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There's a good chance they have already packaged and sold the interest on your loan, and they have cash in hand rather than any ongoing interest from you. See: mortgage-backed securities. In any case, your paying your loan faster has zero corrective effect on their behavior, unfortunately. Go ahead and pay your mortgage faster if you want, of course. But don't do it solely based on imagining it somehow punishes the bank.
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Sep 30, 2017 18:34
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Do you mean that his bank has securitized his loan? I thought most issuing banks just sold them off, and didn't go through all the MBS shenanigans themselves. (They'd be unlikely to have people on staff who are expert at selling those securities to institutional investors.)
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Sep 30, 2017 19:40
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Any bank can underwrite asset backed securities, and presumably small-time banks would contract with a broker of some kind if they lacked the staff or expertise on-hand to do it. A typical batch might be $10M of loans, which is well within reach of even fairly tiny banks. If your loan is out-right sold, you'll likely know about it, since you'll suddenly be making payments to some other bank.
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Sep 30, 2017 20:14
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Interesting, thanks!
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Sep 30, 2017 21:30
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This hot market is getting me down. Probably missing out on a house we really liked and put a generous offer in on because someone is trying to swoop in with all cash. Again. Here's hoping their verbal offer doesn't actually materialize  (At least it's not a drat contractor. Please stop trying to flip all the lightly run-down starter homes into something entirely outside our budget kthx)
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Oct 1, 2017 00:14
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Are Angie's List reviews pretty reliable for evaluating a home inspector?
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Oct 2, 2017 07:40
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Also, I'm getting rate quotes from Big Banks that I think are pretty good (3.6-3.75% APR) - any tips on getting them to beat each other in a race to the bottom (of rates)? I'm not seeing better rates quoted on HSH.com or the big online lenders, does this mean it's not worth reaching out to QuickenLoans/LoanDepot/etc?
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Oct 2, 2017 08:49
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My house closed today  It was almost as painless as buying it was so I'm mega hosed if I ever buy another one. The only issues were getting quotes to replace the roof and get the chimney repaired. There was no way the work was going to be done before closing, so the title company just withheld the estimate amounts from my amount of the sale profits and will cut checks to the companies once the work is done pretty much removing me from any more hassle. Pretty sure I'm still on the hook if the estimates were too low(and we all know this will happen), but I'm not super worried about that.
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Oct 4, 2017 03:10
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fknlo posted:My house closed today Hope it goes well, but that's a pretty poo poo way to do it. I've been on both sides of escrow for septic (it's always septic.....it always fails) which had the MAXIMUM the seller would have to pay, and any overage was returned to them. Of course, you maximize in these situations as a buyer and I was able to use drat near every last dime putting in the best drat septic system possible - extra storage box and all in case the leach field got screwed up.
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Oct 4, 2017 06:01
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Fun thing happened today: Found out that my inspector missed that my water pressure regulator was hosed...to late for me to do anything about it but pony up. If you hook a meter up to one of my outside outside lines (water hose) it shows fine, but open a few taps, shower, or run the sprinkler and it drops off. Way off. Of course he didn't check that, only hooked up meter, turned it on full, declared all good. Don't know who is the bigger rear end in a top hat, the inspector I paid for overlooking this or myself for not double checking since water pressure seemed a little low even though "the test" showed it to be fine and I shouldn't mess with it. Cue up $900 plumber visit to replace (or $150 and hours of my sweaty time, plus tools I don't have, plus I would gently caress it up). The lesson here is when having a house inspected among the 10,000 other things to look out for make sure the inspector checks pressure the right way. You'd think this was house inspecting 101 but.....
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Oct 4, 2017 06:42
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Yeah, pretty much no inspector checks anything other than static pressure. I know it shouldn't be that way, but inspectors are largely poo poo. Except that one Canadian dude apparently.
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Oct 4, 2017 07:00
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Had a few lenders giving me the same rate. One originator had been really helpful to me, talking to me for a couple hours answering questions even when I told him I wasn't seriously looking for a house, etc. But his fees were higher, so I gave him a chance to match the lowest. He matched, the lowest countered with an extra 800 in credit, nice guy couldn't match, I told lowest guy I'd go with him. Lowest guy wants me to sign disclosures with original credit amount (not including the extra 800) because, he claims, he can't amend the disclosures without me signing the first ones and that he'll add the extra 800 after I sign the original disclosures. But that's a bunch of bullshit; who's not able to amend disclosures before signing? Plus, they issued a redisclosure form specifically to tell me that my rate was locked, so I'm drat sure they can issue another redisclosure to give me an extra 800 bucks. ...and literally as I was typing this, the guy calls and says he'll have a new disclosure to me today. Basically I think he just doesn't know how his system works (where if terms are changed, then the new loan estimate supersedes the old one and the old one just disappears). Pretty sure just another case of Hanlon's razor, but just to reiterate for everyone: never sign something that isn't exactly what you agreed to.
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Oct 4, 2017 14:52
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I'm getting jerked around by a Big Bank guy too. The loan estimate isn't what his verbal was because he needs to get approvals. Feeling super nervous because we have 25 days til close and he hasn't sent me an official rate lock yet. Great rate and no points but dang my anxiety
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Oct 4, 2017 17:48
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When I read these posts, I have to ask, because this comes up frequently.... Are you checking rates for online brokers? It seems like most people in this thread don't, but in my experience the rate I got was so so much better than any of the in person options I had spoken with. Like a full half percentage better. I even ended up with Wells Fargo in the end at a rate way lower than what Wells Fargo would have offered me.
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Oct 4, 2017 18:07
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Yeah, the rates I looked at are all from online. I have a friend who works at quicken loans and their quote was a quarter percent higher than what I got online. And of the ones online, I ended up getting a lock at 3.75% with 0 fees and 2200 in credit so I think that's pretty decent. I just looked at Chase, for example, and they were also an eighth of a percent higher. Definitely look online. Edit: looking through the big stack of papers to sign, the loan application itself didn't reflect the new credit amount, and the intent to proceed wasn't updated to the latest loan estimate date. I would think they're trying to hope I don't notice if I didn't know better, that people are just really bad at their jobs. totalnewbie fucked around with this message at 19:16 on Oct 4, 2017 |
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Oct 4, 2017 18:22
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Mandalay posted:I'm getting jerked around by a Big Bank guy too. The loan estimate isn't what his verbal was because he needs to get approvals. Feeling super nervous because we have 25 days til close and he hasn't sent me an official rate lock yet. Great rate and no points but dang my anxiety Get 3 locks. They're free!
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Oct 4, 2017 19:52
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Big Bank guy came through! 3.5% no points on a 30 year fixed. Nice. Locked in writing on a Loan Estimate. Now I'm worried about closing on time. It's locked until 2 days post close, which I don't know if he's trying to tell me something..H110Hawk posted:Get 3 locks. They're free! I thought a rate lock meant you were on the hook for an appraisal? That's $500 I don't feel like paying x 3 if the loan is not going to happen.
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Oct 4, 2017 21:37
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Mandalay posted:Big Bank guy came through! 3.5% no points on a 30 year fixed. Nice. Locked in writing on a Loan Estimate. Now I'm worried about closing on time. It's locked until 2 days post close, which I don't know if he's trying to tell me something.. Check with your lender, but not in my experience. I had 2 locks. The one we didn't go with was really sad, but not sad enough not to send me junk mail.
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Oct 4, 2017 21:44
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Mandalay posted:3.5% no points on a 30 year fixed Now I'm sad
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Oct 5, 2017 02:27
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Andy Dufresne posted:
Condolences... You may want to check for stuff like duplicate insurance you don't need, credit cards and other accounts opened up without your permission... The surprises just seem to keep coming
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Oct 5, 2017 12:49
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https://www.mortgagenewsdaily.com/reports/mortgage_rates/ I always look for a broker news site, not sure it this is good info or not but they are not bad at making the lock don't lock call. There is a better one but I can't find it and I am to lazy too look for it since I am not dumb enough to be buying a house right now.
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Oct 5, 2017 15:21
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I had negotiated 3.12% with a quarter point credit on a 15 year (which basically paid their fees). Our officer dropped it to 3.0% with the same credit a couple days before closing which is thought was odd but I'll take it. I probably could've gotten 2.8% had I further shopped online but the difference is $8 a month and this bank was great for customer service. Not worth the hassle of more applications. They also overestimated my closing costs by $8k so that was nice. Closed yesterday. Painless since the sellers weren't even present. Started painting kids room; kilz primer looks like crap. All wall hangings ripped paint off and now need spackle. No way I'm painting our master bedroom with 14 ft vaulted ceiling. Looking forward to hiring painters woot! Home Depot runs: 1 Home Depot spent: $94.25
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Oct 5, 2017 16:12
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totalnewbie posted:Yeah, the rates I looked at are all from online. I have a friend who works at quicken loans and their quote was a quarter percent higher than what I got online. And of the ones online, I ended up getting a lock at 3.75% with 0 fees and 2200 in credit so I think that's pretty decent. I just looked at Chase, for example, and they were also an eighth of a percent higher. Definitely look online. Check Zillow. Mandalay posted:Big Bank guy came through! 3.5% no points on a 30 year fixed. Nice. Locked in writing on a Loan Estimate. Now I'm worried about closing on time. It's locked until 2 days post close, which I don't know if he's trying to tell me something.. Unless you signed a form saying you are paying you do not owe them anything. The appraisal doesnt happen right away and most companies will require that you sign and agree to pay before scheduling an appraisal. The mortgage broker may have to pay for a lock if the loan is underwritten and you go with another lender, but this is the risk they take if they don't have a signed agreement to prevent lock jumping.
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Oct 5, 2017 16:12
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I'm a ways away from refinancing still, but wanted to get my head on straight about how I need to do this so I can start thinking about specific goals and timelines. Current situation: I own a house jointly with my mom. FHA Mortgage in both our names. Goal: Own the house jointly with my wife. Get a new mortgage with (hopefully) lower rates, but at least no MI. Would do that by either getting to 20% equity, which is unlikely though not entirely impossible in the short run, or hoping credit is improved enough to do a 80/10/10 or 80/5/15, depending on where we get exactly and if we can get a bump on the appraisal from the first one(neighborhood has improved and comps should be up, outside of house vastly improved from when we bought it). Is this going to end up basically having to be a sale all over again or can I do this as a refinance in some fashion? A sale would be more expensive than a refinance? Getting the ownership in my wife's name would be good, but the real goal here is to save some money by cutting out the MI.
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Oct 5, 2017 23:09
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Kase Im Licht posted:I'm a ways away from refinancing still, but wanted to get my head on straight about how I need to do this so I can start thinking about specific goals and timelines. You can refi to change owners. No need to make it a "sale".
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Oct 5, 2017 23:20
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I'm on a 5/1 ARM 90% with a 2nd mortgage 10%. We're about a year into ownership, and I'll be able to pay off the 10% loan later this year. I am making a timeline about when to refinance into a conventional mortgage vehicle. Should I push for another 10% into the first mortgage so I'm below 80% and won't have PMI?
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Oct 6, 2017 18:26
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EAT FASTER!!!!!! posted:I'm on a 5/1 ARM 90% with a 2nd mortgage 10%. We're about a year into ownership, and I'll be able to pay off the 10% loan later this year. I am making a timeline about when to refinance into a conventional mortgage vehicle. Should I push for another 10% into the first mortgage so I'm below 80% and won't have PMI? Absolutely, yes. Which is not to say it's a cut and dry case for everyone, but you've shared enough about your financial position that I strongly recommend this course of action. Your options for refinancing are easier to compare when the PMI various lenders will charge you is no longer in the equation, and, you get to stop paying PMI, and, you'll pay less in interest at 80% than at 90%. It of course means continuing to chug along paying at your current rate, with PMI, and the high interest right now, but I'm highly confident you can knock out that second 10% quickly.
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Oct 6, 2017 18:40
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How long do you plan on keeping the home? I'm also in a 5/1 ARM, but I don't have any plans to refi out of it because I'm not going to be here for long after the rate changes and it's not worth the higher rate in the meantime + transaction costs. Initial ARM rates are lower than conventional, plus rates have gone up (a little) already.
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Oct 6, 2017 19:26
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Got kind of an initial inquiry for those in this thread that have experience with mortgages and loans and such... Here's my situation: My parents currently own a condo (fully paid off, worth ~475k) and a house (150k still left on mortgage, worth ~750k) in San Diego, both of which I will be inheriting. They've needed to borrow on the house for a while to support the family, but in a few months they can't do that anymore and it converts back to a normal mortgage. They were thinking about selling the condo and using the proceeds to pay off the house, but we really want to keep both the properties in the family. The idea my dad came up with is that I take out a loan for the 150k to pay off the house, and he sells me the condo for that amount, which I then move into. He would be losing the rental income from the condo, but according to him, his income from retirement should be sufficient to cover their needs as long as they don't need to make house payments anymore. I currently only make ~45k a year (although I expect to make more in the next few years), and don't have a huge amount of savings (15k), so I don't even know if I would be offered a loan, and where to go to find out. Plus my previous experience with home ownership makes me wary about being in debt again (check my post history in this thread). That said, I like this idea better than selling either property. Does anyone here have any input?
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Oct 9, 2017 20:08
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Rotten Red Rod posted:we really want to keep both the properties in the family. It's a condo, not the handwritten journal of your great great grandfather that he kept hidden as he was abducted by pirates and forced to join the crew for 10 years of raping and pillaging his way around the Caribbean. How much sentimental value does it really have? I see this all the time with old people, they get super attached to some place they lived and they want to keep it forever. Just sell the thing and continue to live where you want so you are free to lead the life you want without being tethered so some property your parents got too attached to. Alternatively, have your parents sell the house and downsize into the condo. They will have smaller expenses going forward, more money from the sale, and won't have to take care of a single family home anymore as they become too old to manage it. And you can still inherit whatever money is left at the end.
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Oct 9, 2017 20:20
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Talk to a lawyer about the property taxes. With Prop 13 you could see a big reassessment if they have been in the family for a long time and you don't do the transfers right.
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Oct 9, 2017 20:23
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Rotten Red Rod posted:Got kind of an initial inquiry for those in this thread that have experience with mortgages and loans and such... Here's my situation: By the time I got to the 3rd paragraph my jaw was hanging to the ground. Dude, you're talking about over a million in assets here. Don't ask the Internet for advice, ask a professional estate planning attorney. This isn't self help territory.
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Oct 9, 2017 20:24
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Droo posted:It's a condo, not the handwritten journal of your great great grandfather that he kept hidden as he was abducted by pirates and forced to join the crew for 10 years of raping and pillaging his way around the Caribbean. How much sentimental value does it really have? Sentimental value for the condo? None, it's just a lot cheaper to already own a home here than try to rent/buy one nowadays in San Diego. And if things go sideways we can always sell it. Selling the house very likely isn't going to happen, admittedly for some of the reasons you mentioned here. But that's not my call, currently, and I'm seriously considering selling it after I inherent it. At least they're not going for that reverse mortgage trap. crazypeltast52 posted:Talk to a lawyer about the property taxes. With Prop 13 you could see a big reassessment if they have been in the family for a long time and you don't do the transfers right. That's a good point. I wonder if it's possible for me to take out a loan for the house without actually doing a sale on the condo...? It doesn't really matter to me whose name the house is in currently. Definitely something to put on a list of questions for a lawyer. Andy Dufresne posted:By the time I got to the 3rd paragraph my jaw was hanging to the ground. Dude, you're talking about over a million in assets here. Don't ask the Internet for advice, ask a professional estate planning attorney. This isn't self help territory. I know, and we will, I'm asking for initial thoughts.
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Oct 9, 2017 20:43
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Rotten Red Rod posted:I know, and we will, I'm asking for initial thoughts. I guess if I were you, I would be worried about all the red flags I see in the situation. I think we have a poster here who was going to inherit a bunch of stuff from his parents (about a million dollars) and was living in their condo, and then all of a sudden the dad realized he didn't have enough money to live on, evicted the kid and told him there would be no more inheritance. I think his name is gogogadgetchris? For example, if he already has a renter, why does the rental income from a free and clear 475k property not cover a $150k mortgage? If he needed to borrow $150k to support the family while having rental income, why would he be fine to just pay off the 150k and lose the rental income? He is worse off than before he borrowed the money. I also see lots of people hit 65 and become very surprised that medicare actually costs a bunch of money - something like $1100 monthly for a couple to get parts A, B, and D. Do your parents have a good retirement budget laid out already? With all that said, if you are curious about the feasibility of getting a loan for the property your first call should be to an independent mortgage broker to discuss the situation with them. I imagine you would be able to get one on a property that is worth three times the sale price. The second call would be to a real estate attorney to discuss the deal, and learn if there are any weird implications to selling for well under market price (your parents will have to declare the rest as a gift, and you'll probably have to pay transfer taxes, title insurance etc on fair market value) so the total cost to do the sale would probably be close to $10,000.
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Oct 9, 2017 21:01
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Droo posted:I guess if I were you, I would be worried about all the red flags I see in the situation. I think we have a poster here who was going to inherit a bunch of stuff from his parents (about a million dollars) and was living in their condo, and then all of a sudden the dad realized he didn't have enough money to live on, evicted the kid and told him there would be no more inheritance. I think his name is gogogadgetchris? Yeah, I'm trying to figure out all the red flags here, but that's not one of them, thankfully. If he didn't have enough to live on they would sell the condo, but I'm not in any danger of being disinherited. quote:For example, if he already has a renter, why does the rental income from a free and clear 475k property not cover a $150k mortgage? If he needed to borrow $150k to support the family while having rental income, why would he be fine to just pay off the 150k and lose the rental income? He is worse off than before he borrowed the money. My parents have both been retired for for more than 10 years - they're both collecting public teacher's retirements, plus my dad has a military retirement. So they do have an idea of how much retirement costs and how much they need for it. That said, the reason they've had to borrow on the house is to support my brother (and me, while I was floundering on the property I was in on before I sold it) and still afford their retirement. Later this year he will have to start paying monthly towards that 150k, which is a cost he cannot afford, even with the rental income. He will NOT be better off paying the 150k and losing the rental income - the better situation for him is selling the condo. It's the better option for ME since it gives us somewhere to live without having to pay rent, which is essentially money going out of the family to someone else that we could keep in the family instead. I'm still not entirely sure the math checks out myself, honestly, but again I expect to be making more in my career soon and my income coming more into the equation should improve things a lot whichever way we go. (Also we may have a roommate at the condo to help offset costs.) quote:With all that said, if you are curious about the feasibility of getting a loan for the property your first call should be to an independent mortgage broker to discuss the situation with them. I imagine you would be able to get one on a property that is worth three times the sale price. The second call would be to a real estate attorney to discuss the deal, and learn if there are any weird implications to selling for well under market price (your parents will have to declare the rest as a gift, and you'll probably have to pay transfer taxes, title insurance etc on fair market value) so the total cost to do the sale would probably be close to $10,000. That's good information. Thanks.
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Oct 9, 2017 21:18
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The rent on a 475k condo in San Diego should pay even the worst condo fees and interest on a 150,000 loan. Raise the rent up to market. If you are asking if buying a $475,000 condo for $150,000 is a bad idea, it isn't. It also swindles your brother out of his share.
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Oct 9, 2017 21:27
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crazypeltast52 posted:Talk to a lawyer about the property taxes. With Prop 13 you could see a big reassessment if they have been in the family for a long time and you don't do the transfers right. Andy Dufresne posted:By the time I got to the 3rd paragraph my jaw was hanging to the ground. Dude, you're talking about over a million in assets here. Don't ask the Internet for advice, ask a professional estate planning attorney. This isn't self help territory. 3rd'ing Do not take any action without consulting an estate planning attorney. You all stand to lose a lot of money if you do this wrong.
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Oct 9, 2017 21:51
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H110Hawk posted:3rd'ing Do not take any action without consulting an estate planning attorney. You all stand to lose a lot of money if you do this wrong. Yeah for sure. I'm not doing the "I'M IN A WELL, SHOULD I DIG????" thing here. All the concerns people have stated so far are ones I have as well, and I'm less sure now than I was before that the financials work out correctly for this, and I'm going to go over them with my dad in detail. While this option is really, really tempting for me, I think it's far more likely at this point that we'll end up selling the condo.
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Oct 9, 2017 22:00
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Is it weird to contact a guy who flipped my house twenty years ago? I got his name from public permits, and it looks like he runs some sort of construction company now. I am just curious about the history of my 110-year old house, like if he has any before-after pictures or plans from renovations. Old pictures are surprisingly hard to find!
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Oct 12, 2017 19:57
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If he is a flipper then yeah I'd say it's kind of weird. Less weird if they lived there.
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Oct 12, 2017 20:03
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