Quote:
Originally Posted by Bc2005
1. Conventional loan with 50% down should get a great rate (very low risk to the bank), but banks are a captive to the loan buying and selling process.
They want to be able to sell your loan if necessary, so they follow industry norms for all their loans. A big bank might love to take your big down payment and give you a better rate, but then they may be unable to sell your loan to another bank.
Example - if you put down a very large down payment, and have plenty of cash in the bank, but the loan payment is a higher percentage of your monthly income than their “standard”, they may not want to give you a loan at the best rate.
2. PMI is a standard measure to mitigate risk to the bank.
3. I think you misunderstand LTV. The banks want high value and low loans, so a low LTV.
4. Title insurance is legitimate, but still quite a racket. You buy a policy for yourself and one for the bank. Yours is good forever if you keep the house. The one for the bank is new each time you refinance.
5. New law on RE commissions just came along, and the industry has been predicting a disaster (for them). Too early to know.
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1. Not true... i was all the above and didn't qualify for the best rate available.
2. Still doesn't explain it... this is a racket.
3. This doesn't get you the best rate lol... a loan at 90% value was the best rate based on what I was told. In other words, if you put 10% down, you would get a better rate than the guy putting 30-40% down. Numerous lenders told me that.
4. You didn't talk to the issue at hand... your own title policy is not just to protect you but to protect the company doing the title work that you are already paying for. if they miss something... they walk off w 0 penalties lol and you paid for it.
5. At this point, we won't know what it means.