rjain15 asked:
My lender is giving my 5K back for a mortgage of prime minus one for few months and then he will refinance. He says that I will get huge incentive and then he will refinance at almost no cost.
Any comments or suggestions… ?
MONTE
My lender is giving my 5K back for a mortgage of prime minus one for few months and then he will refinance. He says that I will get huge incentive and then he will refinance at almost no cost.
Any comments or suggestions… ?
MONTE
OCTAVIO
Don’t do it. If you don’t NEED it, then don’t do it. Most small 2nd mortgages have pre-pay penalties.
What rate is he planning on refinancing it at? Why can’t you just get that rate now? Prime – 1% is 7.25%. You can get a better rate on a credit card (0% 12 month offers).
Keep your eyes open.
Comment by MR MONEY — February 19, 2009 @ 8:29 pm
CHASE
It’s not really a good idea to continuously refinance. It is always best to build credit history with your creditor. What you should really determine is if you can afford the loan that he is providing you without the incentive. Also, I would keep away from negative amortizing or interest only loans since you are not building any principal.
Overall though, it really depends on specifics of your situation such as is this for investment or for yourself, etc.
Comment by Nick O — February 22, 2009 @ 10:49 am
DENVER
Will he guarantee all this in writing? I suspect not, so if he won’t walk away.
Comment by Roger C — February 23, 2009 @ 9:33 pm