chesire17201 Posted January 28, 2005 Report Share Posted January 28, 2005 to the mortgage experts, what's your general opinion on the following, my middle score is 625-650, hers is 700-7250 money downhouse is $119,000we offered $124,900 to get the 5,000 back for closing costs80/20 loan on $125,00080 is at 6.5% with a 5 yr pre pay penalty20 is at 7.99%Just curious as to what you guys think.... Link to comment Share on other sites More sharing options...
DocPC Posted January 28, 2005 Report Share Posted January 28, 2005 That's a pretty long PP penalty. Link to comment Share on other sites More sharing options...
chesire17201 Posted January 28, 2005 Author Report Share Posted January 28, 2005 can get a 3 yr pre pay pen but rate jumps to 6.75, plus if the rates go down enough towarrant a re-fi i guess i'll just have to eat the penalty..... Link to comment Share on other sites More sharing options...
DocPC Posted January 28, 2005 Report Share Posted January 28, 2005 Shouldn't be an issue if you staying there 5 or more years. Link to comment Share on other sites More sharing options...
chesire17201 Posted January 29, 2005 Author Report Share Posted January 29, 2005 yeah, definately plan on staying in it, a lovely 1900 colonial matter of fact have a look..... http://www.jgr.com/property/propertydetail.aspx?property=d91b40ca-2aeb-4e5a-b0ee-ddef0b38d72e Link to comment Share on other sites More sharing options...
choiceworthy Posted January 29, 2005 Report Share Posted January 29, 2005 (snip) we offered $124,900 to get the 5,000 back for closing costs(snip) Did you fully discuss that aspect of it with your mortgage rep? Not that I want to throw any jitters at you but in my neck of the woods that would not make it past underwriting unless the program allowed for going over 100% financing. Maybe it does, but it would be more of an 80/26 if so.I like the house, though. Good luck! Link to comment Share on other sites More sharing options...
chesire17201 Posted January 29, 2005 Author Report Share Posted January 29, 2005 yeah, the mortgage guy is fully aware of it, so hopefully they accept our offer, still waiting on the sellers to say yea or nay Link to comment Share on other sites More sharing options...
amortgageman Posted January 29, 2005 Report Share Posted January 29, 2005 Did you fully discuss that aspect of it with your mortgage rep? Not that I want to throw any jitters at you but in my neck of the woods that would not make it past underwriting unless the program allowed for going over 100% financing. Maybe it does, but it would be more of an 80/26 if so.Maybe I have been mislead all these years, but the lender will lend to 100% of the lower of purchase price or appraised value. As long as the home appraises for the purchase price you are going to be fine.I really like the terms on your second mortgage, but the first mortgage seems either a little bit high, or there are other issues remaining on your credit report which are not allowing you to go conforming. Then again, maybe you got a conforming deal with an EA 2 level approval??? The 6.5% is not that bad, but I have to wonder if you cannot do better???How is her income, will it by any chance hold the weight to qualify on her own. This would depend on her total outstanding debt, plus the house payment added to that. She can always add you to title afterwards. There are also stated, and no ratio options for her if she can go that route.How far are you from getting all the credit in line, so that you can go conforming. If you can handle the payment for a year or so, then opt for the lower prepayment penalty, then refinance the first mortgage sooner. If you plan things right, a small sacrifice of $17.00/mo (difference in payment from 6.5% to 6.75%) or even a little more to have a 1 year prepayment penalty, will be much less expensive than paying the prepayment penalty. You would only need to refinance the first mortgage, since the second mortgage is pretty decent (as long as it is not a HELOC). Just one more stuation wheree interest rate is not absolutely everything. Link to comment Share on other sites More sharing options...
choiceworthy Posted January 30, 2005 Report Share Posted January 30, 2005 Maybe I have been mislead all these years, but the lender will lend to 100% of the lower of purchase price or appraised value. As long as the home appraises for the purchase price you are going to be fine.That works out fine on a private sale, but this home was listed in the MLS. Unless the home was listed for just a very short time and there is a motivated seller, the appraiser is going to have one heck of a time justifying bringing in a value higher than the listed price. If the home has been on the market for more than a few weeks there is no way to do it without fudging because if the home was worth more, it would have sold at the lesser price. Additionally, when underwriting sees a large concession, they are scrutinizing the appraisal more carefully to insure they are not over extending themselves. I do not know any more of the particulars of this transaction other than the home was listed on MLS, my comment was to make sure the borrower had discussed it fully with the LO. Link to comment Share on other sites More sharing options...
chesire17201 Posted February 1, 2005 Author Report Share Posted February 1, 2005 home has only been listed for ummm 8 days now and it is under contract, to us, as far as credit wise my baddies are EQ- 1 medical collection $144, 1 payment after chargeoff $0 balance, and monthly child support of $400 month,...EX- all the above plus another paid chargeoff $0 balance TU- just one paid chargeoff $0 balance and the child support......and the mortgae rep has already sent the GFE with the extra $5000 and it is listed as Seller help,....not sure if that really matters, but he seems pretty well confident that everything is ok....... Link to comment Share on other sites More sharing options...
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