socal_engr's Discussions

Question to the mortgage professionals... With all of the "interesting programs" that are available for borrowers that "need help", are there any programs that are looking for really low risk borrowers? I have excellent credit scores, solid income, no bills other than home, and have about 40-50% equity in my home (depends on who you're asking and time of day), and currently have a 30-year fixed (jumbo) at a decent rate. I'm not complaining about my situation, but it seems like the mortgage industry would want to build a base of stable loan programs to stabilize those with higher risk (unless the only intent is to get the loan closed and make money by selling it).

You're right. I haven't encountered any problems with getting loans - except that none of the programs have any benefit to me (i.e., quoted rates are higher than my current, I am not looking to pull cash, I don't want to get into anything "creative" or short-term, etc.). Since most of the banks pay pitiful rates on money I park in their accounts, it seems that there would be a pool of money available at discounted rates for very low risk loans (or there should be, in the ego-centric universe that is centered around my needs). However, 80% LTV seems to be a "magic number", and there's no further discounts after that mark is reached. I guess the bottom line is that I'm fairly conservative in my approach to home mortgages, and there doesn't seem to be anyone who rewards that approach. While I recognize that not worrying about resetting ARMs or upside-down mortgages is a reward-unto-itself, the mortgage industry seems geared towards the other end of the spectrum - either that or I'm just not looking in the right places.

When renting a house, one of the pre-conditions was to address the garage door - my SUV wouldn't fit. I live in SoCal and like my cars, and don't like cramped garages - so any clutter that would make me think about how cramped the garage will be is - if not a deal breaker - then definitely a "point against".

A simple approach is to drive the neighborhood and count the signs. I used this approach very successfully not too long ago. The thought behind this is that the more active an agent is in your area, the more likely it is that they will be able to direct buyers to your house (i.e., buyers who looked at one property but were looking for "something else"). Also, if necessary, it is more likely that other agents will cooperate in working out negotiations to close a deal (i.e., if they don't play nice within the farm, it could hurt them in the long run).This is exactly the scenario that happened in my sale. The buyers balked over $1K - and I decided that I wasn't going to get pushed around. My agent approached the other side and they agreed to decrease their commission to make the sale work (better $9K than $0, right?).

Vincent,Okay, I'll bite. You're right, I'm not rich. However, I am solvent, do have a solid FICO, and do have 40-50% equity in my home. Since you do not have anything to refute my assertions, then your statements are based on your own personal opinion/agenda.To answer your questions...I am not actively looking to refinance. However, I am always looking to improve my financial situation - and one of these ways is to improve the conditions of my mortgage. Since it is still fairly new, I don't expect to get hurt too much by the additional years.80% LTV is not an issue to me. I ask about it because it seems to be a magic number to the mortgage industry. When purchasing homes, I always made sure that I could put at least 20% down, because the 80% LTV resulted in the best rates. The question I am asking is "If 80% LTV results in better rates than 90% LTV, then why aren't there corresponding rate discounts for lower LTV percentages? I purchased my current house with about 30% down - not because I'm "rich", but because I wanted to cap my monthly payments at something I could manage.Your statement that I have a high LTV on a jumbo loan is pure conjecture, and inaccurate. Yes, I have a jumbo loan. However, I was at 70% LTV when I got then loan and, even with the recent market downturn, I am no worse than 60% LTV based on current market and outstanding balance.I am not a mortgage professional, and my thought that there should be some rate discounts for loans with less-than-80% LTV may be naive - but that is why I asked the question on this forum. I'm simply looking for more insight from the perspective of the mortgage professionals, as it never hurts to be informed about options and constraints.By the way, based on the tone of your reply and the incorrect assumptions, you may be in the mortgage business but your are not a mortgage "professional".

The APR is important, as it really identifies the "true cost" of the loan. Much of the time, borrowers do not pay points/fees out-of-pocket, and this is why the APR is higher than quoted rate. As a crude example, let's say you want to borrow $95K, and the points/fees on the loan come out to $5K. To avoid any out-of-pocket expenses you roll the points/fees into the loan, and end up with a $100K loan to get the $95K you wanted. The APR tells you what the effective rate is on the $95K you actually received, since you are paying additional principal/interest on the $5K you rolled into the loan. If you pay the points/fees out-of-pocket, then the quoted rate and APR should be the same. If they are different, then the lender is rolling additonal costs into your loan. For a more detailed explanation, see http://en.wikipedia.org/wiki/Annual_percentage_rate.

ELender, Grazi. Your straightforward answer is much appreciated, and makes sense. I'll just hunker down and keep monitoring the rates.

To Everyone Other Than Vince, Many thanks for your input on this topic. I'm not as "in the dark" as I was before my post, and the basic rules of supply-v-demand and return-on-investment make sense to me.

Vince, Vince, Vince...You need to chill. I posted a query and got some good info. All I've got from you is antagonism."You're not solvent if you have a mortgage..."Merriam Webster defines "solvent" as "able to pay all legal debts". It is possible to take a narrow view and claim that I cannot pay for the full cost of the house. But that is why there are "mortgages". I assert that I am solvent because I can pay all my debts, including discharging the debt on my house through a contractual agreement for payments."Why haven't you refinanced yet? I have no doubt that there's something you are not telling us here."You are too busy arguing to read facts. In my second post, you will see "quoted rates are higher than my current". Why refinance when current rates are .25% to 1.0%+ over what I already have. The only potential gain in refinancing now is from a lower principal - but this is not enough of an incentive to refinance. Other products with lower rates are not in my long-term interest, as I plan to stay in the house - and I've never been fond of variable rates (something you should also have picked up from my second post).I would agree with Sean and "challenge your thought process", but I fear you don't have one. You don't fully read things through before you start arguing your point, you make unfounded assertions and use these as the basis for your argument(s) (the proverbial "self-licking lollipop"), and then you resort to personal attacks. This is not a good thought/action model for someone who works in a service industry.Ciao, and thanks for the entertainment. It's been a long time since I've stooped to a flame war with someone I don't know, and don't really care about - but it was fun while it lasted.

I posted two questions on my own house, but would now like to delete them. I am logged into my account, but do not see any "Delete" button when viewing the questions. How can I delete these two questions?