All Forum Posts by: Josh Silvester

If an eviction were to ever happen thats when it can be tricky if the tenant knows you’re the owner.

I am always up front that I am the owner with my 5 properties but I can see why others don't do that. You can always make it seem less personal "The owner says he wants to do this so I have to do ______". If you're more comfortable saying you're owner, just say it.

@Josh Silvester My tenants in my 25 doors know I’m the owner. I’ve had a few instances where I’ve felt a lack of respect due to being a female and on occasion due to being younger than my tenants but for the most part it’s never been an issue.

As a househacker, I do. I know others who own call themselves PMs. I like to be up front - personally. Never had an issue. 

 Josh - I agree with Jonathan that there is not enough information to give you an exact answer. However, a few things I would suggest to give you a better perspective is: 1) Talk to property management companies in the area to see if they operate in the area and/or have comments on tenants in the area, 2) Speak to a few banks to understand how they would lend on this property, 3) Scan Zillow/craigslist and other listing sites to understand the rental market for listings... I think by going through those steps you'll have a better perspective on the area and the current and future potential. Good Luck!

I think Elias was pretty spot on.  There will be pros and cons to different lenders, and so it will depend largely on who you feel will be able to help you the most and actually make sure you get to closing.  

Could you walk me through why you are putting $25k down?  5.8% down doesn't seem like an ideal down payment amount.  

What type of mortgages are you looking at? FHA or Conventional? Conventional rates may be higher, but depending on your situation you might be better off with conventional due to variations in mortgage insurance. Hard to say from the short post here which is optimal.

Regarding the options, there really is a lot that goes into the terms so just some feedback based on what you've said so far.  1. When it comes to a broker, they probably won't be able to "match" anything.  They are subject to the rates from the lenders they work with.  This pricing might seem a tad high, and would be curious how many lenders/programs she actually works with.  2. How much higher would the closing costs be?  This pricing seems almost too good to be true.  I would just do your due diligence as unfortunately "bait and switch" as Elias mentioned is a real thing.  3. Credit Unions have some flexibility with their pricing especially if they won't be selling it on the secondary market.  However, they generally have lender overlays with stricter guidelines and less programs.  Weighing the option of fixed vs. arm right now, I would determine how long you plan to have this as your primary residence.  You can refinance it with less than 20% equity BUT only as long as it is still your primary residence.  So if you move out, then you would need to have that equity built up to refinance.  4. As a lender, chase being a large bank has pricing flexibility as you noted with their rate but they are a bank first and mortgage company third or fourth.  Most of those claims to pay if not closed on time have loopholes/tight requirements and more often than not we have seen the fall-out.

This is a lot I know haha but hope this gives some context.

Hi Josh, 

So, we are missing some details about your loan - I assume it is a primary residence with you renting out the other side of the duplex? Confirming they were originally asking 350 and you offered 430K? A few thoughts from a random Mortgage Broker in Hawaii...

1) Your friend likely isn't a mortgage broker as there is a pretty big delta (1 pt)  between what your friend is quoting you and what I am seeing in pricing . Most Mortgage Banks have the ability to broker some loans and attempt to call themselves Brokers now as consumers are getting smarter and starting to realize in most situations Brokers have better rates. I'm not implying she's intentionally deceiving you, sometimes Mortgage Bank workers say it so often, it just becomes part of their vernacular! 

2) Quote #2 is too low. I don't see that pricing anywhere. Ask him if he charges an origination fee. Typically, sleazy lenders will keep repeating no points and show you a great rate, then when you get under contract and see the Loan Estimate you see that there is a 1% origination fee - basically the same as points just packaged differently. By this time you have 25 days left in contract and feel it's too late to switch lenders. Extremely dishonest advertising and it infuriates me. Maybe he told you there was an origination fee? If so, that origination fee is the basically the same as points so treat it as such when you are comparing lenders. 

3) This seems like the best rate and fixed or 7/1 seems like the best deal. No, you dont need 20% equity to refinance. I like that ARM option the best.

4) Chase - no comment other than unless you are an extremely high networth individual I would go with someone else. 

Hope this helps. Im only licensed in HI and WA so not trying to get you to go with me, just giving some advice! lol.