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.Â 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.