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donovan231
27 Posts |
 Posted - 08/27/2008 : 8:46:33 PM
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| Just curious if any wholesale, or retail for that matter can touch this rate. I'm in a retail bank and from what I hear we are one of the few left that actually have Jumbo Stated. |
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SoCalRay
2698 Posts |
Posted - 08/27/2008 : 9:11:31 PM
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yes it is still available
I can help on California |
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peter
4543 Posts |
Posted - 08/27/2008 : 9:27:22 PM
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John, what retail bank is that. I would like to refi
my own home at that rate. I am being offered 3.99% by
Charles Schwabb on full doc jumbo for L/A $742,000 but
it is a heloc in the 1st position, but with absolutely
no closing costs (Schwabb also pays for the appraisal).
Thanks,
Peter
E-mail: silomtip@yahoo.com |
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dkendall1979
10147 Posts |
Posted - 08/27/2008 : 10:11:32 PM
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Peter, if you'r margin is fixed at 1.11 under prime (which doesn't sound right), take the deal.
Do you really see prime going up to 7% anytime soon?
quote:
Originally posted by peter
John, what retail bank is that. I would like to refi
my own home at that rate. I am being offered 3.99% by
Charles Schwabb on full doc jumbo for L/A $742,000 but
it is a heloc in the 1st position, but with absolutely
no closing costs (Schwabb also pays for the appraisal).
Thanks,
Peter
E-mail: silomtip@yahoo.com
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peter
4543 Posts |
Posted - 08/27/2008 : 10:49:21 PM
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David, I did apply with Charles Schwabb as well as with
Merillyn Lynch. Charles Schwabb is offering Prime minus 1.01
while Merillyn is offering Prime minus 0.75. Waiting for
approval this week. All no closing costs. Zero out of my
pocket. Merillyn has Stated Income which Charles Schwabb
doesn't have. Mine is full doc and my heloc will be in the
1st position paying off a B of A 3/1 at 5.125% I/O. 70% LTV.
Not only will I save on the closing costs, and I will save
on monthly cash flow as I don't see the Prime going up
anytime soon. Even if it did go up, normally as an outcome
of the Fed increasing the fed fund rate, by a quarter and
4 quarters per year till end of 2008, I will only be hit
with 4.99% at max. Since Heloc 1st has no prepay, no
annual fee, etc, I can always refi into a fixed 3/1 or 5/1 I/O
at that time when the rate parity justifies the switch.
Standalone helocs at Charles Schwabb and Merillyn Lynch
are the most cost-effective helocs that I know off, but we
brokers cannot broker them. They only offer at retail.
They sure beat B of A heloc rate and the heloc rates of all
the banks that I have shopped around.
Peter
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dkendall1979
10147 Posts |
Posted - 08/27/2008 : 10:59:47 PM
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1.01 - my math was a bit off :)
run with the offer Peter. It's about as solid as you're gonna get.
Even if prime went up to 6% over the next couple years, you're still way ahead of the game. |
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peter
4543 Posts |
Posted - 08/27/2008 : 11:18:53 PM
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Thanks, David. I thought so too.
Peter |
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donovan231
27 Posts |
Posted - 08/28/2008 : 06:30:22 AM
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| That 3.99% sounds like a really good deal. However, since you can go full doc, I'll look up the rate when I get to work. I'm guessing the 3/1 IO full doc is probably around 5.625% paying a point or 5.875% no points, but you would still have around 3k closing costs. |
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dkendall1979
10147 Posts |
Posted - 08/28/2008 : 06:33:39 AM
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| I'm also curious to see if they'll request you move your money over, Peter? |
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meridian1
375 Posts |
Posted - 08/28/2008 : 08:28:34 AM
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| +1 |
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peter
4543 Posts |
Posted - 08/28/2008 : 11:20:16 PM
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John, 3K closing costs are very reasonable and if I could
get 5/1 I/O at less than 5.00% I would take it. Mine is
5.125% 3/1 I/O with B of A, but I can do better by getting
3.99% with Schwabb and using the saved stream of cash flow
to merely book a 7-month WAMU CD now being offered at 5.00%.
So, the difference between 5.00% and 3.99% is my speculative
gain without having to use any brains.
When the costs of money is 3.99%, you can do a lot of
things short term with currency funds, stock funds, commodities,
etc. and as long as you have the cushion of liquidity you
should not be afraid that the Prime will move up as history
since Greenspan shows that Prime usually goes up one notch
at a time -- just a quarter over 3 months.
Indeed, I want to buy some REO with 3.99% Heloc in the
1st position. Kept it for one=two years before Prime goes up and
sell it if the market timing is right. There are some
cheap REO condos in Los Angeles that can go as low as
$150,000 on a 1/1 and can be rented out for $1,400 a month,
while your cost of money at 3.99% is only $478.80 a month
(assuming 80% heloc and 20% down). Therefore, I advocate
the use of no closing costs heloc 1st to finance your REO
purchases if you plan to flip them after 1-2 years. Doing
the math, you can get a positive cash flow right away.
Tell me if you think otherwise. I have learned more
from contrarian views.
Peter |
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KHufford
5940 Posts |
Posted - 08/28/2008 : 11:26:25 PM
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Peter, I am curious how Schwab and Merrill work with thier mortgage programs. Both companies are in my building and I am thinking of approaching them for some of my affluent clients super jumbos...I am always trying to add local bankers to my mix.
How do they work? I assume they want at least the minimum depository account to be opened? Do they have general guidlines or more case by case based on the clients net worth?
And I dont care about the retail thing, I just submit a broker demand.
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tommydon
177 Posts |
Posted - 08/29/2008 : 09:45:55 AM
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So who is doing Jumbo Stated at that rate
Retail or Wholesale
Its not UBOC or Luther |
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peter
4543 Posts |
Posted - 08/29/2008 : 5:44:18 PM
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Kyle, Charles Swabb does not require an account to be opened with them.
Just go into their website and apply there.
Marilyn Lynch will require that you open a minimum $5,000 account
with them prior to applying for a Stated Income Heloc, but if you apply
for a full doc you don't need to apply for that account.
Both Charles Schwab and Meriyn Lynch have websites on which anybody
can apply for a heloc. All you need is to call them and ask them to
connect you to the Heloc depatment.
They do require that your borrower be the one to give them the application
verbally and since your borrower will be informed that there is no closing cost
to them, but if your borrower will still pay you a service fee thru a broker
demand that fee cannot be put on the final Hud-1. They do allow an outside
escrow agent in some cases, and it's up to you how to arrange to get paid
on your service fee thru escrow with your broker demand but it cannot appear
on the final Hud-1.
Wonder if any escrow agent could do this outside Hud-1 without being in
violation. Any thing paid outside Hud-1 could be considered money laundering
and not normal escrow closing! Am I not right on this, Kyle? Please tell me
your contrarian view.
Peter |
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KHufford
5940 Posts |
Posted - 08/29/2008 : 5:54:20 PM
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Hmm.. I will go over there next week and talk to them..I will let you know what they say. Maybe because we are neighbors they will "hook a brother up"!
Thanks for the info. Do they only do HELOCS though? What about super jumbo loan amounts?
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peter
4543 Posts |
Posted - 08/29/2008 : 6:08:33 PM
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Kyle, they only do helocs in 1st or 2nd. They do high jumbo loans too,
but not sure up to what loan amount.
Peter
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