them is what’s important to me, with the pros and cons.
Many people are in the wrong loan for various reasons, and many people have way too much equity tied up that they cannot get to. IMO they got bad advice.
Also amazing how many friends and family have screwed people on their mortgages.Most people don’t know how to shop for a loan, and think that they got a great loan(but probably didn’t)
Many loan folks should be ashamed of themselves but they aren’t. It’s a rogues gallery. Smart people fall for no cost loans, that end up costing them dearly. Too many “salespeople” pushing loans that are not in borrower’s best interest. Too little understanding of options.
My point is, it’s more important to get the right rate/loan at any point in time, instead of waiting for rates to drop a quarter point and getting screwed on fees, but happy with the rate.
Too many people have been a slave to their mortgage, which could have been avoided.
The amount of “equity” that is tied up that people cannot get to is staggering, also paper profits in the stock market. Many people have a false sense of security which concerns me.
Whenever possible, my goal is to get people into better overall financial situations, not just a home loan, and get them to realize the risks, which many are oblivious to.]
Don’t know if I answered you question, what was it? 😉
Participant1) Buyer(s) need to qualify for the loan. It is not necessary to disclose who will be living there. It’s either owner occupied or it’s not.
2)Who do they omit telling it to ? It’s not asked. No specific law or ethical code exists
3)YES, THAT is a violation and can be reported to city/county.
If borrower qualifies for the loan, they can purchase the house. It does NOT give them the right to do anything illegal.
Borrowers using stated income loans still need to qualify. If the person signing needs that extra income, they won’t disclose it. They WILL have to have a decent credit score to get financing without a healthy down payment. If they have no down, they won’t get the loan going stated, it will have to be full doc, which means that if they get the loan, they DO qualify.
Participant1) Buyer(s) need to qualify for the loan. It is not necessary to disclose who will be living there. It’s either owner occupied or it’s not.
2)Who do they omit telling it to ? It’s not asked. No specific law or ethical code exists
3)YES, THAT is a violation and can be reported to city/county.
If borrower qualifies for the loan, they can purchase the house. It does NOT give them the right to do anything illegal.
Borrowers using stated income loans still need to qualify. If the person signing needs that extra income, they won’t disclose it. They WILL have to have a decent credit score to get financing without a healthy down payment. If they have no down, they won’t get the loan going stated, it will have to be full doc, which means that if they get the loan, they DO qualify.
ParticipantSD..
I am aware and agree with everything that you say except there is zero evidence (at this point) that this is a hardship for the owner, in which Sakina doesn’t have to go anywhere, and the LL will be happy to have her stay.May sellers seem to have no idea about b) and c) above, which I already mentioned earlier.
ParticipantSD..
I am aware and agree with everything that you say except there is zero evidence (at this point) that this is a hardship for the owner, in which Sakina doesn’t have to go anywhere, and the LL will be happy to have her stay.May sellers seem to have no idea about b) and c) above, which I already mentioned earlier.
ParticipantFEAR: perhaps a CPA will answer.
On your principal residence, I don’t know if you can write off the loss at all, if actually SOLD at a loss.I think that $3K ONLY applies to stock market losses, to discourage speculation.
In a short sale, you are not receiving any money. Lender is agreeing to “settle” and your debt is being forgiven. The debt relief is reported as income, and you owe income tax. The debt is done. With a RENTAL, I believe that you are selling the property for what the lender reports, but if a rental, you have depreciation to recapture as well.
There is no ordinary income from the house sale, but I do THINK that you can write it off as an investment loss, (without $3K limit), and carry forward if necessary.
Foreclosure is viewed differently depending on whether or not it was purchase or refi loan that is being defaulted on.
There are also convoluted ways, like keeping your 1st current and let the 2nd default. Then the 2nd could takeover the 1st, without a default on the 1st.Further, my belief is that BK will not absolve you of debt to the IRS.
This is the danger of a short sale that many don’t seem to be aware of. Receiving a 1099 isn’t a guarantee, but most people aren’t in a position to worry about that, or not do a short sale to avoid the 1099.
The lender doesn’t accept a SS just becuase you want them to, and for reasons mentioned previously, it’s not so easy on a rental property.
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