Are there special mortgage rates for over 800 FICO scores
saphire
17 years ago
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kudzu9
17 years agosaphire
17 years agoRelated Discussions
Do Mortgage Brokers Get you a better deal
Comments (15)Hi Saphire, Very easy for you to say without concrete examples. I can try to post case examples for you as available and permission is granted. I have a significant portfolio of such cases... but I do need to get permission, and then put them in a postable format. May take me a bit, but I *WILL* do it... had been on my list anyway. So assuming I am trading up in value and will be financing 80% (because no one will give me the house at 100% and I do not have enough cash to buy it outright) Do you mean no bank will LEND 100% on that house? Be aware, you ARE financing 100% of the purchase. Apparently you'll be taking 80% from the bank at the cost of their interest charges, and 20% from your family at the cost of the safe returns available. There's no free lunch... ALL of the money comes at a cost, including the money you take away from your family's safety reserves and growth investments. if I buy an expensive house (for me) you are right that this affects my portfolio as a whole so how do I get the least expensive rate or product that also is nbot subject to rate increases if the market changes Fortunately for you, right now the expense premium on longterm fixed loans is very small above the more timeframe realistic 5 and 7 year fixed intermediary programs. You can likely get the risks completely bank-carried at just 1/4% or so above the 5 year terms. I'd suggest being a little 'suspicious' of ol' Mr. Market, however... when Mr. Market makes longterm fixed loan costs extremely attractive relative to shorter term periods, the Market knows that the shorter term programs are more likely to become significantly cheaper as they adjust (thus the "market trickery" to entice the consumer into the more expensive programs permanently.) Without concrete examples or references, either as to stradegies that work or references to formulas or analysis it all sounds very ambigious, mysterious and a bit glib. It certainly takes an open mind for numbers, and the ability to visualize offsetting growth or cost curves. The bases of the entire conceptual issue are; Rates are relative; When costs of borrowing increase, yields on savings/investments increase, and vice versa. Cash Is King; The costs of being illiquid in emergency can be catastrophically worse than the costs of staying liquid (in carrying costs on the leverage to do so,) It is very easy to say a FMR is expensive but without providing either alternatives or examples or references as to why that is so, I have to question it Currently the immediate face costs on a 30 FRM versus (as example) a 5 yr ARM are minimal... very financially unusual, which DOES definitely call for suspicion. The more obscure costs on a Fixed are the ongoing higher carry costs incurred when rates shift to the downside on the loan, but you are stuck at the higher rates unless/until you incur another round of transaction costs to reset the financing. Eliminating uncertainty is more efficiently done by matching income yield instruments (savings & investments) to leverage instruments (mortgages.) Properly placed and managed the spread continually works in your favor, and you remain much safer as you are not locked away from your liquidity. CLEARLY explain how this works or various stragies that might work for a trade up house that is intended to be held indefinitely How long you intend to OWN is irrelevant, (what DOES matter is how long you intend to take to reach financial independence,) but I do have a few cases that reflect the same situation. I'll see if I can get them illustrated to present as soon as feasible. Cheers, Dave Donhoff Strategic Equity & Mortgage Planner...See MoreDo mortgage rates differ for investors vs. homeowners?
Comments (20)Investment loans cost more, but not alot more, than conventional loans. We did it by living in the home for a year while we built our new house. We then had the financing in place for the rental property already (at lower rates) and only needed to get fire, windstorm, and liability insurance as landlords. We got our new home loan through the same mortgage company (Countrywide) and we just had to list the old mortgage as a debt, but include the projected monthly rent as income to cover it. No problem. Home prices have gone up significantly where I am, but rental rates haven't kept pace (though they are still high). I can't afford another rental property because I couldn't cover the costs (unless I specifically wanted to take a loss on my taxes) each year. We look at like someone is paying off a mortgage for us... we don't take any additional money out of the house at all. The house appreciated approx. 150% in two years, so we ARE making money... except it's on paper right now......See Moreimprove fico score by canceling cc's?
Comments (17)The credit report says "Too many open accounts", as 'househunting' has stated. (well something like that) I have about 7 open, 3 with balances. I don't remember my fico - at least 760 but under 800. Thx for all the info here. I haven't read it ALL yet, but I will certainly look into reducing cr limits rather than closing...altho, there is one I know I can close. The 'average' history time is something to keep in mind. My credit report looks really messy and confused. I've found that ONE of my cc accounts 'appears' on report like 3 or 5 times! So, it looks like I have more than I actually do. This is due to banks/financial mergers/buyouts, and the company changing the cc accounts #'s for one reason or another. For example: I had cc 'A' several years back which I had used and paid off. Then another company took over bank "A" - The company sent a new card with new company name on it. which is now cc 'B'. (cc 'A' is no longer valid) Then company "B" upgrades my account after some time, sending me a new card with new acc't # (cc "C" - "to REPLACE existing card". (I never used bank "B" or "C" cards.) Another company takes over company "B", sends me new card with *their* name. Now I have cc "D". After awhile, company "upgrades" my account, "to replace existing card". Now I have cc "E"...which I have used. So, my credit report reflects 5 cc's, but in reality only ONE cc has ever been valid. It's not like I 'applied' for all these. They just kept sending them automatically to REPLACE another. This also happened recently with a major bank cc...I had had the same acct # for over 25 years, and suddenly they sent a cc with a new acc't #. When I called about this, they said they were changing ALL customers' account #'s. SO, my credit report reflects TWO accounts, when the card is actually the same. (And it really IS the same. I can call and enter my OLD acc't # and the same exact info is reflected...such as balance, pymt rec'd, etc. Well, I paid that one off Nov...so I don't know now. For two cards and two accounts, my report LOOKS like I have/had SEVEN different accounts. (Which I DID, but, not really....does that make sense?) OK, now I'm really mad since I've written this out LOL! It never occured to me how updated/replacement cc's could mess up one's cr report! I wouldn't be able to rent from 'househunting', because it appears worse than it really is! HA! OK, then I have another problem with old Dept Store CC's showing up...The stores have merged or no longer exist, yet they are still on report. (An example would be *like* Robinson's/May...I had a Robinson's card, and I had a MayCo card. I only used them each once for work gift exchange!, and I've never had a 'Robinson's/May' card.) I haven't used many store cards for at least 15 years! I have used Penney's and Mervyns', but closed those out years ago (when I found out they also accept visa/mc) Guess it's going to take a lot......See MoreAre we better off paying Cash or getting a Mortgage ????
Comments (67)The idea of front loaded interest on mortgages is a bit of a misconception, while you pay more interest in the early years that is only because you owe more money (If you have a 3.9% mortgage then you pay 3.9%/12 on the outstanding balance you owe each month). While that may sound pertinent, the discussion is really about effective interest versus compounding interest. As you pay on your principle you pay less interest, so over time the interest charges are smaller because your principle is smaller. While on an investment you start with a principle and if left alone for some period of time the interest continues adding to the principle and therefore pays more interest. This discussion is largely around the idea of people who have some income coming in and some ability to make payments. While, I could note that guaranteed payment annuities are about equal to house payments, they are no more liquid than houses so not really an investment that is better than a house. In the end, we are discussing people who want to be done with the headache of a mortgage and not people who simply don't have the income to continue paying a mortgage. Edit: It is also important to remember that a 15 year mortgage doesn't mean you have to make 15 years of payments. Making even a few years of payments before liquidating the investments to pay off the balance will typically result in gains. I think a lot of people focus too much on the stress of coming up with the money for monthly payments and forget that any time you get tired of stressing over payments, you can simply liquidate your investment and pay off the loan. While I have said the same thing jn3344 has many times, I have a completely different conclusion. When you have a paid off house and little money in the bank you have no options for dealing with uncertainty. Cash gives you options, the farther you get from cash the less options you have, and nothing is farther from cash than a house. Think of it this way. My father was just this week presented with a treatment option for a medical condition that was not covered by Medicare, the time sensitive treatment was going to cost $35,000, but it would greatly improve his quality of life. What allowed my father to make that decision was having access to $35,000, if he paid for his house outright and didn't have any money then he couldn't make that decision. Now suppose spending this $35,000 means my father will not be able to continue paying his mortgage and will have to move out of his house into a smaller apartment. I feel confident he will tell you walking around his smaller apartment beats not being able to walk around his bigger house. Edit: Many people have a false sense of security from a home. The only real security a paid off home provides is the equity (the access to cash). Homes are fairly inefficient domiciles, the taxes, maintenance and less efficient utilities minimize any real savings over renting. The path to homeless has nothing to do with a paid off house and a lot to do with not enough cash....See Moremyfask
17 years agoPipersville_Carol
17 years agoagnespuffin
17 years agodave_donhoff
17 years agomisterz
17 years agodave_donhoff
17 years agosaphire
17 years agoteresa_b
17 years agomyfask
17 years agoteresa_b
17 years ago
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