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.
I am - The house is worth 470 to 480. however I want to get a home in the 550 range. So you are saying to do that I can get a 95% loan at 4.625? or I cant here in ohio? I will be able to put down around 60K which is around 10 percent of 550.
Can you also tell me what my taxes would be in Cuyahoga county in Ohio and in the city of Bay Village? trying to do a comparison of what I pay now and what I will pay with the above
I just wish they would up that limit. That stops me from finding another home as coming up with more cash or have a HELOC is not financially feasible. However 5 percent down on 600K is feasible for me and I would really like to move up to another home..
This is exactly why they shouldn't raise the conforming limit. You only have 5% down and you want a $600k loan in OH? That is a risk that Fannie & Freddie should not be footing. A loan of $417k is too high for half the states if you ask me.
I am - The house is worth 470 to 480. however I want to get a home in the 550 range. So you are saying to do that I can get a 95% loan at 4.625? or I cant here in ohio? I will be able to put down around 60K which is around 10 percent of 550.
Can you also tell me what my taxes would be in Cuyahoga county in Ohio and in the city of Bay Village? trying to do a comparison of what I pay now and what I will pay with the above
If you can come up with 10% down, that's a complete game-changer.
What you can do then is this - a 1st trust of 417K, a second of 78K and put 55K down. (first trust = 3.875% - 4.0% no points (score driven), (apr 3.888 - 4.08) and the 78K would be a HELOC **
You can also opt for an ARM which would allow for just 10% down. (10/1 is 3.75% - 3.665% APR)
I think you will see your shopping around for a loan much easier with 10% down. Just remember there are many variables out there. Credit score being the most volatile of the bunch. If you opt for a piggy-back, a minimum score in the 700s would be required. If you go with PMI as a 90%, that PMI can get quite pricey ($292 if your score's not strong). You're getting there......just keep asking the questions and you'll soon have a plan. (What is your time frame? Is this new construction?)
I'm not going to go down the road and argue for or against low down payment loans. Everyone is different, I've seen many very well qualified candidates that choose not to put their liquid assets into real estate. The last portfolio lender I worked with found that it was not down payment that was the biggest pitfall to foreclosures, but credit scores. Our 95% LTV and CLTV loans out-performed, hands down, on all loans with less than a 700 score.
**The fine print - (and this is why most of us won't post specifics........even though you don't know me, even with my name no where to be found, we still have requirements we must meet by federal law, especially if posting on a public forum - I have a couple minutes and can type it out......). For HELOC APR 1.990% first 12 months, then rate will be adjusted quarterly based on the value of Prime Rate as published in the Wall Street Journal, plus the margin established on your loan, if any. The current value of the Prime Rate is 3.25%. The APR is subject to a maximum increase of 2% per year based on the value of the Prime Rate. The term is a 10 year draw and a 20 year payback. No annual fee. Payment is always principal and interest on a 20 year am, even during draw period.
How timely...."Mortgage Lenders Set to Relax Standards."......
Haven't we seen this before...... when the feds "relaxed the mortgage standards" removing the Glass Steagle Act, that was the precursor of the great recession of the 2007. My view this is tickering around with the Frank Dodd Reform and Consumer Protect act so banks can make more money.
It is totally SICK on the amount of money banks makes off home owners. Widely Speaking" when banks get into trouble, have the government to bail them out. When the individual home gets into trouble, end up in foreclosure....
We can do a jumbo to 80% which would be $440K 1st and then a 10% 2nd for a combined ltv of 90%... That is the best I have to offer right now. But you are right they are loosening up, but not increasing the max conforming loan limit. It remains the same for 2015 @ 417K unfortunately.
Haven't we seen this before...... when the feds "relaxed the mortgage standards" removing the Glass Steagle Act, that was the precursor of the great recession of the 2007. My view this is tickering around with the Frank Dodd Reform and Consumer Protect act so banks can make more money.
It is totally SICK on the amount of money banks makes off home owners. Widely Speaking" when banks get into trouble, have the government to bail them out. When the individual home gets into trouble, end up in foreclosure....
Not enough popcorn for this ride....lol!!!
My $00.02
We saw the train, we knew it was going to wreck, begged the conductor to slow down. And then, when it wrecked, we had the conductor rewrite all the laws of the track - even though the authors were Friends of Angelo, one of the contractors that laid down the tracks. So, here we are again......and Maxine is the senior Dem on the House Financial Services Committee and she wants lending standards relaxed.
Our memories are short....I wish I could have found these videos without their political backers, but the historical facts don't change. We can place blame at the banks' doors, but only after we take responsibility ourselves, we put these clowns in charge and left them running the zoo without oversight.
What I don't understand is I can afford a bigger mortgage easily if I finance 550k and 95% even at current interest rates. I have an excellent credit score so I don't understand? is it just because if home values go down then banks want to share the loss more with the homeowner by having more than 5% lost? just don't get it.
...We saw the train, we knew it was going to wreck, begged the conductor to slow down. And then, when it wrecked, we had the conductor rewrite all the laws of the track - even though the authors were Friends of Angelo, one of the contractors that laid down the tracks. So, here we are again......and Maxine is the senior Dem on the House Financial Services Committee and she wants lending standards relaxed.
Our memories are short....I wish I could have found these videos without their political backers, but the historical facts don't change. We can place blame at the banks' doors, but only after we take responsibility ourselves, we put these clowns in charge and left them running the zoo without oversight.
So, here we are again ...Our memories are short.....
Our memories are short? When young with less experience, focused on whats in front of them. As we get older with more experience, the less tunnel vision we have!!!... This only proves "Our memories are short", it should be restated "We don't learn for past mistakes"....
Quote:
Originally Posted by blakeas
What I don't understand is I can afford a bigger mortgage easily if I finance 550k and 95% even at current interest rates. I have an excellent credit score so I don't understand? is it just because if home values go down then banks want to share the loss more with the homeowner by having more than 5% lost? just don't get it.
Blake
My $00.02 on why banks are always looking for ways to finance/refinance new loans. This has nothing with the value of the home going up/down. The value is determined by sale prices/foreclosures of homes around or in your neighborhood.
From a financial viewpoint - the first 3 to 5 years most mortgages little goes towards principle and more goes for interest. This is when banks are making profit. As more that gets applied towards principle, the less of profit banks earn. I hope this answers your question.
What Smart money and I were joking about above, is an example of removing (banking) regulations that had been around since the great depression of the early 30's. Creators claimed it would allow more home ownerships. It opened the flood gates for investing. This lead to profit and greed becoming the endeavor for everyone from the investor to the loan officer.
The first few years everything was going great. Good deals where everywhere, it was both a buyer & sellers market. There were loan origination's with reduced to zero down payments. I remember deals for 1st time home owners 100%-105% financing. People with credit scores in the 500's could qualify for loans.
The real reason for the early 2000 recession was due to no regulations to replace the Glass Steagle act. When mortgages turned into foreclosures and investments went bad, lead to a lot of finger pointing. Corruption was rampant from the top down to the bottom up.
One of the largest AIG - blamed the mortgage industry for their risky investments, blaming lenders to loan officers. If there were regulations, all the money they lost never would of never been invested. Contrarily non responsible home owners that were foreclosed upon, lead to a "Tsunami Wave" of toxic loans. Again if there were regulations, bad credit borrowers would of never qualified for the loans they got.
In 2010 the Frank Dodd act was passed, which went into effect January 2014. Between the time is was passed and went into effect, gave lenders four years to comply with the new guidelines and to change their old ways. Less than a year new policies have been in place and banks are crying.... lol!!!
Our memories are short .... looking to rewrite all the laws..... so here we are again < so so true!!!!
My $00.002
Last edited by Modification Specialist; 12-03-2014 at 05:54 PM..
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.
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.
... when the feds "relaxed the mortgage standards" removing the 
