lendingmaestro_IHB
New member
Ahh I got suckered into posting a response to thoughtful.
endingmaestro Says:
April 17th, 2008 at 11:22 am
First of all, Thoughtful, you are retarded. Do you actually originate loans, or are you just reading some mortgage filing reports? Do you not know the difference between LTV and CLTV????? You do know that 1st and 2nd mortgages can be held by different companies. And an interest only loan DOES NOT have the same risk characteristic as a conforming (by that I think you meant P&I;payment) loan program. You seem to not grasp the concept that paying principal down helps to LOWER your LTV.
You must not have heard of Chevy Chase, Paul Financial, Or First Federal? These option arms very frequently have margins above 3.0. Mortgage brokers get paid by jacking up your margin. ?Hey come on in and get your option arm with a 3.55 margin..errr?.I mean come on in and get your FREE LOAN! NO CLOSING COST!
LarryP, I have originated many 5 and 7 year fixed LIBOR option ARMS as well. They were at a better rate than the MTA loans for a while. The fully amortized rates were usually between 6.5%-7%. The problem is most people still make the minimum payment though and will recast BEFORE the interest rate adjustment. These people cannot afford to make the full P&I;payment over a long period of time, like 6 months in a row w/o depleting their savings.
endingmaestro Says:
April 17th, 2008 at 11:22 am
First of all, Thoughtful, you are retarded. Do you actually originate loans, or are you just reading some mortgage filing reports? Do you not know the difference between LTV and CLTV????? You do know that 1st and 2nd mortgages can be held by different companies. And an interest only loan DOES NOT have the same risk characteristic as a conforming (by that I think you meant P&I;payment) loan program. You seem to not grasp the concept that paying principal down helps to LOWER your LTV.
You must not have heard of Chevy Chase, Paul Financial, Or First Federal? These option arms very frequently have margins above 3.0. Mortgage brokers get paid by jacking up your margin. ?Hey come on in and get your option arm with a 3.55 margin..errr?.I mean come on in and get your FREE LOAN! NO CLOSING COST!
LarryP, I have originated many 5 and 7 year fixed LIBOR option ARMS as well. They were at a better rate than the MTA loans for a while. The fully amortized rates were usually between 6.5%-7%. The problem is most people still make the minimum payment though and will recast BEFORE the interest rate adjustment. These people cannot afford to make the full P&I;payment over a long period of time, like 6 months in a row w/o depleting their savings.
