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mortages

Old 01-29-2007, 12:32 PM
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Default mortages

Anyone here refer me to a home mortage company or broker?
Preferably one that won't,
bait and switch,
tell you theres no closing costs, and then try to get money from you for...um, closing costs,
none of the points game,
competitive rates,
fixed rate,
no BS,

Thanks in advance...
Hansoni
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Old 01-29-2007, 12:33 PM
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Where are you located?
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Old 01-29-2007, 12:56 PM
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I used Bank of America, (August 2006) totally done over the Internet, without an hitch
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Old 01-29-2007, 01:07 PM
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I'm in Maine.
I've been jerked around now by MOST of the big boys, what a joke...
My credit score is a 735, own a nice amount of real estate, couple houses, own most of it outright.
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Old 01-29-2007, 01:16 PM
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I run a branch at a direct lender. If you want contact me and if everything I tell you doesn't happen you can post your honest opinion here. I will tell you the truth and not bait and switch. I don't get every deal because no matter what I tell you someone will tell you lower and get the loan and then be where I am at at closing or higher.

Robert Horn
800-893-5882 ext 102
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Old 01-29-2007, 02:04 PM
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Hansoi - left you a PM. Give me a shout sometime. Yah what Wellcraft said. Haha!
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Old 01-29-2007, 02:57 PM
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Default Re: mortages

I am sure that those that are in the business can clarify but the broker has to be paid some how. Wether it is closing cost, higher interest rate or something else the broker does not do this for free.
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Old 01-29-2007, 03:20 PM
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Brokers can make their money two ways. #1 Fees to borrower - e.g. points, admin fees etc etc. Or #2 as a "finders fee" from the Bank. The higher the rate, the higher the percentage of the loan the bank grants to the "finder." So for a larger loan, I can charge a lower rate and still make the same money.

In most cases - you end up splitting the diff. Some $$ from the borrower, some from the lender.

Personally, I like to make my $$ from the bank but over time, a lower rate (read borrower paid fees) equals greater savings. OVER TIME.

Key words... OVER TIME! Please do NOT extrapolate your calculations out over 30 years. Some brokers love to do that because the numbers are huge and impressive. HOWEVER, The odds of you holding that loan or house for 30 years are astronomically low. 10 years is a more realistic timetable to use when projecting cost / benefit on your mortgage on a property you plan on KEEPING. If your timetable is shorter than that - there are various shorter term ARMS that might make more sense.

Finally - to the OP... If you own some properties outright or have a LOT of equity in your PRIMARY residence or second home, consider pulling that $$ out to finance investment properties. $$ borowed against your primary is cheaper than investment property money. So from a pure math perspective - sleepless nights aside for the moment - primary res loan is better than INV prop.

That being said - if the #s work for you on INV prop rates and you sleep better, collateralize the loan with the inv prop and pay the higher rate.

Points (There are 2 kinds. Do you know the difference?) are an ok option. You break even in about 5-6 years. I am generally not a huge points fan. I have too many clients I wrote 3 year fixed rates for at 5.5% in 2003 calling me back looking for more money or looking to buy a bigger house. < 5 years so they would lose $ on points they may have paid.

Any more "inside baseball" questions? PM me. Happy to chat.
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Old 01-29-2007, 03:23 PM
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" wrote 3 year fixed rates for at 5.5% in 2003 calling me back looking for more money or looking to buy a bigger house."

Whoops. I mean 30 year fixed in 2003. THIRTY year not three.
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Old 01-29-2007, 03:36 PM
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Hansoni,

I live in Maine and use Union Trust Company. This is my second home I have purchased through them and I have been extremely pleased. May not work for you depending on what part of the state you live in as they are based in Ellsworth and service the mid-coast area.
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Old 01-30-2007, 10:19 PM
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Hansoni-

I am in Portland and checked around all over, the best deal going was through TD Banknorth. I got their best rate going. This was 11 months ago.

I checked all around and Bank Of America was the worst, along with Quicken and Capital One- I think the later of the 2 mentioned are more for people of high risk status not for one of good credit such as you or I.

Give TD Banknorth a shout, they were great.
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Old 01-30-2007, 10:21 PM
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By the way I also called around to almost every broker I could find in the area, none of them gave me any real help.
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Old 01-31-2007, 04:58 AM
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Johnshan-
Thanks, i will give them a try.
Quicken baited me all the way to the table with a great deal, and then changed the agreement at the last minute, right before signing.
Was going to be a "no closing cost" loan, then they said I had to pay $5k in closing costs.
I could have reached through the phone and choked the guy. Told him and his supervisor to go f$@#% himself.

My experience with brokers is the same, higher rates, higher closing, just a middleman, cashing in where they can.

I should take a second to thank all the replied to this thread with pm's, obviously bankers or brokers, most of which gave me some good info, and education on how it works.

hansoni
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Old 01-31-2007, 01:42 PM
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knowledge does help, but as a banker we can only do what we can and we are in teh business to make a living. There is no free lunch in life. Certain things are required to do a loan and they have costs and no business pays for those costs the client does. The only difference is some banks or brokers try to get higher costs to make extra money and others just lie about it..
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Old 01-31-2007, 06:04 PM
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I did not pay a cent when I went through banknorth, no points, and the rate was the best I could find anywhere! so there ya have it.
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Old 01-31-2007, 10:16 PM
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try this - www.compareinterestrates.com
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Old 02-01-2007, 09:28 AM
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johnsahn then either they charged you a higher rate to pay off the closing costs or you just reupped your loan with them. There is title insurance and appraisal fees and town recording fees. You think the bank paid those for you??
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Old 02-01-2007, 10:13 AM
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Hey fees are fees and vary from state to state. NH and FL for example have very high fees compared to other states.

A "No Cost" loan comes with a higher rate so that the very real, very hard, very unavoidable costs can be covered by the lender rather than the borrower.

As a professional - I USUALLY recommend my clients roll the fees into the loan and take the lower NO POINTS interest rate as opposed to the higher "no costs" rate. I am generally not a big fan of points. Rates are currently low enough without them. The break even on points is about 5 years. 1 point or 1% of the loan typically results in a .25 reduction in rate. However, if you are FINANCING the point(s) by rolling into the loan -ergo higher loan - the net monthly savings are diminished and break even is farther out.

As for shopping rates. Bankrate.com etc and the like a big advertising scam. I can call them right now and tell them I am offering 30 year fixed for 3% and they will post it.

Here are two better links for a more accurate idea of where interest rates are nationally. Go right to the source. Freddie Mac home.

Freddie Current is 6.14% with .5 points. (.5 points is worth a bout a .125 rate reduction.)
http://www.freddiemac.com/pmms/pmms30.htm

Here is another good "accurate" rate site. Mortgage-X. (Also good for seeing your index if you have an adjustable rate)
6.25% with zero points.

Other good sources of info are the various articles that seem to come out almost daily in CNNMoney and USA today.

For example - Jan 25th CNN article
http://money.cnn.com/2007/01/25/real...ion=2007012511

6.25%.

So question is - if you are quoted way above or below the curve here - what does that mean? Bankrate for example has its avg 30 listed at 5.9%. So what gives? Primarily they are full of fish feces.

Point is - don't eat the shiny jig. At least sniff around and inspect carefully before swallowing the live bait.
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Old 02-01-2007, 10:45 AM
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yeah love the guys in the paper at 5.25% 30 yr fixed it is just like teh car ads where you get that 40k truck for 20k... They just want you to call or stop in..
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Old 02-02-2007, 11:13 AM
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Todays rates...

http://money.cnn.com/2007/02/01/real...ion=2007020112

6.34% UP almost a 10th of a percent (.1) which is actually quite a good sized move.

Considering making a move? I am putting my money where my mouth is. I have all my clients in process locked in.

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