Buying a foreclosure ,Real Estate advice needed.
12-09-2010 | 11:59 AM
#11
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From: Omaha/LOTO
None of my banks would ever eliminate my PMI on my past houses until the actual mortgage was paid down to 80% of the initial home purchase price. Most of the time, I would just refi with a new appraisal to eliminate it. At a .5% interest rate reduction and with the elimination of PMI, I would often save $150+ a month.
12-10-2010 | 05:28 PM
#12
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From: Toms River, NJ
If you got 4.125% this week then that 2% origination was ABSOLUTELY used to buy your rate down to that. As far as PMI if the house appraised for $500K and your buying it for $150k and only putting down the FHA minimum of 3.5% you will still have PMI for a minimum of 5 years. Now there are other variables here as well. Credit score, and other LLPA's (loan level price adjustments)
12-10-2010 | 05:30 PM
#13
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From: Toms River, NJ
SOrry , when I get in a hurry , I do so alot when posting. . I tend to ramble and not get my point across.
Lender called me on friday late and said rates hit 4.125 , do you want to lock. I said yes definately.
GOt my good faith estimate from realator a few days later and saw the origination fee, thought it was high so I googled average costs of origination fees for my area, and found they were generally 1%.
I called real estate agent and asked her , she said it wasnt that uncommon for lender to charge a little more when they get you a good rate.
My locked 30 year rate is 4.125 this is what rates hit for one day. I did not think I bought it down.
My origination fee is just under 2% one time fee. cost to loan me the money. And do all pertinent paperwork.
Fannie Mae properties have a deal going where they are paying 3.5% of total of closing cost.
On Fannie Maes listing site called Home Path , you can see where they are offering incentives like these , one other incentive they are offering is the no Mortgage insurance. Hence my question. about PMI rules.
I realize that if you put 20 percent down you do not have to pay these. BUt I have also been told somewhere along the way that if the home appraises at least 20 percent over asking , your equity takes care of the fees. But this is not true with FHA.
So my question on this matter is since Fannie Mae is offering the no PMI on their site , does it only include conventional type loans. It would normally list exclusions ,like doesnt apply to FHA loans. but I see no exclusions.
Lender called me on friday late and said rates hit 4.125 , do you want to lock. I said yes definately.
GOt my good faith estimate from realator a few days later and saw the origination fee, thought it was high so I googled average costs of origination fees for my area, and found they were generally 1%.
I called real estate agent and asked her , she said it wasnt that uncommon for lender to charge a little more when they get you a good rate.
My locked 30 year rate is 4.125 this is what rates hit for one day. I did not think I bought it down.
My origination fee is just under 2% one time fee. cost to loan me the money. And do all pertinent paperwork.
Fannie Mae properties have a deal going where they are paying 3.5% of total of closing cost.
On Fannie Maes listing site called Home Path , you can see where they are offering incentives like these , one other incentive they are offering is the no Mortgage insurance. Hence my question. about PMI rules.
I realize that if you put 20 percent down you do not have to pay these. BUt I have also been told somewhere along the way that if the home appraises at least 20 percent over asking , your equity takes care of the fees. But this is not true with FHA.
So my question on this matter is since Fannie Mae is offering the no PMI on their site , does it only include conventional type loans. It would normally list exclusions ,like doesnt apply to FHA loans. but I see no exclusions.
12-10-2010 | 05:33 PM
#14
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From: Toms River, NJ
2% origination is outrageous and so is 3.5% closing cost + appraisal. I don't know way to get around PMI unless you are putting 20% down or doing maybe a 10% down, 10% second mortgage and 80% primary mortgage.
My entire refi that I am doing is less than 2k total costs + prepaids for escrow.
My entire refi that I am doing is less than 2k total costs + prepaids for escrow.
12-10-2010 | 05:34 PM
#15
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From: Toms River, NJ
12-10-2010 | 05:35 PM
#16
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From: Toms River, NJ
In the end, the bad news was confirmed. Mortgage rates had a REAL BAD DAY. And it didn't get any better today. Loan pricing deteriorated further this morning as benchmark yields continued their seemingly relentless trek higher. The best par 30 year fixed mortgage rates are now in a tight range between 4.75% and 5.00%. There is a steep increase in borrowing costs below 4.75%.
Important Mortgage Rate Disclaimer: Loan originators will only be able to offer these rates on agency conforming loan amounts to borrowers who are have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the "perfect borrower" category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive. "No point" loan doesn't mean "no cost" loan. The best 30 year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recordation + escrows (things like upfront MIP (if required), property taxes, homeowners insurance, accrued interest)".
Important Mortgage Rate Disclaimer: Loan originators will only be able to offer these rates on agency conforming loan amounts to borrowers who are have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the "perfect borrower" category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive. "No point" loan doesn't mean "no cost" loan. The best 30 year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recordation + escrows (things like upfront MIP (if required), property taxes, homeowners insurance, accrued interest)".
12-10-2010 | 05:53 PM
#17
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From: Toms River, NJ
as far as closing costs, thats another misconception. my base closing costs are $895.00...the 3rd party fees have NOTHING to do with the lender. Atty, Title ins, appraisal, home inspection, survey, 1/4's worth of taxes plus a 2 month cushion, 1 year home owners insurance paid up front, plus a 2 month cushion...the cushion monies go into escrow. so over all if you got 4.125% and you had to pay a 2% origination fee ($2875.70) to get there and your only putting down a 3.5% down payment plus any closing costs...id say you have a great loan and to take it and run !! because that same loan to lock it right now would cost you a 3% origination and that would only get you 4.25% !! GET THE DEAL CLOSED ASAP !! your robbing the house and the money and do not look a gift horse in the mouth !! CONGRATS AND MERRY CHRISTMAS !!
12-11-2010 | 01:12 AM
#18
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From: Omaha/LOTO
I'm betting he got the 4.125 in early November. Thats when I got my 4.25% + 0 + 0 rate and they dropped to to 4.125 for a couple days after I locked.
Personally, I refuse to ever pay an actual % origination fee.
Personally, I refuse to ever pay an actual % origination fee.
12-11-2010 | 09:51 AM
#19
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From: On the way to a PR near you
Different states have different way that the mortgage broker gets paid. Ga/Fl are different even thought the Real Estate laws are almost identical.
12-11-2010 | 10:48 AM
#20
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From: Toms River, NJ
well if he got it in early november then hes in trouble because your standard rate lock is only good for 30 days...if the lock expires he can extend it 1 time which will cost him 1/4 point up front to do. every situation is different, sometimes it makes sense to pay points to but the rate down sometimes it doesnt. depends how large of a mortgage, and more importantly how long the home owner is planning on stayin in the property
