Skip to main content

My agent changed lenders without my permission? Not sure it's an upgrade?

Before I tell the story, let me propose two loans and see which is better to see if this is actually a great deal (rates are sky high because property is not eligible for standard loan).....

Loan 1: 8.5% 30 year fixed $2076.07 P&I

Loan 2: 7.625% 30 Year 7/1 ARM (rate can fluctuate 2.625-12.625% after 7 years) $1911.04 P&I

Difference in monthly cost: $165.03

Cost to close is $4,246.52 more for loan 2

Is one of these inherently vastly superior to the other?

-------

As for the story...

I'm buying a property which is not eligible for a standard loan (it's a non-warrantable condo in a big city. I looked at a lot of places and pretty much none of the condos I would want would be eligible for a standard loan). I was all set to go with loan 1 but I was a little annoyed at the high APR because prior to looking at condos I thought I could get a standard loan and rate but after tons of research, that's just not true for anything I want. Not a big deal in the end, it is what it is.

Realtor calls me the other day and says great news, he found a new lender and the rate will go down almost a full point so I was happy enough with that but didn't think to ask questions (I am in Europe and it was like 1 AM when he called).

I started going through the stuff the new lender was sending me and realized I needed a new appraisal (annoying, but I'm saving so it seems okay). Then I got the disclosures and started to review it. The new loan is an ARM. It's fixed for 7 years but I've always avoided ARMs. I will be selling an investment property in the next 6-12 months (my lender/agent don't know I intend to do this since it's irrelevant) and I have enough equity to pay off this new mortgage, but I'm not sure I want to do that.

I'm sort of unsure if this "way better" loan is actually much better at all. Interest rates are high now and might go down but if the goal is to refinance in the future, doesn't it make sense to pay less upfront now since it costs money to refinance? The $165.03 I'm saving is offset by the $4246.52 I'm paying upfront and I wouldn't actually be ahead until month 26.

Thoughts?

submitted by /u/Substantial_Ad_2864
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1aml0bw/my_agent_changed_lenders_without_my_permission/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Making offers on houses not listed for sale.

I want to buy a home for retirement. I am looking at lots of options, mostly focusing on the locations that appeal to me. I see lots of Zillow estimates of homes that look like great deals to me. Are these estimates accurate, even though similar houses in the same area that are for sale are usually priced much higher? If so, is it realistic for me to try to make offers to owners that do not have their homes listed? Would a realtor even consider helping me do this? Or, do these values indicate that the houses listed for sale are overpriced, and I should just lowball until someone accepts? Are houses today tending to sell far below list prices, or ??? submitted by /u/chewybrian [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1o4mcon/making_offers_on_houses_not_listed_for_sale/
Post a Comment
Read more