For the Real Estate Drop in sales and price Naysayers HOLD ONTO YOUR HATS

[angiebaby]

If you are paying 10 thousand less in interest over the life of the loan and adding a couple thousand to the principle, isn't that a mathematical win and no brainer?

Now continue paying the old higher payment and pay down the principle faster.

I guess that depends on if you keep your loan for the life of it or not. To save 10 thousand over the life of the loan, you have to keep the loan for 30 years. Not many do this.

 

[LargeOrangeFont]

It sure is when you refinance for a lower rate when you can just send extra cash every month . And get to skip 2 payments.

Or you can do both and put the monthly savings towards the principal, and have it paid off faster than you would have in the first place.

If you can read an amortization schedule you can have this all figured out in 5 mins.

 

[LargeOrangeFont]

I guess that depends on if you keep your loan for the life of it or not. To save 10 thousand over the life of the loan, you have to keep the loan for 30 years. Not many do this.

Sure. But the refi itself has paid you back after a couple years in monthly savings usually. You are saving that number monthly for the life of the loan.

A 300k 30 year fixed at 7% costs $34k more in interest over 30 years than the same loan at 6.5% ($718k vs $682k)

If the refi added $5k to principle you’d be money ahead if you stayed there a little less than 5 years, as the payment is $100 less per month, and you’d be saving on interest which I did not even factor in.

If you’ve paid down a bunch of interest already, this does not work. It works great for people that have bought in the last couple years at high rates.

 

[DWC]

What areas are you looking for beach properties?

San Clemente to Seal Beach for me. $2mil for anything with a decent view and good “bones”.

 

[OldSchoolBoats]

So no points? No loan origination fees? No appraisal costs? Please define no cost.

No cost means all non recurring costs are covered by credit. That includes appraisal, title, escrow, origination....etc.

 

[angiebaby]

No cost means all non recurring costs are covered by credit. That includes appraisal, title, escrow, origination....etc.

AHhhh. So there IS a cost, but you get a loan for it. Gotcha That definitely equals zero cost. You just put it on a credit card and don't have to pay for it . . . today.

 

[OldSchoolBoats]

T

AHhhh. So there IS a cost, but you get a loan for it. Gotcha That definitely equals zero cost. You just put it on a credit card and don't have to pay for it . . . today.

Pre paid interest, taxes and insurance are not costs associated with the loan, that's why they are not included in the APR calculation.

 

[LargeOrangeFont]

T
Pre paid interest, taxes and insurance are not costs associated with the loan, that's why they are not included in the APR calculation.

And you can just stroke a check to pay for all that if you wanted to, right?

 

[OldSchoolBoats]

And you can just stroke a check to pay for all that if you wanted to, right?

Yes, but we typically ask for current escrow account to be applied to payoff. Either way they get the balance back that they currently have at some point so its a wash.

 

[hallett21]

625k purchase price but we got 15-20k in seller credits.

We put 60k down because I needed to redo the whole house.

Our first rate in August of 2018 was 4.75% by 2020 we had refied twice (no money pulled out) to 2.99%. We went from $3200 a month on the mortgage to $2300. Some of that was removing PMI but still saving 30% a month is huge!

 

[angiebaby]

Pre paid interest, taxes and insurance are not costs associated with the loan, that's why they are not included in the APR calculation.

That includes appraisal, title, escrow, origination....etc.

So are you saying that the purchaser does not pay for these fees in the second quote? or are they wrapped up in the ARP? meaning the purchaser does pay for it (not no cost, just delayed cost) ?

I get the pre-paid interest, taxes, etc. I'm specifically asking if what you call a "no cost" loan actually has no costs (outside of a month of taxes, interest), or are they wrapped up in the loan one way or another.

 

[OldSchoolBoats]

So are you saying that the purchaser does not pay for these fees in the second quote? or are they wrapped up in the ARP? meaning the purchaser does pay for it (not no cost, just delayed cost) ?

I get the pre-paid interest, taxes, etc. I'm specifically asking if what you call a "no cost" loan actually has no costs (outside of a month of taxes, interest), or are they wrapped up in the loan one way or another.

No cost means no cost. All non recurring fees are covered by lender credit and IF you pay your taxes and insurance through your loan, the months of reserves for those depends on your funding month.

 

[angiebaby]

No cost means no cost. All non recurring fees are covered by lender credit and IF you pay your taxes and insurance through your loan, the months of reserves for those depends on your funding month.

covered by lender credit means a loan for it, right?

I'm asking if "no cost" is truly no cost, or no out of pocket cost. There is a huge difference. Several thousand dollars, actually. I think I already know my answer. To me, "no cost" means free. Perhaps to you it means something else.

How much is this lunch?
No cost.
translation: Free

How much is this lunch?
No cost today, but it will be added on to your hotel bill and you'll pay later.
translation: I still pay for it, but it's just at a later date.

Which one is it?


I know the answer, you don't need to explain with your doublespeak. Unless my assumption is wrong and it is truly "no cost."

 

[OldSchoolBoats]

covered by lender credit means a loan for it, right?

I'm asking if "no cost" is truly no cost, or no out of pocket cost. There is a huge difference. Several thousand dollars, actually. I think I already know my answer. To me, "no cost" means free. Perhaps to you it means something else.

How much is this lunch?
No cost.
translation: Free

How much is this lunch?
No cost today, but it will be added on to your hotel bill and you'll pay later.
translation: I still pay for it, but it's just at a later date.

Which one is it?


I know the answer, you don't need to explain with your doublespeak. Unless my assumption is wrong and it is truly "no cost."

Ok, I will dumb this down.

$5000 in loan costs (appraisal, title, escrow, origination, recording, notary, etc)

Lender gives you $5k in credit towards those costs. That is cash money.

No you can't put it in your pocket, but it does make your loan free. You aren't paying any lender fees, title/escrow, appraisal....etc.

Does that make sense now??

 

[shintoooo]

Jesus

 

[Done-it-again]

625k purchase price but we got 15-20k in seller credits.

We put 60k down because I needed to redo the whole house.

Our first rate in August of 2018 was 4.75% by 2020 we had refied twice (no money pulled out) to 2.99%. We went from $3200 a month on the mortgage to $2300. Some of that was removing PMI but still saving 30% a month is huge!

You pay taxes outside of this?

 

[Orange Juice]

Jesus

It's never a free lunch.

 

[HTTP404]

The broker is paid by the lender for bringing the buyer to the loan. Then the broker pays the borrower's fees using the yield spread premium.

 

[hallett21]

You pay taxes outside of this?

Yea twice a year

 

[angiebaby]

Ok, I will dumb this down.

$5000 in loan costs (appraisal, title, escrow, origination, recording, notary, etc)

Lender gives you $5k in credit towards those costs. That is cash money.

No you can't put it in your pocket, but it does make your loan free. You aren't paying any lender fees, title/escrow, appraisal....etc.

Does that make sense now??

Yes. Thanks. That is a little embarrassing. I was hung up on the "credit" term. I appreciate your patience.

 

[mesquito_creek]

The broker is paid by the lender for bringing the buyer to the loan. Then the broker pays the borrowers fees using the yield spread premium.

Now you went and did it… I had to go read up on yield spread premium and all I have to say is I am sticking with my original premise!

 

[hallett21]

And they say they aren’t watching lmao

Dirk Hellige on Instagram: "Sneaky mortgage lenders... They are out there. Showing you a super low interest rate, but not talking about the huge fee that goes with it. Mortgage lenders are required to show you a Loan Estimate which breaks down the

53 likes, 0 comments - dirkmortgage on January 11, 2024: "Sneaky mortgage lenders... They are out there. Showing you a super low interest rate, but not ta..."

www.instagram.com

 

[OldSchoolBoats]

Now you went and did it… I had to go read up on yield spread premium and all I have to say is I am sticking with my original premise!

God forbid if a company who employs people and provides a service should make money. Oh the humanity!!

And most here claim to support capitalism.......

Oh and stay off of Google man. If you really want to have a high-level conversation about how the back end of mortgages works (YSP, mortgage backed securities, warehouse lines, servicing premiums, buying / selling on the secondary market, hedges, etc).......give me a call.

661-993-9192

 

[mesquito_creek]

God forbid if a company who employs people and provides a service should make money. Oh the humanity!!

And most here claim to support capitalism.......

Oh and stay off of Google man. If you really want to have a high-level conversation about how the back end of mortgages works (YSP, mortgage backed securities, warehouse lines, servicing premiums, buying / selling on the secondary market, hedges, etc).......give me a call.

661-993-9192

I never said anything bad about people making money in the mortgage industry. I was debating the terminology of “no cost”, its word salad meant to disguise the actual costs. The last mortgage I had was not “no cost” they had line item costs that were black and white and I paid them.

If I ever need to truly understand a mortgage in the future I will call you, but at this point I prefer to remain mortgage free and mortgage ignorant.

 

[78Southwind]

They should call these loans a "no upfront fee loan."

If you took a bond, let say you had a $1,000, 30 year treasury bond that you purchased at face value with an interest rate of 4% and the current market interest rate for a 30 year treasury bond was 3.5%, your bonds price/value would have gone up (appreciated) because of the higher interest rate compared to the current market interest rate. Let's say the value of the bond is now $1,050 because of the appreciation caused by the rate differences.

So assume, if a broker sold you a loan that was 8% in a 7% current market there would be an off-set or credit to the loan purchaser for the difference of the two rates in upfront cash. (Kind of like the appreciation ($50) we saw in the bond example.) This cash is used to pay the fees. So you are still paying for the fees just over time through a higher interest rate, 8% instead of 7%.

I prefer these types of loans when doing a refi. But either way, like they say there is no free lunch.

 

[CarolynandBob]

Ok, I will dumb this down.

$5000 in loan costs (appraisal, title, escrow, origination, recording, notary, etc)

Lender gives you $5k in credit towards those costs. That is cash money.

No you can't put it in your pocket, but it does make your loan free. You aren't paying any lender fees, title/escrow, appraisal....etc.

Does that make sense now??

From my understanding if you wrote a check for those cost you would be able to get a lower rate correct? If you got a lower rate what is the break even point? 5 years? 7 Years? If you planned on keeping the loan for 30 years wouldn't it be better to pay the fee and have a lower rate for 30 yrs?

Also in the cost that you have shown, doesn't show how much you get paid and from whom. What would be the true cost in cash, if you got the absolute best rate out there?

 

[zhandfull]

My last refinance included some cash out. It was done in-house by my existing mortgage company. Super simple process. No physical appraisal, had minimal fees for title, and a great rate.

I had shopped the refinance with a broker. They had a slightly better rate but thousands of dollars in points and other fees that would be added to principal.

Definitely would recommend working with your existing mortgage company for a refinance if you have that option.

 

[hallett21]

Here’s a home for sale in our neighborhood. As my buddy said “I’ve seen this movie before”

Happy Friday!

 

[Havasu Rehab]

Here’s a home for sale in our neighborhood. As my buddy said “I’ve seen this movie before”

Happy Friday!

View attachment 1321762

I'll take it! The house too...

 

[78Southwind]

Here’s a home for sale in our neighborhood. As my buddy said “I’ve seen this movie before”

Happy Friday!

View attachment 1321762

She looks like she might be selling something else.

 

[ahavasu]

What areas are you looking for beach properties?

Well, we looked at Laguna, Laguna Niguel, San Clemente, Dana Point, and HB. The backyard space is very important to me, so we wanted something with a little space and even a partial view inland up on one of the hills (not possible in HB). We drove some of these areas, and it wasn't all that appealing, and anything with a "peek-a-boo" view was a heavy fixer. We wanted to stay under 2 but that seems like a pipe dream for anything nice. So, we wait and see. At some point, I will be condo/ duplex ready, but not yet.

 

[cofooter]

She looks like she might be selling something else.

Shes well qualified having graduated from the Real Estate Academy of Badonkadonk! I'm sure she can explain the in's and outs of zero cost loans, SMH.........

 

[shintoooo]

Looks could be deceiving https://www.instagram.com/cyreneproperties/

 

[HgH Vltg]

Is that her American Gladiator audition picture? With a name like Cyrene haha.

Here’s a home for sale in our neighborhood. As my buddy said “I’ve seen this movie before”

Happy Friday!

View attachment 1321762

 

[LargeOrangeFont]

Looks could be deceiving https://www.instagram.com/cyreneproperties/

They always are.

Look at any Las Vegas Billboard.

Actual

 

[rivrrts429]

Looks could be deceiving https://www.instagram.com/cyreneproperties/

This is why I come here. Real men like @shintoooo doing the important work for his fellow man

 

[Cdog]

Here’s a home for sale in our neighborhood. As my buddy said “I’ve seen this movie before”

Happy Friday!

View attachment 1321762

This has a lot to do with why I’m backing away from the industry. The people have spoken and this is what they’re choosing.

I can’t compete with that. When she fucks up the deal don’t come knocking on my door with 2+ decades of experience.

 

[attitude]

This has a lot to do with why I’m backing away from the industry. The people have spoken and this is what they’re choosing.

I can’t compete with that. When she fucks up the deal don’t come knocking on my door with 2+ decades of experience.

Are there really that many single dudes buying houses? Or do their wives just not tag along lol.

 

[Cdog]

Are there really that many single dudes buying houses? Or do their wives just not tag along lol.

The women fall for it too. “Oh she’s cute and in trend…. “

Fake it till ya make it with a leased Mercedes.

 

[Sportin' Wood]

Men should not sell Real Estate; that is a job for a stripper who ages out. Men should be building shit, or selling stuff to build shit.
<-----------Mom sold Real Estate for 50 years. Brother is a RE Agent; I think he is a crook and lame.

 

[Cdog]

Men should not sell Real Estate; that is a job for a stripper who ages out. Men should be building shit, or selling stuff to build shit.
<-----------Mom sold Real Estate for 50 years. Brother is a RE Agent; I think he is a crook and lame.

Thanks!

So tell us what you do?

 

[hallett21]

This has a lot to do with why I’m backing away from the industry. The people have spoken and this is what they’re choosing.

I can’t compete with that. When she fucks up the deal don’t come knocking on my door with 2+ decades of experience.

Sad if true. I want intelligence and competence with any transaction.

 

[Cdog]

Sad if true. I want intelligence and competence with any transaction.

People say that. But they choose her.

Not saying you do..

 

[BHC Vic]

Sad if true. I want intelligence and competence with any transaction.

 

[Sportin' Wood]

Thanks!

So tell us what you do?

As little as possible.

 

[Cdog]

As little as possible.

But real men build things???

Accomplishments!!!

 

[Sportin' Wood]

But real men build things???

Accomplishments!!!

Yes.

 

[Englewood]

This has a lot to do with why I’m backing away from the industry. The people have spoken and this is what they’re choosing.

I can’t compete with that. When she fucks up the deal don’t come knocking on my door with 2+ decades of experience.

I got out of the biz for similar reasons.

The bar for entry needs to be higher.

Won't matter soon. Once all these commission lawsuits settle, buyers and sellers will get what they want and can now pay attorneys instead of agents.

 

[LargeOrangeFont]

The women fall for it too. “Oh she’s cute and in trend…. “

Fake it till ya make it with a leased Mercedes.

This. She hits it off with the wives and is their new best friend.

 

[attitude]

This. She hits it off with the wives and is their new best friend.

Not mine, she would see the “fakeness” from a mile away lol.