Mortgage question

[devilsfan]

We're applying for a jumbo loan. Can anyone offer advice on going with an established bank versus a private mortgage company?

Stacy

[CO Hummer]

We're applying for a jumbo loan. Can anyone offer advice on going with an established bank versus a private mortgage company?

Stacy

What kind of advice? Why would it matter? Are you talking about being able to qualify or what?

[devilsfan]

No problems qualifying. We've always gone with bank financing in the past because of the stability of banks. We got a good deal with Bank of America, but we've been offered slightly better deals (3/4 %) with 2 private lenders who specialize in jumbos. I was wondering if there are any negatives with going with a private company versus a bank - ie, if the company folds, is bought out, etc.

Stacy

[KenP]

Contact Adam. I'm sure he'll set you straight.

[DRTYFN]

Yes!! Contact Brother Adam.:clapping:

[K9sH3]

Wheres Adam when you need him... Most def get with Adam in CO


Oh and I went with a private company over BOA Military branch.. Not a problem and I still have a great banking relationship with BOA

[CO Hummer]

X1000 on the Adam thing. But deal only with Amanda and the hot babe he sends to your house to sign the paperwork.


Who cares if you get money from a shaky lender? If they go out of business, what's the worst that can happen? You don't have to pay 'em back?

Wow. First I put DRTY out of business, then Adam. What's next?

[K9sH3]

Wow. First I put DRTY out of business, then Adam. What's next?

Loan me some money so I can put the guy I work for out of business, and build a better business than his......
That way you can have that credit too.....

:beerchug:

[CO Hummer]

Loan me some money so I can put the guy I work for out of business, and build a better business than his......
That way you can have that credit too.....

:beerchug:

I've been thinking about getting into the helicopter business. Right now, it's only a hobby.

[DRTYFN]

X1000 on the Adam thing. But deal only with Amanda and the hot babe he sends to your house to sign the paperwork.


Who cares if you get money from a shaky lender? If they go out of business, what's the worst that can happen? You don't have to pay 'em back?

Wow. First I put DRTY out of business, then Adam. What's next?
You forgot how you put Aubs out of business. You really are creative with those self portraits of yourself & the feather-dusters.:jump:

[K9sH3]

CO, These guys are my spotters and I want to keep them in business.

[Adam in CO]

Stacy,

I like what the retailers do business-wise, but it is expensive. Using a retail bank usually means less headache, lower costs and higher rates. Using a wholesale broker usually means more costs and paperwork, but far better rates. That's really the big difference between wholesale and retail in this business.

We usually find a break point of about 30 months. So, depending on how long you're going to keep the property or the loan is what should make up your mind about using a banker or a broker.

In a jumbo scenario, you'll probably save hundreds each month by getting 0.75% better in rate and get a far better long-run deal from a broker than you can from a bank. It would probably be worth using a wholesaler for that kind of savings.

If you want me to peruse any info and give you an objective expert opionion, don't hesitate to ask. I would always prefer that people get good data so they can make informed decisions.

Good luck.

[K9sH3]

:perfect10s:

See we told you he would come through for ya!!!

:beerchug:

[CO Hummer]

CO, These guys are my spotters and I want to keep them in business.

Clearly they need some training. I mean, if you look at that pic you'll see that many factors contribute to the total lift produced by an airfoil. Increased speed causes increased lift because a larger pressure differential is produced between the upper and lower surfaces. Lift does not increase in direct proportion to speed, but varies as the square of the speed. Thus, a blade traveling at 500 knots has four times the lift of the same blade traveling at only 250 knots. Lift also varies with the area of the blade. A blade area of 100 square feet will produce twice as much lift as a blade area of only 50 square feet. Angle of attack also has an effect on the lift produced. Lift increases as the angle of attack increases up to the stalling angle of attack. Stall angle varies with different blades and is the point at which airflow no longer follows the camber of the blade smoothly. Air density is another factor that directly influences lift.

[K9sH3]

Clearly they need some training. I mean, if you look at that pic you'll see that many factors contribute to the total lift produced by an airfoil. Increased speed causes increased lift because a larger pressure differential is produced between the upper and lower surfaces. Lift does not increase in direct proportion to speed, but varies as the square of the speed. Thus, a blade traveling at 500 knots has four times the lift of the same blade traveling at only 250 knots. Lift also varies with the area of the blade. A blade area of 100 square feet will produce twice as much lift as a blade area of only 50 square feet. Angle of attack also has an effect on the lift produced. Lift increases as the angle of attack increases up to the stalling angle of attack. Stall angle varies with different blades and is the point at which airflow no longer follows the camber of the blade smoothly. Air density is another factor that directly influences lift.

Why do I feel like I am listening to a "RedBull" comercial...

:jump:

At this point the guy would say "Simple little man, Redbull gives you wings".

[KenP]

Clearly they need some training. I mean, if you look at that pic you'll see that many factors contribute to the total lift produced by an airfoil. Increased speed causes increased lift because a larger pressure differential is produced between the upper and lower surfaces. Lift does not increase in direct proportion to speed, but varies as the square of the speed. Thus, a blade traveling at 500 knots has four times the lift of the same blade traveling at only 250 knots. Lift also varies with the area of the blade. A blade area of 100 square feet will produce twice as much lift as a blade area of only 50 square feet. Angle of attack also has an effect on the lift produced. Lift increases as the angle of attack increases up to the stalling angle of attack. Stall angle varies with different blades and is the point at which airflow no longer follows the camber of the blade smoothly. Air density is another factor that directly influences lift.

Unfortunately, there is no simple equation to compute the lift generated by a helicopter rotor in hover like there is for forward flight. Instead, we must rely on substantially more complicated methods like the Blade Element Momentum Theory or the Actuator Disk Vortex Theory. Both approaches involve complex jargon and even more complex mathematics that would require far more explanation than we have the time or space to discuss here (to emphasize the point, I have a 1,000 page book on the subject of helicopter theory!). In either case, we are not concerned with computing the lift so much as we are the power required to maintain hover and the thrust force generated by the rotor.
http://www.aerospaceweb.org/question/aerodynamics/rotor/rotor.jpg
Air being accelerated through a hovering rotor In order to generate this thrust, the rotor pulls air down through it, as illustrated above, acting just like an airplane propeller that has been turned 90?. The spinning rotor accelerates the air as it goes through the rotor disk creating a force that acts in the opposite direction. This upward force is the rotor thrust. If you think about it, since this "thrust" points straight up and is the only force counteracting the weight of the helicopter, this force is the lift.

[K9sH3]

they have added a new driving light up front and can see in the dark.

[Boss Hoss]

Stacy,

I like what the retailers do business-wise, but it is expensive. Using a retail bank usually means less headache, lower costs and higher rates. Using a wholesale broker usually means more costs and paperwork, but far better rates. That's really the big difference between wholesale and retail in this business.

We usually find a break point of about 30 months. So, depending on how long you're going to keep the property or the loan is what should make up your mind about using a banker or a broker.

In a jumbo scenario, you'll probably save hundreds each month by getting 0.75% better in rate and get a far better long-run deal from a broker than you can from a bank. It would probably be worth using a wholesaler for that kind of savings.

If you want me to peruse any info and give you an objective expert opionion, don't hesitate to ask. I would always prefer that people get good data so they can make informed decisions.

Good luck.


Stacy i heard this guy was a scammer and does not have any mortgage info but rather makes a fortune by selling your personal info to lendingtree.com and ditech.com...this is just what i heard :D


One other advantage Adam did not mention that a broker has over a bank is a variety of lending options. Generally speaking, retail banking institutions have their money and can only lend their money. This means they are limited to their product guidelines. Most brokers have access to over 300 banks money (ie, countrywide, wells fargo, bank of america) but on a wholesale level so they can be very competitive in rate and VERY creative in suiting your financing needs/goals. Your best brokers learn how to think outside the box(banks are stuck within the box) and can offer very creative terms. That being said, Adam knows his stuff--give him a call and i think youll be amazed at his abilites as a broker vs. a banker.

[CO Hummer]

One other advantage Adam did not mention

Adam,
He's forgetting the main advantage....

This is who Adam sent to my house to sign the paperwork:
http://www.jurgita.com/images_new/models/F/portfolio-picture/w422xh450/Erin--Kelley-29789-6.jpg

http://www.jurgita.com/models-id29789.html

[Dug]

No problems qualifying. We've always gone with bank financing in the past because of the stability of banks. We got a good deal with Bank of America, but we've been offered slightly better deals (3/4 %) with 2 private lenders who specialize in jumbos. I was wondering if there are any negatives with going with a private company versus a bank - ie, if the company folds, is bought out, etc.

Stacy

Stacy in your first question you said private mortgage company , and in another you said private lender. I just wanted to say , make sure your dealing with a licensed in your state "private mortgage company". If you go with a "private lender" as in a person, you run more risk of getting hosed. If you did go with a private lender "person" make sure your attorney reviews the contract. You dont want some language in the contract that slyly says if the lender gets a hair across there ass they can call the note for no reason. I am not a banker , but i have done alot of loans for deals and been to the school of hard knocks. Good luck. :beerchug:

[mikejr]

Basically what you need to do is get a GFE (good faith estimate) from a few lenders and make a decision based upon the total scenario.

You need to take a look at the closing costs, escrow requirements and naturally the rate that you will be paying.

Just be wary of the killer rates at they are usually making it up on the closing costs.

Also, you can NEGOTIATE the rate. Remember that the originating entity is going to make money on all the junk fees that they charge like underwriting, processing etc and they are also making money on what is called the yield spread....in other words....they "buy" the loan at 6% and "sell" you the loan for 6.5% and they get paid a commission based upon that difference in interest rate.

Remember that the vast majority of bank/mortgage brokers/mortgage bankers sell their loans in the secondary market. So there is a very high probability that you will not have your loan serviced by the entity that originated it.

I am speaking from 15 years of residential real estate brokerage experience. Also, try to stay away from the "online" banks. They are just too difficult to deal with.

Should you have any questions that you want to ask me in a more private forum, just PM me.

[devilsfan]

Thanks Dug - that was it. Adam clarified everything for me as well. We have a couple of options that ARE private lenders - ie, individual investors. We're going to stick with a private COMPANY or a bank, we're not willing to take that big of a risk.

We have quite a few quotes now, we've narrowed it down to 3 and are letting them play out a bidding war, basically.

Stacy