- quote -

Honesty and trustworthiness are character traits that are not obscured
by professional endeavors; the absense of such can be found in every
profession (even yours).

In this day where boys are molested by priests and girls are molested
by Lacrosse coaches, I don't think trust is axiomatic to any
profession.

Regards,

Scott Miller
National Commercial and Residential Lender/Broker
1.877.716.6495
EZMortgageLoanz[at]aol.com

www.RealEstate-IQ.com
www.EZMortgageLoanz.com

Mechanics of Money Financial BBS wrote:
- quote -

Gary,

Your statements are not actually accurate. The high rate/high fee
loans are called Section 32 loans. The fee amounts are dependent on
several things; 1st or 2nd lien, etc.

For more info, click on
http://www.ftc.gov/bcp/conline/pubs/homes/32mortgs.htm.

Regards,

Scott Miller
National Commercial and Residential Lender/Broker
1.877.716.6495
EZMortgageLoanz[at]aol.com

www.RealEstate-IQ.com
www.EZMortgageLoanz.com

Mechanics of Money Financial BBS wrote:
- quote -

ramblings from my experience.

When I got my 30-year fixed, the mortgage broker talked to me about
points. He calculated how many years it would take for buying a point
to pay for itself, and advised against them based on the current price.
Sorry, I forgot what his criteria was (12 years maybe?).

Some people recommend getting a 30-year fixed and making extra payments
to finish in 15 years instead of simply a 15-year fixed because the
extra amount is not required, which helps in case of job loss or
emergency. I asked my guy what the difference would be and he said
$120 dollars a month more on the accelerated 30-year. Since that was
only around $80 after taxes, I went for it.

Don wrote:
- quote -

Don, thanks a lot! This is a very useful site.
Have you or someone you know used any of the UMBs listed here? (The
mortgage brokers).
I know that it's almost axiomatic that a professor will be more
trustworthy than a lender, but I do want to make sure that this is a
good site before I use one of the brokers listed there.
Sashi

Sashi,

You should also look out for what fees the company is going to earn.
Either they will charge a larger fee (in excess of 2%), which in
essence purchases points (which may or may not be fully disclosed to
you) to reduce the rate. Many states have enacted predatory lending
statutes to address this issue (some say that any fee over 2% is deemed
to be predatory). You should really consider not going the ARM avenue
given that interest rates are still at historic lows. If possible try
to lock in a low fixed rate today.

Hope that helps.


Gary Brolis
http://www.MechanicsofMoney.com
http://www.MechanicsofMoney.com/blog.php

Sashi wrote:

- quote -

RESPONSE: I assume what you are saying that is you are compariing two
lenders offering a 5/1 ARM and one is offering 5.5%/Zero points and the
other is offering 6.625%. Is that correct? Are the interest rates you
stated the "note rate" or the APR? Tell me the particulars (interest
rate, APR, etc.), and I can tell you more. Measuring loans based upon
interest rate and APR alone (without knowing the closing costs) will
not serve you well in finding the best loan.

- quote -

Take the following actions to ensure that you get the greatest bang for
your buck:

1. Comparison shop all your selected lenders the same day. Interest
rates change daily due to market volatility. Interest rates quoted
today most often don't apply tomorrow. Shop for rates on the same
day to avoid interest rate fluctuation.
2. Provide truthful financial information to get accurate loan quotes.
All rate quotes advertised on the internet, in the newspaper, etc., are
based upon ideal situations. Income, property type, credit history,
current debt load are just a few of the many considerations a lender
must review in order to provide you with a loan tailored to your
financial situation.
3. Disregard all verbal rate quotes, rates on the internet or in the
newspaper; request all lenders to document their offer in the form GFE
(Good Faith Estimate).
4. Compare similar loan offers from different lenders by determining
the total cost of borrowing (Request that the lender document a
complete list of fees to be applied, applicable interest rate, discount
fees and APRs in order to do a "apples to apples" comparison).

Once you know the interest rate, APR and all the closing costs, you can
then determine what lender has offered you the best deal by setting a
"shopping rate" and asking for the total lending costs (excluding
settlement, escrow and per diem costs). Say to all the lenders you are
corresponding with, "If I want a 5/1 fully amortized ARM for a purchase
transaction with a 10% down payment at an interest rate of 5.50%, what
are your total lending costs to offer me this rate"? The lender with
the lowest interest rate and lower lending costs offers the lowest cost
of borrowing.

If you have any further questions (or would like to include me in your
bidding; yesterday I was offering a 5/1 ARM for purchase loan at 5.125%
with 2 discount points; sorry for the shamless plug).

Regards,

Scott Miller
Commercial and Residential Lender/Broker
1.877.716.6495
EZMortgageLoanz[at]aol.com

www.RealEstate-IQ.com
www.EZMortgageLoanz.com

"Sashi" <smalladi[at]gmail.com> wrote
- quote -

Prepare carefully for the Engineering Economics portion of
the first (EIT) part of the Professional Engineer's exam,
and you will be much more financially savvy. This is serious
advice. Any engineer from an accredited college program has
the math skills for financial planning.

- quote -

With the 5/1 ARM, what your interest rate will be after the
initial five years is uncertain. Uncertainty has a price tag
set at least somewhat rationally by the market.

If you want certainty, you must pay more, hence fixed
interest rates for terms of 15-30 years are higher.

Keep studying this. Do not agree to anything until you've
played out various scenarios and completely understand the
terms of whatever loan you take. Remember the only stupid
question is an unasked one (assuming you do a little
homework--like googling--from time to time to try to answer
your own questions first).

"Sashi" <smalladi[at]gmail.com> wrote in message
news:1142877357.506324.86890[at]g10g2000cwb.googlegroups.com...

- quote -

Here is an excellent place to educate yourself about mortgages and things to
watch out for:
http://www.mtgprofessor.com/

In article <1142877357.506324.86890[at]g10g2000cwb.googlegroups.com> ,
"Sashi" <smalladi[at]gmail.com> wrote:

- quote -

The "going rate" is a 15 or 30 year rate. They have to build
in the chance that interest could go higher in the next 15
or 30 years. The 5/1 is a short term rate. We know that rates
can only move so fast, and the rate is good only for a short time,
so the downside risk to the lender is low. In addition, these
plans normally start with a lower teaser rate, then they crank
them up in the out years. You often end of paying far more in
the long run. They are popular, however, because people can buy
a home that they cannot really afford.

- quote -

Be careful whenever their mouth moves. That is your cue
that they are telling a lie. Look over the paperwork, and
have someone who knows what they are doing look it over, too.
In the long run, the only thing that counts is what is in
writing.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

All, I'm a first time home buyer who has found a property. I'll sign
the contract forms today.
I'm not financially savvy (being an engineer) and am looking for a
mortgage. I'm planning on putting a 10% down.
This is in central New Jersey (if that matters).
I'm totally confused by the different rates offered by lots of
companies out there.
How is is possible for them to quote a 5.5% rate on a 5/1 ARM when the
going market rate is 6.625%? I'm comparing 5/1 ARMs with 10% down and
zero points.
I'm being clear with them saying that I don't want ANY of the closing
costs bundled into the mortgage as I'm ready to pay all the closing
costs out of pocket.
What should I watch out for?
If this is not the right forum for such a question, my apologies.
TIA,
Sashi