guyer6719

I tested the mortgage waters...

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but I quickly jumped out of the pool.

My credit report is definitely not a thing of beauty. It's on the upswing, but still has some blemishes. I tried to get some cash to fix the house. The cash was so tempting, but I would rather wait a year until some of the other blemishes are gone and I have better credit. Here goes my current situation versus my would be situation had I taken the loan:

Current interest rate: 8.25%

Proposed: 12.5%

Current morgage payment: $530/month including taxes and insurance

Proposed: $700/month not including taxes and insurance

The loan would have paid off a few small accounts, but nothing I can't handle myself.

So then I googled the company's name and found out that they are famous for their predatory lending practices. I just paid off my car and I am looking forward to having the extra cash. I think this is where some people go wrong...they are so used to being in debt...paying and paying...that when they are not in debt they have to jump back in.

12.5% ???

Heyall to the naw!

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12.5% x $700 payment x 360 months = $65588 principle

The reasons bank charge high interest rates on loans under $100,000. There is less money made in the closing costs. The broker/agent get a rebate from the lender for selling you a high interest rate.

Strong suggestion - now you have your car paid off. Start sending extra into your mortgage payment each month. This could be a way to to rise your credit score. After four to six months the credit agencies see you being more responsible, your score goes up. You will also payoff your mortgage faster this way.

Get a copy of your own credit report to see whats on there. Are they any mistakes, do you have anything you can dispute?

All over America right now, value is low. By refinancing you going to be eating up the equity in your property. Hold off of now, work on getting your credit score up.

Here's two options to consider once your score is higher. If you need money out, if you plan on paying it off in three to five years. Go with an equity line. Yes it's a little higher on the rate, but there's no closing cost's that go back into the loan.

On the other hand, if you do not plan on paying it off in the near future. Then refinancing into a fixed rate loan with closing costs (rolled into loan). You will get a lower interest rate.

Good Luck........:)

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12.5%!!! I didn't know anyone was doing sub-prime anymore. Did the lender you talked to do FHA loans? FHA is the new sub-prime.

You could get a lower rate going FHA, but you would have to pay mortgage insurance. Your payment might not drop much.

If refinancing isn't absolutely necessary, you should always wait until your Fico is stellar. People on this forum will help you get there. :)

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Since I declined taking out the loan, the guy has really been calling me alot wanting to "work something out". He said he would offer me a lower interest rate....12.2% fixed for three years. LOL!

Like I said, my credit isn't pretty but I'm not in a hurry to get the cash and I'm not that desperate. He would have me believe that nothing will improve my credit besides taking his loan. I'm in a better position now than I would be with that financing.

firstsource: the lender is Wells Fargo Financial. Google them and predatory lending and see what happens.

2ndTimeAround: good advice. I am going to put all I can into paying off the mortgage. question for you,

Goose123: he never, ever mentioned FHA.

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Well....

I felt bad, for a few moments, when I said to 2nd time around, "what about WF" when he was talking about another lender.

Wells Fargo retail is a piece of work.

I asked, because I try to keep up with those lenders that are goofy.

Thanks

Charles

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Sounds like a hungry broker and you are the meal. Be careful. :)

Dito - break out the salt and pepper.............

You don't like WF - do you Charles????:mrgreen::mrgreen::mrgreen:.............

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Regarding WF: I had two friends that worked at WF in the Philly area. Have you ever seen the movie BOILER ROOM? They would bang customers over the head with teaser rates upfront, then high margins and points to get bonused. Then they'd thump their chest at Happy Hour and laugh about the fools they just sold ridiculous loans to. I know because I saw it firsthand.

You should have seen the parking lot. Anything less than a Mercedes S-Class and you were considered a slacker. Those vehicles were paid for by customer's willingly extracting home equity. :twisted:

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Regarding WF: I had two friends that worked at WF in the Philly area. Have you ever seen the movie BOILER ROOM? They would bang customers over the head with teaser rates upfront, then high margins and points to get bonused. Then they'd thump their chest at Happy Hour and laugh about the fools they just sold ridiculous loans to. I know because I saw it firsthand.

You should have seen the parking lot. Anything less than a Mercedes S-Class and you were considered a slacker. Those vehicles were paid for by customer's willingly extracting home equity. :twisted:

LOL - here on the east coast - you were called a "Piker"..:mrgreen::mrgreen::mrgreen:

....

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Around here there was a couple going through local CU to refinance a home loan. They were with WF. When CU contacted WF for a fax on final payoff amount they sent it signed etc... Then by closing raised it 2 more times so the couple had to try to come up with quite a bit of $$$ out of pocket. I heard although it is closed now and went through they can try to recoup some of the charges because of the difference of first signed fax and others following and it raising. This is hearsay but I heard WF raised quite a bit in a short time and CU did not like what was going on from WF.

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