It is a 30yr-ARM
2006-08-17 08:43:04 · 5 answers · asked by SHELLEY M 2 in Business & Finance ➔ Renting & Real Estate
There is a 2 year prepayment penalty. We couldn't sell in a year. What should we do? Work for a lower rate?
2006-08-17 09:00:34 · update #1
Lanicek--as a matter of fact the scores are 520 580 572 no cash down we have "seasoned" in the house for 2 years already--have been approached for purchasing the home
2006-08-17 09:35:05 · update #2
First off, Mr. Bugly is completely and utterly WRONG. There is nothing wrong with ARM loans and he obviously knows nothing about mortgage lending.
Judging by the scores that you posted, that is an awesome rate. Also, just because you have a pre-pay penalty on this loan, does not stop you from selling the house for 1 year. You will basically just have to pay the bank a fee or a % of the balance. Yes, it does suck, but hey....your getting the house.
Furthermore, the product that you are getting is not based on "prime rate". The only type of mortgage that is based on that index are home equity lines of credit. Your rate would be based on short and long term bonds, as well as LIBOR or MTA. One of the many.
Good Luck on your purchase.
2006-08-17 10:54:09 · answer #1 · answered by Kaz 3 · 0⤊ 0⤋
That doesn't sound like a prime product. An ARM with a 2-year prepayment penalty is typically a subprime loan. Do you have bad credit? What is the Loan-to-Value? Is this a purchase or a refinance? Without the answers to these questions, one cannot give an informed answer to your question. For example, if you have a 580 credit score and this loan is for a no-down payment purchase, then that is a screamingly good interest rate. However, if you have some down payment and good credit, then that is a horrible (predatory) interest rate. Call me if you'd like to discuss the details.
Rick Lanicek
(800) 256-0817 Ext 202
www.primelendingonline.com
2006-08-17 09:14:45 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Hi Shelly ....
That doesnt sound like a prime rate its high but i dont know wht is the reason tht u got such a high rate i can try to get you a lower fix rate ,.....
So if u need help just mail me information about ur house , ur credit and ur income tooo.
U can Mail me on pinku0704@yahoo.com
2006-08-17 13:23:36 · answer #3 · answered by Pinku 2 · 0⤊ 0⤋
Run away very quickly. Never consider using an ARM unless you intend to sell within the 1st yr. If you can't afford the payments on a conventional mortgage then you can't afford that house.
2006-08-17 08:55:25 · answer #4 · answered by Dr. Bugly 4 · 0⤊ 1⤋
A little but the rate you get is also dependent on % put down and your credit......
Addtl: Sounds like you need to consider a cheaper hse.....
2006-08-17 08:53:54 · answer #5 · answered by boston857 5 · 0⤊ 0⤋