Dear Mr. Go,Dear Caller, after our phone interview here are my recommendations. We have concluded that you have made some appreciation in your property and we could get your payments lower than what you’re paying now with a 5 year interest only loan no prepayment penalty. There would be closing cost to buy down your rates and you would have to re-sign a whole new set of documents, if you were communicated properly on the whole transaction it should be very easy understood and much less intimidating. You would still have a split loan due to the loan to value exceeding 80% to avoid PMI ( Private Mortgage Insurance). Your benefit would be to lock into a longer term fixed rate mortgage on both loan and not worry about these rates increasing due to the Feds raising prime lending rates.
I just acquired a house last June 2005. I’m very ignorant about realty and mortgages; I don't even know how to translate those mortgaging words in my own language (Tagalog). I had a friend who helped me find a loan officer whom I was not even able to talk to. We send information’s all through e-mails and fax. When I saw my loan, it was already in front of the title company, due for signing. I wanted to back out but the realtor said that I will loose my down payment and also the house because the 30 day grace period is ending.
The house note came with a pre-payment penalty, 30 yrs to pay with an interest of 6.500%. They say this is fair enough. On the 2nd loan, which they say is a home equity loan costs $33,900.00, with variable rates, started at 6.000%, and now at 9.1250%. I know this will go up more.
One friend told me to refinance, I don't know what that is and how it is? Is it advisable for me to refinance at this early? I was wondering why they did not give me a 100 % financing .What is that home equity loan? How could I get rid of this? Is there a chance of lowering my monthly payments? When refinancing do I have to go over with those so many papers to sign and go with the title company again? Do I have to pay all over again those that I paid in the closing costs? I am still paying for my car and motorcycle and much more I’m the only one working in my family of six. I hope you can help me resolve my problem. Thank you.
We are currently in escrow and it’s been over 30 days and my loan still has not closed. I have been promised by my loan officer that the loan docs are going to be in the escrow department since three weeks ago. I am being charged 7.5% on my rate and a total of $14000.00 in fees. My wife is the only one on the loan and I may loose my initial $5,000.00 deposit if we don’t close this loan due to my lender not performing.Dear Caller: After analyzing the whole situation. The first thing the caller told me was that he has been following my articles for quite some time and he only went to that lender because the lender was a friend of theirs, and the caller told me that he wants me to take care of everything (IKAW NA BAHALA SA LAHAT). I told him first that never to trust anyone in this situation, even myself, because you have to first understand what goes on in a loan transaction. First mistake this person made was to buy a property without a Real Estate Agent. He was lead to sign a loan contingency waiver that loses his chance to take back his initial deposit in case he can't qualify for this house.
His second mistake was he entrusted the lender and was mislead and dragged along because they were having problems getting the loan approved. Instead of explaining everything to the borrower, the lender is not returning calls. I was also told that they initially agreed on a $7,000.00 closing cost that increased to $14,000.00.
After reviewing his situation, I told him I really could not do anything for him because of their current employment status. I advise him to keep trying to call the first lender and negotiate down the closing fees. Always know what you are paying and all the terms of your loan.
I just got divorced and bought two properties with my divorce settlement. But now I don’t have enough money to pay for the mortgage payments due to the loan payment is higher than the actual rents for both. Could I apply for a line of credit or a second mortgage?Dear Caller: After our interview, here are my recommendations. Fortunately one of the two properties purchased have some equity build up. This person purchased the properties with minimal to no down payment. All the funds from the divorce settlement went into a small portion of the down payment and the rest mostly closing cost. I advise this person to sell one property because taking more money out is only going last another six months then they would be in the same position again. I would recommend selling both but the other property still has not gained enough equity. I also told her that if she did not buy these properties she would have had the money to enjoy and not be in this situation.
Please contact me through my website, send an e-mail or call me with your inquiries. Good luck with your ventures and I hope everybody learns from these experiences to be better California home loan shoppers. Call me at (888) 822-5363 or email: Kennethgo@verizon.net
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