Home Buying and Mortgages...

[CO B-man]

I'm a mortgage broker in CA and saw your post. First, the reason why he wants you to put 20% down is because the 2.25% loan he wants to put you in a negative amortization loan. While the payment is appealing, you are deferring interest and your loan balance is going UP. Not a good loan for a purchase. In some scenarios, it can be a very beneficial loan for a refinance.

If he's quoting you 7.5% for a full documentation loan (verifying your assets, income, etc) I'd say you can do better. why not consider a Fannie Mae 80/10/10? That's 10% down and the lender does two loans to avoid the mortgage insurance issue. You can get in the sub 7's on your first loan and the second won't be bad either. You could also keep your cash and go 80/20 with no down payment. Best of luck....

Nice!

 

[mkazzbmf]

2.25% on a neg am loan sounds far fetched to begin with....Your prob looking at 3% to be realistic......7.25% does seem high but if its with no pts I would say thats not all that bad for an investment property. if its with pts its about .5% high in my opinion.


Kaz

 

[ZKaudio]

go with a direct lender ... and get a referral.

 

[jnevin]

You can go full doc to 95% on a second home with a rate of 3% but you will have M.I.

If you put 10% down, you'll be at 3% without M.I. Countrywide has an optional feature called TAMI, which is Tax Advantage Mortgage Insurance, meaning you can pay the M.I. in the rate and write trhe interest off. It's a loan with a neg am option, so if you're in an area that isn't appreciating, it may not be the greatest loan. The balance will stop growing when the balance 15% higher than it was when you took the loan out. It's a great loan if you want to stay liquid and would rather invest your cash instead of paying almost all of your payment to interest anyway.

Thing is, if your loan officer is ignoring you, drop him and find someone good. Countrywide has a Fast and Easy loan program that could close you in one day if title and appraisal are done.

 

[p0ink]

i hope i grow up to be a slum-lord one day.

 

[CENTURION44]

my broker is using countrywide..so you think i should just drop him and go direct...I am going neg. am but ill be way ahead of the game..the house i got was a steal plus once i do the work to it..itll be worth a bundle..in a year or two max...thats the deal..thanks for your help...its greatly appreciated

 

[CENTURION44]

oh and yes it is a no points loan...and i also looked into the piggyback loans but the second loan would be at 8.5% so not sure if that would be worth it...

Whats a good 30yr fixed rate with 20% down and my fica score???

 

[Maffiosa]

Drop this douche bag and get a new broker, he's stoking you. He's prolly in way over his head or he is trying to pork you. You have a very simple loan with a great credit score! You do need 10% donw for a investment or vacation property. If your buying in a good area where the comps are high and vaule in the properties are on the rise them a ARM is the way to go. Sounds like you know what you want, go find a broker who can help you! Been doing mortgage for 6 years now, its blows my mind how many brokers out there have no fucking clue what they are doing!

 

[jnevin]

oh and yes it is a no points loan...and i also looked into the piggyback loans but the second loan would be at 8.5% so not sure if that would be worth it...

Whats a good 30yr fixed rate with 20% down and my fica score???

Get an 80/10 with the pay option ARM for the first lien and a HELOC for the second. If you go directly through Countrywide, you'll be able to get them to come down on the rate easier. (I was a branch manager for them, they get pricing exceptions on almost all of their loans.) The second will be close to 9%, but it's interest only and as you pay it down, you'll be able to draw on it for whatever you need. Full doc on an 80/10 30 year fixed today (no points) would be around 6.5 depending on what your lender wants to make. The ARM comes with a 3 year pre-payment penalty, so make sure you know how long you plan to hold on to the property before everything is final.

 

[ZKaudio]

lol... I'm not even in the industry... I write the commission schedules for the brokers though.. have an intimate working knowledge of the back end.... (no pun intended)