5 Lines of CREDIT?!?!

So I was talking to our family Bank of America banker today, Liz Miller who has been treating me very well. Because my parents have a preimer banking account relationship with them I was able to get a killer rate. Here is the difference, and its good to shop around, for the best loan, and interest rate for you:

Heres the DEAL:

  • House and Duplex, for $310,000
  • Seller pays $10,000 closing cost.
  • 10% down

1st Mortgage Quote

  • 80/10 mortgage, interest only, 5/6 arm, 3yr pre-penalty One point on the first, and one point on the second
  • Interestate rate around %7.35 on the first, and %12.375 on the second
  • Monthly payments around $2,100 a month
  • 11,000 closing costs

Preimer Banking Quote

  • 80/10 Mortgage, interest only, 5/6 arms, no prepayment penalty, no POINTS!
  • Closing costs at around $5000
  • Interest rates: %6.375 on the first, and $7.375 on the second
  • Monthly payments around $1,900/month

THATS A $200 a month difference, PLUS no prepayment penalties, and LESS THAN $5,000 ON CLOSING COST, W/O POINTS.

That is a HUGE! Difference, and but what I found out today. Is that I don’t qualify because I don’t have 5 lines of credit. 5 Lines of credit, as in 5 credit cards, a loan counts as a line of credit, payments, credit, 5 lines. I only have two lines, a personal credit card with Wells Fargo, and a personal credit card with Bank of America. Although I have another Card in my corporation, it doesn’t count because its a corporation. So surprisngly with this killer rate, I was not accepted!

But, that is super fantastic, I’ll just co-sign with my parents and everything will be ok.

So futher note to anyone, do you have credit? My credit score is 725 as a 19 year old, if you don’t have a credit card, or building your credit in some way, start building credit, if you want to use the banks money to purchase a property, stop delaying, do it. Anyways, looks like more lines of credit is better for, Bank of America, or at least, required in order to get a loan through them.

I’m doing incredible and so should you. I know there is spelling errors, but who really cares? My employeer? LOL!!! I’ll be honest, I’am ANTI JOB, because JOBS just make someone else RICH.  I’am a millionaire or I Is a millionaire, does it really matter? IS You a millioanire too, you can be, and we’ll do it together, build your credit score so you can use the bank’s money to purchase investment property that the renters pay for

I wish you, and your family massive success, look forward to being at the next OSU Real Estate Gathering with you all, and helping you, achieve success.

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  • Gandalf

    Your site came up when I was searching for info on credit scores. I’d like to stay, but I’ll be honest, I find your posts difficult to read. They’re obviously streams of thought typed out and posted.

    They need to be proofread, edited, and given some direction.

    I realize you don’t know who I am (and quite possibly don’t care). I like the vibe, though, and that’s why I give this suggestion. I’ll check back.

    (Yes, that’s my real name.)

  • Gandalf

    P.S. Since when is an ARM a good deal?! My personal finance professor would have my head stuffed and mounted on a wall if I told him I got an ARM.

  • Mmm this is a pretty old post, appreciate the comment gandalf.

    I’m actually not in an ARM right now.

    Although ARMs have their use, if your not going to hold onto the property long you can get a reduced interest rate with an ARM for short times, or u can always refinance later.

    most arms are fixed, lower interest for 5 years. All depends on the situation 🙂