All Forum Posts by: Cheryl C.

What a mess! This is why you NEVER let a buyer pre-occupy; forget the nuances of short-sales. Also, no phone calls - everything said should be in writing via e-mail.

When I use the term "no/no", I mean that all transaction costs are zero - lender and title (recording, doc prep, closing fee, title ins., etc). The only out of pocket is escrow for tax and insurance, which should be a wash once the paid off lender issues a refund of that escrow account. The only cost is a slightly higher interest rate.

I meant to say "I can't do better".

Ed,

I never pay any costs on mortgages. I always buy up the rate to cover lender and title charges. I know the rate is higher. APR is based on holding a mortgage the entire term (15/30yrs,etc.). If you pay it off early (sale or refi) the apr goes thru the roof. I'd rather pay to have that probability pushed off to the lender.

As to the 60 day lock, I need it. My app is going to be quite complicated.

I am not expecting to get the best deal out there as I don't want to spend a ton of time for an 1/8th or a quarter. Your advice is good for people who really want to get the best, best deal. I just want to be in the ballpark.

Now...I'll see if this guy can deliver. If so, he gets my next refi.

Nightmare story from some friends with their first (and last) rental. A group, supposedly 3 individuals in their mid 20's to mid 30's, shows up at the house in a U-Haul with all their belongings. My friends let them move in on the spot. I can't even begin to describe the destruction, drug dealing, sex on the deck, etc. Never got a penny out of them and took 7 months to get them out (my friends fault). What a disaster.

Extreme example of needing to move-in immediately. Red Flags x1000!

Having been house hunting when rates went from 13 or 14 to 17 or 18, these rates are hard to not take advantage of. I always buy-up the rate to cover everything (lender fee's and closing - title, title ins., recording, etc., etc.). It's free. Escrows are a wash.

Next on the agenda is to refi my largest rental loan (350K) which is now at 6.75%. Anyone have quotes for a no/no rental property loan loan (rate and terms - no cash-out)? I'm figuring I can drop it a point and a half. LTV is way low - 30% max.

I'm quite sure I can beat the interest rate on my home (4.75 not 4.25). Having cash for flips saves alot of money.

I'm torn about giving up the 15yr (I'm 6 or 7 yrs in) but I like cash in the bank and I'm blitzing off the rental mortgages.

I've been with Allstate for 25 yrs and their coverage is very comprehensive. Not happy with the premiums and some other issues...but I've been told that I am non-cancelable and that is very valuable. Don't know if this is true or not. I have been reviewing all my policies and getting things in order. You can't assume that the agent has your back.

I've decided to grab some of this low interest money. Here's the quote:

4.75% no/no cost cash-out a few hundred K. 60 day lock. Forgot to ask about float down. I believe it's some sort of streamline HARP.

Going from a 5.125 15yr. Same monthly payment (mainly due to 30yr am vs 15).

The loan amount is well above standard conventional amount of 400K something.

My 5.125% was also a no/no so neither cost me anything. I plan to use the $$$ for flips and/or to beef up my cash reserves a little. Maybe do some hard money loans.

How's the rate compare given it's a no/no cost and a higher $$$ amount? Any experience with Flagship Mortgage?

Hi Allison,

That would be Burke & Herbert Bank & Trust (the oldest bank in Virginia!). I deal with Taylor Burke, III. The main office is in Alexandria.

I agree with Greg and James. About 25 yrs ago I went through this same process. Bring evidence of your prior success and Financial Statements for all partners. Make an appointment and present yourself in a professional manner. Indicate that you want a long-term relationship and plan to move your business accounts. I think I went to 4 banks before I connected with a small commercial bank that I deal with to this day. We offered our residence and other property as additional collateral and obtained a blanket trust line of credit. They later released the other collateral. It's been a great relationship. I don't have to do any formal application or have any appraisals. I e-mail the details and they say "yes" and can close me in 5 days. Don't give up after 2 or 3 "no's".

Joel, you are correct that regions vary. I would go further to the County, zip and neighborhood. The unemployment rate, net migration, wealth, job creation, etc. all matter. My County (per BLS June numbers) has an unemployment rate of 4.5%. A closer-in County is at 3.7%.

Also, unlike CA, Virginia is a recourse state (although my guess is that the lenders are far too busy to go after people). One consideration here is that many people have security clearances and walking on an underwater home would be disasterous. Both of these factors cut down on "strategic defaults".

There were alot of foreclosures in 2008 and 2009 (even 2007) as the "weak hands" were washed out. These were the people that could not afford their homes from day one.

I watch inventory pretty closely and it would appear that we have stabilized. That said; my crystal ball is broken.