All Forum Posts by: Elias Halvorson

 Hey Sam, 

Those offers/rates are terrible. I just closed a DSCR cashout refinance with better terms than what you are being offered. I would definitely shop more, neither of those deals make sense to me. I am happy to take a look and tell you what you should be getting (there are some pieces of the puzzle missing such as credit score, etc.)

V/r,

Elias

It depends on your personal preference. I liked buydowns for folks who needed/wanted the lower monthly payments. In an environment where rates are decreasing you could temporarily get a larger reduction in monthly payments and (hopefully) be able to refinance at a lower, permanent rate sometime in the future. However, if you don’t have an issue making the monthly payments without the buydown then probably just Stick to getting your closing costs covered. 

If you’re concerned speak with a real estate attorney. 

I would recommend personal loan. Way less fees, you could stretch it over 6-8 years, etc. 

Sean, everything Pat said above. 1st you need to have a clear plan on what you’re going to do with the place. Secondly, 1% is a good target but just as Pat wrote above it does depend on the loan amount. On larger loan amounts saving .5-.75% might be a solid deal. I would also generally agree with Pat’s two years or less comment. I would qualify it with in today’s seemingly rate decreasing environment, I might look to trying to recoup costs in 12-18 months (or less) 

All lenders have fees, those that don't just roll those fees into the rate ie offer higher interest rates. I would contact a mortgage broker in your local area, a credit union, and maybe a mortgage bank. Get quotes from all three and go with the one who offers the best combo of rates and service. 

Cheers! 

Bob, I answered this in a previous post. Do you think the answer will change? You CANNOT assume a conventional loan. Period. Maybe you could get seller financing at less than 4%? But that isnt assuming a loan. 

FHA goes to at least 50. Some conventional programs go up to 50% DTI as well. The problem you're going to encounter is your income is not stable, and you just started doing it. I have never lent to an athlete, but I have lent to a few entertainers. I think the government (FHA) and conventional side will require at least a year, if not two of this type of income. There is no stability and it is seasonal.

I would say Corby makes a really good point with regards to the MI that you pay with FHA.

1) I definitely would refinance into conventional (if that is an option). Conventional rate would be higher, but you could potentially lose your PMI.

2) What state are you located in? I assume most of those closing costs are the FHA UFMIP? That is another reason I would look to conventional.

3) I would ask your lender to give you a conventional refinance quote? I would also shop with a local mortgage broker as currently United Wholesale Mortgage is running a 125 bps special on Government refinances through the end of September meaning if you did go FHA streamline then you should be getting a rate of around 5% (borrower paid)

4) If you havent asked, at 700K+ loan tell your lender you want to go Borrower Paid and you expect them to only charge a 1% origination charge fee. He/she might balk, but Im sure some lender (wherever you are) would do it. That should reduce your cost/interest rate as well.  

Sorry, government loans are USDA, FHA, or VA. Conventional are not government loans ie not assumable. For government loans you would have to live in them.