Answers (19)
Best Answer
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:4274
Mr. Borrower, Happy April Fools day. You have several choices of loans on the menu today.
First, please decide if you would like to pay me yourself or if you would like the lender to pay me. You would like to pay me yourself? My employer will need to pay me by the hour if you choose this, so you can pay my broker and my broker will put me on a time clock for your loan, is that OK with you? Great, so here are 3 choices available to you for intertest rate. This low rate you pay all the fees yourself. These slightly higher rates we can use to cover some of your third party expenses. That rate? No, that is too high, it covers more than your third party expenses, I'm not allowed to offer that if you want to pay me your self.
If you want that rate, I have to be paid by the lender, but I have to be paid a flat %amount. So now lets look at at least 3 lenders because I have to make sure we pass the safe harbor test. Don't worry about which lender is best for your loan scenario, we still have to make sure to look at these options. So, you now have 3 more rate choices here, per lender so 9 different options for the lender paid. Or, we can go back to the first model, we have a few more choices there. Which one do you like best?
Great choice, please sign these 42 pages of initial documents and we can get started.
So you need that 1 day lock extension... sorry, I am legally prohibited from paying for it on your behalf. Too bad, so sad!
There was an appraisal review ordered... sorry, I can't help you out with that cost. U/W ordered a credit supplement... so sorry, I can't take care of that for you.
- SoCal_Engr
- Contributions:6591
- SoCal_Engr
- Contributions:6591
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Happy funding, Rudi
- Dan, "the_country_hick"
- Contributions:4827
I have to admit you are right. Buying a house with an ARM does require no brains.
- Norm D Plume, "Coolidge or Chaos"
- Contributions:2306
All the flyers that say how much more the seller got for their house when they used an agent.
- Linda Strasberg, "L Strasberg"
- Contributions:2563
Can anyone today purchase a home for less than renting with a 5-7 year ARM? If they only plan on holding on to the property till then?
This is a no brainer.
- Linda Strasberg, "L Strasberg"
- Contributions:2563
The price has not been increased. It is included in the sales price. Real estate is to be purchased with a long term horizon in mind.
It is not meant to be flipped every three months at a 20% profit as it was in 2004 - 2005 and purchased with 5 year arms at 3% obtaining mortgages for less than the cost of renting them out.
- Norm D Plume, "Coolidge or Chaos"
- Contributions:2306
Just like when you buy a house, the price has been increased to cover the 5% (or so) RE commission; you're now paying that fee as long as you own the house, based on the inflated price, the higher taxes as a result, and so forth.
- Linda Strasberg, "L Strasberg"
- Contributions:2563
- Norm D Plume, "Coolidge or Chaos"
- Contributions:2306
second that Michael!
so, my pricing model is based on loans $400,000 on average. the income works out comforatbly. Let's say I make 0.5% on each loan = $2,000.
client wants to borrow $100,000/ Sorry, can't help you. Based on my income model there just isn't sufficient in that loan, $500 doesn't get you in the door. I'd do the loan for $1,000, but I'm not allowed to so find someone who's income model lets them make $2,000 on the loan. yep, you now have to spend $1,000 MORE than you could have in a competitive market. sorry, that's your givernment watching out for you.
- Michael Mullin, "WA and CA FHA Expert"
- Contributions:369
Repairs needed and first time home buyer doesn't have the funds? I've got $250 in the deal I can give up to make it work for everyone? As I understand it the new law prohibits me from kicking in some money at the end.
Extra inspection needed from the appraiser because of said repairs mentioned above - extra $100 cost to the borrower. Do I want to help cover that unexpected expense? I'm told I can't.
My "average" loans are in the $200k to $400k range - I get a $800k loan request out of the blue and decide "gee, my normal 1.5% fee is a tad expensive in terms of dollars and that $800k loan won't take me any additional work so I think I'll offer the client a .75% fee instead of 1.5%" Oops! I'm told we can't do that because the new rules preclude it.
From my perspective this is yet another regulation that harms the consumer. It further attempts to treat our industry as if the products and processes are homogenized when they are anything but.
Hopefully the final rulings will leave more flexibility than it appears at this point.
- John Paunan, "John Paunan"
- Contributions:1145
- Norm D Plume, "Coolidge or Chaos"
- Contributions:2306
score under 700? I won't even talk with you.
"I'm sorry, your government says I can't get paid to work with you, so move on."
- wetdawgs
- Contributions:39522
- Paul Mondello, "Paul Mondello"
- Contributions:2384
..that is pretty much the type of mentality the Fed would use.
AA, if this was the WWF, your last post would have been a Pile Driver by Andre the Giant!!
- Andrew Adams, "RenovationSpecialist"
- Contributions:9404
How many Contractors would agree to a flat fee regardless of how complicated the job?
Folks wonder why the so many have little to no confidence in their elected officials! It's legislation like this that confirms how out of touch they really are!
- Clay Branch, "Georgia Loans"
- Contributions:8816
How much should a Loan Originator make per hour?
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- 5.0/5.0
- (19 reviews)
Contributions:2384NAMB link
More good stuff coming from the Fed for the Housing Industry... NOT!!
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