So your saying Propery Taxes, PMI, Insurance, and repairs won't equate to a possible 40% more than your Principal and Intrest?
So your saying Propery Taxes, PMI, Insurance, and repairs won't equate to a possible 40% more than your Principal and Intrest?
Originally Posted by civic95
Let me ask you something:
Why would "dry" weight of a car matter since it will NEVER run "dry"?
Reason I use that analogy is because we use PITI to QUALIFY, so why would P&I ALONE matter in the first place? We HAVE to use PITI, unless you waive escrows. Even then in most cases the UW will still factor in the amount to make sure you still qualify. So the only reasons to advertise P&I ONLY are: A: you are trying to mislead someone; or B: those are the only figures that matter to the prospective person. I see no other reason(s) that matter IMO.
So when we say, "You qualify for $_________ price house and your payment will be $_________/mo...".....We ARE talking about PITI, not just P&I.
This is why this lady is pissing me off because she assumes EVERYBODY is unscrupulous and tries to mislead their customer. That is NOT true.
Again, I don't think this is targeting lenders at all. This is just info for people before they ever visit a lender. Things some people would never think about. The smart thing to do is go to a lender first, before ever looking at a house, and see what you can get approved for, run numbers. Then, try not to buy a house at the top of your approved price range because that is just based off debt to income ratios.
Unfortunately too many people find the house first, then get a loan. And it's possible to get approved for more than you can afford.
Listen, I don't want to get in a big debate with you because it's not your article. But remember this: Who is it that LENDS money to people buying houses??? LENDERS. What am I? A LENDER. So therefore, I take what she is saying, which is false, seriously because it affects ME. So when she insinuates that people are only quoted P&I and are not told about MI and not told about repairs.....WHO do you think she is talking about? Firemen? Come on, you're smarter than that. She's pointing the finger right at me.
You are right about getting pre-approved before buying. It's the smartest thing to do.
dude... you got this of a non-realty , non-mortgage website???? This woman is not qualified to give this kind of information out.. bottom line..
I have 8 years experience in this field, own my own mortgage company and my entire family has been in the business for over 40 years.. I grew up in the business.....
now Jaimee.. Also has been in the business for several years as is his family.. he also owns his own company...
we are not some tom dick and harry just sitting here arguing with you for shits and giggles..
you are wrong here man.. we are trying to make that clear to everyone who might read this thread, not just you....... your wrong... if there is an expert in this field it is jaimee and I not this lady who writes columns for yahoo..
So stand your ground.. argue all you want.. but at the end of the day, its not the mortgage guy that misleads the public it is idiots like the person who wrote that article..
Im done arguing! have a good one man..
Latino Delegation Social and Events Coordinator
seems like i hear that figure of speach pretty often :confused:
Leisa and S. 4 Life NM?
So Jaime, when you see one of those ads that say if your paying $625 a month for rent then you can afford this house.Like the home superstore, etc.? What your out take on those ads?
Read the FINE PRINT.
There are always bullets (*) in every single one of those ads. It is illegal in the state of GA to advertise a payment w/o additional information, so it's got to be in there somewhere. It can be a mm tall, but it's got to be. As a matter of fact, we have to include not just the raw interest rate in there, but also the APR interest rate which is always different (unless you pay no out of pocket expenses at all) than the note rate.
Most of the time they post the "payment" part really big up top, only to tell you down below that the "payment" only applies to a $100k loan w/20% down on a short term variable interest or even interest only payment which does NOT include escrow payments. It's the same misleading advertising that car dealerships use. Is it mathematically possible, sure. Is it realistic, hell no.
Ads like these are the ones that allow numb nuts like the author above to have some fuel to their fire. This is why I loathe those idiots on the radio all the time talking about "don't pay closing costs....we make enough money over the life of the loan.....refinance over and over again.....biggest no brainer.....all those other guys are predators....." Those asses are the biggest scammers there are. Totally misleading information in order to keep his phone ringing. They run sweat shops instead of real mortgage companies. They have a call center that answers these phone calls from these ads only to pick the creme de la creme to try and get a loan for. It's a numbers game to them. If the phone rings 1000 times a day, they figure to get atleast a handful of loan aps out of it. Great service there, huh?
Enough of that. Point is that reality always trumps the uninformed.
Bottomline is that if it sounds too good to be true, the majority of the time it very well is. Consult with a real professional instead of people like this lady. Don't believe everything you read, without digging further and doing your own math FIRST. Ask questions. If the person you're talking to doesn't seem to KNOW what he/she is talking about, don't deal with them.
There is no magic bullet when it comes to buying a house. It can be painless. It can be exciting and great. It can also be a nightmare IF you use the wrong people or follow the wrong advice. Be realistic and understand that unlike renting where you OWN nothing, owning your own home will have inherent costs. Do the benefits outweigh those costs? That's the real question. Everything in this life has a COST. Remember that. If you get MORE out of it than it cost you, it's a deal. Pretty simple, huh?
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