[NotCranky]

Good luck to you cooprider, what ever you do.

[NotCranky]

“My buddy is a broker in SD. I’ll ask hi if ARM/IO’s were higher commissions.”

Keep in mind that at times they are selling what they can sell, with attention to volume not reward per loan originated. If it were not for “exotic” loans there would not have been a FB across the table with pen. This may be the case with the interest only currently as well.

[NotCranky]

“My buddy is a broker in SD. I’ll ask hi if ARM/IO’s were higher commissions.”

Keep in mind that at times they are selling what they can sell, with attention to volume not reward per loan originated. If it were not for “exotic” loans there would not have been a FB across the table with pen. This may be the case with the interest only currently as well.

[NotCranky]

Dpsvend, What is the fixed period that they are offering you,5,7,10,15? are they 30 year loans or perhaps 40 or more?

HLS & dpsvend are these loans teaser rate loans or other form of hybrid?I think the borrower has to qualify for full PITI at highest fully indexed rate?

I am trying to figure out why a lender would prefer them over a fixed as dpsvend points out. I believe him , unless some sort of mistake is pointed out.Also the coincindence with what he is saying and the fact that you,HLS, came in here almost exclusively touting interest only loans can not go without notice.

[NotCranky]

Dpsvend, What is the fixed period that they are offering you,5,7,10,15? are they 30 year loans or perhaps 40 or more?

HLS & dpsvend are these loans teaser rate loans or other form of hybrid?I think the borrower has to qualify for full PITI at highest fully indexed rate?

I am trying to figure out why a lender would prefer them over a fixed as dpsvend points out. I believe him , unless some sort of mistake is pointed out.Also the coincindence with what he is saying and the fact that you,HLS, came in here almost exclusively touting interest only loans can not go without notice.

[NotCranky]

I thought turkey was more approprieate. :o)

I thought it was intentional on your part..that’s funny.

Could you imagine happily living in that community of little houses when developers come in and build those relative monstrosities to the front rear and both sides?
I have heard of them referred to as “Huffman boxes” after the developer most produtive during the trend of building them. I tried to google it but I keep getting Trevor Hoffman.

[NotCranky]

I thought turkey was more approprieate. :o)

I thought it was intentional on your part..that’s funny.

Could you imagine happily living in that community of little houses when developers come in and build those relative monstrosities to the front rear and both sides?
I have heard of them referred to as “Huffman boxes” after the developer most produtive during the trend of building them. I tried to google it but I keep getting Trevor Hoffman.

[NotCranky]

Cooprider,
Your question would require a book. There have been so many different kind of arms, interest only, hybrids ect.

“Over the 30 year life of a loan, what costs more: ARM or fixed? Say it’s a 3-year ARM that started 3 years ago, and just reset. If I recall, a 30yr fixed ends up costing around double the purchase price. What about an ARM?”

In a low interest rate enviorment like we had and have had it is impossible to touch a fixed loan for value over 30 years. The exploding Arms will eat anybody alive. That’s why many mortgage people coaxed borrowers by telling them that they would easily refinance after a few years. Only the most naive and compulsive would have taken these loans without that promise. So they were naive,compulsive and gullible perhaps.

The Teaser ARM’s mostly worker for flippers and people who used the leverage wisely, who didn’t get caught in the price freeze and decline. I don’t know who else, maybe a few people that used the temporarily discounted money to finish school or start a business.

Interest only is a different animal but there are many species. As dpsvend said,apparently it is the Loan of the day. Depending on the species, they cost as much or more over the 30 year life of the loan. Anybody going interest only should find out what kind of a “hybrid” loan it could be.

Unless someone is so rich that they can be frivolous with hundreds of thousands of dollars, It is a bad time to buy a house and therefore a bad time to get a loan IMHO, regardless of how much you do or don’t understand the different ones. The message I hear in advertisement is “IF you only know how to get the right loan everything will be O.K.”

Buying at the right price and time will take care of little glitches in the loan. That is not to say that you don’t want to try to get the best one at the time.

http://articles.moneycentral.msn.com/Banking/HomeFinancing/CouldYouHandleAnInterestOnlyLoan.aspx

[NotCranky]

Cooprider,
Your question would require a book. There have been so many different kind of arms, interest only, hybrids ect.

“Over the 30 year life of a loan, what costs more: ARM or fixed? Say it’s a 3-year ARM that started 3 years ago, and just reset. If I recall, a 30yr fixed ends up costing around double the purchase price. What about an ARM?”

In a low interest rate enviorment like we had and have had it is impossible to touch a fixed loan for value over 30 years. The exploding Arms will eat anybody alive. That’s why many mortgage people coaxed borrowers by telling them that they would easily refinance after a few years. Only the most naive and compulsive would have taken these loans without that promise. So they were naive,compulsive and gullible perhaps.

The Teaser ARM’s mostly worker for flippers and people who used the leverage wisely, who didn’t get caught in the price freeze and decline. I don’t know who else, maybe a few people that used the temporarily discounted money to finish school or start a business.

Interest only is a different animal but there are many species. As dpsvend said,apparently it is the Loan of the day. Depending on the species, they cost as much or more over the 30 year life of the loan. Anybody going interest only should find out what kind of a “hybrid” loan it could be.

Unless someone is so rich that they can be frivolous with hundreds of thousands of dollars, It is a bad time to buy a house and therefore a bad time to get a loan IMHO, regardless of how much you do or don’t understand the different ones. The message I hear in advertisement is “IF you only know how to get the right loan everything will be O.K.”

Buying at the right price and time will take care of little glitches in the loan. That is not to say that you don’t want to try to get the best one at the time.

http://articles.moneycentral.msn.com/Banking/HomeFinancing/CouldYouHandleAnInterestOnlyLoan.aspx

[NotCranky]

I think we collectively are a pretty good resource for information and opinions , to act upon or not, at our own discretion. The fact that we are argumentative is to a degree an extra plus because it brings out multiple angles. People come on here and thank individuals or the group, all the time , for good direction on various topics. We have covered the loan stuff pretty well on various threads. HLS has brought stuff we haven’t disected like the yield spread premium, rebates and double dipping, although he did not call getting paid on the front and the back just that exactly.

So one that note, I will ask a question.

Are there cases were the mortgage broker “double dipping” is appropriate?

[NotCranky]

I think we collectively are a pretty good resource for information and opinions , to act upon or not, at our own discretion. The fact that we are argumentative is to a degree an extra plus because it brings out multiple angles. People come on here and thank individuals or the group, all the time , for good direction on various topics. We have covered the loan stuff pretty well on various threads. HLS has brought stuff we haven’t disected like the yield spread premium, rebates and double dipping, although he did not call getting paid on the front and the back just that exactly.

So one that note, I will ask a question.

Are there cases were the mortgage broker “double dipping” is appropriate?

[NotCranky]

Good catch Perry . I meant the overall indebtedness was half the value of the combined property . I sold the
leveraged property in spring 2005.Don’t tell anybody but I used a interest only ,liars loan, I mean low doc loan.

I must admit the house is average or a little above.2300 sq. feet. It is stout.The kitchen is pretty nice. My favorite part, the covered front porch looks to the east and is shady from about 11AM and on through the day.The goal was getting closer to modest financial independence.

Thanks for your help with understanding downtown condos on the other threads. BTW, as learning aids those links are way better than the MLS.
If you want to email me at [email protected] we can spare our buddies here the pleasant conversation, which they might rather avoid, and I can get back to raising hell :).

[NotCranky]

Good catch Perry . I meant the overall indebtedness was half the value of the combined property . I sold the
leveraged property in spring 2005.Don’t tell anybody but I used a interest only ,liars loan, I mean low doc loan.

I must admit the house is average or a little above.2300 sq. feet. It is stout.The kitchen is pretty nice. My favorite part, the covered front porch looks to the east and is shady from about 11AM and on through the day.The goal was getting closer to modest financial independence.

Thanks for your help with understanding downtown condos on the other threads. BTW, as learning aids those links are way better than the MLS.
If you want to email me at [email protected] we can spare our buddies here the pleasant conversation, which they might rather avoid, and I can get back to raising hell :).

[NotCranky]

Is your real estate license still active North County Man? Please forgive my incredulity. My wife who is a teacher said she thinks she would have a difficult time finding a peer who doesn’t know what an interest only mortgage is. This broker that you are touting and trust so much hasn’t explained it to you?( I get the feeling you have known him for a while to have such trust).

[NotCranky]

Is your real estate license still active North County Man? Please forgive my incredulity. My wife who is a teacher said she thinks she would have a difficult time finding a peer who doesn’t know what an interest only mortgage is. This broker that you are touting and trust so much hasn’t explained it to you?( I get the feeling you have known him for a while to have such trust).

[Author]

Posts