Help with Pre-Approval BS.

[dullard]

Don't just dismiss the variable rate immediately. For the vast majority of first time buyers, it can the best way to go. Why? Because you can set it up so you get a very low fixed interest rate and then most first time owners move before the fixed rate becomes variable. Most first time buyers are in their house about 5 years. Get a 5-year fixed loan (just under 3% in the Bronx right now) and variable after that and you are set. Or, if you want more leeway a 7-year fixed loan will do (at about 3.5%).

Alternatively, the extremely low interest rates on the variable loans let you pay it off before the variable rates kick in. For example, if you buy a $125k place with 20% down and can afford $1344/month (plus taxes and insurance), you'll own it outright in 7 years with a 7-year ARM. $1344 is quite affordable for most people. There is a financial savings with this route ($12,896 in interest vs $82,405 of interest for a 30-year fixed loan with minimum payments). Plus there is a freedom with this route that is incalculable. I own my house outright and never have to make another mortgage or rent payment in my life. In the worst case scenario, all I have to do is get food on the table and I'm set FOR LIFE. All from taking a 5-year ARM when others said not to.

There is a good argument to take the 30-year fixed. But that most likely won't apply to your situation.

 

[Turin39789]

You are right don't listen to me, lol, but in the end you took an ARM and I do believe it was me who pointed out that ARMs are useful.

As for refunding part of their commission, that is illegal. I know it is in NJ and I willing to bet in every state it is. Its illegal for any person to recieve payment or some kickback out of a real estate transaction.

Yea don't listen to me, but he sure as hell shouldn't listen to you. Getting a bad deal is far better than going to prison.

This thread is just comical.

You're the one who pointed out that a Realtor might not be a bud guy/unethical for telling a new homebuyer that they have no choice but to go with an ARM.

And the comission rebate, Yup, 100% illegal.

http://www.penfedrealty.com/pages/43856/Start-Here!--Rebate-when-you-buy-your-home!.aspx

Get back 1% of the sales price as a closing cost credit, when you buy a home in areas of DC, MD, VA, TX, and NC served by a PenFed Realty agent (for other locations, click here).

Local to me - http://www.advantage33.com/buyers.asp

For any home sale where Advantage 33 has acted as the exclusive agent for the buyer in the purchase of real estate, Advantage 33 will rebate to the buyer 1/3 (one third) of the cooperating broker commission up to a maximum of 1.0% of the final sales price, after a $3,000 minimum cooperating broker commission retained by Home Quarters.

 

[classy]

You're the one who pointed out that a Realtor might not be a bud guy/unethical for telling a new homebuyer that they have no choice but to go with an ARM.

And the comission rebate, Yup, 100% illegal.

http://www.penfedrealty.com/pages/43856/Start-Here!--Rebate-when-you-buy-your-home!.aspx



Local to me - http://www.advantage33.com/buyers.asp

Yes I did say that OCGuy , but as I pointed very clearly, she may have made that assumption based on conversation. But I think I have proven that just beacuse you hear the word ARM doesn't mean a person is incompetent.

Hmmm the refund, that is interesting. The one is not a refund at all really because that is closing cost credit for using their services. But that other one clearly appears to be a refund of some sort. I wonder if that is paid in cash back to the person.

The reason is commissions are not taxed. So when broker or sales person recieves a commission, that amount is not taxed. So I kind of wonder how they are legally giving a refund.

 

[ThePresence]

I'm Under Contract now for my first home. I got a pre-approval on the phone with a mortgage broker. Was very easy. I think you need to look for another mortgage broker.

 

[OILFIELDTRASH]

My realtor has been very helpful throughout my home selling and now home buying processes. He's answered every question I've had and when I asked he gave me some solid advice. Realtors can negotiate extra stuff into the contract you wouldn't even think of. I found 99% of the properties I wanted to look at myself but that does you no good because you're not getting into any houses to view without a realtor. You can get a decent idea of the house by driving by and looking at the pictures but you don't truly know until you physically go inside and see it for yourself. All 3 homes that I was really interested in looked average at best looking at pics online but were beautiful in person.