|
eddiewalker posted:I'm assuming Wells Fargo is getting a better deal on underwriting, or something, so win-win. They keep you as a customer and get you paying 4.875% instead of 4.25-4.5% they'd have to offer to a new customer.
|
#
¿
Sep 17, 2010 20:45
|
|
|
|
| # ¿ May 15, 2024 10:00 |
|
|
Leperflesh's Broker posted:The rate at 4% would not give me enough yield spread premium to pay for your closing costs. So offer to pay a portion of the closing cost.
|
|
#
¿
Oct 22, 2010 05:53
|
|
|
Sure, they're called ARMs - Adjustable Rate Mortgages. But with interest rates on the benchmark 30-year fixed so low, there's basically no reason to get one now.
|
|
#
¿
Nov 1, 2010 05:46
|
|
|
Contra Duck posted:I'm normally very opposed to fixed rate loans because you generally end up paying a big premium for it For example, bankrate.com says the average 5/1 ARM (initial rate is fixed for 5 years, then it adjusts every year thereafter) is going for a mere 100bp less than the 30-year fixed. Why bother exposing yourself to the potential interest rate risk? Contra Duck posted:to offer rates like those they must be very confident that there's not going to be a significant rise in variable rates for a long time. No need, thanks to they way loans are securitized and sold here. The banks aren't paying for notes with a carry trade, so they aren't exposed to the interest rate risk either. As long as there are investors willing to buy the MBS, the banks make their profit.
|
|
#
¿
Nov 1, 2010 15:12
|
|
|
^^^ You'll need to refinance the loan and have at least 20% equity to get rid of escrow.
|
|
#
¿
Jan 12, 2011 14:35
|
|
|
Yes. Most lenders will require escrow for loans with less than 20% equity but make it optional for loans with 20+%. Often, you need to pay a small escrow waiver fee, too (25bp is common). This is not something you can drop on an existing loan like PMI, it's in our out permanently at the time of closing.
|
|
#
¿
Jan 12, 2011 16:08
|
|
|
Dik Hz posted:So if you're the highest bidder, the house is worth exactly what you're willing to pay for it.
|
|
#
¿
Feb 18, 2011 01:12
|
|
|
TraderStav posted:What are the requirements to qualify for a second mortgage? I have very good credit (>750) and low debt to income ratio (assuming I'm calculating the right stuff, .25 currently). When I bought a new place last fall while still owning my last place, the bank wanted to see: 30% equity in the old place. Total debt to gross income of <45% including full PITI on both places. 10% of the new loan amount in liquid reserves post-closing. In particular, that first item was their solution to the problem of people with good credit buying a new place and then defaulting on the old one. I'm not sure how that's going to work in your situation.
|
|
#
¿
Mar 24, 2011 21:28
|
|
|
Bozart posted:This isn't true at all. But they do - the structures, at least. The IRS lets you depreciate residential buildings on a 27.5 year schedule.
|
|
#
¿
Jun 1, 2011 00:33
|
|
|
LloydDobler posted:Say you do this, you do an ARM and pay on it for 5 years without paying ahead, then rates threaten to go up so you refinance into a 30 year. Your amortization clock starts over, and 5 years of interest heavy payments go right into the toilet. So you're basically speculating on interest rates going up, but they have to go up a fairly large amount for it to cost you more than 5 years of front loaded interest. Looking at the sum of payments on a 35 year ARM-then-fixed scenario and comparing it to a plain 30 year fixed scenario is not really informative. You need to calculate the NPV of both scenarios for an accurate measure of their relative cost. If you're still mentally stuck on the change in term, you can always increase your payment to simulate a shorter amortization period. If you get an ARM you're betting on rates going down or staying the same until you dispose of the property. Rates going up do not make ARMs more attractive, they make FRMs more appealing.
|
|
#
¿
Jun 7, 2011 16:12
|
|
|
CatchrNdRy posted:Does a new appraised value affect the LTV? Yes. They can require that you meet the 80% test on both the current and original values.
|
|
#
¿
Jun 19, 2011 18:31
|
|
|
CatchrNdRy posted:and this is what confuses me. If my house has dropped in value, doesn't that increase the amount of money I have already invested in it? Leperflesh did a pretty good job explaining it. It's not what you've paid vs what the house is worth, it's how much you owe vs what the house is worth. The bank wants you to owe less than 80% of what the house is worth, and in order for them to be conservative on "what the house is worth" they'll use the lower of your original purchase price or the current appraised price. For your situation this are the numbers as it seems from your post: Original Purchase: $153K Current Value (est): $123K Current Loan Bal: $130K 80% OLTV: $122K 80% CLTV: $98K So you'd need to pay down $8K based on the original purchase price, but $32K based on the current value.
|
|
#
¿
Jun 19, 2011 19:55
|
|
|
It means the quality control department is reviewing your application and other paperwork. They have the final say on whether or not the loan gets approved.
|
|
#
¿
Jun 21, 2011 04:14
|
|
|
It sounds like you flunked the automatic underwriting because you need her income to qualify, but she has no score. So now a real human in the underwriting department will look at the file and see if you can be manually approved. It depends on the underwriting standard being used by that bank.
|
|
#
¿
Jun 21, 2011 05:10
|
|
|
Tezer posted:what should I be looking for? What's the advantage of using a third-party lender instead of my current bank (ING)? My experience has been that most banks' retail loan offerings aren't all that competitive compared to what a good broker can find for you, and that's the appeal of a 3rd party lender. What you want to find is someone who is easy to work with, and will guarantee the Good Faith Estimate items under their control (so they don't lowball you while you're shopping and then screw you at closing) Applying does not obligate you to complete the deal with them. You can and should ask for estimates/GFEs from multiple sources to find the best deal. You should do this in a relatively short period of time though. You want all of your credit report inquiries to come within a 30 or 60 day window so that the credit score algorithm groups the inquiries as one.
|
|
#
¿
Jun 23, 2011 14:47
|
|
|
Shipon posted:Repairs and upgrades do little to the value of the home. A good rule of thumb is that for every 50k in repairs/upgrades on a property, the home may see 5-10k of appreciation, tops. There are the occasional people who fix up a old beaten down home and end up profiting in the end, but those examples are few and far between. The people who sink hundreds of thousands of dollars into renovating their home (adding additional floors, granite countertops, etc.) rarely get back more than 10% of what they put in. Repairs will come close to 100% ROI because if you don't repair stuff you would have to discount the price of the house equally to compensate. In fact they can exceed 100% ROI, because in most markets buyers will pay a premium for properties that don't need any work over those that do. The catch is that repairs only counteract depreciation. They don't add new value. So if the purchase price of $190K was for a run down 4-plex, then the repairs added value - but only enough to bring it up to what it would have sold for in good shape. If the $190K purchase price represents the price of the property in good condition and the repairs were to fix stuff that broke since purchase, then that was money spent to bring the house back up to $190K condition and added no new value. ROI on upgrades varies tremendously. Things like paint and decor that are a matter of personal taste will return little to nothing, Things like bathrooms and kitchens can return most of the cost provided you don't overshoot the price and luxury point your layout, size and location will support. Other poo poo falls somewhere in between.
|
|
#
¿
Jul 29, 2011 18:12
|
|
|
gvibes posted:If your income can support two mortgages, you could buy the other one, then walk away from the place in Cali. This would have worked 2-3 years ago, but banks are wise to this now and set their underwriting standards accordingly. Mine wanted to see 30% equity in the existing properties before they'd approve a loan on a new one.
|
|
#
¿
Aug 9, 2011 00:42
|
|
|
Socratic Moron posted:If I'm going to loan my sister money for a house, does anyone know what sort of letter I have to provide her for when she makes an offer? You don't need to provide her with any documentation at the offer-making stage.
|
|
#
¿
Aug 18, 2011 15:25
|
|
|
Interest accrues daily. You'll owe 6 figures again tomorrow. 
|
|
#
¿
Aug 18, 2011 15:35
|
|
|
archangelwar posted:Roth IRA is currently not an option for them, and assuming they are smart( unless the cap is completely removed at some point) There is a loophole in existing law that effectively uncaps the Roth IRA. Anyone with earned income can get their $5K/yr in until the law is changed again.
|
|
#
¿
Aug 19, 2011 04:21
|
|
|
FISHMANPET posted:Why is it that a typical home owners policy doesn't cover stuff like that or flood damage? Shouldn't the insurance company be able to figure out that an area is at risk for disasters X, Y, and Z, and price accordingly? Flood insurance in particular has been effectively nationalized. The companies can market and sell the policies with their branding, but the rates, coverage, and policy language are all fixed by the government. By law, they can not include flood coverage in your standard homeowner's policy, only a FEMA flood policy.
|
|
#
¿
Aug 27, 2011 16:10
|
|
|
Pillowpants posted:In the OP, it said renting is not throwing money away but she doesn't understand why. Can someone explain that to us? Whether you rent, buy with a mortgage, or buy outright, you're exchanging money for a place to live. For most people, it comes down to a choice to rent a place to live directly or to rent money from a bank to buy a place to live. The real question is what can you get for your money in both of those scenarios and which suits your needs better.
|
|
#
¿
Sep 25, 2011 16:54
|
|
|
daggerdragon posted:I have no skill with cabinetry and I'm going to tackle this project myself with a little help from friends (one of whom has skills in cabinetry, but it'd be more like him telling me how to make something structurally sound). As for fit and finish, if you can make sure the cabinets are square and level (at least the tops and shelves), then stained or painted cabinets always look good. I hope your build goes better than my buddy's. He too decided to build rather than buy cabinetry and he had all the proper tools (including a very well equipped table saw) and woodworking experience. He figured it'd take him a month's worth of weekends. 3 months later, he had barely got the kitchen reassembled into a usable state and he was so sick of spending all his leisure time working on the kitchen that it took him another two years to finish all the trim and detail work.
|
|
#
¿
Oct 5, 2011 14:44
|
|
|
Jorath posted:But as the value plummeted I realized that all it did was kept us from being underwater (which is a nice feeling), but it didn't offset the fact that our down-payment + extra payments were now money that we donated to the bank, as opposed to money that we could/would get back when we sold. No. You 'donated' that money to the people you bought the house from, not the bank.
|
|
#
¿
Oct 13, 2011 03:52
|
|
|
Chib posted:€1500 (excluding utilities) a month versus something like €500/month also seems crazy. That's an apples-to-orages comparison. You need to factor in the opportunity cost of your $125k and the fact that rent includes maintenance, etc.
|
|
#
¿
Oct 20, 2011 14:43
|
|
|
tadashi posted:Does that sound like a realistic idea? No. It doesn't look like you have enough equity to do a cash-out refi assuming 80% LTV cap. Even if banks are back to stupidly allowing higher LTV on cash-outs, the amount of equity you could acess will still be quite limited. And don't forget that cash out refis have higher interest rates than standard refis.
|
|
#
¿
Dec 3, 2011 03:28
|
|
|
Given how cheap interest rates are for prime borrowers there is no reason to put down more than 20%.
|
|
#
¿
Jan 3, 2012 03:39
|
|
|
Seik posted:Bonus question round: Is there any real upside to taking a mortgage with our bank (RBC) at 4.09% instead of a web-based company such as ING Direct who can apparently give us 3.45% with the same terms? When we asked our bank this they said basically that having the branch available with in-person reps you can talk to was totally worth the extra grand a year in payments. Having a hard time swallowing it. If you're the kind of person who likes to do all of your banking in person, and your bank will warrant that they will not just sell your loan to another servicer anyway, then it might be worth a small premium to go with them, but it's not worth anything near 64bp. If you're a normal person who does all of your banking online or on the phone, there is no value whatsoever in going with your local bank. Go with whoever is cheapest.
|
|
#
¿
Jan 4, 2012 06:32
|
|
|
Seik posted:4.09 is advertised as their special rate too, with the regular being something like 4.54. The difference in monthly payment amount is massive. It's surprising that such a wide range of rates exist, I would have figured the variance would be much smaller to remain competitive. I'm not. Most large banks' retail mortgage operations are hilariously uncompetitive with what a good broker can find for you. To complete the irony, it's often those same banks wholesale rates that the broker is rate shopping for you. Get a few GFEs and make sure you're factoring in all origination and discount points for an apples-to-apples comparison.
|
|
#
¿
Jan 4, 2012 07:05
|
|
|
Elephanthead posted:until you can legally dissolve the HOA. Which he won't be able to do until the city allows the lot to be subdivided (possibly never). Remember, in this arrangement the land the houses are built on is community property, too. It's certainly possible to set up the HOA without any of the BS restrictive covenants they usually have, but this is still an odd situation where you will be legally bound at the hip with your neighbor.
|
|
#
¿
Jan 19, 2012 23:52
|
|
|
Jorath posted:Wrote an offer last night for submission today. Neither my wife or I slept more You make $100K /yr and you're putting in a offer at $650K? Did you get loan pre-approval and if so, what bank is still doing loans that crazy so I can go short their stock?
|
|
#
¿
Feb 15, 2012 05:05
|
|
|
Jorath posted:Yes, and my wife makes almost that much as well. That's quite different. Your post history has you claiming 2x a guy with $48K in household income, but you really have 4x or close to it. $650K on $200K gross income is reasonable. Not so on $100K. Did Wells not give you a hard time on your lack of equity in your other house? When my wife and I bought our house without selling the previous ones, they wanted to see 30% equity in every other property we owned.
|
|
#
¿
Feb 16, 2012 05:24
|
|
|
Astro7x posted:But in past goon experiences, how long has it taken? It can take a lot longer than 30 days to close with as picky and incompetent as banks are these days. Last house I bought took about 100 days from first visit to closing.
|
|
#
¿
Apr 11, 2012 14:00
|
|
|
ohjoshdarnit posted:Does anyone know of a good resource for estimating repairs on a house? It's very dependent on labor costs in your locale. Best way is to get referrals to reputable contractors and ask for quotes.
|
|
#
¿
Apr 19, 2012 05:02
|
|
|
Kneel Before Zog posted:South East U.S. I'm thinking now is an opportune time , if you had enough money and a steady income, to buy houses to rent? Rental houses are all about cash flow. Do never count on appreciation to make the deal work.
|
|
#
¿
Jun 13, 2012 18:35
|
|
|
drat Bananas posted:He's in Spring, and looking in Southlake, to be more specific. It'll depend on the neighbourhood and price point. The far out 'burbs aren't hot real estate markets, but correctly priced houses should move in typical 3-6 month time frames. One advantage spring has is that Exxon will be relocating most of their offices to the nearby Woodlands in a year or two, but I don't know that it's imminent enough to help move real estate this summer. The bigger E/N point is that you need to have a conversation with your soon-to-be-brother-in-law, letting him know it's time for him to make alternate lodging arrangements and that doesn't need to be contingent on selling the house in spring. Your boyfriend should be the one to break the news, since it's his relative.
|
|
#
¿
Jun 25, 2012 18:21
|
|
|
What kind of utility raises the unit price with higher consumption? Where the hell do you live that the going rate is 32c /kwh?
|
|
#
¿
Aug 11, 2012 20:52
|
|
|
Jesa posted:Great - now you tell me?! My offer on a large 2 story built in 1978 in TX was accepted a few days ago. Scheduled to close on Sept 14. We asked the sellers ahead of time for details on their utilities and it seemed reasonable. I had no idea how much this whole process would make me feel - nervous, sleepless and anxious as hell, but also super excited. Texas, being a civilized part of the country, has electricity for sale at around 9c/kwh.
|
|
#
¿
Aug 13, 2012 13:48
|
|
|
Yes, a typical 2-3 ton AC unit will draw around 6kW when it's on, but it won't run continuously unless you're trying to keep your house at 55 degrees. I run two central AC units, two fridges, and the usual other assortment of household crap for WAY less than 6000kWh.
|
|
#
¿
Aug 14, 2012 05:02
|
|
|
|
| # ¿ May 15, 2024 10:00 |
|
|
Dik Hz posted:Dude's got a 4200 sq. ft McMansion in the desert and keeps the thermostat at 78. 6 kW average is pretty much in line with expectations for cooling. Since when is Indiana a scorching desert? I cool 3000 sq ft in a much warmer climate for less than half of what he's using.
|
|
#
¿
Aug 14, 2012 14:29
|
|