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HLS
ParticipantAbsolutely Flu,,,
Do u accept bitcoin or Monopoly money ?I have to bite my tongue to not call the jerks out for what they really are, and even though they don’t think they are jerks,it’s obvious to everyone else.
I actually feel sorry for them.
ParticipantHi,
I’m still here 😉
Have just been busy with people who get it
and those willing to listen to an honest explanation
or analysis of their situation.I have no need or patience for the know it all’s who are clueless ignorant bullies.
Happy to discuss the hard facts with anyone.
Don’t have time to argue with the fiction & opinions of the
stubborn.ParticipantYou had stated conforming loan amount, I’m assuming now that your loan is over $417K ? (Agency Jumbo)
I’m hoping that you are getting a ‘no cost’ loan PLUS additional credit towards closing costs.
(You will not get 3.50% above $417K…. If your loan is below $417K, something is wrong)10 days for inspection is not unreasonable.
Loan contingencies are a dangerous item for a buyer, without being 100% clear on the consequences.
A loan approval-with conditions-
is not a funded loan. Lifting that contingency can put a deposit at risk.Guidelines are guidelines, working miracles is relative.
With a bank/direct lender you probably will not see their
compensation, just your costs.Underwriters are busy and may not accommodate a buyer who agreed to needing it fast.
It’s very dangerous for a buyer to agree to terms that they have no control over.
Many Realtors have unrealistic expectationsI hope that it goes well for you!
Participant[quote=Balboa]Does anyone actually get this lowest daily rate? Right this moment we are filling out a loan docs and the stated rate is 4%. We do need a bit of special handling because we have shortened contingencies and may do a 21-day close. But we also have 20% down on a conforming loan with 800+ credit scores. Seems like we’d be good candidates for the best rate possible…[/quote]
Absolutely!
Something doesn’t sound right about your rate today,
Depending on loan amount, today’s rate at no cost
to you for a purchase loan was around 3.50%
(and lower with a cost)
Going to 4.00% should be a HUGE credit to you.
Are you dealing with a bank/direct lender ??And who decided you should have
‘shortened contingencies’ ???May 4, 2016 at 1:54 PM in reply to: how to test the waters selling OB lots zoned for 8 total units #797285Participant[quote=livinincali] Zillow/MLS folks are looking for turn key properties to live in, not development opportunities.[/quote]
According to who ???
May 4, 2016 at 1:53 PM in reply to: how to test the waters selling OB lots zoned for 8 total units #797284ParticipantIt can be listed on MLS as a package.
If prices as a teardown, it can be made clear in the listing that the houses cannot be shown and it’s a 2 lot package listing.No buyer looking for a house is going to bother you.
MLS is for lots also, not just houses.
MLS gets you worldwide exposure.
You never know who is looking for what.As long as you can get your net price, what’s your objection to listing with an agent (and getting valid info to support the listing price)
**If you have no way to value them, where does $1.7M come from ?There is potential liability in selling by owner.
Offhand comments can be made by a seller that are taken as facts by a buyer who finds out after closing weren’t correct and you can end up in protracted, expensive litigation.The pages of Realtor purchase contracts clarify a whole bunch of points and place some responsibilities on the agent and their broker.
Commissions are always negotiable, not set in stone.
If they’re worth $1.25M you wont sell them for $1.9
If they’re worth $2.5M why sell for $1.9ParticipantFLU,
You are a very smart guy BUT you made the calculations incredibly complicated.
HOWEVER in the above post, you nailed the holy grail
of the benefit of refinancing that 999 people out of 1000 (or probably 9999 out of 10,000) don’t get.1.Lower your rate at no cost
2.Do nothing other than make the same payment that you have been making.In the example above, it saves you $45,428 over the life of the loan for doing nothing more than lowering your rate AND making the same payment.
PERIOD. END OF STORY. QEDIf you don’t keep the loan the full term, you still save money in interest every single day from the first day your refi is funded.
THERE IS NO PAYBACK PERIOD, There is no amount of time to recover (with a no cost loan)Any spreadsheets or other convoluted way of trying to figure this out OR justify the benefit is nothing more than Intellectual activity that serves no practical purpose.
IF you choose to make a lower payment, you benefit a different way (i.e. monthly cash flow)
Most financial experts, including Suzi Orman and Dave Ramsey never understood the benefits of refinancing to a lower rate at no cost or how powerful it is or how to explain it.
***For the argumentative stooges who want to claim that there’s no such thing as a no cost (FREE) loan so therefore you shouldn’t even consider doing this (because if you paid more you MIGHT get more savings) and stay in a higher rate
(or because someone is going to make money for originating their loan)
I can only say that I FEEL SORRY FOR YOU.
HLS AKA “THE TROLL”ParticipantGZZ
90% of what you said makes no sense. Clueless and scary.Apparently another ‘expert’ who thinks they know what they’re talking about.
Can ya send me the names of ‘people’ who are getting
3.25% mortgages right now ?
That rate comes with a HUGE cost. I don’t know anyone
who thinks it makes sense.If rates go up .75% it makes no sense to refi,
no borrower would be better off.There’s no such thing as an ‘imperfect mortgage’
You do get a ‘good mortgage’ with 5% down, the only difference is PMI. the rate is the same. Apparently you don’t know this either.
The only thing you say that makes sense is about removing PMI.AN & FLU get it. Refinancing all the way down multiple times at no cost saved them thousands.
Refinancing one time and thinking you hit the jackpot
probably means you left a lot of money on the table.
Congratulations.Participant[quote=moneymaker]Anyone care to post a current YSP chart, haven’t seen one in a long time.[/quote]
There is no ‘standard’ chart.. it’s not a secret and
there are some online lenders that show credits at different rates, it’s always a % of the loan amount.
It can give you an idea. There are pricing hits for lower credit scores, equity, rental property etc, so there is not just one rate that fits everybody.3rd party costs don’t change a lot with a lower loan amount which is why a $400K loan has enough credit to cover all costs but a $200K loan at the same rate may not have enough credit to cover all costs.
Each lender prices differently, but it can be a spread of anywhere from .25% to .875% (of the loan amount) for each movement of .125% in rate.
One lender may have .75 spread between 3.50% & 3.625%
and only .375 between 3.625% & 3.75%
another lender could be very differentParticipantBloggy,
In almost 9 years on this site, 99.9% of my posts are intended to helpful & be educational.
That’s a far cry from trolling or asking for business.If I get attacked by an argumentative stooge like you,
you bet I’m going to defend myself with facts, not ignorance or pretending that I know what I’m talking about.There’s no doubt in my mind that I’ve helped FAR more people on this site than you ever will have with your advice.
I’ve talked more people through understanding their loans that didn’t come from me than you would ever imagine.Frightening to think that people might get their mortgage advice from you.
Participant[quote=no_such_reality]
The concept is simple, the execution historically has been fraught with deception and poor ethics.YSP still clouds the issue for the end consumer and obscures how much is really being paid for services particularly when tagged with the above, IMO.[/quote]
Those days are long gone with BROKERS….
the process is highly regulated now.
If you are offered a loan with 100% clear terms, what your net cost is, whether you pay OR get no cost,
What is unclear about this ? What does YSP have to do with it ? Are you concerned about what someone is making regardless of what they are offering you ?FYI
Banks & Direct lenders can screw you as they can manipulate their pricing.Mortgage brokers are like Insurance brokers.
Lenders & Insurance companies control the pricing. Insurance agents don’t discount the insurance company pricing nor do they charge you extra.
They get compensated by the insurance companies.There are 2 kinds of mortgage BROKER compensation.
Lender paid OR borrower paid.
With lender paid the wholesale lender compensates us a % of the loan amount.
With borrower paid the borrower compensates the broker and gets the exact same pricing. It’s HIGHLY regulated.Whether you want a rate that is higher or lower doesn’t affect BROKER compensation by 1 penny.
Any credits or cost is to/from the borrower.The days of BROKERS benefiting from overcharging borrowers are long gone, although some brokers make a higher % than others.
Banks and direct lenders can still get away with things that a BROKER cannot.
Bank employees generally do not have access to true pricing. They only see the retail rates to offer consumers and have no idea about net pricing.
There is a difference between regulations for Banks/ Direct Lenders vs. BrokersParticipantThanks PLM,
I can take it… I’m only being ‘beat up’ by a few and it’s just the semantics of what were discussing.They don’t know me and assume that I’m some scumbag who doesn’t know what I’m talking about nor do they know how detailed my explanations are to anybody who wants to listen rather than argue.(or think they know it all)
I had a radio show in the San Diego market for over 3.5 years in a declining market, telling people to wait to buy AND counseling LOTS of people for FREE through foreclosures & short sales that I didn’t make a penny on.
I guarantee that when I say NO COST, it’s no cost.
ALL 3rd party fees get paid by the lender.
I’ll gladly defend what I do.
I’ve never jerked anybody around or misled them about what their options were.
I’ve never told anyone that I have the lowest rates possible. There are probably a million websites for mortgage pricing. If you want to shop and get thrown around, have fun.I’ve had dealings with several hundred people from this website, most are not posters.If there were any complaints, I’ve missed them. I only get beat up by those who don’t know me.
Some people get angry or confused because a no cost loan doesn’t mean no out of pocket.
If you do not refinance, you still have a payment due every month, in arrears for interest (+ principal)
That is due whether you refinance or not.
A no cost loan does not mean no out of pocket.
If your insurance is due, its not my fault.
You need to pay it whether you refi or not.You still need to pay the things that need to be paid, but ALL costs incurred with refinancing are covered by a credit from the lender.
I have NEVER said that a lower rate was not available with a cost.
The example given in the link above is misleading and outdated, rates haven’t been 6 to 6.50 in over 10 years.
A lot has changed in loan pricing since then.I priced a $400,000 loan this morning for a borrower who is currently at 4.125%
3.75% NO COST PLUS $1700 credit back payment $1852
3.625% COST of $800 Payment = $1824
3.50% COST of $4300 Payment = $1796The cost spread between 3.50% and 3.75% is $6000.
It saves $56 a month ($672 a year) in payment.
If it’s worth it to you to spend $6000 today and save
$56 a month you can.
If you sell or refinance in the next 6 years you threw away some money.Anybody can do the math (if thye know how).
I don’t force anyone to get a no cost loan. What puzzles me is those who do nothing
when they can save at least .25% with a no cost loan and don’t think it’s worth it.I have spoken to writers of major magazine articles who used incorrect data and I offered to clarify it for them and they refused because they didn’t want
to admit they were wrong. The FACTS don’t lie.There is hundreds of millions of dollars being wasted in interest because the average person doesn’t understand the true/best benefits of refinancing to a lower rate.
I’m happy to analyze anyone’s situation for free.
I don’t care if someone gets a no cost loan or wants to pay $6000 so they can save $56 a month. That’s a personal decision. BUT don’t tell me that there’s no such thing as a no cost loan.The key with ANY loan is what you are paying in interest. The borrower decides the term by adjusting their payments. Nobody forces a borrower to start over at 30 years.
You have a choice to decide if you want to pay to lower your rate OR lower your rate at no cost (which to me is a no-brainer if you can qualify)The REAL tragedy is that many people do nothing because they read drivel and get bad advice from knuckleheads.
ParticipantFLU,
I know you get it, I think.
You’re exactly right that the real numbers don’t lie AND there are different ways to benefit from a refi.When you are going to a lower rate at no cost, there is no break even point you benefit from day one compared to your previous rate.
If you want to compare what the additional savings would be at .125% or .25% lower if you did pay to get the loan, I suppose you could create a spreadsheet and get confused but I can explain it simply in about 5 seconds.
If you want to pay for a loan and get a lower rate,
the payback period to break even is usually 5 to 7 years.
Each .125% has a different spread and not everybody qualifies at the same rate.Sadly,
another problem is that most ‘loan people’ don’t understand the details nor can they explain the
true net benefits and options in refinancing.
Pathetic but true.Most loan people only grasp 2 things:
a)How much they are going to make on your loan
b)How much your payment will be
They are incapable of discussing anything beyond these 2 points. They can’t grind through it with you.There is nothing in the education & testing requirements that a licensed, regulated loan officer needs to be capable of explaining different options and the various net benefits. As a result, there’s a lot of misinformation out there.
ParticipantBetter advice is to steer clear of the ignorant.
The point of contention is not whether a loan with costs is better than a no cost loan, it is whether no cost loans exist.
No cost loans do exist. Every loan rate has a cost or credit associated with it.
A no cost loan to the borrower occurs when the credit from the lender covers all 3rd party fees.It is free to the borrower, i.e. NO COST.
If you start with a $400,000 loan, you end up with a $400,000 loan and nothing is added anyplace else.If you want a lower rate you are welcome to pay costs.
I’ve never said that a no cost loan comes at the lowest rate possible.I looked up the definition of FREE to make sure I understood what it meant, and it said COSTING NOTHING.
So I will stick with my assertion that a no cost loan IS a free loan.To say that a no cost loan doesn’t exist IS wrong
(and it’s idiotic)I also looked up the definition of idiotic which referred me to stupid, which is defined as “unable to think clearly”
I think my use of the word is accurate.
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To understand the power of compounding and don’t think it’s worth it to refinance to only save .25%…..Saving .25% on a $400,000 loan can save you $37,000 in interest AND it can be done at no cost**
Saving .50% on the same loan can save you $72,000**You can also pay $$ to get your loan and you might save even more.
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