need some real estate financing help.

[cisco]

My sister-in-law who lives in Sacramento, Ca, told me she is considering refinancing to an interest only home loan from World Savings bank and that it would cost $8000 for this. Is that possible? I thought it should only cost $500-$600.

The loan amount is $185000.

Also, her husband has mortgage insurance. She was told that this money would earn interest at 9%. I don't believe this for a minute.They don't need it as they put over 20% down on the house. I told her it would probably be cheaper to just get a term life policy for the same amount.

These are two immigrants from Mexico that i feel would very easily be taken advantage of.

Does anyone have any other suggestions about how she can lower her monthly payments?


Thanks-

 

[homedog]

I am not sure I understand cisco. The loan amount is 185,000 and they put 20% down. That would mean that the cost of the house is 231,250.

In my opinion, I can't see why they would want anything other than a 30 yr conventional loan.

Please explain.

 

[NySportsfan]

My sister-in-law who lives in Sacramento, Ca, told me she is considering refinancing to an interest only home loan from World Savings bank and that it would cost $8000 for this. Is that possible? I thought it should only cost $500-$600.

The loan amount is $185000.

Also, her husband has mortgage insurance. She was told that this money would earn interest at 9%. I don't believe this for a minute.They don't need it as they put over 20% down on the house. I told her it would probably be cheaper to just get a term life policy for the same amount.

These are two immigrants from Mexico that i feel would very easily be taken advantage of.

Does anyone have any other suggestions about how she can lower her monthly payments?


Thanks-

Cisco,
I do Mortgage Financing here in Florida, but we are licensed to do loans in all 50 states and I work with all the big banks and lenders. 8-9000 for closing costs for a refi is being ripped off badly, it should be 4-5000 tops usually. Interest only is the way to go though, but you're right, they should NOT be paying pmi(mortgage insurance) if you want to get my email from jack I'd be happy to help you or answer any questions

Mike

 

[cisco]

Homedog- Yes the purchase price was 230K. They are trying to get the lowest monthly payment possible.

NySportsfan- I believe they have a 4% ARM in it's 4th year. I need to talk to her some more to get additional information.
I will ask Jack for your e-mail.

Thanks guys-

 

[Agent 0659]

No fawking way they got a "mortgage life" policy that pays 9% :mj07: Please see if you can somehow get me a copy of that policy and I will help you look at it. I cant write any biz in Florida but would be happy to help as Im sure Dogs That Bark would be. We dont have anything like that in Indiana anyway.

 

[cisco]

Agent 0659- I laughed when she told me this. Could be she misunderstood the salesperson.
She's in California.

 

[Agent 0659]

Sorry dont know why I put Florida. Let me know on this, I can help.

 

[Doughboy]

I would think that the insurance policy is some sort of variable life with a guaranteed first year rate of 9%, but then it drops after that to variable rate. Not sure, but that is what I would guess. Would be happy to share any ideas as you get more info. I agreee with buying the term for the life of the loan though.

 

[Agent 0659]

I would think that the insurance policy is some sort of variable life with a guaranteed first year rate of 9%, but then it drops after that to variable rate. Not sure, but that is what I would guess. Would be happy to share any ideas as you get more info. I agreee with buying the term for the life of the loan though.

No way it is starting at 9% in todays market..Just cant see it being possible.

 

[SixFive]

why is interest only the way to go NYsportsfan????? I refinanced my house last year for 500 bucks.

 

[cisco]

SixFive-This is about the range I thought it would cost. I'd like to know why too. 4-5000 seems extremly high also.

 

[SixFive]

SixFive-This is about the range I thought it would cost. I'd like to know why too. 4-5000 seems extremly high also.

it is. I don't understand interest only either. Since rates are so low now, I think it is silly to do anything other than a 15, 20, or 30 traditional fixed rate loan. The only reason I could think of doing anything else would be if you were planning on moving in the next 5 years or so.

 

[Doughboy]

No way it is starting at 9% in todays market..Just cant see it being possible.

I will check any UL's out there, but I have had clients who were getting 1 year guarantees at 8% for a year, and that was 2 years ago. Insurance companies are using this as a way to raise money, but you will not get it for the entire life of the policy....maybe just the first year.

It is just like annuities that are paying an initial bonus of 10%.

These are all very attractive, but usually they get hteir money back through high fees that go along with the policies.

 

[Agent 0659]

Not only that Doughboy, that was 2 years ago..dont see that being the case now.

 

[NySportsfan]

it is. I don't understand interest only either. Since rates are so low now, I think it is silly to do anything other than a 15, 20, or 30 traditional fixed rate loan. The only reason I could think of doing anything else would be if you were planning on moving in the next 5 years or so.

Interest only is often times good for investors, and for people who want lowest monthly payments, or people who don't intend to live somewhere for that long. after all, the average amount of time someone stays in a home is I think like 4 years if I'm not mistaken. At interest only, you can pay interest for however long you're allowed to, and then sell the home before it fully amortizes and your payment skyrockets, thats the logic behind it. I personally think a 5/1 adjustable is good, then you re-fi before the 5th yr comes up if the rates are low enough. refi costs are always going to be a few thousand due to all the processing and that kind of stuff, if someone tries charging you way way less, then they are just rolling the rest into a higher interest rate, either way you are going to pay for it

Mike

 

[NySportsfan]

why is interest only the way to go NYsportsfan????? I refinanced my house last year for 500 bucks.

An appraisal costs $300 usually, plus tax stamps, title, etc all the stuff you got the first time you need to get again, at least down here, if you only paid $500 then they must have rolled some of it into the rate or else they f'ed up, I dont know, but that sounds very low

 

[cisco]

NySportsfan- did you get my e-mail?

 

[SixFive]

An appraisal costs $300 usually, plus tax stamps, title, etc all the stuff you got the first time you need to get again, at least down here, if you only paid $500 then they must have rolled some of it into the rate or else they f'ed up, I dont know, but that sounds very low

nope, I got the going rate. My local mortgage company refinances their existing loans for 500 dollars. The appraisal on it was 150 dollars. The appraisal really is a joke. I know the lady well, and she comes, takes a few pictures of the outside, and is gone in less than 5 minutes (no joke). All my information is already in the lender's system. They do a new appraisal and a new credit check, etc. I can call on the 1st and sign closing papers on the 15th. Fast, efficient, and inexpensive.

 

[NySportsfan]

NySportsfan- did you get my e-mail?

for some reason that aol name I can't get to, and I really never use it anymore but when I registered with this site I did, just posted a thread for you with my email in it, if jack doesnt delete it. just send it to that one, thanks

Mike

 

[tussking]

CISCO DO YOUR OWN DD ON THIS MATTER TAKING ADVICE FROM SOMEONE WHO IS IN THE BIZ FOR UNDER A YEAR IS A BAD MOVE. NYSPORTSFAN INSTRUCTING SOMEONE THAT AN INTEREST ONLY IS A GOOD MOVE IS POTENTIALLY SUICIDE FOR THE BORROWER DO YOU KNOW THIS MARKET DO YOU KNOW WHAT THE MOVES IN THE BOND MARKET EQUATE TO NYSPORTS NOT TRYING TO BASH BUT YOUR EXPERIENCE CAN WIND UP SCREWING CISCO. CISCO GET MY EMAIL FROM JACK AND I WILL PUT YOU INTOUCH WITH A BANKER WHO HAS BEEN IN THE BIZ FOR OVER 5 YEARS.