Hi my name is Ron In, and i need help with getting the right loan.

I don't know what i should do. i got so many calls after filling out one of those, find the best rate thing on the internet.

any ways here my delema. (sorry if my spelling is not correct, english is my third language.) i want to get $200,000 from my condo that i own right now, i got it appraise at $648,000 and i don't know if i should go with a fix rate or arms or 5/1 or heloc ??? so many different ones i can't remember all that they told me. i had to change my # because it got so bad.
I will be using the money as a down payment for a new house, I only owe $210,000 on my condo now and i will be selling it whin in a year when the new house is finish. i have a 811 mid score,please help.

Thank you in advance.

Sincerly,

Ron In

I don't know what i should do. I got so many calls after filling out one of those, find the best rate thing on the internet.
I tell my clients at the table to change one number on there phone number so they wont get called from telemarketers. Don’t do the lead companies online since they sell your name for approximately $1.00 to $100.any ways here my delema. (sorry if my spelling is not correct, english is my third language.) i want to get $200,000 from my condo that i own right now, i got it appraise at $648,000 and i don't know if i should go with a fix rate or arms or 5/1 or heloc ???
If you are going to get that much out than a 5/1 arm would be your best choice.
Advantages: 5/1 arm Interest Only good and safe.
Disadvantages: Your property will get reassessed to the current property taxes.
Heloc: Fluctuating Credit Card of sorts that runs with Prime Rate
Advantages: Some arms are fixed for a minimal period than shoot straight with the Prime rate. Your property will not be reassessed.
Disadvantages: Each month your payment could be different, either lower or higher.
So your best best would be refinance cash out put 10% if you want on the next property. With your credit score you can get 100% for Non Owner Occupied. Your choice. This my opinion and I hope it helped you. Just email me if you have any questions or post here I am here once a day.

How often does a great borrower like this come across on the internet? Not very often right Loan Universe?

Well Ron In I sent you my thoughts in private.

Sincerly

Patrick

If you are going to get that much out than a 5/1 arm would be your best choice.
Advantages: 5/1 arm Interest Only good and safe.
Disadvantages:  Your property will get reassessed to the current property taxes.
Heloc: Fluctuating Credit Card of sorts that runs with Prime Rate
Advantages: Some arms are fixed for a minimal period than shoot straight with the Prime rate.  Your property will not be reassessed.
Disadvantages:  Each month your payment could be different, either lower or higher.
So your best best would be refinance cash out put 10% if you want on the next property.  With your credit score you can get 100% for Non Owner Occupied.  Your choice.  This my opinion and I hope it helped you.  Just email me if you have any questions or post here I am here once a day.

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thank you for helping me, But i'm still kinda lost... i'm back to having to make choices again with the 5/1 arm or refi or heloc? but why would i want to refi if i'm going to sell the condo and pay for the refi fees? and is there such a thing as a 1yr arm that i can only pay interest only?

maybe i should tell it a litle more clear...ok

i want to get $200K out of my condo that is in irvine Ca. that has been apraised at $648K by Nationwide,( i was going to do business with them until they try to pull a fast one on me, by having a 3% rebate on the back, my friend toll me that it's figure in with the loan some where but because they are a direct lender they don't have to disclose it. so i was not happy with that. i would of do the loan if he was to tell me up front about it.) to but it down on a new condo that will cost $730K. i will be adding 30k to that so i would have a total of 230k to but down for the new condo. i will sell the old condo as soon as i move in to the new condo, but i don't wan to get stuck with two payment, so that why i want the loswest payment sernerio posible, just in case i don't sell the old condo right of way. i still owe $216,501 on the old condo and nothing else on cc or anything. and i don't want to refi that does not make any sence to me. why would want to refi if i'm going to sell it with in a year anyways? is there any benifit to that?

here is a copy of my credit srore

802 EXPERIAN/FAIR, ISAAC RISK MODEL 09 10 05
811 TUC-01
813 BEACON 5.0 11
i make 105k a yr, but i spend a lot of it too.... way to much.
so lets say your are my finacial adviser what would sugest me to do, then maybe i will give you the loan, i really need your help. Thank You...

Ron In

oh and i will need a loan for my new condo too.

Ron In

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Yes they have 1 year arms. I have seen 1 mo Libor’s and 6 mo Libor’s as well. Libor is a index in which a interest rate is based from. So yes, you can get very aggressive. In your case I would state that the Loan Officer had placed you in a Pay-option-Arm or Option-Arm which included the 3% rebate = 3 year Prepay. In that fact you would have to make sure you are not in a Hard Prepay and you want to be in a Soft Prepay. Hard Prepay would mean you are stuck to paying the bank back no matter you sell the home or refinance. Soft Prepay would mean you may or may not get penalized a pre-pay penalty dependant on fine print. The 3% also ensures you get the lowest Margin and Index Rate. See the less pre-pay you go the higher the index gets. Ex. So to sell you a 1% arm starting at margin/index of 4% I would have given you a 3 year prepay and made 3% from the bank for putting you in this loan. If I sold you a 1% arm with a margin/index 6% than it could either be a no prepay or 1 year prepay which mean bank doesnt pay me anything. Just depends on bank. If you are living with the “Jones'” and that fast So-Cal lifestyle than yes this loan is on fire down there. Why no one care about there equity as long as they can impress there fellow friends with material things. It’s the So-Cal lifestyle. You living in Irvine which is a Hub for most big banks there is a lot of wheeling and deeling going on.

Refi or not?
Its basically up to you. I cant force you into a loan just not my method. Yet, if you are worried about making two payments than the Option arm might do you good. Why not turn that Condo into a Rental and become a landlord. Its sounds nice and I am sure you can get good renter in that property. Have them pay for some of your new mortgage. With your FICO score you can get any loan you wish. So 100% on the new property is doable. You only need 130k to put you in a good rate on your new home. 100% financing is available for you on your new investment property as well. Again PM me or leave a message here and I will respond.

Internet Clients:

Most people that come to the internet are either people that are searching for answers. Learning about programs. People who are frustrated with there current Loan Consultant. So seeing a person with a 811 maybe rare but again you had a concern because you were getting the runaround on your loan. You wanted someone to be upfront. Listen my pitch, “ I make Residential Loans up to 4 million to 100%” or “Money doesn’t sleep why should I” I learned quick and fast from loanuniverse and another popular website that learn the business and they will come. Loanuniverse has taught me a lot within the past year about Commerical same with Commerical LO. So I am product of what I stated above but I want to make sure the answers I give are factual and if someone disagree’s I am always here to learn from. I may not have all the answers but I can get them for you.

Optional Advice:

New condo is 730K. Fannie Mae just changed conforming loan cap to 417,000. What that means is you will get a Jumbo Rate if you go to the 80%. So, you come in with 312,000 plus closing costs to Closing Table and you can get a kickbutt conforming rate which will make your friend, neighbors, and family envy you. If that doesn’t put me on your future financial advisor list than I at least put me on your friends list. Too me that’s good advice.

Jandr,

1 ST I LIKE TO THANK YOU FOR ALL THE ADVISE YOU GAVE ME.
2nd your Optional Advice is great.



You are on my friend list now.

But there is this one thing...

I just can't believe the bank would not pay you anything because you put me at 1% arm with 6% margin, that does not make any sence at all. 1st of all you making them twice the margin and not getting pay for it? then why would you sell it to anyone or make any money? and by the way that margin is like the highest i ever seen. what bank are you working with? with your proposal this is what i figure.

Loan Amount: $ 200,000
Loan Term: 30 Years
Initial Rate: 1 %
Index: 3.618 (MTA as of December 2005)
Margin: 6%
Payment Cap: 7.5%

Fully Indexed Rate: 9.618% ( = index + margin )

Minimum Payment: $643.28 ( Deferred Interest: $959.72 )
Interest Only Payment: $1,603.00
Fully Amortizing 30-Year Payment: $1,698.95
Fully Amortizing 15-Year Payment: $2,102.71

look at that deferred int. $959. wow! i was thinking more of this for a 1% w/3 mo. NPP

Loan Amount: $ 200,000
Loan Term: 30 Years
Initial Rate: 1%
Index: 3.618 (MTA as of December 2005)
Margin: 3.350%
Payment Cap: 7.5 %

Fully Indexed Rate: 6.968% ( = index + margin )

Minimum Payment: $643.28 ( Deferred Interest: $518.05 )
Interest Only Payment: $1,161.33
Fully Amortizing 30-Year Payment: $1,326.31
Fully Amortizing 15-Year Payment: $1,794.08

what do you think Jandr?

thanks again,

Ron In

Your loan amount would not be 200K. It would be 200K plus the 216K you owe. 416 so your loan amount would be 425-430 depending on your closing costs.

So going off of 430 your LTV is 67%, easily qualify for the loan and still have alot of equity in the house.


When I put my clients into the option arm( MTA-COFI etc) I charge 1-2 points on the front and give them the par rate. Meaning you will receive the lowest fully indexed rate possible. Also MAKE sure you receive a soft pre payment if any pre pay at all. SOFT pre pay means you can sell the house but not refinance. HARD pre pay means you cannot do either without penalty. So go for the soft pre pay if any. Hope this helps.

Patrick

Hi just came back from a mini vacation, hope everyone had a great weeken.

I see what you are saying about what the LTV would be. i under stand now thank you for explaning it. i decided to stay where i'm until Sep. when my contract is done. i'll hit you up then.

well thanks for everything.

Ron In