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Mortgage brokers are scum bags

By MAGA follow MAGA   2021 Jan 13, 6:02pm 333 views   15 comments   watch   nsfw   quote   share    


I'm attending a New Construction home webinar. These mortgage brokers are total dirt-bags. Some of the attendees are desperate to buy a house, even though they have massive amounts of debt and poor credit.


1   Booger   ignore (7)   2021 Jan 13, 6:20pm     ↓ dislike (0)   quote   flag      

Fuck new construction. Unless you are going custom you are getting particleboard crap (called OSB), and "builder's grade" appliances and HVAC which is shit. And in many places all new homes are on a slab; usually these happen to be in flood prone areas as well. Fuck slab houses. I want a basement or at least a crawl space.
2   MAGA   ignore (1)   2021 Jan 13, 6:23pm     ↓ dislike (0)   quote   flag      

The loan lady said in her closing comments, "Loan Officers are your friends."


3   FortWayneAsNancyPelosiHaircut   ignore (4)   2021 Jan 13, 7:08pm     ↓ dislike (0)   quote   flag      

All middle men are scum bags.

I do my own plumbing work now, because if you call a number on yelp search results, its some fucking reseller middle man every time.
4   ForcedTQ   ignore (0)   2021 Jan 13, 7:17pm     ↓ dislike (0)   quote   flag      

Minimums: 20% down to avoid PMI. 10% down to negotiate lowered PMI. Don’t have it, you need to save more. Maximums: 25% of your household net pay to PITI. More than that and you’re house fucking poor. The idea is to be able to build wealth, and for that to happen you can’t have the house payment being a monthly financial drain. 15 year loan, so you’re not paying an assload of interest to the banks/lender. If you can’t afford it on those terms you shouldn’t be buying based on some fuckhead lender saying you’re approved!
5   WookieMan   ignore (6)   2021 Jan 13, 8:53pm     ↓ dislike (0)   quote   flag      

ForcedTQ says
15 year loan, so you’re not paying an assload of interest to the banks/lender.

This is one area I'll disagree. 30 year is more advantageous. I get most won't make the extra principle payment, but it's not too difficult to make a 30 a 15 year by making additional principle payments. If shit gets rough you can just pay the minimum payment on a 30 year and then start up the bigger payments as you get back on your feet. The problem is when people get a 30 to max out their borrowing amount. Which is what most will do.

I'd also like to see people close to 20% home debt to income. 25% Isn't bad, but pretty much fool proof starts at 20% or lower. I'm at 7.2% and don't lose an ounce of sleep at night over my living situation. My wife and I could work at Home Depot and Crate and Barrel and easy pay our mortgage. Fortunately we don't have to.
6   just_passing_through   ignore (7)   2021 Jan 13, 9:25pm     ↓ dislike (0)   quote   flag      

30 years is good for an investment property. You can write off the interest etc...
7   ForcedTQ   ignore (0)   2021 Jan 14, 7:39am     ↓ dislike (0)   quote   flag      

WookieMan says
ForcedTQ says
15 year loan, so you’re not paying an assload of interest to the banks/lender.

This is one area I'll disagree. 30 year is more advantageous. I get most won't make the extra principle payment, but it's not too difficult to make a 30 a 15 year by making additional principle payments. If shit gets rough you can just pay the minimum payment on a 30 year and then start up the bigger payments as you get back on your feet. The problem is when people get a 30 to max out their borrowing amount. Which is what most will do.

I'd also like to see people close to 20% home debt to income. 25% Isn't bad, but pretty much fool proof starts at 20% or lower. I'm at 7.2% and don't lose an ounce of sleep at night over my living situation. My wife and I could work at Home Depot and Crate and Barrel and easy pay our mortgage. Fortunately we don't have to.


Agreed on payback of 15 years or less, that’s what I do with my 30 yr loan. It didn’t make sense to refi to a 15 last go around, even though I had been paying more than that each month. Interest buy down charges were too high. I said what i said because the vast majority of people don’t possess the discipline with money and will wind up just paying the 30yr payment because that new boat/RV/remodel/etc payment is within reach. They are debt whores and only think about how much a month.

Also agree heavily on the DTI%. Less than 20 is ideal, 25% is the number Ramsey professes for good reason, it’s a compromise between guaranteeing financial solvency and telling people they need 40% down or not to buy. Most feel like they could never save that amount. Full disclosure my DTI is 18.5% on my income only, so I’m pretty conservative on what house I bought. Not as good as you in the 7s though, that’s my goal!
8   zzyzzx   ignore (2)   2021 Jan 14, 7:47am     ↓ dislike (0)   quote   flag      

FortWayneAsNancyPelosiHaircut says
if you call a number on yelp search results, its some fucking reseller middle man every time.


I hit the same thing when I was trying to junk a car. There were several different websites with the same name that all went to peddle.com
I found a few local junkyards that wanted to give me maybe $240 for my car. I ended up going through Yelp for $290 and they picked up the car. They took it ot the same junk yard that offered $240 for the car if I drove it there (which I could do).

That and don't use Yelp. Fuck Yelp. Yelp is rigged anyway. Try using something else, anything else. Or if using Yelp don't use Yelp directly. By that I mean if you see a listing on Yelp, so find the company's website outside of Yelp, them decide if you still want to use them. Don't call any company that doesn't give a service area and have a local phone number (no 800 or 888 numbers). As much as I hate FaceBook, some companies only web presence is on FaceBook, so you might have to go there just for that.
9   MAGA   ignore (1)   2021 Jan 14, 7:58am     ↓ dislike (0)   quote   flag      

At the end of this BS session, the mortgage company announced that you need two months of reserves on hand in order to close. Two months? In today's world, that should be two years.

https://www.americanfinancing.net/purchase/mortgage-reserves
10   zzyzzx   ignore (2)   2021 Jan 14, 8:03am     ↓ dislike (0)   quote   flag      

WookieMan says
This is one area I'll disagree. 30 year is more advantageous


When you are as old as some of us are, a longer term mortgage probably is advantageous, as in the mortgage will outlive is.
11   FuckCCP89   ignore (5)   2021 Jan 14, 8:04am     ↓ dislike (0)   quote   flag      

zzyzzx says
When you are as old as some of us are, a longer term mortgage probably is advantageous, as in the mortgage will outlive is.


One who dies with the most debt - wins bigly!
12   zzyzzx   ignore (2)   2021 Jan 14, 8:46am     ↓ dislike (0)   quote   flag      

FuckCCP89 says
zzyzzx says
When you are as old as some of us are, a longer term mortgage probably is advantageous, as in the mortgage will outlive is.


One who dies with the most debt - wins bigly!


Yeah, someone else in the office (60 years old) was telling me to do this. He specififcally said that what you do is you buy the retirement home before you actually retire, because at least them you have verifiable income, then you can retire.
13   ForcedTQ   ignore (0)   2021 Jan 15, 10:31am     ↓ dislike (0)   quote   flag      

FuckCCP89 says
zzyzzx says
When you are as old as some of us are, a longer term mortgage probably is advantageous, as in the mortgage will outlive is.


One who dies with the most debt - wins bigly!


Hey, not my bag, but at least plan out this one thing. Make sure that debt doesn’t have a line of succession that your loved ones become responsible for and that you have divested your assets in such a manner that the will executor won’t have to/be able to pay those debts off. Essentially own nothing, or this won’t work.
14   BayArea   ignore (1)   2021 Jan 17, 4:50am     ↓ dislike (0)   quote   flag      

I also don’t understand all the 15yr loan hype.

Life is unpredictable, get the 30yr and if you choose, pay it off as a 15yr (or a 10yr, or whatever duration you want)

Fuck the tiny interest rate difference between the two.
15   MAGA   ignore (1)   2021 Jan 17, 11:42am     ↓ dislike (0)   quote   flag      

BayArea says
I also don’t understand all the 15yr loan hype.

Life is unpredictable, get the 30yr and if you choose, pay it off as a 15yr (or a 10yr, or whatever duration you want)

Fuck the tiny interest rate difference between the two.



Good point. A 30-year will also give you some breathing room if you run into some financial issues.

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