Looking for 80% NOO 5/1 ARM interest only - Posted by Michael

Posted by Mike S. on October 13, 2005 at 14:51:13:


As someone who is in the mortgage business and is a bit seasoned, Im going to offer you a little insight that I believe pertains to your scenario.

Theres a few reasons why you may be hitting a wall so to speak. Chances are whoever you were working with, quoted you at a rate that may have been available at the time but never locked in the loan and lost the rate {maybe they just werent quick enough or didnt have all the necessary documentation from you to supply to the lender to lock the rate}

The reason why you’re not getting much resposnse or good customer service is simple, based on the market right now your almost asking a mortgage broker to do your loan for free.

Rates have gone up- thats a fact- and what your asking for is EXTRMEMELY nichely in a lenders eyes, so you’re not going to get A paper cookie cutter pricing.

Here’s the issues with your loan:

No pre-pay {which means the broker gets no money from the bank and has to be paid by you or else they’re doing the loan for free}

Less than 12 months seasoning-which means many A paper lenders may not like the deal and you may have to find an Alt-A/subprime lender

You say no ‘BS fees’ and yes certain broker fees are superfluous- but points/ origination is not. Thats how we earn a living- so whether it comes out of the front end- ie your equity, or the back end/higher rate/pre-pay penalty- no points up front, it has to come from somewhere otherwise its charity work.

I invest myself- and I use an outside broker for my deals and he charges me 2 points per deal [small 100k deals like yours which I feel is fair- due to the amount of work and difficulty of the loan]

So, chances are you can get that rate if you’re willing to pay points up front- but if you think someone, anyone is going to do your loan for free. Its not going to happen.

I priced this loan out just to show you online with the 2nd largest lender ion the country and the bst I found at par {no-pre-pay-no rebate was 6.5% currently}on a 5/1 I/O

If you want someone who returns calls, but is honest and tells it like it is, I can help you- feel free to email me, best of luck.

Looking for 80% NOO 5/1 ARM interest only - Posted by Michael

Posted by Michael on October 13, 2005 at 14:20:56:

Okay, I have been having the hardest time trying to close a loan with these terms. Had a good term and loan in process but they have become so unresponsive they do not deserve my business. Here are the numbers:
Credit Score - 750
Appraised Value - $147,000 as of 8-2-05(rehab completed)
Seasoning - 8 months
Loan amount desired - $117,600, 6% or less. No prepayment penalty, no BS fees.
Rent received - $1,200 (one year lease to May 31, 2006)
Present short term loan amount - $98,000
Location - Memphis, TN

If you do not keep your clients updated or do not return phone calls please do not respond to this post. If what I want is not available just let me know upfront instead of bs-ing. Also, if you can help it please do not “one more thing” me to death.

I cannot believe that what I am asking for is that difficult. But man, I have been shark bit when it comes to some decent customer service. I hope I am the exception rather than the rule.