Are there any loan officers in NELOC? I was hoping to get some advice on these new loan programs.

 

i have a friend who is a Loan officer

 

Atlantic City boardwalk Just pay on time

 

What is it that your trying to find out?

 

I was going to holla at you big homie on the loans... I noticed your plates said hardmoney... I thought that was a term used in real estate.

 

lendingtree.com (online broker)

NLC (broker)

Primerica (broker)

 

Yeah, I deal with the hard money. I dole it out on good deals. I just wanted opinions on interest only loans vs. 40/50 term loans that have come out.

 

when you find out something keep us(NELOC) in the loop.... you will have a few potential customers here in MD... how is the car? I almost copped one the other day(pearl with the saddle)... I may feel more comfortable with the payments next year..

 

The engines finished. I'm going to polish some pieces. I was hoping I could talk Blacksmith Racing into sponsoring the engine install. Thanks for the info guys.

 

I guess to answer your question we need to know what it is that you are trying to achieve. The problem with these types of loans is that either no or very little money is being applied to the principle balance. You have to be very careful with the no interest because after the no interest period, it is going to adjust, what the given rate is at that point is unknown. Many people got involved in the low interest ARM's a few years ago when those intro rates were sitting at 3.0% for 3 & 5 yrs. now that they have adjusted the interest rates are 7-7.5%. This can obviously impact your monthly mortgage payment greatly. Due to this type of loan foreclosure rates are at a 52 year high and expected to increase more over the next couple of years. Basically people who could not afford higher price tiered homes were able to at the low interest rates, and they were counting on raises or a positive change in there financial condition to allow them to afford the home when the rate adjusted. In most cases this didn't happen. The 40/50 term notes also have the lower monthly payment attraction, however you are putting very little money to the principle balance. To give you an idea, given a $250,000 home @ 50yr MTG @6.5% = $1463.64/mo. Great payment right? After 10 years of paying on your mortgage you will still owe $228,975.75. That means in 10 years you have only put $21,024.25 towards the true balance of your MTG. Over the life of the $250,000 loan you are actually paying $452,548.17 in interest. If you are young it's an option, if you don't mind paying on a mortgage for 40-50yrs. There are ways of knocking that principle payment down faster by paying bi-weekly payments and utilizing other tools, but it's still a long time. Not trying to discourage the idea, just thought I'd throw some info out there for you.

 

Holla at me if you want, ask me anything in the mortgage, that's what I do for a living so i should know some .02 cents.

 

in the business for 4yrs.... commercial, industrial, Auto shops, Gas stations, Home loans, credit repair, .......(or if ur in need to have someone collect for you).... Pm's are not full anymore. Just cleared out my mailbox.

-Tony


Will post new thread on GS section on the ARISTO project! stay tune! LXS! *wink *wink * Gsoup!

 

Great write up Greed. I have a 30yr fix rate mortgage with the first 10 years being a Interest Only, but we tack on a additional $500.00 towards the principal every month. I was thinking of refinancing but the rates haven't gone down as much as I would like we are currently at 6.2%. Wife and I was lucky because we purchased our home during the selling boom and lucked out on getting a 4 year old colonial 70,000 under apprasail.(Couple was getting a divorce and needed to go to settlement in 2 weeks.) Lucky we sold our house in 3 days. So we actually beat out 15 contracts because we were the only one that could do it. Funny things is that buyers was bidding up the house to 550k, seller wanted 450k and appraisal was 525k we got it for 455k. Now the new homes going up in the neighbor at 600k are not selling and they are dropping prices like crazy.

 

Great write up Greed! Thanks for the info.....