skip 4 payments

[rgloans]

I just saw an ad in the paper saying refi now and dont make four months payments; is there a new program out there? just like some feedback if anyone has seen this before and whats de real deal.
thanks
rgloans

[The Wizard]

Hi Rgloans,

May I ask what paper did you see this in? What company is offering this?

[rgloans]

Originally Posted by The Wizard

Hi Rgloans,

May I ask what paper did you see this in? What company is offering this?

the local monthlty paper that goes out to each city.

[The Wizard]

Hmmmm...I will look in our local rags to see if I see anything like this. Mostly what I see our HUGE violations of Reg Z requirements. Like an interest rate with no APR or the APR so small you can barley read it.

[HisHouseMortgage]

This is how some brokers explain this type of program:
assumeing your payments are due on the 1st of the month.

Ex;
Feb 24th you call me to refinance your home. (you made Feb Pmt)
you are looking to do a debt consolidation and possibly get a few thousand cash out. After qualifying you and your loan I calculate I can do what you want and get you $5000 cash out instead of 2K. Your new mortgage payment is going to be 800.00

Heres how it works:
I tell you hold up on the March payment but don't spend it. (you need to make it if this takes longer than 3 weeks to close, this way they won't be late)
I process and close this loan on March 15th. (first payment is not due until May 1st)
Since I got you $5000 cash out instead of the 2K you wanted you need to use $800.00 of it to make your June Payment

At this point you did not make your March, April, May, and June (4Pmts) payments from your normal income source, therefore giving the illusion that you got to skip 4 payments
I also lowered your total outgoing expense by doing the debt consolidation and got you an extra $2000.00 cash out above and beyond what you wanted.

If you explain this to the client in full disclosure it can be a good closing tool for some clients.

[rgloans]

Originally Posted by HisHouseMortgage

This is how some brokers explain this type of program:
assumeing your payments are due on the 1st of the month.

Ex;
Feb 24th you call me to refinance your home. (you made Feb Pmt)
you are looking to do a debt consolidation and possibly get a few thousand cash out. After qualifying you and your loan I calculate I can do what you want and get you $5000 cash out instead of 2K. Your new mortgage payment is going to be 800.00

Heres how it works:
I tell you hold up on the March payment but don't spend it. (you need to make it if this takes longer than 3 weeks to close, this way they won't be late)
I process and close this loan on March 15th. (first payment is not due until May 1st)
Since I got you $5000 cash out instead of the 2K you wanted you need to use $800.00 of it to make your June Payment

At this point you did not make your March, April, May, and June (4Pmts) payments from your normal income source, therefore giving the illusion that you got to skip 4 payments
I also lowered your total outgoing expense by doing the debt consolidation and got you an extra $2000.00 cash out above and beyond what you wanted.

If you explain this to the client in full disclosure it can be a good closing tool for some clients.

thanks HHM, I see the point..... I would not tell anyone not to make their mortgage payment, because the owner borker use to sell that to his clients and it blew up in his face when the lender denied the loan after the 30 days.