Mortgages

Xaribe · 03-03-2015, 07:01 PM

Just curious, do most buy out right? I have some concerns as home up here in the Northeast are not selling quickly. So thinking of a down payment, mortgage rest until my other home sells. Just concerned if there are any honest morgage companies in the area?

billethkid · 03-03-2015, 07:06 PM

Of course there are. Are you of the opinion the area is more made up of dis-honest mortgage companies?

You will get several recommendations but it would help to understand why you asked the question that way?

villagetinker · 03-03-2015, 07:18 PM

OK here is what we did, we took a look at the interest rates being offered, took a look at our current rate of return, and realized it was a no brainer to take a mortgage and invest the money from the sale of the house up north. having stated this, take a look at your situation, you can always take the mortgage now, and pay it off if it is your best interest. In our case, we were able to get a very favorable rate (citizens first mortgage), and it is in our best interest to keep the mortgage and use the money from the sale of the house to stay in the investments.

Hope this helps.

Xaribe · 03-03-2015, 07:33 PM

Not familiar with what people use in the area, up here most banks have sold loans to service companies.

Xaribe · 03-03-2015, 07:38 PM

Thank you, seems to be taking a very long time to sell in Northeast. Thinking maybe the spring willl be better. Nothing but snow as of this winter, near Boston/Providence.

jnieman · 03-03-2015, 07:41 PM

Quote:

Originally Posted by Xaribe

Just curious, do most buy out right? I have some concerns as home up here in the Northeast are not selling quickly. So thinking of a down payment, mortgage rest until my other home sells. Just concerned if there are any honest morgage companies in the area?

We have our mortgage through Quicken Loans. We were very pleased (a few years ago) of getting a VA loan with a rate of 3.75%. They offer many other types of loans as well and you can apply and do everything on line. They send a notary to your home for the closing.

pmbinnj · 03-03-2015, 08:11 PM

Mortgage interest is oftentimes the largest deduction one has on their federal taxes. If you're a savvy investor, or have a trusted/knowledgeable adviser, you can earn more than the interest you're paying. You can always pay the mortgage off early if necessary. The mortgage gives you options -- especially when rates are so low.

villagetinker · 03-03-2015, 08:42 PM

OP,
pmbinnj, stated the same thing I was saying in a better manner. Talk to your financial advisor.

Packer Fan · 03-03-2015, 10:11 PM

Quote:

Originally Posted by jnieman

We have our mortgage through Quicken Loans. We were very pleased (a few years ago) of getting a VA loan with a rate of 3.75%. They offer many other types of loans as well and you can apply and do everything on line. They send a notary to your home for the closing.

I will second Quicken loans. The villages will try to drive you to their own bank, Citizens First. I got the Good faith estimate and almost passed out - like $9000 in closing costs. Quicken loans was WAY less, like $2400 or so if I remember correctly. The Closing people at McLin and Burnsed are excellent and they will work with any mortgage company. Just my 2 cents worth.

JoMar · 03-03-2015, 10:17 PM

I believe most banks sell their mortgages when it's in their financial interest to do so. I also agree with the other posters, we took our mortgage with Wells Fargo for 30 years (I expect to be dead by that time) because I was making more on my investments then I would pay in interest and the sale of my PA home gave me cash flow to invest and furnish the house here. Getting too old to pay anything off and lose investment opportunities

TrudyM · 03-04-2015, 02:15 PM

Situations alter cases. If you have a loan on your current home then getting a loan on your new home may be tricky as they look at three things mostly.
1. Total payments a month as a % of income.
2. Total indebtedness to net worth.
3. Stability of income stream and liquidity.
Also Retirement accounts are not considered security as they can't touch them under a lot of state laws (don't know about Florida)

We have a huge loan on our current home so a mtg to purchase down here was totally out of the question. We discovered that our Brokerage firm had a thing called a Portfolio loan that had a low interest rate and that could be fixed or a variable rate option. It is a loan against the stock in your account but can not be taken out against a 401K rollover or IRA account only straight brokerage. The interest rate is half that of current margin so a much better deal than a margin loan and works like a home equity line of credit.

Just an option and good to know is out there so you don't have to sell stocks at the wrong timing if you need money in the short term.

kstew43 · 03-04-2015, 02:27 PM

try Lending Tree. we used them and they had the best rates available at the time from Discover.

Citizens rates we much higher and we didn't fall for the close on time ploy.

Put it out on the internet and see what you get.

Challenger · 03-04-2015, 02:42 PM

Quote:

Originally Posted by TrudyM

Situations alter cases. If you have a loan on your current home then getting a loan on your new home may be tricky as they look at three things mostly.
1. Total payments a month as a % of income.
2. Total indebtedness to net worth.
3. Stability of income stream and liquidity.
Also Retirement accounts are not considered security as they can't touch them under a lot of state laws (don't know about Florida)

We have a huge loan on our current home so a mtg to purchase down here was totally out of the question. We discovered that our Brokerage firm had a thing called a Portfolio loan that had a low interest rate and that could be fixed or a variable rate option. It is a loan against the stock in your account but can not be taken out against a 401K rollover or IRA account only straight brokerage. The interest rate is half that of current margin so a much better deal than a margin loan and works like a home equity line of credit.

Just an option and good to know is out there so you don't have to sell stocks at the wrong timing if you need money in the short term.

My guess is that if the value of the pledged stock falls past a defined percentage of the outstanding loan, the borrower will need to post additional security on pay down---- yes? no?

Chatbrat · 03-04-2015, 02:59 PM

Have never paid any interest in my life, never had a mortgage-interest keeps poor people poor and makes rich people richer. Have no pension--live off of interest & dividends.

bagboy · 03-04-2015, 03:06 PM

If you shop for a mortgage, look at 2 things. Interest rate and total closing costs (including any that are rolled into the loan). Mortgage companies fall under such federal scrutiny that if you choose a reputable lender, online or local, everything will be disclosed to you upfront...Read all facts and figures before acting.
I strongly urge you to shop for yourself, get numbers for yourself. At the time, we found Citizens Mtg to be competitive with most lenders contrary to what has been said in this thread. Today it might be different, I don't know. Do not be wary of brokers/lenders who sell all or a percentage of their loans. There are many reasons for them to do this, it's just in the course of doing business, it usually has nothing to do with individual borrowers.
If you have a financial advisor, by all means get their advice first. They should know what financing option will work best for you. Good Luck!!!

Mortgages

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