[ljinvestor]

$1,455 for 1br rent in kearny mesa sounds really high. That would make me want to purchase too.

[ljinvestor]

$1,455 for 1br rent in kearny mesa sounds really high. That would make me want to purchase too.

[ljinvestor]

Bear- Similar programs are out there because AimLoan will offer a 5yr ARM at 2.5% with 2pts or 3.125 on the 7yr ARM paying 2pts.

Here are details for their 7yr based of LIBOR

This disclosure describes the features of the adjustable rate mortgage (ARM) program you are considering. Information on other ARM programs is available upon request. This loan program has an adjustable rate feature. This means that your interest rate and payment amount can change.

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED
Your interest rate will be based upon an index plus a margin, rounded to the nearest 0.125%. Ask us for the current value of the index and of our current margin. Your payment will be based on the interest rate, loan balance, and loan term. The index upon which your interest rate will be based is the average of interbank offered rates for One-Year U.S. dollar-denominated deposits in the London market (“LIBOR”). Information about the index rate is published in the Wall Street Journal. The margin is expressed in percentage points and will stay the same throughout the term of the loan. The initial interest rate is not based on the index used to make later adjustments. Your initial interest rate may be a discounted or premium rate. Ask us for the amount of our current interest rate discount or premium. Your interest rate will equal the index rate plus the margin, rounded to the nearest 0.125%, unless your interest rate “Caps” limit the amount of change in the interest rate.

HOW YOUR INTEREST RATE CAN CHANGE
The interest rate can occur on your 84th monthly payment due date. Thereafter, your interest rate san change every 12 months. If your initial interest rate is discounted, your interest rate on the first Change Date may increase, even if the index does not increase. At the first change date, your interest rate cannot increase or decrease by more than 5.00 percentage points. Thereafter, your interest rate cannot increase or decrease by more than 2.00 percentage points at each change date (“Periodic Interest Rate Cap). Your interest rate cannot increase more than 5.00 percentage points above your initial interest rate over the term of the loan (“Lifetime Interest Rate Cap”), nor can your interest rate go below the start rate. Ask us for our current Lifetime Interest Rate Cap and Lifetime Floor.

HOW YOUR PAYMENT CAN CHANGE
Your first monthly payment change will be one month after the first interest rate change. Thereafter, your monthly payment can change every 12 months based on changes in the interest rate and in the principal balance. Your monthly payment can increase substantially on your 85th monthly payment and every 12 months based on changes in the interest rate. You will be notified in writing at least 25 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount, and loan balance. For example, on a new $10,000, 30-year loan with an initial interest rate of 5.00% (this is an initial interest rate that was in effect in January 2005), the maximum amount that the interest rate can rise under this program is 5.00 percentage points, to 10.00%, and the monthly payment can rise from $53.68 for the first 84 months to a maximum of $87.76 beginning in the eighth year. To see what your payment would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 divided by $10,000 = 6; 6 x $53.68 = $322.08 per month).

You have the right to make payments of principal at any time before they are due. A payment of principal before it is due is called prepayment. In any 12-month period during the first thirty-six months of the loan term beginning on the date of the note or the note date anniversary, you may prepay up to 20% of the original principal amount of your loan without incurring a prepayment fee. If you prepay more than 20% of the original principal amount in any such 12-month period during the first 36 months of the loan term, you will be required to pay a prepayment fee on any amount prepaid in excess of 20% of the original principal amount. The prepayment fee will not exceed 6 months’ advance interest on the amount prepaid in excess of 20% of the original principal amount

[ljinvestor]

Bear- Similar programs are out there because AimLoan will offer a 5yr ARM at 2.5% with 2pts or 3.125 on the 7yr ARM paying 2pts.

Here are details for their 7yr based of LIBOR

This disclosure describes the features of the adjustable rate mortgage (ARM) program you are considering. Information on other ARM programs is available upon request. This loan program has an adjustable rate feature. This means that your interest rate and payment amount can change.

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED
Your interest rate will be based upon an index plus a margin, rounded to the nearest 0.125%. Ask us for the current value of the index and of our current margin. Your payment will be based on the interest rate, loan balance, and loan term. The index upon which your interest rate will be based is the average of interbank offered rates for One-Year U.S. dollar-denominated deposits in the London market (“LIBOR”). Information about the index rate is published in the Wall Street Journal. The margin is expressed in percentage points and will stay the same throughout the term of the loan. The initial interest rate is not based on the index used to make later adjustments. Your initial interest rate may be a discounted or premium rate. Ask us for the amount of our current interest rate discount or premium. Your interest rate will equal the index rate plus the margin, rounded to the nearest 0.125%, unless your interest rate “Caps” limit the amount of change in the interest rate.

HOW YOUR INTEREST RATE CAN CHANGE
The interest rate can occur on your 84th monthly payment due date. Thereafter, your interest rate san change every 12 months. If your initial interest rate is discounted, your interest rate on the first Change Date may increase, even if the index does not increase. At the first change date, your interest rate cannot increase or decrease by more than 5.00 percentage points. Thereafter, your interest rate cannot increase or decrease by more than 2.00 percentage points at each change date (“Periodic Interest Rate Cap). Your interest rate cannot increase more than 5.00 percentage points above your initial interest rate over the term of the loan (“Lifetime Interest Rate Cap”), nor can your interest rate go below the start rate. Ask us for our current Lifetime Interest Rate Cap and Lifetime Floor.

HOW YOUR PAYMENT CAN CHANGE
Your first monthly payment change will be one month after the first interest rate change. Thereafter, your monthly payment can change every 12 months based on changes in the interest rate and in the principal balance. Your monthly payment can increase substantially on your 85th monthly payment and every 12 months based on changes in the interest rate. You will be notified in writing at least 25 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount, and loan balance. For example, on a new $10,000, 30-year loan with an initial interest rate of 5.00% (this is an initial interest rate that was in effect in January 2005), the maximum amount that the interest rate can rise under this program is 5.00 percentage points, to 10.00%, and the monthly payment can rise from $53.68 for the first 84 months to a maximum of $87.76 beginning in the eighth year. To see what your payment would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 divided by $10,000 = 6; 6 x $53.68 = $322.08 per month).

You have the right to make payments of principal at any time before they are due. A payment of principal before it is due is called prepayment. In any 12-month period during the first thirty-six months of the loan term beginning on the date of the note or the note date anniversary, you may prepay up to 20% of the original principal amount of your loan without incurring a prepayment fee. If you prepay more than 20% of the original principal amount in any such 12-month period during the first 36 months of the loan term, you will be required to pay a prepayment fee on any amount prepaid in excess of 20% of the original principal amount. The prepayment fee will not exceed 6 months’ advance interest on the amount prepaid in excess of 20% of the original principal amount

[ljinvestor]

Bear- Similar programs are out there because AimLoan will offer a 5yr ARM at 2.5% with 2pts or 3.125 on the 7yr ARM paying 2pts.

Here are details for their 7yr based of LIBOR

This disclosure describes the features of the adjustable rate mortgage (ARM) program you are considering. Information on other ARM programs is available upon request. This loan program has an adjustable rate feature. This means that your interest rate and payment amount can change.

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED
Your interest rate will be based upon an index plus a margin, rounded to the nearest 0.125%. Ask us for the current value of the index and of our current margin. Your payment will be based on the interest rate, loan balance, and loan term. The index upon which your interest rate will be based is the average of interbank offered rates for One-Year U.S. dollar-denominated deposits in the London market (“LIBOR”). Information about the index rate is published in the Wall Street Journal. The margin is expressed in percentage points and will stay the same throughout the term of the loan. The initial interest rate is not based on the index used to make later adjustments. Your initial interest rate may be a discounted or premium rate. Ask us for the amount of our current interest rate discount or premium. Your interest rate will equal the index rate plus the margin, rounded to the nearest 0.125%, unless your interest rate “Caps” limit the amount of change in the interest rate.

HOW YOUR INTEREST RATE CAN CHANGE
The interest rate can occur on your 84th monthly payment due date. Thereafter, your interest rate san change every 12 months. If your initial interest rate is discounted, your interest rate on the first Change Date may increase, even if the index does not increase. At the first change date, your interest rate cannot increase or decrease by more than 5.00 percentage points. Thereafter, your interest rate cannot increase or decrease by more than 2.00 percentage points at each change date (“Periodic Interest Rate Cap). Your interest rate cannot increase more than 5.00 percentage points above your initial interest rate over the term of the loan (“Lifetime Interest Rate Cap”), nor can your interest rate go below the start rate. Ask us for our current Lifetime Interest Rate Cap and Lifetime Floor.

HOW YOUR PAYMENT CAN CHANGE
Your first monthly payment change will be one month after the first interest rate change. Thereafter, your monthly payment can change every 12 months based on changes in the interest rate and in the principal balance. Your monthly payment can increase substantially on your 85th monthly payment and every 12 months based on changes in the interest rate. You will be notified in writing at least 25 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount, and loan balance. For example, on a new $10,000, 30-year loan with an initial interest rate of 5.00% (this is an initial interest rate that was in effect in January 2005), the maximum amount that the interest rate can rise under this program is 5.00 percentage points, to 10.00%, and the monthly payment can rise from $53.68 for the first 84 months to a maximum of $87.76 beginning in the eighth year. To see what your payment would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 divided by $10,000 = 6; 6 x $53.68 = $322.08 per month).

You have the right to make payments of principal at any time before they are due. A payment of principal before it is due is called prepayment. In any 12-month period during the first thirty-six months of the loan term beginning on the date of the note or the note date anniversary, you may prepay up to 20% of the original principal amount of your loan without incurring a prepayment fee. If you prepay more than 20% of the original principal amount in any such 12-month period during the first 36 months of the loan term, you will be required to pay a prepayment fee on any amount prepaid in excess of 20% of the original principal amount. The prepayment fee will not exceed 6 months’ advance interest on the amount prepaid in excess of 20% of the original principal amount

[ljinvestor]

Bear- Similar programs are out there because AimLoan will offer a 5yr ARM at 2.5% with 2pts or 3.125 on the 7yr ARM paying 2pts.

Here are details for their 7yr based of LIBOR

This disclosure describes the features of the adjustable rate mortgage (ARM) program you are considering. Information on other ARM programs is available upon request. This loan program has an adjustable rate feature. This means that your interest rate and payment amount can change.

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED
Your interest rate will be based upon an index plus a margin, rounded to the nearest 0.125%. Ask us for the current value of the index and of our current margin. Your payment will be based on the interest rate, loan balance, and loan term. The index upon which your interest rate will be based is the average of interbank offered rates for One-Year U.S. dollar-denominated deposits in the London market (“LIBOR”). Information about the index rate is published in the Wall Street Journal. The margin is expressed in percentage points and will stay the same throughout the term of the loan. The initial interest rate is not based on the index used to make later adjustments. Your initial interest rate may be a discounted or premium rate. Ask us for the amount of our current interest rate discount or premium. Your interest rate will equal the index rate plus the margin, rounded to the nearest 0.125%, unless your interest rate “Caps” limit the amount of change in the interest rate.

HOW YOUR INTEREST RATE CAN CHANGE
The interest rate can occur on your 84th monthly payment due date. Thereafter, your interest rate san change every 12 months. If your initial interest rate is discounted, your interest rate on the first Change Date may increase, even if the index does not increase. At the first change date, your interest rate cannot increase or decrease by more than 5.00 percentage points. Thereafter, your interest rate cannot increase or decrease by more than 2.00 percentage points at each change date (“Periodic Interest Rate Cap). Your interest rate cannot increase more than 5.00 percentage points above your initial interest rate over the term of the loan (“Lifetime Interest Rate Cap”), nor can your interest rate go below the start rate. Ask us for our current Lifetime Interest Rate Cap and Lifetime Floor.

HOW YOUR PAYMENT CAN CHANGE
Your first monthly payment change will be one month after the first interest rate change. Thereafter, your monthly payment can change every 12 months based on changes in the interest rate and in the principal balance. Your monthly payment can increase substantially on your 85th monthly payment and every 12 months based on changes in the interest rate. You will be notified in writing at least 25 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount, and loan balance. For example, on a new $10,000, 30-year loan with an initial interest rate of 5.00% (this is an initial interest rate that was in effect in January 2005), the maximum amount that the interest rate can rise under this program is 5.00 percentage points, to 10.00%, and the monthly payment can rise from $53.68 for the first 84 months to a maximum of $87.76 beginning in the eighth year. To see what your payment would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 divided by $10,000 = 6; 6 x $53.68 = $322.08 per month).

You have the right to make payments of principal at any time before they are due. A payment of principal before it is due is called prepayment. In any 12-month period during the first thirty-six months of the loan term beginning on the date of the note or the note date anniversary, you may prepay up to 20% of the original principal amount of your loan without incurring a prepayment fee. If you prepay more than 20% of the original principal amount in any such 12-month period during the first 36 months of the loan term, you will be required to pay a prepayment fee on any amount prepaid in excess of 20% of the original principal amount. The prepayment fee will not exceed 6 months’ advance interest on the amount prepaid in excess of 20% of the original principal amount

[ljinvestor]

Bear- Similar programs are out there because AimLoan will offer a 5yr ARM at 2.5% with 2pts or 3.125 on the 7yr ARM paying 2pts.

Here are details for their 7yr based of LIBOR

This disclosure describes the features of the adjustable rate mortgage (ARM) program you are considering. Information on other ARM programs is available upon request. This loan program has an adjustable rate feature. This means that your interest rate and payment amount can change.

HOW YOUR INTEREST RATE AND PAYMENT ARE DETERMINED
Your interest rate will be based upon an index plus a margin, rounded to the nearest 0.125%. Ask us for the current value of the index and of our current margin. Your payment will be based on the interest rate, loan balance, and loan term. The index upon which your interest rate will be based is the average of interbank offered rates for One-Year U.S. dollar-denominated deposits in the London market (“LIBOR”). Information about the index rate is published in the Wall Street Journal. The margin is expressed in percentage points and will stay the same throughout the term of the loan. The initial interest rate is not based on the index used to make later adjustments. Your initial interest rate may be a discounted or premium rate. Ask us for the amount of our current interest rate discount or premium. Your interest rate will equal the index rate plus the margin, rounded to the nearest 0.125%, unless your interest rate “Caps” limit the amount of change in the interest rate.

HOW YOUR INTEREST RATE CAN CHANGE
The interest rate can occur on your 84th monthly payment due date. Thereafter, your interest rate san change every 12 months. If your initial interest rate is discounted, your interest rate on the first Change Date may increase, even if the index does not increase. At the first change date, your interest rate cannot increase or decrease by more than 5.00 percentage points. Thereafter, your interest rate cannot increase or decrease by more than 2.00 percentage points at each change date (“Periodic Interest Rate Cap). Your interest rate cannot increase more than 5.00 percentage points above your initial interest rate over the term of the loan (“Lifetime Interest Rate Cap”), nor can your interest rate go below the start rate. Ask us for our current Lifetime Interest Rate Cap and Lifetime Floor.

HOW YOUR PAYMENT CAN CHANGE
Your first monthly payment change will be one month after the first interest rate change. Thereafter, your monthly payment can change every 12 months based on changes in the interest rate and in the principal balance. Your monthly payment can increase substantially on your 85th monthly payment and every 12 months based on changes in the interest rate. You will be notified in writing at least 25 days before the due date of a payment at a new level. This notice will contain information about your interest rates, payment amount, and loan balance. For example, on a new $10,000, 30-year loan with an initial interest rate of 5.00% (this is an initial interest rate that was in effect in January 2005), the maximum amount that the interest rate can rise under this program is 5.00 percentage points, to 10.00%, and the monthly payment can rise from $53.68 for the first 84 months to a maximum of $87.76 beginning in the eighth year. To see what your payment would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 divided by $10,000 = 6; 6 x $53.68 = $322.08 per month).

You have the right to make payments of principal at any time before they are due. A payment of principal before it is due is called prepayment. In any 12-month period during the first thirty-six months of the loan term beginning on the date of the note or the note date anniversary, you may prepay up to 20% of the original principal amount of your loan without incurring a prepayment fee. If you prepay more than 20% of the original principal amount in any such 12-month period during the first 36 months of the loan term, you will be required to pay a prepayment fee on any amount prepaid in excess of 20% of the original principal amount. The prepayment fee will not exceed 6 months’ advance interest on the amount prepaid in excess of 20% of the original principal amount

[ljinvestor]

Not as common and rate is going to be higher but you can get purchase & renovate loan. I noticed Wells Fargo offers. If rate is just ok, then you can try and refi with other lender once remodel is done.

In your example with 20% down, if your appraisal is higher than purchase price you can pull out difference right away with HELOC. Appraisal most likely won’t be much higher though.

Cash out refi can be done after 6mo but once again you would have to buy way under comps and possibly do an improvement to pull out enough to do rest of house.

Not a good idea to use CC

[ljinvestor]

Not as common and rate is going to be higher but you can get purchase & renovate loan. I noticed Wells Fargo offers. If rate is just ok, then you can try and refi with other lender once remodel is done.

In your example with 20% down, if your appraisal is higher than purchase price you can pull out difference right away with HELOC. Appraisal most likely won’t be much higher though.

Cash out refi can be done after 6mo but once again you would have to buy way under comps and possibly do an improvement to pull out enough to do rest of house.

Not a good idea to use CC

[ljinvestor]

Not as common and rate is going to be higher but you can get purchase & renovate loan. I noticed Wells Fargo offers. If rate is just ok, then you can try and refi with other lender once remodel is done.

In your example with 20% down, if your appraisal is higher than purchase price you can pull out difference right away with HELOC. Appraisal most likely won’t be much higher though.

Cash out refi can be done after 6mo but once again you would have to buy way under comps and possibly do an improvement to pull out enough to do rest of house.

Not a good idea to use CC

[ljinvestor]

Not as common and rate is going to be higher but you can get purchase & renovate loan. I noticed Wells Fargo offers. If rate is just ok, then you can try and refi with other lender once remodel is done.

In your example with 20% down, if your appraisal is higher than purchase price you can pull out difference right away with HELOC. Appraisal most likely won’t be much higher though.

Cash out refi can be done after 6mo but once again you would have to buy way under comps and possibly do an improvement to pull out enough to do rest of house.

Not a good idea to use CC

[ljinvestor]

Not as common and rate is going to be higher but you can get purchase & renovate loan. I noticed Wells Fargo offers. If rate is just ok, then you can try and refi with other lender once remodel is done.

In your example with 20% down, if your appraisal is higher than purchase price you can pull out difference right away with HELOC. Appraisal most likely won’t be much higher though.

Cash out refi can be done after 6mo but once again you would have to buy way under comps and possibly do an improvement to pull out enough to do rest of house.

Not a good idea to use CC

[ljinvestor]

[quote=SDisGreat]i can’t believe that they underfunded their account, now the current homeowners are definitely feeling it in lower sale prices…

the purchasing power on $415/month is roughly 60k…

so what happens when units like these have too many foreclosures and short sales and owners don’t make their monthly dues? i am assuming the currently homeowners have to pick up the monthly losses in increase HOA fees….[/quote]

Many large condo associations in San Diego have underfunded accts because of either poor planning and/or foreclosures

Purchase power closer to 75k with the current 30yr rate @ 5%

Yes, current homeowners eventually get stuck with the bill.

[ljinvestor]

[quote=SDisGreat]i can’t believe that they underfunded their account, now the current homeowners are definitely feeling it in lower sale prices…

the purchasing power on $415/month is roughly 60k…

so what happens when units like these have too many foreclosures and short sales and owners don’t make their monthly dues? i am assuming the currently homeowners have to pick up the monthly losses in increase HOA fees….[/quote]

Many large condo associations in San Diego have underfunded accts because of either poor planning and/or foreclosures

Purchase power closer to 75k with the current 30yr rate @ 5%

Yes, current homeowners eventually get stuck with the bill.

[ljinvestor]

[quote=SDisGreat]i can’t believe that they underfunded their account, now the current homeowners are definitely feeling it in lower sale prices…

the purchasing power on $415/month is roughly 60k…

so what happens when units like these have too many foreclosures and short sales and owners don’t make their monthly dues? i am assuming the currently homeowners have to pick up the monthly losses in increase HOA fees….[/quote]

Many large condo associations in San Diego have underfunded accts because of either poor planning and/or foreclosures

Purchase power closer to 75k with the current 30yr rate @ 5%

Yes, current homeowners eventually get stuck with the bill.

[Author]

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