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Great mortgage brokers that you used
« Last edited by yesitsme on October 08, 2021, 02:06:12 AM »

Author Topic: Any mortgage experts on the forums?  (Read 89926 times)

Offline Galitzyaner

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Re: Any mortgage experts on the forums?
« Reply #440 on: March 28, 2022, 03:51:07 PM »
Most you'll save are fees. The insurance rates are the same across the board.
Those fees accumulate to more than a few dollars.

From my personal practice, go with whichever company your lawyer tells you to use
I'm not a goylam.

have your lawyer negotiate the fees. In most instances the title agency will waive many of the fees if they have an ongoing relationship with the lawyer.
Interesting, I was unaware. Will inquire. Thanks!

Offline AsherO

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Re: Any mortgage experts on the forums?
« Reply #441 on: March 28, 2022, 04:02:49 PM »
Most you'll save are fees. The insurance rates are the same across the board. From my personal practice, go with whichever company your lawyer tells you to use and have your lawyer negotiate the fees. In most instances the title agency will waive many of the fees if they have an ongoing relationship with the lawyer. 

Explains why my lawyer quoted me a rate that included a $350 title search with the title company of his choice.
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Offline hvaces42

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Re: Any mortgage experts on the forums?
« Reply #442 on: March 29, 2022, 07:14:06 AM »

I'm not a goylam.

Nope. Your a cheap Galitzyaner.  ;D
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Offline schneury

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Re: Any mortgage experts on the forums?
« Reply #443 on: March 29, 2022, 10:34:44 AM »
Anyone here familiar with the Community Reinvestment Act?
Which banks besides First Republic offer it in NY?

Offline my08701

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Re: Any mortgage experts on the forums?
« Reply #444 on: March 29, 2022, 10:43:16 AM »
Explains why my lawyer quoted me a rate that included a $350 title search with the title company of his choice.
it is very possible he included the $350 fee for their closing fee. What attorney's have done over the years is have the title company do the actual settlement. what they gain is 1. they save their own staff not doing the closing 2. charging you the same inflated fee, but the client not realizing that the $350 is an additional fee to their inflated fee. so they can charge the same $1,500 or $2,000 without going up because most do not realize the $350 is what should be included in their fee :(

Offline Fish Tank

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Re: Any mortgage experts on the forums?
« Reply #445 on: April 08, 2022, 12:03:59 AM »
Any recommendations for a bank/broker for a land loan?

Thanks.

Offline AsherO

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Re: Any mortgage experts on the forums?
« Reply #446 on: April 08, 2022, 12:27:59 AM »
it is very possible he included the $350 fee for their closing fee. What attorney's have done over the years is have the title company do the actual settlement. what they gain is 1. they save their own staff not doing the closing 2. charging you the same inflated fee, but the client not realizing that the $350 is an additional fee to their inflated fee. so they can charge the same $1,500 or $2,000 without going up because most do not realize the $350 is what should be included in their fee :(

Makes sense, but I still feel like I got a decent value for my $$
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Offline AsherO

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Re: Any mortgage experts on the forums?
« Reply #447 on: April 08, 2022, 12:28:55 AM »
Any recommendations for a bank/broker for a land loan?

Thanks.

Commercial or residential property (zoning)?
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Offline Fish Tank

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Re: Any mortgage experts on the forums?
« Reply #448 on: April 08, 2022, 11:08:31 AM »
Commercial or residential property (zoning)?
Residential.

Offline am7734

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Re: Any mortgage experts on the forums?
« Reply #449 on: April 08, 2022, 11:12:26 AM »
Residential.
Is this acquisition or refinance? You looking for conventional financing or bridge? Where is the land located?

Offline Fish Tank

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Re: Any mortgage experts on the forums?
« Reply #450 on: April 08, 2022, 11:19:52 AM »
Is this acquisition or refinance? You looking for conventional financing or bridge? Where is the land located?
Acquisition of small piece of property located in NJ. Bridge is fine.

Offline jackofall

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Re: Any mortgage experts on the forums?
« Reply #451 on: May 24, 2022, 07:02:46 PM »
If someone can explain, why when you make an extra mortgage payment, the interest savings on your mortgage will be greater that the prepayment amounts interest rate.
For Example. I take out a convetianl of $500K 30 year mortage at 5%. If on the first day of the loan, I make an extra payment of $50K, my savings on the life of the loan is greater than $50k*5%*30 years.
This is 100% true, I just do not understand why. Any help would be appreciated.
In the above example. interest for the life of the loan with no prepayment is $466,278. With a payment of $50K on day 1, it reduces your interest by $141,490. However, A $50K investment at 5% (a la a CD) for 30 years returns only $75K.

I have 2 theories. The increase savings, is either becuase of compaond interest or becuase you prepaid off your principal you are "ahead" with teh lender so they owe interest on some money.
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Offline am7734

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Re: Any mortgage experts on the forums?
« Reply #452 on: May 24, 2022, 07:07:58 PM »
If someone can explain, why when you make an extra mortgage payment, the interest savings on your mortgage will be greater that the prepayment amounts interest rate.
For Example. I take out a convetianl of $500K 30 year mortage at 5%. If on the first day of the loan, I make an extra payment of $50K, my savings on the life of the loan is greater than $50k*5%*30 years.
This is 100% true, I just do not understand why. Any help would be appreciated.
In the above example. interest for the life of the loan with no prepayment is $466,278. With a payment of $50K on day 1, it reduces your interest by $141,490. However, A $50K investment at 5% (a la a CD) for 30 years returns only $75K.

I have 2 theories. The increase savings, is either becuase of compaond interest or becuase you prepaid off your principal you are "ahead" with teh lender so they owe interest on some money.

Your 50k * 5% * 30years is not accounting for amortization.

Offline skyguy918

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Re: Any mortgage experts on the forums?
« Reply #453 on: May 24, 2022, 07:19:21 PM »


If someone can explain, why when you make an extra mortgage payment, the interest savings on your mortgage will be greater that the prepayment amounts interest rate.
For Example. I take out a convetianl of $500K 30 year mortage at 5%. If on the first day of the loan, I make an extra payment of $50K, my savings on the life of the loan is greater than $50k*5%*30 years.
This is 100% true, I just do not understand why. Any help would be appreciated.
In the above example. interest for the life of the loan with no prepayment is $466,278. With a payment of $50K on day 1, it reduces your interest by $141,490. However, A $50K investment at 5% (a la a CD) for 30 years returns only $75K.

I have 2 theories. The increase savings, is either becuase of compaond interest or becuase you prepaid off your principal you are "ahead" with teh lender so they owe interest on some money.

You're not saving 50k*.05*30. You're saving 50k*(1.05^30 - 1). In other words, compound interest.

Offline jackofall

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Re: Any mortgage experts on the forums?
« Reply #454 on: May 24, 2022, 07:20:21 PM »

You're not saving 50k*.05*30. You're saving 50k*(1.05^30 - 1). In other words, compound interest.
Thanks
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Offline jackofall

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Re: Any mortgage experts on the forums?
« Reply #455 on: May 24, 2022, 07:21:45 PM »
Your 50k * 5% * 30years is not accounting for amortization.
You didn't understand the question.
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Offline AsherO

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Re: Any mortgage experts on the forums?
« Reply #456 on: May 24, 2022, 07:38:12 PM »
You didn't understand the question.

I think he did.

Basically, in your example of a $500k 30yr at 5%, because of how the loan amortizes you make 360 equal monthly payments of approximately $2684/month, which totals to approximately $966,240, almost double the loan amount. If you paid down $50k on day one then you’re effectively borrowing only $450k, and the payments for a $450k 30-year loan only add up to approx $869,760.
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Offline skyguy918

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Re: Any mortgage experts on the forums?
« Reply #457 on: May 24, 2022, 07:58:24 PM »
I think he did.

Basically, in your example of a $500k 30yr at 5%, because of how the loan amortizes you make 360 equal monthly payments of approximately $2684/month, which totals to approximately $966,240, almost double the loan amount. If you paid down $50k on day one then you’re effectively borrowing only $450k, and the payments for a $450k 30-year loan only add up to approx $869,760.
The answer to the question has nothing to do with amortization. What you explained is all true, but it doesn't answer the difference between the $50k*.05*30 in the OP's question and the actual interest savings. The difference is that the former is simple interest, while the latter is compound interest (what a mortgage is based on).

Offline jackofall

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Re: Any mortgage experts on the forums?
« Reply #458 on: May 24, 2022, 09:04:02 PM »
The answer to the question has nothing to do with amortization. What you explained is all true, but it doesn't answer the difference between the $50k*.05*30 in the OP's question and the actual interest savings. The difference is that the former is simple interest, while the latter is compound interest (what a mortgage is based on).
Correct. There are 2 components to a loan payment. Principal and interest. The principal gets amortized, or split up, over the life of the loan. It makes no difference,  regarding the principal, when I pay principal back. It only makes a difference regarding the interest.
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Offline am7734

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Re: Any mortgage experts on the forums?
« Reply #459 on: May 24, 2022, 09:21:22 PM »
https://thefinancebuff.com/is-home-mortgage-simple-interest-or-compound-interest.html

I think this explains it properly but I'm no math wizard.
TL;DR "...a typical home mortgage with amortized payments behave[s ] more like a compound interest loan, but it doesn’t make it one. The compounding effect comes from varying principal payments, not from compounding interest."