Who, in the OC, can I get a loan for 50 years.?

Question

I'm trying to buy a house or Condo but let's face it, the prices in OC are in the stratosphere.

Answer 1

I do loans in California but I don't generally recommend them for the same reason Bostonianimo stated. The monthly payment on a 500k loan differed very little by a 30yr and a 50yr.

If you're in Southern California, go to my website and fill in some information or contact me and we'll sit down and see what your goals are what are the best ways of achieving them based on your own personal criteria. Based on this information, we will look for a home that meets your needs and your budget. I own my own company and I'll have my loan specialist disclose all commissions upfront that we earn from the lender so that you don't feel ripped off (like I did when I bought a home before becomming a broker). Either my real estate agent (who also works for me) or I will then split our commission with you (up to 5k) when buying your home. We also will negotiate on your behalf. Your needs and your best interest will come before our profits. I founded this company on this principal after buying three homes and refinancing 7 times with people who were only interested in obtaining their commission and not looking out for me. (Well, the last agent on my third home was knowledgable and wasn't afraid to lowball a listing, so after getting my broker's license, I hired her!)

Good Luck

Answer 2

The Pick a Payment Program (Options) may be your best bet - as was stated from one of the other ppl on here.

But -
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score.

Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Lenders look at the middle score...of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable....but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a "true" picture of what you can afford - Hope this helps - There are also Government programs out there, but they too are looking for job time, etc.....They are not so much looking a credit - but the other factors are taken into consideration. With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true.

Decided on the type of program (loan ) you are wanting. A 30 yr fix is still roughly at a 6.5 rate right now - but if you are needing a 90 percent ltv the rate is around 7 percent and a 95 ltv is 7.375 and a 100 percent rate is 7.5 ( This is a estimate only, since I do not know what your credit score's are....There are also, interest only loans - adjustable loans, option arms (where you pick the payment, from 4 payments, including interest only). Interest only are lower payments, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount.

Good Luck to you - A Broker, who cares, will go over it all with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process

Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now - (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 - This is just a estimate - ok -

It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far??

Answer 3

I have several companies I work with that are offering the 50 year product; however as several others have stated it does not really drop the payment much more than the 40 year loans.

If qualifying is your issue, depending on your credit profile you may be better off with either an interest only loan or an option arm. I have an investor I work with that offers 100% financing on the option arm. This product is fixed for 5 years so there is no monthly rate increases like the traditional product. This allows you the option of a full 30 or 15 year amortized payment, an interest only payment or a minimum payment. The downside is that if your looking to the minimum payment often then your adding to your existing loan balance.

If you would like to discuss your specifics drop me a line. I live and work in OC.

Kevin 866-562-6838 x 106
[e-mail]
www.firstratelending.com

Answer 4

You can probably find one out there. My company still only offers a maximum of 40 years and that's on a very limited range of products, but we keep hearing that 50 year mortgages are on the horizon. I believe they're already doing them in California.

The first answerer is right, though, it only reduces the monthly payment by a surprisingly small amount. We charge a higher interest rate for our 40 year loan than we do for a standard 30 year, so I'd say you have to expect to pay an even higher rate for a 50 year loan. Taking that into account, it'd reduce your payment be even less than 10%.

Answer 5

Contact me. I have a 10 year fixed loan amortized at 50 years for an interest rate lower than a fixed 30 year loan.

Answer 6

A 50 year mortgage isn't going to help. It would cut the payments on a 30 year one by less than 10% and triple the interest payable. You'll either need to look elsewhere or suck up and pay the price of admission.

Answer 7

Contact me, I can do 50 year loans.