VeeshanVault

Does this make any sense as it seems overly complicated? To avoid putting us in jumbo territory, the guy would do a first mortgage at the cap of $359,650 at 5.920% (with 8 points) and a 30 year interest only on 32,350 at 6.125%. This is based off of a property tax assumption of $11,000 annually (gotta love NJ). Works out to $2,137 on the 1st and $165 on the second.

I don't know how to host pics, but if someone wants to see a junky cell phone pic (we moved on this place very quick before it was officially listed) of this beauty, e-mail me.

Move to New Hope.

I drove back to Arkansas at least once a year for four years to renew my tags on my car so I would not have to deal with NJ taxes. It was worth the trip.

I do not envy your desicion.

You can renew WI tags online now. I am surprised other states aren't the same.

As for the mortgage, i think 8 points is highway robbery. I have never personally heard of that high of a charge for a mortgage. I would definitely look for another lender. With that high of a mortgage, you can try one of the online lender finders like Lending Tree. The interest rates also seem way too high. My neighbor recently re-financed within the past two weeks at 5.3%. In my experience, higher loans can usually garner lower interest rates. Most companies won't touch a loan under $100k which is why I am still sitting at 6.875%. But at $400k you should be able to find a much better deal.

1995 to 1999 .. Arkansas just got running water at that time. Online Service is now here, but not back then.

Yeah, what is with the 8 points? How fucked in your credit?

I just got off the phone with my wife before reading that Dew and I told her point blank, I thought 2 points was considered the high watermark and that I never heard of 8 points before. We needed our bank for the bridge, but we don't need them for the mortgage. I'm definitely going to consider another location and maybe even dip into lending tree as you suggested.

My wife and I have all of our credit scores between 760 and 780 and our hh income is over 175k so I have no clue what this guy is doing.

edit: she just got clarification, it's an eighth of a point or .125.

Good thing my wife's a writer

edit....ok 1/8th of a point i can do

On my most recent mortgage i paid half a point origination, but i'm not in jumbo territory.

but that being said, i thought Jumbo was over $400K, not $360.

you absolutely need to shop around.

go to bankrate.com that shows you the average rate being written on a state by state basis.

i'm pretty sure the average 30 year mortgage is like 5.75% or something right now, because the 10yr treasury bond has not been doing that great (most are pegged off of related bonds). so to pay points for just under 6% seems whacked.

http://www.bankrate.com

Yeah, I think we really just need it for the pre-approval more than anything else right now, I already got a couple of quotes right around that 5.75% level so it should be easy pickins. Not sure about the jumbo level though, if it's a standard for all lending offices, it's being told to us at that $369k figure

The house really does kick ass so it will be worth it in the end. However, I find it kinda funny and/or sad about what we would be buying for the price nearly everywhere else in the country.

Chid that wouldnt even get you a 2bd Condo in the slums up here in the bay/ I could ONLY PRAY for anything under 400k within 2 hr commute from here. Commmmmmmeeeeooonnnnnn Lotto !!

Jumbo guidelines vary from company to company and investor to investor. My current company considers a jumbo loan anything over 400k if it is one loan any 650k total on an 80/20. My last company did not consider something jumbo until after 500k. But, really, it completely depends on whether a company is selling the loans to (if at all) and to whom.

The rate on your 2nd is sick, is it a HELOC? Those are the only loans I know of that are i/o 2nds. Usually though it is a 10 year draw period and a 25yr payback (5yrs overlap)...they usually are the ones with lower rates like that as well.

$400k would buy a mansion with 40 acres around my area. Or you could just buy 250 acres and plop a pre-fab on it. Of course the salaries are much smaller though.

WHere is this Deward?

Deward wrote:$400k would buy a mansion with 40 acres around my area. Or you could just buy 250 acres and plop a pre-fab on it. Of course the salaries are much smaller though.

Of you could buy 10 acres and put 20 pre-fabs on it and connect them all!

Phugg_Innay wrote:Chid that wouldnt even get you a 2bd Condo in the slums up here in the bay/ I could ONLY PRAY for anything under 400k within 2 hr commute from here. Commmmmmmeeeeooonnnnnn Lotto !!

Just because the mortgage is $400k ish doesn't mean that's the cost of the house. We're putting a lot more than 20% down so I'll leave it at that.

Ennia was kind enough to host my pic since I'm really a mess when it comes to this kind of thing. We are really thrilled about it but I'm sure the attorney review process is going to piss us off repeatedly.

http://peny.homestead.com/files/Chid.jpg

Central Wisconsin. Land is fairly cheap here, usually under $3000 an acre and if you go 20 miles out then it gets really cheap.

Chidoro wrote:Does this make any sense as it seems overly complicated? To avoid putting us in jumbo territory, the guy would do a first mortgage at the cap of $359,650 at 5.920% (with 8 points) and a 30 year interest only on 32,350 at 6.125%. This is based off of a property tax assumption of $11,000 annually (gotta love NJ). Works out to $2,137 on the 1st and $165 on the second.

I don't know how to host pics, but if someone wants to see a junky cell phone pic (we moved on this place very quick before it was officially listed) of this beauty, e-mail me.

I do mortgages in NJ. Who paid 8 points? You? You must have the worst credit in the world or the worst mortgage guy in the world, or both.

I personally wouldn't break a loan up for a measley 33k especially if it would cost you anywhere near that in points. The most I've ever had to charge someone was 3 points.

8 points?!?!?!

Midnyte_Ragebringer wrote:

Chidoro wrote:Does this make any sense as it seems overly complicated? To avoid putting us in jumbo territory, the guy would do a first mortgage at the cap of $359,650 at 5.920% (with 8 points) and a 30 year interest only on 32,350 at 6.125%. This is based off of a property tax assumption of $11,000 annually (gotta love NJ). Works out to $2,137 on the 1st and $165 on the second.

I don't know how to host pics, but if someone wants to see a junky cell phone pic (we moved on this place very quick before it was officially listed) of this beauty, e-mail me.

I do mortgages in NJ. Who paid 8 points? You? You must have the worst credit in the world or the worst mortgage guy in the world, or both.

I personally wouldn't break a loan up for a measley 33k especially if it would cost you anywhere near that in points. The most I've ever had to charge someone was 3 points.

8 points?!?!?!

He said later in this same thread it was 1/8th of a point.

Okay, phew. Didn't read that part. Sounds good to me then. Yes that guy knows what he is doing. You've got a great rate and have saved a few bucks by avoiding Jumbo Rates (.125% or .250% added to the rate). Just pay off the second loan first. Pay as much extra as you can toward it and get it all paid off and closed as soon as possible and you will have saved, probably, $15-20k.

Also Chid, it appears as if your second is most likely a HELOC(Home Equity Line of Credit) based off of the prime rate of 5.75% with a .375% margin. All HELOC's are interest only. You make principal payments at your will. Considering your financial standing....great income....great liquid/non-liquid assets, you are the perfect candidate to have a HELOC and pay it off before the bank can make too much money off of you.

If you have any other questions, PM me, and I will give you my number to call.