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Need home loan expert

Discussion in 'Other Off Topic Forum' started by craiglieberman, Aug 26, 2005.

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  1. craiglieberman

    craiglieberman Karting

    Feb 16, 2005
    84
    Bangkok
    Full Name:
    craig lieberman
    #1 craiglieberman, Aug 26, 2005
    I need to cashout $70K (last payment to ex wife).
    My house appraised at $850,000
    Current loan is $642,000 +$18,000 pre pay penalty.
    Current payment is $3323


    I’ve been offered the following:
    10 year ARM at 5.59%
    1st 10 years, interest only, payments start at $2187, then work up to $2800.
    To get the $70K, they want me to do a Heloc for that amount, 10 year ARM at 9.25%, payment is $520 month.

    Lender (broker) wants to charge 1 point.

    What I REALLY want is to lock a fixed rate NOW for after the ARM period, say at 5 or 10 years…that way, I know today that I’ll be able to afford my house later.

    Getting a low(er) payment for the next 3-5 years would be optimum.

    FICO was decent (right around 700) BUT, lender did not bother to adjust to show the removal of many debts I’ve paid off in the last 90 days.

    Any help would be appreciated.

    You can email me at [email protected]
     
  2. Zigno

    Zigno Karting

    Jul 29, 2003
    194
    Central California coast
    #2 Zigno, Aug 26, 2005
    Craig, is the property in Thailand? If it is in the U.S., you should be able to get a HELOC (home equity line of credit) for around 6.5% to 7% range with your scores and ltv (loan to value ratio). Does your first mortgage have negative amortization? You won't see a lower payment on a fixed rate....jumbo to $1million is 6 to 6.25% range on a 30 yr. fixed. To get a serious reduction in payment there is a loan product called a Pay Option ARM where you have the option of paying no principal and less than the required interest to amortize the loan (negative amortization/deferred interest), interest only, 30 yr amort. or 15 yr. amort. In the U.S. we seem to have a recession every 5 to 7 years or so. During a recession rates come down and everyone refinances their mortgages to secure the new low rates. I've placed 30 yr. fixed loans during this last recession under 5%. What I'm saying is there is always an opportunity in the future to refi. to lower fixed rates if you have an ARM.

    Maybe you should keep your first mortgage especially with the pre-pay penalty, go for a better priced 2nd (HELOC), and refi them both into a new first mortgage down the road. However, what is best for you can't be determined without looking at many more factors than what we have covered in these brief messages.

    20 years experience in mortgage lending. Cheers.
     
  3. craiglieberman

    craiglieberman Karting

    Feb 16, 2005
    84
    Bangkok
    Full Name:
    craig lieberman
    #3 craiglieberman, Aug 26, 2005
    yes, we're in California. The Bangkok reference in my details is a joke between me and my lady.

    No, there is no negative amortization on the existing loan.

    Would love to talk to you more, especially if you're in the business. Will you kindly provide me your email addy?
     
  4. LetsJet

    LetsJet F1 Veteran
    Owner

    May 24, 2004
    9,334
    DC/LA/Paris/Haleiwa
    Full Name:
    Mr.
    #4 LetsJet, Aug 26, 2005
    Good advice, except he didn't say what terms he has on this note. 30yr. fixed, ARM?

    Since when does anyone get a mortgage w/ prepayment penalties? Is this an assumable note?
     

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