[quote author="jbatzmaru" date=1213583715][quote author="usctrojanman29" date=1213579314][quote author="jbatzmaru" date=1213575436][quote author="usctrojanman29" date=1213529434][quote author="partnersincrime" date=1213528540]I mean I know that there are several options here including a FHA loan and a 2nd mortgage. But I do not know if there are any other options and which is the best option generally. I know that the choices depend on various conditions, but if all things hold equal for a moderate income person, which is the bets option.</blockquote>
Bank of America offers a No Fee Mortgage Program where they pay for the appraisal, closing costs, and the PMI payment (max LTV for this loan is 90%).</blockquote>
read the detail in the bofa no fee mortgage. all they do is raise the interest rate to cover for the PMI and all the fee cost. so it all works out the same.</blockquote>
The rate is the same if the loan is 50% LTV or 90% LTV, but I do agree their rates are higher probably by about 1/2%. However, when you take into account that they pick up all of the closing costs and the appraisal (which are fixed costs), the effective rate becomes more and more competite as the loan amount is lower.</blockquote>
right now on their website it is showing 6.875 with a .86 of a point buy down for loan less then 417K. that is super high if you ask me. plus they don't pay for all closing cost. they only pay for some. maybe 2/3. a half point over 30 years is some serious money. with the rate going up more everyday.... just wait. because the price has not drop enough to justify the buy yet. IMHO.....</blockquote>
I never said they have the lowest rates, their rates are definately higher and most. However, when you take into account that they don't charge you any garbage fees (origination, underwriting, application, credit check, etc) and the fact that they pay for the appraisal and for the escrow, title, notary, flood cert, overnight shipping, and recording costs (the only thing they don't pay for is the prorations of property tax, prepaid interest, and any HOA fees) plus the PMI payment which is more like almost all of the closing costs to me. How do I know? Because I got their mortgage when I closed on my investment condo back in March and I can send you my HUD1 closing statement so you can see for yourself. Their loan becomes more and more attractive as the loan amount decreases because many of the costs they pay for are fixed and I'd probably go with another lender if the loan was over let's say $350k+. Why don't you go onto Wachovia's or Well's website and check out the stupid garbage fees those banks charge...you have to look at the entire package and not just the rate. Also, the smart thing to do with these REO properties is to ask the banks to kick you back money for closing costs which you can use to buydown the interest rate as you won't have any other costs to close.