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Made the following assumptions to run some scenarios for you:
Gross mo income,95% LTV,single family detached home,location Charlotte, NC, credit rating >700, debts $500/mo, no paydown points payments.
Results
Conventional Fixed:
-15 yr fixed-$3,258.21/mo, I=6.25%
-30 yr fixed-$2,258.21/mo, I=6.57%
Cash Flow ARM:
-6 options to choose from.
-Monthly pymt ranging from $1,426.85-$1,708.34
I=2.95% to 4.5%
Interest Only ARM:
-3 options
-mo pymt ranging from $2,533.33-$2,770.85
-I=8.0% to 8.375%
Note: All interest pymt on mortgages are tax deductable. Take advantage of taxes.
SMART Option available:
-Combines all options. You decide what to pay each mo and be in control of your cash flow.
Bottomline: Your goal should be to "Harness the Power of Your Mortgage"
That's a pretty high rate for a 30yr fixed and 15yr fixed...
Quote:
Originally Posted by dmn5577
Made the following assumptions to run some scenarios for you:
Gross mo income,95% LTV,single family detached home,location Charlotte, NC, credit rating >700, debts $500/mo, no paydown points payments.
Results
Conventional Fixed:
-15 yr fixed-$3,258.21/mo, I=6.25%
-30 yr fixed-$2,258.21/mo, I=6.57%
Cash Flow ARM:
-6 options to choose from.
-Monthly pymt ranging from $1,426.85-$1,708.34
I=2.95% to 4.5%
Interest Only ARM:
-3 options
-mo pymt ranging from $2,533.33-$2,770.85
-I=8.0% to 8.375%
Note: All interest pymt on mortgages are tax deductable. Take advantage of taxes.
SMART Option available:
-Combines all options. You decide what to pay each mo and be in control of your cash flow.
Bottomline: Your goal should be to "Harness the Power of Your Mortgage"
BOA is currently offering me 6.375 with no points and no closing cost or pmi for a 300k home with 10% down. I guess it depend on the amount of the loan and down payment.
Any fine print? If no, I have been research for the exact plan. Would you be so kind to refer me to whom has quoted these concepts? Is so, please email me! Thanks
NMB !!! I moved from therealmost 2yrs ag....most of my friends live in NMB. I used to work in the BofA on WestDixie....and the one in Bal Harbour.
anywayz he is speaking of the BofA program. No Fee Program
I believe you need to go Full Doc, and have at least a pretty good credit score. When i worked there..we only dealt with 680+ credit scores.
I'm not sure if things are the same.
Quote:
Originally Posted by Iwakuni
Any fine print? If no, I have been research for the exact plan. Would you be so kind to refer me to whom has quoted these concepts? Is so, please email me! Thanks
Made the following assumptions to run some scenarios for you:
Gross mo income,95% LTV,single family detached home,location Charlotte, NC, credit rating >700, debts $500/mo, no paydown points payments.
Results
Conventional Fixed:
-15 yr fixed-$3,258.21/mo, I=6.25%
-30 yr fixed-$2,258.21/mo, I=6.57%
Cash Flow ARM:
-6 options to choose from.
-Monthly pymt ranging from $1,426.85-$1,708.34
I=2.95% to 4.5%
Interest Only ARM:
-3 options
-mo pymt ranging from $2,533.33-$2,770.85
-I=8.0% to 8.375%
Note: All interest pymt on mortgages are tax deductable. Take advantage of taxes.
SMART Option available:
-Combines all options. You decide what to pay each mo and be in control of your cash flow.
Bottomline: Your goal should be to "Harness the Power of Your Mortgage"
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NO...THIS IS A HORRIBLE ANALYSIS! Why would you recommend a 1st time hombuyer get into some kind of bunk ARM??
Option ARMs should be outlawed as they are abused by too many brokers. These products make sense for about 1% of all borrowers, yet many brokers like to tout them for everyone.
Today you could get a fixed rate of around 6.125% + 1.0 point with mortgage insurance or 6.375% + 1.0 point with no mortgage insurance (lender paid). It sounds like you got a pretty good quote from BoA as pricing has improved since your original post.
Option Arms, subprime mortgages(rates over 1% of the regular par rate), anything over 100 LTV, etc...they should all be taken off the market.
I'm glad that NC is banning stated income loans....starting Jan 1st.
Quote:
Originally Posted by TimtheGuy
NO...THIS IS A HORRIBLE ANALYSIS! Why would you recommend a 1st time hombuyer get into some kind of bunk ARM??
Option ARMs should be outlawed as they are abused by too many brokers. These products make sense for about 1% of all borrowers, yet many brokers like to tout them for everyone.
Today you could get a fixed rate of around 6.125% + 1.0 point with mortgage insurance or 6.375% + 1.0 point with no mortgage insurance (lender paid). It sounds like you got a pretty good quote from BoA as pricing has improved since your original post.
NO...THIS IS A HORRIBLE ANALYSIS! Why would you recommend a 1st time hombuyer get into some kind of bunk ARM??
Option ARMs should be outlawed as they are abused by too many brokers. These products make sense for about 1% of all borrowers, yet many brokers like to tout them for everyone.
Today you could get a fixed rate of around 6.125% + 1.0 point with mortgage insurance or 6.375% + 1.0 point with no mortgage insurance (lender paid). It sounds like you got a pretty good quote from BoA as pricing has improved since your original post.
This is a clean analysis with several assumptions. If i had more info i'd have even provided 10-20 options to consider. Information is power. It does not mean first home buyers are not interested in cash flow. I first h/buyer is anyone who has not bought a home in the last 2-3 years.The fact is that everyone should know how to make mortgage work for you. Mortgage is a good debt and you should not be in hurry to pay it off. People need to know how to harness the power of the mortgage, just the same way we dam a river and harness it's power to work for us. Use leverage of the other peoples' money to create new money. Have you heard about SMART option and how it can make h/buyers control cashflow?
the problem isnt that YOU dont understand it...the problem is that average homeowner DOESNT understand it...even AFTER it is explained with presentations or on paper.
There's a lot of loan officers who wont even buy the products they sell.
Countrywide has about 30-40 of these ARMs..and they will come due very soon. This is going to be just like Enron...spending money they dont have.
Most Americans spend on impulse....they forget about a mortgage..and that you need to pay it down.
Harnessing what? You cant tell an American to pay less on the mortgage..and invest it in the market. Now they have to take 2 classes...one to understand the product...two to learn how to pick the right mutual funds/stocks
Quote:
Originally Posted by dmn5577
This is a clean analysis with several assumptions. If i had more info i'd have even provided 10-20 options to consider. Information is power. It does not mean first home buyers are not interested in cash flow. I first h/buyer is anyone who has not bought a home in the last 2-3 years.The fact is that everyone should know how to make mortgage work for you. Mortgage is a good debt and you should not be in hurry to pay it off. People need to know how to harness the power of the mortgage, just the same way we dam a river and harness it's power to work for us. Use leverage of the other peoples' money to create new money. Have you heard about SMART option and how it can make h/buyers control cashflow?
This is a clean analysis with several assumptions. If i had more info i'd have even provided 10-20 options to consider. Information is power. It does not mean first home buyers are not interested in cash flow. I first h/buyer is anyone who has not bought a home in the last 2-3 years.The fact is that everyone should know how to make mortgage work for you. Mortgage is a good debt and you should not be in hurry to pay it off. People need to know how to harness the power of the mortgage, just the same way we dam a river and harness it's power to work for us. Use leverage of the other peoples' money to create new money. Have you heard about SMART option and how it can make h/buyers control cashflow?
Yea, or it is a person THAT HAS NEVER OWNED A HOME! I did not say your analysis was wrong, but it is RETARDED!
Cash flow blah blah blah blah!
OPTION ARMs SHOULD BE OUTLAWED because of the pushers like you.
Please do your h/work.Is there anything better than stocks and mutual funds? You do not want to depend on fluctuating markets, do you?Cash flow and tax advantage is the key. Educate your clients and friends on legal programs out there to save money and live a better lifestyle. Most Americans lose at least 30% of income in a way of taxes.Mortgage is one of the best to reduce your taxes.This is the education most people need. Americans are living above their means yet we have the strongest economy in the world. Something is not right.
Note that i did not recommend anything. Even when Sir Isaac newton discovered the laws of gravity, they thought he was crazy.The moment you think you know all,you stop learning.
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Interested!
