All Forum Posts by: Charles Montgomery

@Johnny Mack Fear not, you have a great reason to enter into forbearance after closing if you get laid off.

Check out my post below for the details, many of the comments are bashing me yet none of them said I was wrong - so take note!

https://www.biggerpockets.com/...

@Stephanie Medellin 

You make a great point! I already addressed the additional fee that Fannie and Freddie will be implementing in one of my previous posts. They are adding the fee to the LOWEST risk type loans, which are refinances. If they can't play it straight why should I? Shouldn't they assess the fee to higher risk loans?

@Carlos Varum Jr You and Stephanie are both correct that you can save a lot of time and money by refinancing to today's rates! I have already taken advantage of the low rates of the past few months and THEN entered forbearance on all of them. I should have put a huge note saying REFINANCE before entering forbearance! Everyone take note!!!!!

Hi again!

Here is a picture of an amortization chart showing a $350,000 mortgage about 5 months in. That equates to a $1611 monthly payment. OVER $1000 of that payment is going to the bank as interest. The Principal portion of your payment (your home) is only getting about $530 per month on a $1600 payment! 

Open the link below for more detail on amortization in general. THIS IS WHY YOU NEED TO APPLY FOR FORBEARANCE A.S.A.P. 

https://www.thetruthaboutmortgage.com/amortization/

Hi again!

Here is some math for you all.

Average US mortgage size is $350,000 and we will estimate a mortgage rate of 3.5%.

Monthly mortgage payment of $1600. If you enter forbearance and save up the $1600 each month (1 year = $19,000) and pay it as a lump sum (which goes ENTIRELY to your principal), you will shave 2 years and 7 months off your mortgage! You will of course be one year behind since you paused you payments for a year for a total savings of 1 year and 7 months. 

Please also remember that even though you will finish your mortgage 1 year later because of the pause (you are still ahead by the 1 year and 7 months though) those $1600 payments are worth MUCH MUCH LESS 30 years from today. We live in an inflationary environment where our money is worth less every day and prices keep increasing. $1600 will be much easier to pay in 30 years!

OK folks time for some serious talk!

Many people on this site like my advice but will not comment because they have their real name on their profile or are afraid of what others will think! That is A-OK! This information is to help you get an edge and maybe finally get a chance to pay off more principal than you normally would have ever been able to in the past.

All the naysayers will mostly be lenders which is expected. 

Where were these lenders in '08? I remember several golden parachutes and no arrests! Now these lenders want to call it "theft" and "fraud". 

If you can affirm that you are experiencing a financial hardship due directly OR indirectly to the COVID-19 emergency (really who isn't?) you qualify for forbearance. 100% legal and NOT theft or fraud. 

If roles were revered, does anyone here think that our lenders would NOT do the same and try to screw us? Oh wait, the roles haven't been reversed and ALREADY Fannie and Freddie are trying to screw us by adding a new fee! A fee to those same people who are at LEAST risk of defaulting on their loan! Read below

https://www.marketwatch.com/story/refinancing-your-mortgage-will-cost-more-thanks-to-a-new-fee-from-fannie-mae-and-freddie-mac-2020-08-13

@Steve Morris

The whole point of this post is that you DON'T need to pay anyone! Especially your lender!

@Mindy Jensen Hi! Any chance we can get this info on the front page of BP?

@Account Closed My dear friend, you went from trying to discredit me to discrediting and shaming my strategy! 

In all seriousness, if those investors are having trouble due to my forbearance requests, guess what they can do! Apply for forbearance themselves on their own mortgages! Isn't that great!!! Everybody wins! 

Going forward we all know (I know you know this too buddy!) that most lenders will not bat an eye when they see a COVID related forbearance on someone's history. It has become very commonplace and most of us will not suffer negatively from it once a few years have passed.

P.S. My name is not Montgomery Burns that is a character from The Simpsons!

@Chris Mason

I tried putting welfare as my middle name but it didn't work! To be fair this is a strategy like any other but I can understand why a lender wouldn't like it!

@Mike Cumbie 

I realize this plan may not work for everyone, I just wanted to make sure that this info was out there for those who may need it; heck even to the ones who don't need it and just want to get ahead!