OK PEOPLE....WHO NEEDS MONEY NOW?!!!!

mrtgbnkr2121 · January 2007

Rates are as low as they can be right now.....WHY NOT TAKE ADVANTAGE?

We are offering rates as low as 1%.......

Credit scores as low as 450 WILL BE APPROVED!!!!!

Cashout/foreclosure bailouts/30 yr fixed/adjustable rates for owner occupied, investement AND 2nd home properties.....

IF YOU HAVE BAD CREDIT DONT BE AFRAID!!!!!

Call 718-486-4703.....My name is Eric Shumacher and im with Franklin First Financial and I look forward to hearing from you SOON!!!

whyfi · January 2007

Rates as low as 1%... payment, or interest?

mrtgbnkr2121 · January 2007

1% is the interest rate

in other words......a loan amount of $450,000 will cost you $1448.00 per month.

whyfi · January 2007

How can you possibly do that? Inflation is greater than 1% annually... you'd be losing money by lending at 1%, and the last time I checked, banks weren't in it to lose money... so, what's the catch?

mrtgbnkr2121 · January 2007

The program is called the cash flow option arm....this loan is primarily used by people who do not want to pay the bank interest now but rather pocket the money for future investments......THIS LOAN IS NOT FOR EVERYONE.....but if the loan fits your needs it can be very very profitable

whyfi · January 2007

ARM? That means that it adjusts, right? So, I have to assume that the 1% changes, right? When?

mrtgbnkr2121 · January 2007

it can be fixed for 1 year, 3 years, or 5 years

whyfi · January 2007

So, I can have a loan fixed at a 1% interest rate for up to 5 years?! That's better than free money! I don't believe it!

mrtgbnkr2121 · January 2007

well i have been putting my clients in this program for a while now.....some like it and some opt to just go the conventional way.....like i said its not for everyone but if you truly believe that this loan can work for you give me a call......would love to show you how and if it can work for you.....my office number is 718-486-4703....Franklin First Financial....my name is Eric Shumacher hope to hear from you.

ben · January 2007

Yeah, I call bullshit on this one.

While the payment amount may be based on 1% interest if that "option" is selected the loan will have negative amortization, isn't that correct Eric?

This is nothing more than a delayed payment option, in the end you pay a much higher interest rate. In fact it's very possible that you will owe more than you originally paid for your property after a few years.

I agree that these loans have a place but they are only very very experienced people and definitely should not be used by people with credit scores of 450!

mrtgbnkr2121 · January 2007

i never said a 450 score will get you this loan 1st.....

second when you have a borrower whos home is makin between 20K and 30K a year or two in equity and you factor in how much he will be saving in the 5 years of making the 1% payment, I THINK YOU FACTOR OUT THE DEFFERED INTEREST.....dont you?

AGAIN THIS PROGRAM IS NOT FOR EVERYONE BUT IF IT CAN WORK FOR YOU THEN ITS A GOOD WAY TO GO .....

whyfi · January 2007

Deferred interest? What's that?

mrtgbnkr2121 · January 2007

what happens is lets say you have a rate of 1%.....you have what is called a qualifying rate as well......lets say that rate is at 7%.....you also have an interest only option....and a 15 year option....

these are four options youhaev every month on how you want to make a payment.....so lets say your 1% payment is 1000 bucks....and your interest only payment would be 1500 bucks.....

if you make the 1000 dollar payment 500 dollars will be added to you mortgage balance and that is deffered interest.

the biggest part of this whole puzzle is instead of making a 2 or 3 thousand dollar payment you are making at least half that now plus you have to be in a home where you know the equity can rise.....in these cases the deffered interest cancels itself out and thats how this program is successful

ben · January 2007

mrtgbnkr2121 wrote: i never said a 450 score will get you this loan 1st.....

Sure you did:

mrtgbnkr2121 wrote: We are offering rates as low as 1%.......

Credit scores as low as 450 WILL BE APPROVED!!!!!

And it sounds like you're now saying the 1% is a payment, not a rate, right?

mrtgbnkr2121 wrote: ...factor in how much he will be saving in the 5 years of making the 1% payment

But over here you said it was the rate:

mrtgbnkr2121 wrote: 1% is the interest rate

in other words......a loan amount of $450,000 will cost you $1448.00 per month.

What's the story?

whyfi · January 2007

So it's NOT a 1% interest rate?

mrtgbnkr2121 · January 2007

hey ben do you have nothing better to do then to pester me with your irrational stupidity......you are obviously not interested.....if you would like further explanation give me a call and i will gladly talk with you in depth.....

mrtgbnkr2121 · January 2007

whyfi.....

it is a 1% interest rate just like i said.....ben for some reason or other is lookin to start trouble and i dont know what his problem is.....

bklyntransplant · January 2007

The 1% rate is a "teaser" rate that resets to a much, much higher rate after X amount of time.

Ben is probably correct in that this is a NegAm loan, in which deferred interest is added to the principal to be repaid at the aforementioned much, much higher rate. The lower your FICO score, the higher that rate will eventually be.

As an FYI, foreclosure rates for sub-prime mortgage loans are now at over 13%.

ben · January 2007

mrtgbnkr2121 wrote: hey ben do you have nothing better to do then to pester me with your irrational stupidity......you are obviously not interested.....if you would like further explanation give me a call and i will gladly talk with you in depth.....

I'm very interested. Not in your loan but in keeping this place honest and not letting people mislead others with their statements. I know all about these loans.

Someone explicitly asked you if the 1% was the interest or the payment on the loan and you said it was the interest when you know for a fact that this is only a payment option and a much higher rate is actually being charged.

whyfi · January 2007

I still don't think that I understand... you said, in your example, the 1% payment was $1000, but the interest was $1500... why would the interest only payment be more than the 1% payment if 1% is the interest rate...? :?

ben · January 2007

mrtgbnkr2121 wrote: whyfi.....

it is a 1% interest rate just like i said.....ben for some reason or other is lookin to start trouble and i dont know what his problem is.....

So how many interest rates does this loan have and what are the other ones?

mrtgbnkr2121 · January 2007

hey Bklyntransplant

if you read the thread further you would see i said everything about deffered interest already.....lol

and i specialize in foreclosure bailouts and FYI i get the rate at 11%

mrtgbnkr2121 · January 2007

ok whyfi i see the confusion....

the correct terminology for the 1% is a minimum payement rate.

whyfi · January 2007

mrtgbnkr2121 wrote: ok whyfi i see the confusion....

the correct terminology for the 1% is a minimum payement rate.

Oh... so... what's the rate, rate?

mrtgbnkr2121 · January 2007

hey ben

I DONT HAVE TO CHEAT PEOPLE TO MAKE A LIVING OK

i am really bothered by your posts and i would appreciate it if you didnt respond anymore thnks

mrtgbnkr2121 · January 2007

depending on your score i have seen qualifying rates as low as 6.5 and as high as 8.5 it all depends on how your financial and credit status is as with any other loan

whyfi · January 2007

6.5 - 8.5%?! :shock: Ouch!

mrtgbnkr2121 · January 2007

these loans arent made to be in them for more than 3 to 5 years....understand that......in order to see if this program works for you, a lot of numbers have to be crunched.....you cant just jump into a program like this before working the numbers.....

you in the market right now?

bklyntransplant · January 2007

Re. foreclosure rates, in their December report, the Center for Responsible Lending (ahem....) projects that:

"one out of five (19 percent) subprime mortgages originated during the past two
years will end in foreclosure. This rate is nearly double the projected rate of subprime loans made in
2002, and it exceeds the worst foreclosure experience in the modern mortgage market, which
occurred during the â€œOil Patchâ€ disaster of the 1980s."

A good portion of those foreclosures are early payment defaults that occur when the shock of the reset interest rates hits the homeowner.

Eric, I'd be interested to know what kind of documentation and proof of assets (i.e. ability to pay) you require from an applicant before approving their loan....

mrtgbnkr2121 · January 2007

If the are self employed you need to provide to proofs that they have been self employed for the past 2 years...Full doc self employed require past 2 years tax returns with year to date profit & loss or 6 months business bank statements (average thye deposits to determine the income)

Full doc files require past 2 years w-2's and one month worth of pay stubs.

Full doc loans get 70%, stated gets 65%, and no ratio gets 60%

whyfi · January 2007

Not for something with an interest rate like that!

Besides, I think that I'd rather go with a broker - someone told me that they can get better rates.

OK PEOPLE....WHO NEEDS MONEY NOW?!!!!

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