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Mortgage Interest Statement


Sully

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Yeah except no one has the discipline to do it... and if you're in the mortgage business, you'd say that in every mortgage (=sales) appointment knowing the vast majority of people who say they will won't, and then you'd make more interest on the longer term and still look like the good guy.

 

No one? Seriously? And, if someone wants to over pay monthly towards the principal I will help them set it up via ACH payments. I did it for a closing just this morning. Don't act like you know how I operate. :p

 

The people that do not have the discipline for it are the uneducated borrowers. I educate everyone of my borrowers so that I can sleep at night knowing they didnt get fucked.

-Marc

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LOL... listen to all these interest slingers! Who gives a shit what has or hasn't happened in the past! Ask everyone who lost a home on a bullshit expanding rate because their falsely valued home stopped "appreciating."

 

I have a 15 year at less than 5% fixed, and as long as those deals are available only a fool would risk the bait of an ARM....

 

You're a fool. Did you pay attention to what really happened to those people? It was as much their fault as it was the lenders. And a 'bullshit expanding rate'?! You act like the parameters of the loan term and rate are not literally SPELLED out in the paperwork you sign. If you lost your home due to an ARM...shame on you. It is NOT all the lenders fault.

 

And if you aren't paying less than 4.00% on your 15yr rate then you're an idiot. :rolleyes:

-Marc

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Oh I didn't lose any property, trust me. The simple truth remains - financial "products" are bullshit.

 

Get a fixed rate, fixed term, fixed everything mortgage for less than 30 years. If you can't afford the home you want under those conditions, save more money or spend less on the home.

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I should go talk to my bank about this. If my overall monthly payment stays the same, then why not, right?

 

Yeah I would ask them if they are running the program. My home loan is through Huntington and I was getting a letter about it every 3 months or so the first year of my loan. I switched after I had the house a little over a year. I think it says if I stay on the plan, the house will be paid off about 8 or 9 years early.

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The simple truth remains - financial "products" are bullshit.

 

This is not a truth...this is the complete opposite. I really hope no one takes your 'advice' to heart.

 

PS - Mr. "I talk out of my ass"...most ARM's are 30 year products that have federally mandated caps. The highest any of my current ARM products can EVER be is 6.99%. Compare that to a fixed rate 8 years ago genius.

-Marc

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You're a fool. Did you pay attention to what really happened to those people? It was as much their fault as it was the lenders. And a 'bullshit expanding rate'?! You act like the parameters of the loan term and rate are not literally SPELLED out in the paperwork you sign. If you lost your home due to an ARM...shame on you. It is NOT all the lenders fault.

 

 

-Marc

 

Actually, you just proved yourself a fool. My post acknowledges exactly what you posted as if it were new... the lenders created products to profit off of people all too willing to believe a fantasy.

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Actually, you just proved yourself a fool. My post acknowledges exactly what you posted as if it were new... the lenders created products to profit off of people all too willing to believe a fantasy.

ARM loans have uses for the right people. My wife did an ARM on her condo mortgage, knowing she would not be there longer than the fixed rate period of the ARM. Sold the condo, and saved herself quite a bit in interest.

 

Just one example. A long-term ARM is actually good for anyone not planning on owning their home past the fixed rate period. I'm surprised more people don't use them.

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Actually, you just proved yourself a fool. My post acknowledges exactly what you posted as if it were new... the lenders created products to profit off of people all too willing to believe a fantasy.

 

You have no clue what you are talking about.

 

In proper financial planning, a 30 year mortgage with extra payments is the proper way to go. Given most big bank rate spreads, if you get a 30 year mortgage and pay the difference between a 30 year and a 15 year at the same about, you pay the loan off in about 16 years. Difference is, you have the flexibility of having a lower payment in case of a layoff or something catastrophic. Just because you think you are invincible doesn't mean shit can't happen. Just as an example look at the sticky at the top of the page with Eric Yetzer. 33 and has cancer, that comes with tons of co-pays, deductibles etc. Having the ultimate flexibility in your financial situation and using debt as leverage and to your advantage is what makes millionaires.

 

As for the ARM loans, interest only loans and such, they have their purpose. That purpose is not for the person buying their 30 year dream home.

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You have no clue what you are talking about.

 

In proper financial planning, a 30 year mortgage with extra payments is the proper way to go. Given most big bank rate spreads, if you get a 30 year mortgage and pay the difference between a 30 year and a 15 year at the same about, you pay the loan off in about 16 years. Difference is, you have the flexibility of having a lower payment in case of a layoff or something catastrophic. Just because you think you are invincible doesn't mean shit can't happen. Just as an example look at the sticky at the top of the page with Eric Yetzer. 33 and has cancer, that comes with tons of co-pays, deductibles etc. Having the ultimate flexibility in your financial situation and using debt as leverage and to your advantage is what makes millionaires.

 

As for the ARM loans, interest only loans and such, they have their purpose. That purpose is not for the person buying their 30 year dream home.

 

Can I get a witness? :cool:

-Marc

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ARM loans have uses for the right people. My wife did an ARM on her condo mortgage, knowing she would not be there longer than the fixed rate period of the ARM. Sold the condo, and saved herself quite a bit in interest.

 

Just one example. A long-term ARM is actually good for anyone not planning on owning their home past the fixed rate period. I'm surprised more people don't use them.

 

In a perfect world yes, but a majority of the people having issues right now are people that thought they would live there short term and sell before the ARM increased. Only problem is the market peaked and the prices dropped so they couldn't get rid of it or drop it. Now they are stuck with something they don't want and can NOT afford because the payment increased....

 

Some people like them, personally I will NEVER have a flexible rate loan!

 

you haven't seen my house;)

 

I think what he meant was that your needs will change from when you are 20's until dream/retirement age. Even then you might buy a bigger home now and end up downgrading as you get older and kids leave. Then again, feel free to post pics in another thread if you want your dream crushed...:D j/k

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rofl. everybody's a financial expert. i paid less than $5k interest, total, on a $170k loan. i don't see why you wouldn't want to pay off your highest interest rate loans first. since both my car loans are 0%, and my school loans are 2.3%, it only makes sense to pay off the house first.
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rofl. everybody's a financial expert. i paid less than $5k interest, total, on a $170k loan. i don't see why you wouldn't want to pay off your highest interest rate loans first. since both my car loans are 0%, and my school loans are 2.3%, it only makes sense to pay off the house first.

Not everyone is a doctor with your income to debt ratio.

 

you haven't seen my house;)

I've seen a few inside pics, outside aerial shots, know the area, and the general auditor specs...not a bad home, but we must dream very differently.

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rofl. everybody's a financial expert. i paid less than $5k interest, total, on a $170k loan. i don't see why you wouldn't want to pay off your highest interest rate loans first. since both my car loans are 0%, and my school loans are 2.3%, it only makes sense to pay off the house first.

 

It's all about properly leveraging. It used to be much easier back in the day than it is now, but it can still be done.

 

And example would have been lets say you had the 170k laying around. You put 20% down on the house and put the rest of the cash into a 10% return REIT. You take your mortgage interest deduction and make a few percent off of the REIT.

 

Now that is oversimplified and the absolute best case scenario, but you get the idea

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I've seen a few inside pics, outside aerial shots, know the area, and the general auditor specs...not a bad home, but we must dream very differently.

 

i have a big garage and basement with room to add onto the garage. thats all i really want. i rather have a nice house with baller cars, check and double check.:)

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since both my car loans are 0%,

 

Another area where people don't read the fine print, is it a true 0% loan?

 

Most are NOT!

 

Even GM's current adds say 0% interest (OR $4k off). So if you paid cash you would save an additional $4k which is what they are charging you for the loan! ;)

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Another area where people don't read the fine print, is it a true 0% loan?

 

Most are NOT!

 

Even GM's current adds say 0% interest (OR $4k off). So if you paid cash you would save an additional $4k which is what they are charging you for the loan! ;)

 

0% to me, means there's no reason to pay it off any sooner than the 5 years, the loan is slated for. i fully understand that you either get the car for cheaper and get a standard loan (or pay cash), or you get 0% and they jack the price up just a bit---but thanks for explaining that to me. :rolleyes: i could have paid cash for either of my cars, but preferred puting that money towards the house, and savings

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It's all about properly leveraging. It used to be much easier back in the day than it is now, but it can still be done.

 

And example would have been lets say you had the 170k laying around. You put 20% down on the house and put the rest of the cash into a 10% return REIT. You take your mortgage interest deduction and make a few percent off of the REIT.

 

Now that is oversimplified and the absolute best case scenario, but you get the idea

 

trust me, there wouldn't be a ton of interest earned on the REIT in your scenario. i originally planned on working for a year, and then putting at least 20% down on our house---but i had just started my job, and my wife couldn't wait to get out of the house we had been renting for 8 months--it was miserable with 3 kids.

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