How come you can find "refinancing" options, a $425,000 loan for only $1,417/mo? Why don't they offer it.....?

Question

For people who are just trying to buy a house and not refinance it? We are looking at a $400,000 brand new home and they payments on that would be about $3,000/mo.

How come there is such a HUGE difference in payments???

Is it possible to go the regular way of refinancing and then 6 month down the road, refinance with the other company and save a heck of a lot more money? Or am I missing something here?

Please help, we are first time buyers.....

THANK YOU!!!!!

Answer 1

because the advertising for the refi is borderline false advertising. basically the most you can borrow with a payment of less than 1500/month is 160k. the refi payment rate would take all equity and put it back into the home, taking the home down to a 160k loan. its just the way they word it. personally, i think someone needs to stop them from this false advertising.

Answer 2

i feel so sorry for ANYONE who falls for that $425,000 for $1417 crap!
They are getting screwed and the banks are loving it.
I believe that they are interest only payments so it is more like paying rent on a place that they could not afford. A friend of mine did something like that (except on a much lower amount) and she had a balloon payment at the end of ten years.
It was a bear for her to try to get out of that mess.
If she would have been unable to refiance, guess who would have taken the keys to her pad??
You might do well to purchase a home that will cost you slightly less ($200,000 could buy you a wonderful house in Ohio, kentucky etc) and then you could make double payments on the months when you could and have that house paid off in 10-12 years since your extra payments would go directly to the principal.

Answer 3

those refinance ads are as informational as those ads that tell you how you can make $5000 a week stuffing envelopes or with a chain letter

interest rates are what they are

an easy way of figuring out what TRUE mortgage rates are is to CALL 3 LENDERS and get them to give you a Good Faith Estimate

you will find that their rates are all very close - if they are not THEN find out WHY

BTW - rates for 680 FICO and 80% LTV loan should be around 6% right now

Answer 4

Watch those kinds of ads....most are to pay on the interest only for so many years and nothing applied to the principal.....from what I understand the payments will go up later

Answer 5

I am Mr Peterson Chris.I am a legitimate loan lender who gives out loans at low interest rate of 3%.Are you finacially down?Do you want to pay your bills?Is your credit score low?If yes,then you are in need of a loan.I deal with only honest people who are really in need of this loan.If interested contact me today with the loan of loan you need so that my loan terms and condition will be forwarded to you.You are to mail me or contact me through this email address

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