CCdaCE
Full time employment: Posting here.
- Joined
- Apr 3, 2006
- Messages
- 897
Anyone read about a different type of mortgage where all of your paycheck is put toward a home loan, as soon as you get paid? Then you write checks against your mortgage when you need money throughout the month.
http://www.cmgmortgageservices.com/
Anyone have any experience with this type of a loan? I'm thinking "what's the catch". Some monsterous closing cost? It's a company from Cali., so already I don't trust 'em. HA!
Obviously you have to assume a few things, and the assumptions have to be true (are they called assumptions any more?).
1. You have a "great" credit score. I think the above link requires a 680 or better.
2. You have the discipline to not abuse your line of credit and write more checks than your paycheck covers.
3. LIBOR indexed loan isn't going to go thru the roof on the interest rate.
4. The spread between your present interest rate and this type of loan makes it "worth it".
5. The website of this particular company wants a loan to value of 80%.
6. You have a lot of cash flow, but don't necessarily spend it all as soon as you get paid.
... the list goes on. Read the website.
Personally, I've been in this house 3 years, I figure I would've got a different job and sold by now. (I was *this close* to switchin' jobs.) So you could accuse me of gettin' beat up by the ARM. There's less than $111k left on the loan. The tax assessor thinks the house is worth $140k+. My loan started at 4%, now it's 5%, I suppose it'll go to 6%. A big $93 more a month from interest, whoop-tee-do. The big increases went to escrow as a result of double digit yearly prop. tax increases, insurance increases, etc. Including everything my payment has gone from $915 to $1050 in 3 years, and it'll go to about $1150 after the next ARM jump. So, the interest isn't killing me, but everything else PLUS the interest is. I'm also sick of paying PMI, flood insurance, and all the other bullsh!t.
So, theres several issues here, and I thought I'd run this past you smart cookies and see if anyone has experience or heard any horror stories about this "new" type of loan. I read about this loan type two years ago, but blew it off as BS. "If it sounds too good to be true, it probably is."
http://www.cmgfs.com/home_loans/cmghome/index.htm
-CC
Edit: added last URL which is a simulator.
http://www.cmgmortgageservices.com/
Anyone have any experience with this type of a loan? I'm thinking "what's the catch". Some monsterous closing cost? It's a company from Cali., so already I don't trust 'em. HA!
Obviously you have to assume a few things, and the assumptions have to be true (are they called assumptions any more?).
1. You have a "great" credit score. I think the above link requires a 680 or better.
2. You have the discipline to not abuse your line of credit and write more checks than your paycheck covers.
3. LIBOR indexed loan isn't going to go thru the roof on the interest rate.
4. The spread between your present interest rate and this type of loan makes it "worth it".
5. The website of this particular company wants a loan to value of 80%.
6. You have a lot of cash flow, but don't necessarily spend it all as soon as you get paid.
... the list goes on. Read the website.
Personally, I've been in this house 3 years, I figure I would've got a different job and sold by now. (I was *this close* to switchin' jobs.) So you could accuse me of gettin' beat up by the ARM. There's less than $111k left on the loan. The tax assessor thinks the house is worth $140k+. My loan started at 4%, now it's 5%, I suppose it'll go to 6%. A big $93 more a month from interest, whoop-tee-do. The big increases went to escrow as a result of double digit yearly prop. tax increases, insurance increases, etc. Including everything my payment has gone from $915 to $1050 in 3 years, and it'll go to about $1150 after the next ARM jump. So, the interest isn't killing me, but everything else PLUS the interest is. I'm also sick of paying PMI, flood insurance, and all the other bullsh!t.
So, theres several issues here, and I thought I'd run this past you smart cookies and see if anyone has experience or heard any horror stories about this "new" type of loan. I read about this loan type two years ago, but blew it off as BS. "If it sounds too good to be true, it probably is."
http://www.cmgfs.com/home_loans/cmghome/index.htm
-CC
Edit: added last URL which is a simulator.