Sounds like a combination of your DTI and future LTV affecting things now. It’s really not much more different than saying you’re selling house #1 to buy house #2, and managing that contingency.
Your challenge will be to find a renter that’s willing to meet your terms and timing, while being able to provide all the cash upfront. If you’re going to be a first time landlord in CA, I’d look up the pros and cons before heading down that path. CA is more renter-friendly than landlord-friendly.
You can also make your purchase contingent on renting your current home, but it will be hard to find a seller willing to accept those terms. It is a buyers market so it might not be that hard.
Looking to refinance condo in MD from 30 years fixed to 15 years fixed. Any leads to brokers working with MD? PM please.
Odds are, you’ll just face a higher rate. Better to just make extra payments.
I’m at over 7% now for 30 years, don’t ask how and why. Any leads please? PM.
Check out bankrate. Contact your local banks. Check local credit unions. 7% for 30 years? Yikes!
Check out American Federal Mortgage out of NJ. The guy I know doesn’t do MD but others in the company might. Best rates I’ve seen and a few family members have used them.
Lenders are all over the place. People move from company to company. One buys another out. It’s a massively churning market with little stability. Brokers are good at shopping around but take a cut. There are huge differences in underwriting speed and competence. Once you sign, your loan may be sold off quickly. Rates shift constantly. It’s the wild west.
Point Breeze CU, 6%, 15 years
My advice..don’t do it! You’re actually better off paying more money every month than refinancing. Typically, you’ll spend $7k on a refi and it’s not money going into your mortgage. Just pay the extra every month/quarter/year and the loan will accelerate quickly. One extra payment per year drops the term from 30 years to roughly 24 years, so it’s basically 24 extra payments over the life of the loan. If you did four extra payments per year, you’ll pay off your mortgage in roughly 16 years.
Now if you want to do a cash out refi or you’re currently in a subprime loan, then definitely refi. Call your current mortgage holder/bank first and see what they offer you. Many will offer drastically reduced closing costs for existing customers
Whether a refi is worthwhile depends on the specific deal and your desired ROI. Yes, spending an extra payment a year or an extra every six months etc can be good too. 7% is a pretty crap rate historically.
There really is no substitute for shopping based on what the market’s doing for your situation, location, etc. right now.
Once I refinanced two places at once and had to use two different companies to get the best deal on both.
I’ve also never used the same place twice.
With that said, I still would start at Zillow Mortgage Rates Compare Today's Current Mortgage Rates | Zillow, which is where I’ve ultimately found most of the places I’ve ended up using.
Appreciate all responses, will follow CU and Zillow route.
Opening escrow today and just curious what rates people are seeing recently.
At 10.01% down and with a loan amount of over $1m it’s been tough to get any ARMs but Wells fargo right now is the only place that priced out a 7/6 arm for me at a favorable rate.
Working with a broker and have also contacted Penfed (they’re 30 year was slightly better than wells fargo, but barely).
Any other suggestions?
If you’re in CA, and you keep the bulk of your liquidity with WF already, they will be tough to beat.
Anyone try one of those Home Equity Agreement deals?
Basically loan sharking a portion of your equity for a hamburger today that you pay for on Wednesday in 10/20/x years from now.
It would be nice if the repayment lowered your tax basis (by reducing equity by that amount) but I guess if you use it for home improvement that does the same thing.
I looked at a few to see terms, the % of equity is so high compared to how much you get.
When I was getting the loans, ARM wasn’t better than 30 year fixed. What rates are you seeing?
At 25% down, 6.5% rate should be doable with some lender credits ($1k). With 10% or 20% down, you’ll have to pay a few thousands Fees (0.5 Points) for 6.5% rate.
In a professional capacity I’ve worked with fintechs who do this.
From a consumer standpoint I’d want a clear understanding of what happens when you try to sell, and the company that put the lien on your home has gone out of business, and no one can figure out how to identify and contact and pay off the entity that is essentially the co-owner of your house.
I’m buying a house now, 5.49% 5/1 arm with very low PMI and lender fees. Local credit union.