Look, I’ve seen the terms... honestly, that 1:1 setup worked fine for me, 3 But regarding the Chase offer—is that interest rate fixed or variable? If it’s floating, I’d definitely sleep on it a bit more before jumping in...
Michelle Foster13 said:If the payment is always the same, then what was the point of the guy telling me the interest rate starts at 4.99% and then drops to 4.49% once that međufinanciranje period ends? I mean, if my monthly bill doesn't actually change, does it even matter if the interest rates are rising or falling?! It's all just so confusing... 🙄
As for the stuff about deposits, overdrafts, and final payouts—I totally get how that works. That’s actually the part that sounds most appealing to me.
Come on, let me know if you went there today so we can hear exactly what he told you...
Angela Cox6 said:I was actually there today. That security deposit thing is eating at me too; I’m supposed to put down 10% to lock in that 1:1.2 property ratio option, which would give me four contracts total. How on earth did you convince him to waive the deposit? Who should I even talk to about this? It’s the only hurdle left because I meet every other requirement they have.🤷
I can't say for certain right this second, but I'm pretty sure I ran some actual numbers on this earlier... So, here’s the deal... I was crunching some numbers on an $80,000 loan—basically looking at whether I should shell out $8,000 upfront to clear things or just take a smaller $72,000 loan and keep that $8k in my pocket as liquid cash. After running the math, the second option definitely looks like the smarter move for me. And keep in mind—I was only dealing with a single contract on this one. Honestly, that whole deposit option is pretty decent if you’re working with a tighter budget or if your property value isn't quite hitting the mark for what they're looking for—it's basically a lifeline for people who don't have all the leverage. But, let's be real—if you actually have options on the table, it's just not worth the hassle. It's definitely not the most profitable move when you can just walk away to something better.
Just head back there and keep bugging them to run the numbers again—keep asking questions until they finally explain it in a way that actually makes sense.
Why wouldn't you just take that 1:1.3 option? Honestly, looking at the property value, it doesn't even seem like it would cover your bases... or am I missing something?
The monthly payment stays exactly the same Your only real shot at lowering that number is if you drop a chunk of extra cash toward the principal while you're paying it off—then you can hit them up to either scale back the monthly amount or just shorten the overall term of the loan
Because let's be real, the longer you're stuck with that credit, the more interest you end up bleeding out to them And honestly, just go ask them directly... there might be some fine print differences depending on your deal
I’ve been through the Wells Fargo grind myself. Back then I was playing it safe with a savings account, but once that matured a couple of years ago, I just pulled the cash out... didn't even think about anything else until a few months later when I ended up taking out a loan for međufinanciranje.
So that basically means they bumped up the terms even more, which is a win for >... honestly, if I were in her shoes, I’d try to pay off the loan as fast as my budget allows... and obviously, I'd go for this specific rate... instead of the K60 one (I mean, just run the numbers on both and see which one actually makes sense)
A buddy of mine is stuck with a K60 over 24 years—took out the same amount I did... but his setup isn't nearly as good as mine (though, to be fair... once he actually sat down and compared the math with other big banks, this one ended up being the better deal)
George Phillips said:I don't really know the drill over at Deutsche Bank, but I'm guessing it's pretty much the same deal as at the NYSE. It feels like you might not totally get how these housing savings accounts actually work: The whole idea is you save with them for a set number of years—at least two, depending on the plan—and in return, you get some tiny interest (maybe 2-3%) plus those government incentives (right now it's 15% of what you save annually, but capped at $250) per year. So, it makes sense to save about $1667 a year, which is why people usually split family savings into a few different accounts instead of just one big pile, basically just to max out those incentives $250 times. In the end, though, families usually just take out one big loan based on all those combined accounts anyway.
They offer this "bridge financing" thing where you can grab a loan before your savings period is even up. Then, once the term is finished, you just swap that bridge loan for the actual mortgage from the savings institution. Honestly, I think that made sense back when commercial mortgages were way more expensive and harder to get, especially for people who started saving but suddenly needed the cash sooner than planned. But with how things are now? If you haven't already got money sitting in a savings account, I don't see the point at all. I mean, obviously, you'd need to run the actual numbers to be sure.
I'm not sure if that first sentence was aimed at me or crax, but honestly? You clearly don't know the first thing about bridge loans... it's a loan you can snag right away without having saved a dime...and you don't have to be some hardcore saver before you even apply... And it makes tons of sense for anyone who isn't a saver, because there are a bunch of perks (which I've already mentioned, so I won't bore you again) compared to big banks like Chase or Wells Fargo (personally, the biggest win for me is a decent FIXED interest rate—I don't need the monthly headache of wondering if variable rates are gonna spike and ruin my life), though they do have strict approval rules (mortgages, co-signers... depends on how much you're pulling... but there are a few ways to make it work)
When I took out my loan, I crunched the numbers and compared costs across several different banks, and this was hands-down the most cost-effective option...
Whether that holds true in the long run? Honestly, who knows—but nobody knows that any better, especially someone taking out a 20 or 30-year loan with a variable rate.
Michelle Foster13 said:No need to recommend him—I'm not from New York City, so I should be fine just talking to the folks working at our local branch here🙂
Wait, what exactly do you mean by MY savings? I haven't even opened an account with them yet!
Anyway, it doesn't really matter—I'll head down there and they'll walk me through it. If they seem a bit lost, maybe you can just give me his number? Then I can pass it along to them so they can reach out, get the details, and then finally make sense of it all for me. 😬
Yeah, right... you haven't saved money... but those contracts they open up for you? They act just like savings accounts—the bank puts money in, and then after five years, they pay out part of a loan by dipping into those funds (which isn't even your money, it's theirs). It's basically just a way for the Democratic Party to sit on all that cash and interest. The more contracts you have, the better it is for them, because that means more money for the Democratic Party to scoop up when those payouts happen... I don't know if that makes sense to you... Ask someone tomorrow to "sketch it out" for you... but look, if they work at a branch outside of NYC and they're new to this stuff... plus, there's a chance they might not be fully trained (I'm saying *maybe*—not saying they definitely are)—they might struggle to explain it clearly. When I had this explained to me, it was some guy at the corporate headquarters in NYC who had been there forever and was basically a manager... so, yeah...
Michelle Foster13 said:So, based on all my math—which I actually had five different people run for me—it looks like my best bet is definitely splitting the contract among five different people. I honestly can't quite wrap my head around why it wouldn't be profitable for you 😕
I'll make sure to bring up your example when I talk to him tomorrow 🙂
Nah... you totally misread me. I just didn't have anyone else to bundle the contracts with, so I was stuck working with just my own... obviously, it would've been more profitable if I had more contracts to play with. What I meant was—according to my math—putting any kind of deposit down on the contract just wasn't worth it.
redmaker382 said:By the way, Deutsche Bank claims they don't charge any processing fees, but they actually have the highest 2.5% fee—they just call it a "contract arrangement fee for interim financing" (at Hypo, it would only be 1.4%).
So, if you're smart and deposit a little extra cash into all five of those accounts, they'll magically drop that processing fee to 1.5%.
So, if you're smart and deposit a little extra cash into all five of those accounts, they'll magically drop that processing fee to 1.5%.
So, if you're smart and deposit a little extra cash into all five of those accounts, they'll magically drop that processing fee to 1.5%. you really need to run the numbers on this one look, Michelle Foster13... just ask him to run some scenarios for you—maybe over a 17-year stretch split among five people where everyone chips in something like $50. That way you can actually see if it's even worth the hassle. Personally, I ran the math and figured I’m better off just not putting anything in at all... And seriously, don't be that person who bugs him to print out a million different spreadsheets with every possible combo of deposits and years. It's not worth the headache.
Michelle Foster13 said:And yeah, that K100 plan is meant for loans over $40,000, but they keep trying to push the K60 on me. Well, I guess I'm a bit wiser now after all that—I'll just reset things on Monday and handle it then😂
Thanks again and goodnight!😉
look, he’s probably sticking to the K60 just because of the term length—you can only go up to 17 years with a K100... so if you mentioned wanting 18 or 19 years, that's why he's pivoting. try telling him tomorrow to just set it at 17 instead—but then your monthly payment jumps, so you'll have to check if you even qualify for that... I don't know how much you're actually pulling in.
hmm... if you can swing it, try to grab that K100 plan over a 17-year term. (I mean, you could stretch it out to 17 years and maybe some months—basically as long as you actually need)—it’s just way easier on the wallet... just have them run the numbers for you first, then sit with it for a bit... honestly, I’d suggest waiting until Monday to really sit down, compare everything, and wrap your head around it before you actually go in to sign anything... don't rush into a call like this.
Honestly, if they were being all sweet to you at Hypo, it’s only because you happen to know someone there... otherwise, they aren't exactly known for being warm and fuzzy.
Have you tried asking them if you can just drop larger payments whenever you want? Like, what actually happens to the cash if you pay extra? And what's the deal with the early payoff terms? If you haven't asked yet, just go for it—I really didn't love what I heard from my end.
Michelle Foster13 said:Oh, I totally get it! I was pretty thrilled with the terms too, but the guy just wouldn't give me a straight answer—it was all so vague. He wouldn't even touch on that 1.5% interest rate thing. When I asked if the rate was lower than what a big bank would offer, even if the monthly payment ended up being higher, he just brushed me off saying he didn't want to comment on the competition.👎
It’s almost like I was asking him something silly or something? Like, does he think I haven't finished middle school or something? I can definitely spot an extra interest charge when I see one! I guess the only thing bothering me is how secretive they all act. Back at Hypo, I chatted with three different personal bankers and, honestly, I couldn't tell you which one I liked more—they were all pretty much the same. And all(you know, the whole deal, haha) they even gave me some helpful tips on what to watch out for.
Anyway, I’m planning to head back to Deutsche Bank this Monday, but I’ll try to talk to the most experienced lady there—I noticed one older woman working there who seemed like she really knew her stuff.
Want me to DM you a guy who actually knows his stuff?
See, that 1.5% is just the interest on your savings that hits your account at Deutsche Bank once the term is up... It’s not some shady scam... just a weirdly over-complicated setup... this guy can walk you through the whole thing clearly.
So, you actually thinking about taking out that 24-year loan?
Look, at the end of the day, it’s your call... But I've already made my move... and honestly, if I had to do it all over again, I'd make the exact same choice. Just because you've got "connections" who can shave a bit off the interest rate or fast-track the paperwork doesn't mean they're going to be standing there holding your hand when those variable rates start climbing...
For me, having that fixed rate was the whole game... + Plus everything else I mentioned earlier... I'm dead certain I picked the best option on the table back then—and honestly, I don't think anything better has come along since. If anything, things have just gotten worse now that rates are spiking.
Look, I pulled the trigger... and honestly? I’m beyond happy with how it turned out. And mind you, I only did it based on my own contract...
You really need to dig a little deeper into everything I told you... I’m telling you, Hypo isn't even in the same league when it comes to mortgage rates. I spent months hitting up different banks and even stopped by Deutsche Bank just to grill them. I actually badgered one guy there at least five times—staying an hour each time—until he finally laid it all out and answered every single annoying question I had... I even managed to prove to him that handing over a deposit was a total waste of money (he eventually admitted I was right, bless his heart), but with those five contracts you're sitting on, you could definitely score big there...
i honestly, Donna Chase12... would you really jump on a mortgage just to save maybe $10 bucks? (and who even knows if that's still worth anything a year from now)😲 besides, does the deal actually make sense? what’s the interest rate looking like—is there some hidden interest period involved? did they factor in all the fees for the life of the loan, or the cost of an appraisal, or any other random junk charges? and can you even pay it off early without getting slapped with a penalty? when I went digging for answers myself, they basically gave me the brush-off on everything
I can't be bothered to dig that up right now... I'll look into it later today and let you know.
That interest rate depends on how many years the loan runs for—plus whether you add family members to the agreement or if you put down a decent down payment...
As far as I know... they don't pay back a dime... but back when I was dealing with Hypo—and honestly, I forgot all about their monthly payments, which had variable rates lower than West—their fixed rates were actually slightly cheaper than what West was offering. Also... with them, you really have to check if you're being charged for an appraisal (back then, you definitely were) and whether they've baked every single fee and surcharge into the mortgage payment (with West, they have). Plus... West doesn't mess with those interim interest charges that banks love to use to squeeze a decent chunk of cash out of you. And one more thing—especially now that variable rates are spiking—you should probably be thinking about how that Hypo payment could jump significantly as early as next month... not to even mention what might happen over the next few years... you’ve gotta look ahead a bit, instead of just living for right this second.