| Author |
Previous Topic | Next Topic |
|
Karen Cas
1 Posts |
 Posted - 02/07/2005 : 3:31:53 PM
|
Hi,
I'm new in this business & am asking for help. Here's the scenario.
Cash Out Equity:
100% Stated, self employed or wage earner, Mid Fico 676.
Purchased SFR: 7/04 for $279,900. He made DP of $55000. (approx), loan amt. was approx $239,000. Current PITI $1764.52 mo. Current interest rate: 7.25% ARM. No appraisal as of yet, but the home is worth approx $300,000. currently.
The issue I have is this- I don't know if a cash out with refi or a he-loc is better for this client. (This client is a relative so I'm not trying to make money. I want their total payments to be as low as possible, while they will have at least $35000. pocketed after fees).
From Express Capital Lending I have this:
1st-70% at 5.375% 3/27 with 1 yr prepay. The 2nd is a closed in 2nd-25% at 10.875% 30 yr fixed.
I used someone's blended calculation from this site and I came up with 6.39% interest rate-is this correct?
I need help from a few "heavy hitter loan officers" cause I don't know how to go about this.
Thank U
|
|
|
|
Darin Ferraro
7813 Posts |
Posted - 02/07/2005 : 5:24:18 PM
|
Hi Karen, If he has an ARM already then refinancinging him into a lower rate arm is already beneficial to him, even with the cash out. Keep in mind you are only 7 months in, so make sure your lender does 6 month seasoning on refinances using the current appraisal price. (I dont use express cap, so not sure). Being only 7 months, your choices for helocs may be limited as well, since most require 1 year seasoning.
The rate you are quoting seems good for a stated loan combo regardless of all other parameters. Also keep in mind since you are not making YSP on the loan, you can use available equity to buy down the rate to the maximum the lender allows, which will reduce his rate even more (if the one you quoted is par).
If it were my family member, depending on what they wanted the money for, I would try and refinance them into a lower rate, buying down points. However, you should compare the 6 month seasoning lender rates to 12 month standard seasoning rates and see if it may be worthwhile for them to wait another 5 months before refinancing.
|
|
|
dmyers
170 Posts |
Posted - 02/25/2005 : 07:56:29 AM
|
676 mid stated 80/20 cash-out refi and at least 6 month seasoning
5.1%@par 80%LTV for 2/28 or 3/27 ARM hard pre-pay
9.99%@par 20%LTV 30/15 no pre-pay
Blended rate is 6.1%
|
|
|
| |
Previous Topic | Next Topic |
|
|
|
