should I go with this mortgage on $250,000. Ther is also a 3 year prepayment penalyt on the 1st and 2 year on the second
2007-02-02 02:33:41 · 4 answers · asked by janabell0829 1 in Business & Finance ➔ Renting & Real Estate
i sell mortgages and i have never heard of a 50 year fixed, especially with a 3 year pre-pay. i sell 40 year and i have found that the rate is too high.......you would be better off taking a 30 year and sucking it up with the higher payment but much lower rate. your other option if you are looking for a low rate would be an interest only loan. your rate will be lower than a 50 year mortgage, and you can find one without a pre-pay. since i work for a mortgage company, i would be more than happy to help you out, write me at alexnicolov3rd@yahoo.com and we'll talk if you want.
2007-02-02 02:52:17 · answer #1 · answered by alexnicolov3rd 1 · 0⤊ 0⤋
Work your numbers over with an Internet based mortgage calculator. We just acquired a lender that touts 50yr mortgages and I am sitting here shaking my head side-to-side. You will find out pretty quickly that it just isn't worth it.
Not knowing the specifics of your situation (but a 50yr suggest you are trying to pinch pennies), I would suggest an 80% Interest Only (I/O) and a 20% 30/15, 30/10, 0r 30/20. Doesn't really matter on the terms for the 2nd, since you won't be there that long.
What kind of Pre-pay (hard or soft)? You need to know. How hefty is the prepay? I would try and avoid these if possible.
Like I said, crunch those numbers and look to see if you are really better off on a 50yr AM. I don't think so.
Best of luck.
2007-02-02 11:19:59 · answer #2 · answered by David 3 · 0⤊ 0⤋
Are you serious????? There is no advantage. Get a 30 year fixed. You can pay the 20% as a down payment and not have to get an 80/20. And a prepayment penalty. All bad financial moves. Buy a book written by Suze Orman, she will tell you all about mistakes like this one. If you don't have the money to buy a house, wait until you can save and buy it the right way. Also, and ARM means adjustable rate. Why would you risk losing your house when you can no longer afford your mortgage payment when interest rates go up and thus your mortgage payment goes up. You need help. Call this number. His name is Kevin Cervenka. He is an outstanding and extremely honest mortgage broker. He WILL NOT hose you over like the person that is helping you now. His number is 972-203-2300. You will not find a better mortgage person who is also top dog when it comes to superior customer service! I know this is just the internet, but trust me it is worth the phone call.
2007-02-02 11:11:30 · answer #3 · answered by Anonymous · 0⤊ 0⤋
First of, the product you are being offered is a non-conformign products so you will be penalized with HIGH(er) RATE because of that.
Second, a 50 year amortization means that you pay SIGNIFICANTLY more for the property over time than the $250k you pay today.
2007-02-02 13:22:02 · answer #4 · answered by boston857 5 · 0⤊ 0⤋