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Home Loans & Closing cost - Beachboy - 06-14-2007
Does anybody know what the current rate of home loans is? Perhaps either of our online Real Estate "Johns" will know this answer!?
I'm curious if anybody has a "closing cost"nightmare they'd like to share with all of us? I was just ready a good article about "closing cost"being the main nightmare for first time buyers.
I was reading an article last night about how 'Bank of America' is trying to establish itself in the mortgage lending business by offering mortgages with no closing cost!!! Has anybody else heard about this?
RE: Home Loans & Closing cost - John S. Rabi - 06-14-2007
There really is no such a thing as "current rate" since there are so many products (loans) available out there and the rate is different for every one of them. The "closing cost nightmare" usually is the points for your loan. It can be wrapped into your loan but your interest will be higher then. The lowest fixed interest you can get is with 20% down and with high credit score. The escrow closing costs are really low in Hawaii (escrow fees are split between the buyer and seller, 60% of the title insurance is paid by the seller, 40% is paid by the buyer.)
Aloha,
John S. Rabi, ABR,CM,CRB,FHS,PB
http://www.JohnRabi.com
Typically Tropical Properties
Edited by - John S. Rabi on 06/14/2007 10:18:44
RE: Home Loans & Closing cost - Jeffhale - 06-14-2007
Although John and John will likely know more, yaw got to shop around, everywhere and don't take anything said by any loan officer or broker for face value. Read all of the terms before you sign and don't let yourself get caught up into a dead-line nor complication 'just because' you are or believe the loan you are about to sign is all, either, they can offer or you can/could have shopped for.
Old advise from those guys who try to sell you their books about buying houses cheap is one single that's most helpful..
Try the smallest lending intuitions, banks credit unions.. usually these are the lenders who are the hungry-est. you can get the best rates and closing costs because they want your business. But not just that, you try to make friends at these smaller places. You'll get more personal service and once you are respected you can get the best deals they can offer, and be able to take their offers to competitors.
Brokers unlike bankers receive most of their pay from the points on the loan. Some can and will compete for your loan with the least amount of points and interest but you've got to keep your eyes on the contract much more than most banks.
Keep in mind, if the loan officer 'likes you' or your credit, good standing, etc. you can negotiate your loan to the max..
Oh yeah BTW, bank of America "trying" to get into the mortgage business?? Ha, should be called, 'Bank that owns America' Plus I most likely I wouldn't get a loan from them. They, whenever I've spoken to em have always had the worst of both lending and savings. For example; I am getting 4.8% interest on savings and checking in a small bank, whereas B.o.A. offers a whole, 0.75%.. However, when I shop, I check with everybody.. Always like them because they generally give me the numbers I know are easy to beat though, ha ha.
Edited by - Jeffhale on 06/14/2007 10:42:20
RE: Home Loans & Closing cost - sansei - 06-14-2007
I would reinforce what John said. There have been tremendous changes in the mortgage loan industry in the past few years. Fannie and Freddie are now pseudo government agencies. The green eye shade folk have sliced and diced and securetized loans every which way. I just read an article in Forbes magazine that banks are having trouble foreclosing on some homes because no one can prove who really owns the loan.
Another problem is that you are asking the question while the sub-prime mortgage mess is still playing itself out. On top of that, treasury bond rates just took a big jump and mortgage rates are still trying to figure out who is on first. Things are moving in the mortgage business faster than the ole shell game.
You can look at http://www.bankrate.com or http://finance.yahoo.com for an online check. You should also check where you bank because some will offer a rate discount by tying more of your business in a package. If you have a brokerage account with Schwab, you can get a rate discount at Schwab Bank, for instance so check where ever you have an existing financial relationship.
RE: Home Loans & Closing cost - Beachboy - 06-15-2007
Sansei, you aren't kidding about 'Sub Prime Lending mess'. Laws are changing daily to protect all lenders! Before I signed my mortgage, it changed three times in one week!
RE: Home Loans & Closing cost - Beachboy - 06-15-2007
quote:
Oh yeah BTW, bank of America "trying" to get into the mortgage business?? Ha, should be called, 'Bank that owns America' Plus I most likely I wouldn't get a loan from them. They, whenever I've spoken to em have always had the worst of both lending and savings. For example; I am getting 4.8% interest on savings and checking in a small bank, whereas B.o.A. offers a whole, 0.75%.. However, when I shop, I check with everybody.. Always like them because they generally give me the numbers I know are easy to beat though, ha ha.
Edited by - Jeffhale on 06/14/2007 10:42:20
jeff read this article about B of A's Mortgage business. Then tell me what you think?
http://www.thinkglink.com/Closing_Costs_Are_Too_Much_To_Bear.htm
RE: Home Loans & Closing cost - Jeffhale - 06-15-2007
Ha, I believe the first part of that article and advise yaw to refer to the paragraph you quoted me about. Although looking back at my paragraph, the wording is awkward. Ha..
What I believe though, is the money on the table. I've called BoA while shopping in the past. If they say they're not making any money, (typically the highest lending rate offering crummy terms, when ever I've called), I'd have to see the proof.
Refer to my first paragraph.
"don't take anything said by any loan officer or broker for face value. Read all of the terms before you sign and don't let yourself get caught up into a dead-line nor complication 'just because' you are or believe the loan you are about to sign is all, either, they can offer, or you can/could have shopped for."
And if BoA meets the terms you are looking for; 'The best you can get' well, go for it..
Most people are afraid of banks, lending institutions, the paperwork, and treat the lenders like the tax man. However, just cause those guys wear fancy looking suits, (Generally cheap ones, or if a good one, use it for ten years, ha) and use complicated contracts, does not mean they are not competitive, it ain't the tax man, they are salesmen, competing for your mola.. "Your Money" Whether it's a loan or savings, if you've got it, they want it.. the tax man on the other hand, providing you know their rates, are practically set in stone
The key is; making them work for your business. Personally once i get the facts on the table, I'll shop it. Even if you have a bank you are happy with, take their offers to their competitors.. You can always come back, "they want your business" and you can bring counter offers to your favorite lender and make them sharpen their pencil, till you know you've got your best deal..
RE: Home Loans & Closing cost - Beachboy - 06-15-2007
quote:
Ha, I believe the first part of that article and advise yaw to refer to the paragraph you quoted me about. Although looking back at my paragraph, the wording is awkward. Ha..
What I believe though, is the money on the table. I've called BoA while shopping in the past. If they say they're not making any money, (typically the highest lending rate offering crummy terms, when ever I've called), I'd have to see the proof.
Refer to my first paragraph.
"don't take anything said by any loan officer or broker for face value. Read all of the terms before you sign and don't let yourself get caught up into a dead-line nor complication 'just because' you are or believe the loan you are about to sign is all, either, they can offer, or you can/could have shopped for."
And if BoA meets the terms you are looking for; 'The best you can get' well, go for it..
Most people are afraid of banks, lending institutions, the paperwork, and treat the lenders like the tax man. However, just cause those guys wear fancy looking suits, (Generally cheap ones, or if a good one, use it for ten years, ha) and use complicated contracts, does not mean they are not competitive, it ain't the tax man, they are salesmen, competing for your mola.. "Your Money" Whether it's a loan or savings, if you've got it, they want it.. the tax man on the other hand, providing you know their rates, are practically set in stone
The key is; making them work for your business. Personally once i get the facts on the table, I'll shop it. Even if you have a bank you are happy with, take their offers to their competitors.. You can always come back, "they want your business" and you can bring counter offers to your favorite lender and make them sharpen their pencil, till you know you've got your best deal..
advice well taken. I'm actually going with Countrywide with a 30 yr fixed.
Edited by - beachboy on 06/15/2007 08:19:28
RE: Home Loans & Closing cost - Dave M - 06-15-2007
"Countrywide with a 30 yr fixed"
Good choice on the 30 year fixed. I hope you have a better expereince with Countrywide than I did.
I did a 203K (Rehab loan) with them. Man, they screwed it up. Most of it was due to the local Countrywide rep. I didn't do much better with the national reps. All in all it was a disaster.
But the advice givin here should be followed. Read everything.. They should give you a HUD statement at least 24 hours before your closing. Look it over very carefully. It should include your payment as well, it should reflect your payment including your taxes and insurance.
Your taxes will be pro-rated. I'm sure it will go fine, dave
Take care,
dave
RE: Home Loans & Closing cost - scuba_man7 - 06-16-2007
All of the 'no closing cost' scenarios that I've seen just finance the closing costs. Usually it actually costs more, but it's hidden in a small bump in the interest rate.
The best luck that I've had with mortgage guys was to find a smart and greedy one. I don't think greedy is a bad thing - for most people who work on commission greedy just means they have a work ethic.
My loan guy drives a BMW to the loan application interviews - he doesn't really do anything to hide the fact that he makes a good living. And he's not cheap, but he's smart and professional and gives me honest advice about my loans.
But, he charges about a quarter of a point more per loan than the average loan officer. I think it's paid itself off many times over with the advice that he has given me to pick the right loan, not just the one that benefits him most.
His philosophy is that if he is upfront about how much he is going to make on the deal, it takes all of the guesing about his fees out of the equation and establishes some trust. So far it's worked well, and I'm on my third property with him.
I know that I could probably do a lot more research myself and find a little bit cheaper way to do this, but with transactions this big I'd rather pay a little more now and make sure I find the right property, get the right loan, etc. Big stuff like this is just too costly to do twice.
Just my $.02.