How low can we go? 30 yr fixed at 3.75% with no fees...
- Thread starter ps99472
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NEW -> Contingent Buyer Assistance Program
A friend of mine has a rental for many years bought with owner occupied mortgage. He did not wait 12 months, rented it right away. Never notified lender and lender never bothered to check.
The key point to the legality of it is "intent" when you applied for the mortgage.
It's damn hard to prove intent.
You can start a new thread about this or anything you see fit, but this discussion actually is all about interest rates. The reason people choose to do is because of the lower rates they get out of it. Some people do it intentionally and some people do it because they actually don?t know. Since we?re having historical lower rates, more people could be buying investment properties so this discussion can be helpful (or harmful) to know the legality of it.
I agree, from a criminal standpoint intent is harder to prove, but from a lender-calling-the-note standpoint the occupancy status is all that matters. If you are in violation of the occupancy requirement, you are in technical default and foreclosure proceedings can begin. Some lenders/servicers make more of an effort to check occupancy than others.
As you know, some lenders care very deeply about monitoring their risk, and others could care less. Subprime lenders back in the day were content to look the other way, but a portfolio loan at a medium-sized bank might receive more scrutiny.
It's unlikely a criminal proceeding would occur unless there was a pattern of fraud. One borrower with multiple owner-occupied mortgages taken in a short amount of time would indicate intent and be easier to prove.
I don't think we'll breach a 3% 30-fixed rate at no points.
irvinebullhousing
Well-known member
Bank cares when you not making obligation.
Don't fall behind on your mortgage.
Don't fall behind on your mortgage.
So after a year, it?s totally fine to rent it out without letting the lender know? Then how did I fail, eyephone?
BTW, I?m not encouraging anyone to commit the mortgage defraud. I?m just asking what is illegal and what people actually do. LL has provided the clearest answer on that so far.
BTW, I?m not encouraging anyone to commit the mortgage defraud. I?m just asking what is illegal and what people actually do. LL has provided the clearest answer on that so far.
Mety said:
A friend of mine has a rental for many years bought with owner occupied mortgage. He did not wait 12 months, rented it right away. Never notified lender and lender never bothered to check.
The key point to the legality of it is "intent" when you applied for the mortgage.
It's damn hard to prove intent.
eyephone said:
You can start a new thread about this or anything you see fit, but this discussion actually is all about interest rates. The reason people choose to do is because of the lower rates they get out of it. Some people do it intentionally and some people do it because they actually don?t know. Since we?re having historical lower rates, more people could be buying investment properties so this discussion can be helpful (or harmful) to know the legality of it.
Liar Loan
Well-known member
Kenkoko said:
I agree, from a criminal standpoint intent is harder to prove, but from a lender-calling-the-note standpoint the occupancy status is all that matters. If you are in violation of the occupancy requirement, you are in technical default and foreclosure proceedings can begin. Some lenders/servicers make more of an effort to check occupancy than others.
As you know, some lenders care very deeply about monitoring their risk, and others could care less. Subprime lenders back in the day were content to look the other way, but a portfolio loan at a medium-sized bank might receive more scrutiny.
It's unlikely a criminal proceeding would occur unless there was a pattern of fraud. One borrower with multiple owner-occupied mortgages taken in a short amount of time would indicate intent and be easier to prove.
Irvinehomeseeker
Active member
Looks like 30 yr fixed rates are heading lower again...got a quote from cashcall for 3.375 fixed at 775$ (promo until tomorrow). Owning.com also advertising 3.375.
Irvinehomeseeker
Active member
3% at no cost for 30 yr fixed may be possible in early part of 2020 for refi?
sgip
Well-known member
It's possible to see 3.0% for some out of pocket costs. I have a customer being quoted - real or not - 3.125 Jumbo Conforming for about $4,000 in closing fees. As I tell everyone in the refinance game "phone quotes aren't worth the paper they are printed on" which this was in this case. Yes, the TI readership base does not want to pay closing fees, but if we don't see 3.125 for zero fees, perhaps it was worth it to pay the $4k.... one never knows. Remember each owner has their own specific needs and wants and paying closing costs can make sense in unique situations.
There is a cost of funds and a cost to produce / service loans. At some point in time we will see banks not breaching a specific rate threshold as investors don't want to push money into a financial resource that can't keep up with inflation. I believe we are getting close to that "red line" at present.
We shall see...!
My .02c
There is a cost of funds and a cost to produce / service loans. At some point in time we will see banks not breaching a specific rate threshold as investors don't want to push money into a financial resource that can't keep up with inflation. I believe we are getting close to that "red line" at present.
We shall see...!
My .02c
irvinehomeowner
Well-known member
Seems like election years gets pretty low rates. Time to start looking.
I have friends and family in the mortgage business but I'm uncomfortable going to them for a refi.
I think I'm still irritated when one of my immature relatives was working in underwriting for a bank, saw my name and then told my other relatives how much we make.
I have friends and family in the mortgage business but I'm uncomfortable going to them for a refi.
I think I'm still irritated when one of my immature relatives was working in underwriting for a bank, saw my name and then told my other relatives how much we make.
usctrojancpa
Well-known member
Soylent Green Is People said:
I don't think we'll breach a 3% 30-fixed rate at no points.
irvinebullhousing
Well-known member
I agree that at some points, investors would have no interest in investments that yield little to none above long term inflations rates.
There will be a cost, or should be a cost for doing business.
No ones works for free.
There will be a cost, or should be a cost for doing business.
No ones works for free.
Irvinehomeseeker
Active member
Decided to refi with Cashcall for 3.25% APR for 30 yr fixed. Was able to get fee waived as I am repeat customer with them. Filled out application just now.Based on past experience, their process has been very streamlined....Hope it will be the same this time around.