U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-26-2010, 10:46 AM
 
28,381 posts, read 67,769,628 times
Reputation: 18158

Advertisements

Good advice above. The only thing that was not addressed was whether smaller banks will be more flexible. My experience is that for MANY customers that have the ability to move a signficant part of their sizable assets all under one roof the smaller banks, and even the 'private banking side' of large banks will be a bit more flexible. You still are NOT going to get rates that are as good as for conforming loans, but you MIGHT get a deal done where otherwise you would not. The ratios are bit more flexible and the required down payment will likely be much closer to 20% than 40%...

Realize too that there is a BIG difference between some small bank that has no real investment advice business and somebody like Norther Trust or similar that has a real depth of services to support those with high net worth...
Reply With Quote Quick reply to this message

 
Old 04-26-2010, 05:32 PM
 
Location: Lending in all 50 states
187 posts, read 702,683 times
Reputation: 109
Quote:
Originally Posted by Momma_bear View Post
My husband and I are looking to move up to a nicer house here in south Florida. If we sell our current home for $500K we should see around $200K from the sale (after commissions, etc.). We are looking to purchase a home for around $700K which leaves us with $500K to finance.

We would like to take out a 15 year loan. Our monthly income is $25K (not including any bonuses), we have $700 per month of recurring debt (car loan) outside of our mortgage and very high credit ratings. I do not anticipate trouble getting a loan, but I am confused about the terms we can expect.

Since we will need to finance $500K we would need a jumbo loan (conforming limit is $423K here). I am hearing that banks are requiring 40% down payments for Jumbo loans. Is that true for all Jumbos, or does it vary by individual case? Will taking a 15 year loan allow us to make a slightly lower DP and still get the loan? We could put down another $80K but we would have to liquidate some investments to do so.

We have a relationship with a small local bank. Are they likely to be more accommodating than the big box banks? Any ideas?

I have 5.375% (30 Day Rate Lock) with zero points on 15 year fixed jumbo with 20% down which saves you at least $60,000.
Reply With Quote Quick reply to this message
 
Old 04-26-2010, 06:19 PM
 
3,576 posts, read 5,896,110 times
Reputation: 1431
Quote:
Originally Posted by SmartMoney View Post
I also do combo loans. Our second is amortized over 30 years and balloons in 15. This is the predominant second trust program, if you can find one. Combo financing has been very successful for non-FHA approved condominiums, where private mortgage insurance requires 10% down.

However, we won't lend in Florida. We pulled out of there almost 2 years ago. That market is considered unstable and optimal terms may not be available. (For example, a 15 year rate would most likely be the same rate as a 30 year).

If you are USAA or Pentagon Federal Credit Union eligible, you may try them, as they frequently have excellent terms. (Although, it sounds like USAA is going to be in trouble with the Finance Reform bill moving throught the House and Senate).
That's what my mortgage broker personal friend (who's out of Springfield Virginia, same area as yours) says about the Jumbo Loan market in Florida. He doesn't do any lending in Florida in the past 2 years so he coouldnt get me a quote on the jumbo loan email I asked him.

The higher end homes in Florida are just sitting on the market. Not enough qualified buyers with significant cash downpayments.
Reply With Quote Quick reply to this message
 
Old 04-26-2010, 07:36 PM
 
Location: MID ATLANTIC
7,580 posts, read 17,570,438 times
Reputation: 8060
It's going to be a long haul for Florida to dig out. The industry refers to the "sand states" (FL, AZ, NV, CA) and Michigan as the very troubled states.

It's quite the dilemma: buy now and have an asset depreciate due to surrounding values, or, purchase of a lifetime at a song. I know what I would do if I were buying (I would try it). I also know what I would do if I were lending my own money (I wouldn't).
Reply With Quote Quick reply to this message
 
Old 04-27-2010, 09:25 AM
 
11,612 posts, read 19,676,428 times
Reputation: 12043
Quote:
Originally Posted by SmartMoney View Post
It's going to be a long haul for Florida to dig out. The industry refers to the "sand states" (FL, AZ, NV, CA) and Michigan as the very troubled states.

It's quite the dilemma: buy now and have an asset depreciate due to surrounding values, or, purchase of a lifetime at a song. I know what I would do if I were buying (I would try it). I also know what I would do if I were lending my own money (I wouldn't).
What I am seeing in my little neck of the woods (West Broward) is that prices are stabilizing in the middle market. Homes do sell if they are not short sales even in the upper price ranges. Part of the reason that you see huge listed inventories is that the short sales stay on the market a really really long time and there are a lot of short sales out there.

It seems that higher end properties took much more of a price hit than the middle market so for move up buyers like myself are seeing great bargains in homes that we previously could not afford.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top