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Established Contributor
myhearts07
Posts: 858
Registered: ‎06-26-2007

New Deal, questionable!!!

Okay, here's a new deal:
 Rate was 10.8%  ARM  4/1
No prepay penalty
Rate bought down to 10.5% - cost $3K
Will pay off all debt including husband's car but not my van
No cash out
New loan $310,500.00
House value  $345,000.00
Will have no debt except van
Does not include taxes
Pymt 2700.00
 
What do you all think?  Nothing signed.
Frequent Contributor
chartley3
Posts: 488
Registered: ‎05-23-2007

Re: New Deal, questionable!!!

Eve,
 
the only thing that bugs me is that its only a 4/1 ARM which means in 3 yrs your going to have to refi again and your LTV is going to be low. I would really try to find a fixed rate if at all possible IMO.
Established Contributor
myhearts07
Posts: 858
Registered: ‎06-26-2007

Re: New Deal, questionable!!!

Thanks for the advice.
 
 
Eve
Contributor
cgmiller63
Posts: 139
Registered: ‎08-04-2007

Re: New Deal, questionable!!!

I agree, you should look for a fixed rate loan.
Regular Contributor
OneMortgageGuy
Posts: 255
Registered: ‎06-08-2007

Re: New Deal, questionable!!!

If I remember correctly your Ficos are below 500 and you have some mortgage lates but correct me if im wrong. If thats correct... Then its a good deal. The rate is high but closing cost are very low for your fico's. I would ask them to give you a quote on a fixed rate.
 
One way to low your rate is to ask for a pre pay. Pre pays suck but they do two things. First of all the investor makes money off of you if you refi and second.. because they will make money if you refi out of it they will give you a lower rate. What are the odds of you doing a refi in the first year? I'm thinking slim... As far as pre pays go you can have a 1, 2, 3 ,and 5 year on your loan.
 
Also it sounds like youre doing a 40 year loan or interest only loan.                                               310,500K @ 10.5 on 30yr I/O = 2716.88    and    310,500K @ 10.5 on a 40yr loan = 2759.01
 
Once you get the good faith just print a copy and make all note on it. Go over all the fee and make notes on it but most of all SAVE IT. Before you go to closing ask for the HUD. DO NOT CLOSE TILL YOU HAVE THE HUD FOR 24 HOURS!! Match the GFE to the HUD and make sure it about the same. If its off by a few hundred buck thats not so bad but if its way off just DONT SIGN.

 

myhearts07 wrote:
Okay, here's a new deal:
 Rate was 10.8%  ARM  4/1
No prepay penalty
Rate bought down to 10.5% - cost $3K
Will pay off all debt including husband's car but not my van
No cash out
New loan $310,500.00
House value  $345,000.00
Will have no debt except van
Does not include taxes
Pymt 2700.00
 
What do you all think?  Nothing signed.



Established Contributor
myhearts07
Posts: 858
Registered: ‎06-26-2007

Re: New Deal, questionable!!!

Hey MtgGuy,
 
Thanks for your input.  My fico's are 555, 579, 588 my husband's are 585, 616, 641.  Does this make a difference in the rate that we are being offered?
Frequent Contributor
chartley3
Posts: 488
Registered: ‎05-23-2007

Re: New Deal, questionable!!!

If your hubby is the primary wage earner then they will use his 616 median score for the deal. I think your getting screwed personally. When I closed on my house in April my median score was 582 and my note is a 5/25 ARM at 9.99% with a 1% prepay on a refi. However my servicer just sold my loan to WAMU so I may give them the chance to allow me to refi through them and see if they will waive the 1% prepay. Point is I think your getting takenf or a ride on the rate.
Regular Contributor
OneMortgageGuy
Posts: 255
Registered: ‎06-08-2007

Re: New Deal, questionable!!!

Sorry about that...  Now that I have been corrected! Do you have any mortgage lates of repos on your credit? If not then the rate and term is no good. It sounds like theres something going on or all the brokers would of called you back.

myhearts07 wrote:
Hey MtgGuy,
 
Thanks for your input.  My fico's are 555, 579, 588 my husband's are 585, 616, 641.  Does this make a difference in the rate that we are being offered?




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