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.
