"Credit Worthy" would probably be a better term than "qualified". You don't need top be flush to be credit worthy, just responsible and present a high probability of timely repayment.
Yea but then I get mowed with Escrow, higher payments, and a likely higher interest rate.
[QUOTE=CharSFNiners;315736]Yea but then I get mowed with Escrow, higher payments, and a likely higher interest rate.[/QUOTE]
Dunno with current environment or your actual credit history but why not try an 80-15-5 to avoid PMI? Sure you have a second mortgage but interest is tax deductible where PMI is not. I did this to buy my first home. You’d have to escrow though but you would not necessarily have a higher rate than whats available. I believe there are some first time homeowner programs as well, if you qualify.
Sure you have a second mortgage but interest is tax deductible where PMI is not.PMI is tax deductible for at least the next couple years depending on if the legislation gets extended again.
Does anyone with a recent mortgage/refi mind saying what percentage loan they received?
[QUOTE=s9er;315730]“Credit Worthy” would probably be a better term than “qualified”. You don’t need top be flush to be credit worthy, just responsible and present a high probability of timely repayment.[/QUOTE]
Unfortunately that is a moving target that is getting harder and harder to hit. As of 4/01/2008 we entered the “ridicuolous” phase of underwriting for the unforseeable future. FNMA & FHLMC are becoming very, very tough. For example I just had a self employed customer with a 775 FICO with a 37% back end ratio (proven by a K-1 and no extensive write offs on his personal returns) at a 65% LTV and 89.9% CLTV that has had a mortgage he paid on time for 7 years turned down thru FNMA & FHLMC automated underwriting because he wanted interest only which he has been on since the inception of the loan. 3 months ago I could have closed him at 95% with only a verification from his accountant. I had to put him with a portfolio lender because no one would touch him unless FNMA & FHLMC would buy it. Any money above 90% LTV is becoming really tough to come by at decent terms and will be getting tougher in the future (especially piggy back HELOC’S/Seconds).
Also pricing has become much tougher on the same money we had before 4/01/2008. As of 4/01/2008 all money will be risked based off your credit score so you guys need to really keep your scores above 720 and 740( if you want cash out). The new pricing says if you are 720 or below and your LTV is above 65% there will be a minimum 50 basis point add on to the loan and increse from there as your score decreases. So on a $200,000.00 loan at a 719 FICO and a LTV above 65% you will be paying $1,000.00 more for the money right off the bat. Good times!
Be careful of what is out there because a lot of the products are not comparable apples to apples and sometimes the "no cost"refinances can actually be more expensive.
The last word of caution is if you are in a home that has increased in value quite a bit in the last 24 months tread lightly on your numbers for the refinance because comps are getting real tough to come by in most of these markets and if something does not give in the next 90 days we will be completely out of comps very soon.
[QUOTE=TheShowDawg;315931]The last word of caution is if you are in a home that has increased in value quite a bit in the last 24 months tread lightly on your numbers for the refinance because comps are getting real tough to come by in most of these markets and if something does not give in the next 90 days we will be completely out of comps very soon.[/QUOTE] what’s your take on property at places like the lake?
Does anyone with a recent mortgage/refi mind saying what percentage loan they received?
I refinanced from a 2-year ARM which was at 6.75% to a 5.5% Fixed for 20 years.
Here’s the dirty little secret. EVERY bank and broker can do no closing cost options, but you are paying for it somewhere, hence, “no closing cost” doesn’t necessarily mean that. I don’t have trouble getting business right now, in fact, neither are a lot of other lenders. The pool of “qualified” applicants may have dropped, but so have the number of lenders and brokers in the business. Don’t assume that the lender you are talking to necessarily “needs” your business. Those of us who survived are the ones with the best business practices who survived the storm. I typically don’t even talk about “no closing cost” loans to customers as they are nothing more than marketing gimmicks designed to milk every fee known to man out of you. After all, a broker or banker doesn’t make money unless he or she is churning loans, much like a stock broker would do with you. A fee is generated from the transaction. Some people don’t care if it benefits you or not. The “no closing cost” option is just the latest flavor of the month to generate more fees from you with a new transaction. Talk with an experienced local person who you can hold accountable if the deal isn’t what they say it is and don’t forget… read the fine print.
[QUOTE=LakeNorman49er;315935]what’s your take on property at places like the lake?[/QUOTE]
I live and do most of my work at the Lake and I am starting to see 2005 prices on some WF properties. You still have the pie in the sky people wanting $999K for a single wide with a “great view” but overall I see an adjustment of about 10% overall. JUMBO financing has become so tough that I expect a bigger drop for properties above $417K. I closed a refinance at The Point last month that I had done as a purchase last summer. Last summer it was easily $1.45 mil but when we went back out in March I was lucky to get $1.325 with 9 comps and had a foreclosure in motion on the water across the street at $1.3 mil that made me nervous for everyone on that street including 3 NASCAR drivers who do not like to hear that type of news on their investments.
The next 90 days will tell a lot about where we are heading on values. Lenders will not take any comps over 6 months old and there are not many sales to support values if we do not have a pick up. The last numbers I heard at The Point were 133 active listings with 3 closed sales in March and The Peninsula not far behind. Not good news for supporting values since it will triclkle down from the top.
If you are looking at the Lake there are a lot of builders “dumping” properties at a loss to get them off their lines so you can get a great deal on some of these. As far as an investment in future appreciation try to get in a WF community that has a boat slip that comes with the property or at least have some type of water view. Duke / Crescent will eventually turn their shorelines over to some type of environmental group and then any more boat slips / pier-docks will be almost impossible to get approval on so supply and demand will win out everytime.
[QUOTE=1richman;315976]Here’s the dirty little secret. EVERY bank and broker can do no closing cost options, but you are paying for it somewhere, hence, “no closing cost” doesn’t necessarily mean that. I don’t have trouble getting business right now, in fact, neither are a lot of other lenders. The pool of “qualified” applicants may have dropped, but so have the number of lenders and brokers in the business. Don’t assume that the lender you are talking to necessarily “needs” your business. Those of us who survived are the ones with the best business practices who survived the storm. I typically don’t even talk about “no closing cost” loans to customers as they are nothing more than marketing gimmicks designed to milk every fee known to man out of you. After all, a broker or banker doesn’t make money unless he or she is churning loans, much like a stock broker would do with you. A fee is generated from the transaction. Some people don’t care if it benefits you or not. The “no closing cost” option is just the latest flavor of the month to generate more fees from you with a new transaction. Talk with an experienced local person who you can hold accountable if the deal isn’t what they say it is and don’t forget… read the fine print.[/QUOTE]
It’s pretty obvious they make up for the no closing costs in the rate. I liked the idea of not bringing any money to closing and don’t mind the [I]slight[/I] uptick in the rate as I plan to pay off the new loan way before the 30 years is up.
this stuff is so way over my head
[QUOTE=CharSFNiners;316000]this stuff is so way over my head[/QUOTE]
Nah, it isn’t that complicated, especially now that many of the bogus mortgages are no longer offered. Just remember that nothing is free and to do your research.
I typically don't even talk about "no closing cost" loans to customers as they are nothing more than marketing gimmicks designed to milk every fee known to man out of you. After all, a broker or banker doesn't make money unless he or she is churning loans, much like a stock broker would do with you. A fee is generated from the transaction. Some people don't care if it benefits you or not. The "no closing cost" option is just the latest flavor of the month to generate more fees from you with a new transaction. Talk with an experienced local person who you can hold accountable if the deal isn't what they say it is and don't forget...... read the fine print.
We’re purchasing through BoA’s No-Fee Mortgage Plus loan and there is nothing gimmicky about it. I was skeptical at first but after days and days of research, I came to the conclusion that it’s a legit offer with no strings attached. BoA is simply offering a deal to a select group, in hopes of gaining additional customers to their other services. If I can avoid paying any and all fees at closing for simply joining BoA, then I don’t consider that to be a “catch” in any way.
We compared offers from multiple lenders including NCSECU (who I initially wanted to go through) and nothing came remotely close to the no-fee mortgage plus. We even had one broker nearly blow a gasket on us because he tried to debunk the no-fee loan and failed miserably. In the end, he literally told us he couldn’t match BoA and encouraged us to go through them.