Quote:
Originally posted by DrewKole
.5 to 1 point buydown...
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Ok, so you are telling me that you are paying .5 to 1 DISCOUNT POINTS to get a 5% interest rate. I'm reading this into what you are saying because otherwise it just doesn't make sense. If you knew any better, you would have said this from the beginning. You are NOT buying down the rate, that is a different thing altogether. Paying discount points for a good rate is a good idea, I did it with my house. But paying to buydown the rate isn't since a true "buydown" is a temporary fix. I did alot back in the mid 80's when rates were in the 10's and up and people didn't qualify. I still don't buy that you will only pay 1 point to get 5% on a 30 year fixed, but whatever.
Also, in-house, big time bank, whatever. The loan still has to be sold on the secondary market. And to be sold, you have to meet certain criteria. The only way to get around that criteria is for your parents company to keep that loan on the books as "unsaleable". The secondary market demands higher fees (1.50% add) for investment property loans as they are more risky. They won't let you streamline refinance an investment property, because there is too much risk. On a Streamline, you don't have to provide income documentation or even have a credit report, and most times not even an appraisal. These are FNMA/FHLMC standards carried by every lender in the industry, NOT just commercial banks, because again, they all have to sell their loans.
It's all just scemantics. I know buydown to mean one thing and you think it means another. Sixteen years processing, underwriting, training, writing policy and procedure, dealing with investors and creating mortgage software kind of makes me passionate about my work. If you want to argue points, fine, I'll take on you or anyone else out there. But if you want to argue intelligently, then learn the correct use of the industry terminology.
And yes... this is AMP's boyfriend you are talking to.