Posted: Thu Jan 26, 2006 8:26 pm Post subject: RE:
Hi,
Its good to hear that you have a very good credit score. As discussed earlier if you are planning to take an interest only mortgage then in initial year your payment will be very less but after that you will have to make higher payments.
If you are confident enough to face all the worst scenarios which may come then you can go for it.
You can go for the interest only mortgage but you should be aware of the risk factors associated with it.
In the worst case you are planning to sell it off but you should know that no equity is going to build up during the interest only term.
Also there is no guarantee that the prices of the homes are going to keep rising always in the market. If the market sours at any point of time you may find it difficult to sell your home quickly.
Since you have a good score and moderate income you may look for some other types too. I shall again suggest you to check with different lenders with your details and conditions. You may get a better term with an ARM option perhaps. They will help you to analyze the best option.
Lastly, you can go for an interest only option if you don't find an alternative. But it will be better if you plan to stay for a short period in the house under those circumstances.
Thanks for your advise, My score is 711 my income about 45000 incl child support. My home is worth about 300,000, we owe 197000, I have 25000 cash to pay off my husband, so looking to refinance around 225,000 so to pay off ex additional 25,000 in settlement. I am figuring additional income down the roaddue to only working part time now due to having small children, my home is big enough to rent a room out for additional income (perhaps an extra 400 per month), no tenant yet though. After 5/7 years surely if I couldnt afford payment at that time - I could refinance or worst case senerio at that time - sell home? What do you suggest?
Hi Cory you have a lot of different options available,
IO only loans are available both as ARMS and fixed rate products and with the inverted yield curve right now a longer term IO is probably the best solution. You can get a 30/10/20 or a 30/15/15.......let me explain....
A 30/10/20........is a 30 year fixed,the first 10 years are interest only, the balance is then paid off in the last 20 years.
A 30/15/15 is a 30 year fixed the first 15 years are IO and the balance paid over 15 years.
So you don't need to really do the 5/7 or 10 year IO arm the rates on the fixed rate products are only slightly higher and represent a lot lower risk.
The last option and I think I saw it mentioned in this thread was an Option ARm which if you understand the loan may be a way to go however there are risks associated with this loan product that can be fully explained by a good broker. Start rates as low as 1% with annual adjustments or 2.99% for a 5yr fixed min. payment....again there are risks so if this is an option you look at make sure you full understand those risks. _________________ Cedric Kalvesmaki
***Professional Disclaimer***
While I am a Mortgage Professional, this advice is generic in nature only.
Freedom Mortgage
I live in TX but cover all 50 states
Cory Guest
Posted: Thu Feb 02, 2006 12:06 pm Post subject:
Thank for all your help, I appreciate your advise and expertise
tmack Guest
Posted: Mon Feb 13, 2006 8:08 pm Post subject: home buying
both my wife and i makea about $130,000 between us. we are looking to buy a two family house at $510,000. we stand to get approximately $1200 in rent. we have no outstanding debts and good credit. can we afford this house?
On the surface from an income standpoint it would appear that you qualify. A good broker should not have any isues putting this loan together. _________________ Cedric Kalvesmaki
***Professional Disclaimer***
While I am a Mortgage Professional, this advice is generic in nature only.
Posted: Mon Feb 13, 2006 8:35 pm Post subject: RE:
Hi,
Welcome to MortgageFit Forums.
I don't think you should worry much as you have no outstanding debt and also have good credit score. You can afford to buy the house but you should be very sure that you will able to make the entire payment in time. You should be very careful in offering the house for rental purpose, as the rental income will help you to make the required payments. I am not quite sure as to whether you are thinking of taking a mortgage.
Since your credit profile is good, you can qualify for the best rates in the market as far as taking a mortgage loan is concerned.
Do let us know if you have any other queries.
Thanks,
Caron
Emmanuel Guest
Posted: Fri May 26, 2006 6:26 pm Post subject: interest only
Hi my wife and I live in California and we are looking to purchase our first house. We make about 60,000 a year and have good credit. But we are not sure we can afford a house payment because the average house in our area is $250,000 and we figure we could afford a $1,200 payment after insurance and all that. We have been asking around on what we should do and we are confused on what type of loan we should get. Should we get an interest only loan, 50year fixed or? We are also hoping to not put anything down we would only be able to put $5,000 down. Would that help any or not? What do you suggest?
Posted: Fri May 26, 2006 8:28 pm Post subject: RE: Interest-only or 50 year fixed rate mortgage
Hi Emmanuel,
It's good to hear that you have good credit scores. So getting a mortgage at reasonable rates and terms won't be difficult. Regarding the loan type, it is better to take a 50 year fixed rate loan if you wish to avoid negative amortization that comes along with interest-only home loans.
But considering the fact that you can afford $1200, I shall suggest that you go for an interest-only mortgage at present; start paying the interest on a monthly basis. With the passage of time, if you can get along with some more income, then you can refinance the interest-only loan into a 50 year fixed rate mortgage.
But while you refinance, just check out whether the market rates are lower than your existing loan.
Posted: Fri May 26, 2006 8:47 pm Post subject: RE: loan type
Hi,
There's nothing to worry much if you can't decide upon the loan type. I guess it's the first time for you and in most cases, and it's quite natural to think the way you are doing at present.
Getting the loan of your choice in this industry isn't that tough, as you will come across various lenders offering a variety of loan programs to satisfy customer needs. But choosing the best one is what matters the most. Here is where you need to have some knowledge regarding the process so that you aren't misled by anyone in this industry.Our guide section will help you a lot in this regard.
It depends entirely on your income as to what type of loan you can carry on with. And, do not worry about the down payment. There are loans that are made without requiring you to put any money down; the only thing is that they charge higher rates and hence high monthly payments.
But if you can shop around for a sufficient amount of time, I guess you will be able to find such lenders and then you can easily compare the offers before choosing the best that suits you.
Posted: Fri May 26, 2006 9:14 pm Post subject: RE: choosing the lender
Hi Emmanuel,
I agree with Caron; there are a lot of illegal practices going on this industry and innocent people are being harassed at every moment with extra charges, higher interest rates etc. So you really need to be cautious before deciding upon the lender.
While you search for the lender, just go through the business records of the company, the testimonials of their clients and get in-depth information of their fees and payment plans. The local Better Business Bureau office can help you in finding details of the lender's service background and market reputation.
Do not hesitate to ask if you have any queries. Just clarify all your doubts before you sign the deal.
Posted: Thu Sep 04, 2008 10:30 am Post subject: bad credit score
me and my husband both have bad credit in the 400 but, we would really like a house we have been looking at many forclosures in the area that range from 17,000- to 52,000. We are willing to go with a hard lender. Me and my husband together make about 45,000 a yr not including my bonuses at work each month. We want to take advantage of the market while we can what should we do.
Posted: Fri Sep 05, 2008 5:24 am Post subject: RE: hard lender to buy foreclosure home
Hi anna,
The range of home prices you've offered here is quite large. Are you sure you can afford a price as high as $52000. I hope you don't mind when I say this. I'm just a bit concerned because you said you've looked at foreclosure homes at prices starting from $17000.
Your credit isn't good either. I understand you wish to get advantage of the current market but in case you miss a single payment, it will bring down your score to 300s which is even lower. So, I feel you should first try and bring up your score to at least somewhere around 550. Then you can at least try out with FHA insured loans. But in any case it's not a wise decision to go for hard money loans.
Posted: Tue Oct 21, 2008 7:30 am Post subject: MORTGAGE
OUR MORTGAGE WAS A TRACKER MORTGAGE SET AT 0.05% BELOW THE BASE RATE HAVE GOT A LETTER TO SAY THAT IT HAS GONE UP BY £125.00 PER MONTH WHAT IS THE BEST THING TO DO AS WE CAN NOT AFORD A HIKE LIKE THAT AT THIS MOMENT IN TIME SHOULD I GO FOR AN INTEREST ONLY MORTGAGE FOR THE SHORT TERM
If you go in for an interest only mortgage for a short period, your principal will keep on increasing. If you are confident enough that you could pay the principal later on, then you can go for an interest only mortgage for a short period. You can also check if you can make payments towards the principal amount as it will be easier for you to pay off the debts.
jerry
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