HOT MORTGAGE DEAL!!!

[bigupjamica]

I didnt see a topic for finance and since this is a hot deal i thought i should post it in hot deals. I just refinanced my house and i got an amazing deal. One of my friends told me about this deal and it was as good as advertised. I got 6.25% fixed for 30 years for a JUMBO loan with NO POINTS and very low closing costs!!! (i bet they could get a better deal for conventional loans). They also offered 5.375% and 5.75% for a 5/1 ARM and 15 year fixed, respectively. The company was Avant Lending Group and there number is 323.935.8355. They were really friendly and I highly recommend calling them. Remember when companies say they wont charge points or closing costs make sure your interest rates are low and get a good faith estimate from them (then they can not charge you more than what is on the estimate). ALG gave me by far and way the lowest rate. Good Luck.

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Thank you,

AnandTech Moderator

 

[darth maul]

Its sad, we closed on our first house a few weeks ago and got 6.6% I want my .35%...ah, well, its better then most peoples % rates.

 

[Tonny]

GFE is not a guarantee for the closing cost. I was charged $600 more on the closing table than what my Mortgage company estimated. I felt ripped off, but I think it all depends on the title company.

BTW, 5.375 is what I got a month ago, I dont think it is super hot for 5/1 ARM.

 

[Nebakanezzar]

LOL!

Sounds to me like bigupjamica is trying to drum up some business!

 

[JameyF]

That's definately warm. I just received a 5.625% with less than 1% in closing costs (not just origination...lawyer, appraisal, title, etc.) This was from a local bank, so I get all the perks (free checking, free savings, safety deposit box, etc). Rates have gone up a tad, so yours may be a better deal than I could get now from them, but it doesn't hurt to check locals for deals.

 

[Oakenfold]

make sure your interest rates are low and get a good faith estimate

Companies are actually required by law to send out Good Faith Estimates within 3 DAYS of your application being taken and given a preliminary approval.
If it is denied immediateley they send an adverse action letter.

This could vary from state to state but I don't think so.

 

[bigupjamica]

haha, ja Nebakanezzar mon, im only here to help. i noticed that a lot of people are refinancing and there are a lot of gimmicks out there. just want to make sure people dont get ripped off by shading dealers. helping people that helped me.

com to da islands where the sun is always shining and the water is crystal blue, bigup negril

 

[XCLAN]

i wanna refinance, pm me if you know how i can get my rates down, i am paying 7.375, gunna go telk to a bank or something

 

[scoreadeal]

Great place to shop rates...

BankRate

and even if you don't use any company listed there, it's a great tool to haggle with.

 

[mcveigh]

Originally posted by: Nebakanezzar
LOL!

Sounds to me like bigupjamica is trying to drum up some business!

shady

 

[T2T III]

Companies are actually required by law to send out Good Faith Estimates within 3 DAYS of your application being taken and given a preliminary approval.

Also, some additional advice for those of you out there going through mortgage refinancing. You have a right to receive a copy of the HUD-1 form (the official closing statement) 24 hours before the closing of your mortgage. I would encourage all of you to make this request early enough so you can get a copy of that form the day before your actual closing. Then, take your time on the form - get familiar with each of the entries on each line and pull out your calculator and check the math. On 2 of the last 4 closings that I've been to, I've found financial errors which resulted in the title agency cutting a check for me to cover the error that I caught.

Additionally, you have a right to receive a copy of the appraisal which was done on your house for the financing / refinancing. Ask your lender for a copy of the appraisal. I find the data in them a bit interesting - and you can see which other properties they are comparing your house to in order to determine the value.

Best of luck to you all in getting those good bargain basement rates that are out there.

Oh, yes this thread looks like it was started by someone who has a vested interest in the mentioned mortgage company. I smell "stinky fish".

 

[darth maul]

Why do people do arms? I mean to me, the risk is a little high. And rates aren't really going to get much better. Ok even if you plan to move soon, things can happen and often do, then you end up with a 8% loan faster then you can say anandtech hotdeals. Ah well to each their own as they say.

 

[smooth1]

How do you price in mortgage insurance with the closing cost? I have $54,000@7.75 first mort and $24,000@9 second mortgage. The closing cost would be $2,500. If i refinance i would require to have the mortgage insurance [$60 per month?], the house appraised at $85,000. Thanks for the help.

 

[Oakenfold]

Why do people do arms?

Many times people do not plan on keeping the mortagages very long, have an intention on refinancing when the rates go up etc.. Why someone would get one and pay on it for the full term is beyond me. I'm sure someone can justify it financially but I would never make that gamble. For 3-5 years it might be worth it but you really have to sit down and do the math.

 

[Morpheux]

My wife and I went in Monday to Cornerstone and the 5/1 was 4.75%. I can't wait to actually find our house.

 

[huesmann]

Netbank rulez!!!!!!!!

 

[gof]

Originally posted by: smooth1
How do you price in mortgage insurance with the closing cost? I have $54,000@7.75 first mort and $24,000@9 second mortgage. The closing cost would be $2,500. If i refinance i would require to have the mortgage insurance [$60 per month?], the house appraised at $85,000. Thanks for the help.

Err, you really need to quickly look at this one. If your credit rating is at least fair, you can do MUCH better than this.

Assumption: Your house will appraise in at $85,000. You currently have $78,000 in mortgages.

Calculate: Loan-to-value (LTV) ratio of 80% to avoid Personal Mortgage Insurance (PMI), so you would have a first mortgage of $85,000*0.80=$68,000.

So, you would need to take out a first mortgage of $68,000 and a second loan of $10,000 (plus enough to cover any closing costs for BOTH loans). Then, pay down the second loan as fast as possible due to the higher interest rate. Do not make extra payments to the first until the second is paid off.

Never, ever, if you can avoid it, take PMI. The cost will be close to that of the extra interest on the second mortgage (unless your credit rating sucks), and it is not deductable on your taxes if you can itemize. Plus, once you pay down your second mortgage the extra charge "reduces" and then goes away. PMI is effectively forever since the mortgage companies can charge you for a new appraisal, not allow reappraisal for a certain amount of time, and require you to go to at least 75% LTV before even reviewing your need.

 

[tydas]

Unfortunately I locked 6.125 @ 1 point 2 weeks ago. This is a 30 fix confirming loan. In my searches for the best rates and fees i found that GMAC was the winner...

 

[dag16b]

Originally posted by: darth maul
Why do people do arms? I mean to me, the risk is a little high. And rates aren't really going to get much better. Ok even if you plan to move soon, things can happen and often do, then you end up with a 8% loan faster then you can say anandtech hotdeals. Ah well to each their own as they say.

Cause I got a 5/1 ARM at 5% with no points and I don't plan to stay there long(more than 3-4 years).
With the current 30 yr fixed at ~6%, That's at least 8 years before I break even with a 30 yr...

 

[yepper]

Never, ever, if you can avoid it, take PMI...

Yes. What a scam it is. With PMI, you're paying to cover the lender's ass. One of the many insurance scams out there. Avoid at all costs.

 

[gof]

Originally posted by: dag16b

Originally posted by: darth maul
Why do people do arms? I mean to me, the risk is a little high. And rates aren't really going to get much better. Ok even if you plan to move soon, things can happen and often do, then you end up with a 8% loan faster then you can say anandtech hotdeals. Ah well to each their own as they say.

Cause I got a 5/1 ARM at 5% with no points and I don't plan to stay there long(more than 3-4 years).
With the current 30 yr fixed at ~6%, That's at least 8 years before I break even with a 30 yr...

Ahh, but there's the danger. If you plan on staying in your house more than a short time, you risk *both* rates rising. Let's say they move up. Your ARM will go up quickly (limited only by your annual cap), as will the 30 year. So next year rates might be up a point. Now you can't get that nice 6% 30-year anymore, you can only get a 7%. But at the same time your ARM is moving up quickly too, possibly even faster than the 30 over a short period.

It's all about risk. If your annual cap is low enough, and you only plan on staying in the home a short time, you can calculate your "worst case" cumulative rate. But to talk about an 8-year payback kind of makes me think you are long term.

The sad one is people who "stretch" to get a bigger home and do it by using an ARM. The fact of the matter is ARMs will adjust up when they can, and thus those people who stretched with an ARM can't make it any more.

 

[dag16b]

Originally posted by: gof

Originally posted by: dag16b

Originally posted by: darth maul
Why do people do arms? I mean to me, the risk is a little high. And rates aren't really going to get much better. Ok even if you plan to move soon, things can happen and often do, then you end up with a 8% loan faster then you can say anandtech hotdeals. Ah well to each their own as they say.

Cause I got a 5/1 ARM at 5% with no points and I don't plan to stay there long(more than 3-4 years).
With the current 30 yr fixed at ~6%, That's at least 8 years before I break even with a 30 yr...

Ahh, but there's the danger. If you plan on staying in your house more than a short time, you risk *both* rates rising. Let's say they move up. Your ARM will go up quickly (limited only by your annual cap), as will the 30 year. So next year rates might be up a point. Now you can't get that nice 6% 30-year anymore, you can only get a 7%. But at the same time your ARM is moving up quickly too, possibly even faster than the 30 over a short period.

It's all about risk. If your annual cap is low enough, and you only plan on staying in the home a short time, you can calculate your "worst case" cumulative rate. But to talk about an 8-year payback kind of makes me think you are long term.

The sad one is people who "stretch" to get a bigger home and do it by using an ARM. The fact of the matter is ARMs will adjust up when they can, and thus those people who stretched with an ARM can't make it any more.

No no no,
A 5/1 ARM means you are fixed at that rate for 5 years, at which point it can go up(or down-but only assume up, cause interest rates will NOT be lower in 5 years) a maximum of 2% a year.
so look at this:
year ARM avg 30yr Fixed avg
1 5% 6.25%
2 5% 6.25%
3 5% 6.25%
4 5% 6.25%
5 5% 6.25%
6 5.33% 6.25%
7 5.85% 6.25%
8 6.5% 6.25%

This is under the worst case rise, and doesn't consider anything more complicated than averages(i.e. you'll still have paid more after 8 years under fixed, even though the average interest rate is lower due to compound interest, overall higher rate, etc, and we're not even brining in inflation).

So, if you plan to sell in under 7 years, it's a no brainer.
in 8-10, you're probably better off with an ARM, but not definitely, and 10+ go fixed....

 

[mattingly]

Can someone give me advice?
I bought a home 2 years ago through sonymae, 6.5 fixed 30 yr. purchase price $41,500
Only put down about $1000
Closing costs for loan were $4000 which is a second loan at 8%
Yes I am paying PMI
I think I currently owe 38,500 on the balance
I would like to get rid of the PMI and lower my term to 15 yrs.
My house is estimated at 58,000