Posts by Ashley Barnes9

31 posts shown.

Deloitte mortgage rates in Banking, Insurance & Loans · Jan 17, 2008

Kimberly Nguyen said:We also have

Rules regarding how you use quotes

So, please, I am asking you—just follow them! Especially when you're replying to the post right above yours. 😉

I just wanted to keep my post from getting too long so it stays easy to read. If I broke any rules by doing that, my apologies...🙂

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Deloitte mortgage rates in Banking, Insurance & Loans · Jan 17, 2008

Here are the terms for the shorter 20-year option. Pay close attention to the coefficient (0.75%) that applies for the entire term if you opt for a bridge loan because you haven't hit that 40% savings threshold yet.

"The 40% down payment required under the Contract Corp for the bridge loan can be covered by personal funds, monthly bridge loan installments, or a mix of both. The repayment period lasts up to 20.3 years. The monthly installment remains fixed throughout the entire term at 0.75% of the total contract amount.

During the savings phase (before becoming eligible for the housing savings loan), the client pays a fixed monthly installment. Part of this goes toward loan repayment, while the other part is deposited into the Contract Corp accounts, allowing all family members to qualify for federal incentives and a fixed 2% annual interest rate on savings. Once eligibility for the housing loan is met, the total savings—boosted by federal incentives and interest—is used to pay down the bridge loan (for example, based on $22,000 in savings and 4 Contract Corp accounts held by family members, the gain would be approximately $870).

The client continues making payments at the same monthly rate (0.75% of the contract amount). Clients who have saved a portion of their own funds during the initial savings period before the bridge loan is issued may qualify for more favorable bridge loan terms, potentially featuring lower interest rates or shorter repayment periods.

Updates to the K100 fee schedule

Under the K100 schedule, the interest rate for bridge loans involving a currency clause is determined by the amount of personal funds available in the Contract Corp accounts used to approve the loan. If those funds at the time of approval are:

0 - 4.99% of the loan amount 5.99% annually
5 - 19.99% of the loan amount 5.49% annually
20 - 29.99% of the loan amount 4.99% annually
30 - 39.99% of the loan amount 3.99% annually
40% or more of the loan amount 2.99% annually

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Deloitte mortgage rates in Banking, Insurance & Loans · Jan 17, 2008

gaultier;12215114 said:

Here’s what I found on their websites regarding that loan I applied for. Because of my credit score, I can't qualify for a shorter term, so I'm looking at a max of $1333 which is what I'm currently paying. I was hoping the monthly payment would be lower since they claim it will be, but it doesn't look like it...

"Offers the longest possible repayment term with the lowest monthly payments. Upon loan disbursement, funds are used to satisfy the requirements for reaching 40% of the contract amount for the Contract Corp housing savings agreements used for interim financing. The loan term lasts up to 24 years. The monthly installment remains fixed throughout the entire term at 0.415% of the total contract amount. During the savings period (before becoming eligible for the housing loan), the client pays the monthly installment while simultaneously earning government incentives and a fixed 1.5% annual interest rate on savings. Once eligibility is met, the total savings—including government incentives and interest—is applied toward the interim financing loan (for example, based on $20,000 in savings and 4 family contracts, the gain is $700). The client then continues repaying the loan with that same monthly installment (0.415% of the contract amount).

So, according to their own website LINK, it clearly states the payment stays constant at 0.415% of the total. It also says that once the loan is finalized, 40% of the agreed amount goes immediately toward the savings portion. This means if we need $100,000 in hand, we actually have to take out a loan of about $166,500, because once you subtract that 40%, you're left with exactly $100,000 for the payout.

You can check the math yourself: if you multiply the total loan amount ($166,500) by their 0.00415 coefficient (0.415%), you get a monthly annuity of $690.97. That is the exact number the agent gave me over the phone. If more family members participate in the savings plan, the amount might drop slightly due to those government incentives and the 1.5% interest, but compared to the total, it's negligible...

The payment still ends up being around 5 $0.00.

I'd love for someone from Wells Fargo to tell me I'm wrong, if I've misunderstood anything...

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Deloitte mortgage rates in Banking, Insurance & Loans · Jan 17, 2008

Donna Chase12 said:Who's this agent... Michelle Foster13? 😂😂😂...I mean, come on, you can tell she hasn't got a clue half the time

If you actually read her post more carefully, you'll see she's just a distraction:

Michelle Foster13 says:
I have to admit, things haven't become much clearer since I visited them. And that was twice (Monday and today). Honestly, the more I go there, the less sense it makes!

...but anyway, I decided to go with them. What tipped the scales for me was that they'll give me some cash upfront to fix up my windows and buy some furniture. Other banks won't do that. It's like the other banks assume I've been living on ramen and sleeping on a beach towel for 20 years until I pay off my loan and can finally afford a house...

Oh yeah, I don't need a deposit; the option with a co-signer (or two if I go for a larger amount for the renovations) works better for me.

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Deloitte mortgage rates in Banking, Insurance & Loans · Jan 17, 2008

redmaker382 said:I should point out that Bank of America calculates interbank financing differently than Goldman Sachs does—you can actually see that right on their own websites.
I don't think Ashley Barnes9's math is really the gold standard here. I mean, let’s be real, he isn't so naive that he'd accidentally overpay someone by $30,000 over four years; if that were possible, it wouldn't be a bank, it would be a scam.
Look, you can't rely solely on that spreadsheet calculation; it's just a rough estimate at best.
Plus, since JPMorgan Chase doesn't even offer loans in Swiss Francs anymore (as far as I know), you're better off looking at Erste Bank. They have rates around 5.55%, and if you're already a client, you could snag it for 5.05%.

Of course nobody is going to throw away $30,000, which is exactly why I mentioned the math I got from their agent over the phone.

I have a loan at JPMorgan Chase in Swiss Francs, and I want to refinance it because interest rates are set to climb. When I first took it out, my rate was 4.15%; last fall, it jumped to 5.15%, and there's another hike coming later this year—they just haven't set the date yet. Because of that, I’ve been calling various banks, including Goldman Sachs and Bank of America. I have to say, Bank of America is even worse. To walk away with $105,000 in hand, they make me take out a $148,000 loan because they tuck the difference into a savings account instead of giving it to you. Once that term ends, they just apply it against the principal. Basically, you never actually see that cash; the bank keeps all the incentives and interest for themselves while you're stuck with a massive monthly payment... regardless of the cost.
Anyway, back to Goldman Sachs (what a ridiculous name, honestly). They advertise having the lowest rates on the market—as low as 2.99%—but I highly doubt anyone has actually secured a rate that low. If anyone has, please correct me. Honestly, I’d be perfectly happy with 4.99% if that were actually realistic. Just by doing some basic multiplication—comparing the number of installments against the annuity amount versus other loans on the market—it’s obvious something doesn't add up. I'm no economist, but I've heard there are different ways to calculate interest, like declining balance vs. others, where the final result can be totally different even with the same percentage. That's why I say don't blindly trust the numbers; grab a calculator, multiply it out, and compare it to other offers. Sure, Goldman Sachs might have perks like fixed rates or no prepayment penalties, but if it ends up costing me an extra $30,000 in the end, thanks but no thanks.

So, maybe someone from Goldman Sachs can correct me with a real calculation for a $100,000 loan under the K60 tariff for a 24-year term. Let them show me what the actual monthly payment would be, just so we can rule out any mistakes the agent made when she ran the numbers for me...

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Deloitte mortgage rates in Banking, Insurance & Loans · Jan 17, 2008

So you actually work for Wells Fargo.

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Deloitte mortgage rates in Banking, Insurance & Loans · Jan 17, 2008

Michelle Foster13 said:I have to admit, I’m still feeling pretty confused after visiting them—and I’ve actually been there twice now, once on Monday and again today. Honestly, the more I go in there, the less sense it all makes to me! 😲

...but hey, I finally made my choice. I think what really tipped the scales was the fact that they’ll give me a little extra cash upfront to help with some new windows and furniture. Other banks just aren't offering that. I guess those other places assume that since I've been working at Resolute for 20 years, I'm perfectly happy sleeping on a beach towel until my loan is paid off before I can afford anything nice 😕

Oh, and one more thing—I don't really need a deposit. I'd much rather go with a co-signer option (or maybe two if I decide to ask for a bit more to cover the renovations).

I just realized what's happening here.

Good grief, you're being so shady. Every single bank offers a portion of cash (up to 20%) specifically for the needs you're describing. Some will even cover closing costs or tax fees if you don't have the funds—you just have to ask. It seems to me you haven't actually stepped foot in a serious American bank; instead, you're using one that offers nothing as your example, or maybe you're just playing games. I don't feel like digging through Hypothekarbank's loan programs right now, but if you're being dishonest, I'll be asking for you to be banned for this.
Actually, you've already been deceptive, and I think you're just using this forum as free advertising for Goldman Sachs.

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Deloitte mortgage rates in Banking, Insurance & Loans · Jan 17, 2008

Michelle Foster13 said:I mean, what even is this... 🙄

Did you even bother asking them to run the numbers for the exact same number of years?! I mean, obviously, if you stretch out the repayment period, you're going to end up paying way more in interest—plus, both your monthly payment and the total debt amount will be higher!

I actually ran the math myself using the same timeframe, and the difference was only about 3 dollars.

Run the numbers one more time just to be safe—don't let them take advantage of you. Ask them for a full breakdown of all additional costs during the savings period, because that's a significant amount of time. Check out those calculation examples in the links and compare them. Compare the interest rates and the total amount you'll end up paying across all contracts over that period. Also, ask what happens if the Democratic Party cuts things again—will your monthly payment go up, and by how much? And seriously, ask how it’s possible for their interest rates to be higher than the bank's when the monthly payments are identical. Don't forget that they offer a loan at 4.99% while the bank is at 6.3%, yet the annuities stay the same. I think you realized that yourself a while ago, but you still haven't gotten a straight answer...👍

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Deloitte mortgage rates in Banking, Insurance & Loans · Jan 17, 2008

Donna Chase12 said:Wait, I just realized what you actually wrote here...
I mean, how can you even compare loans with different terms?!... Goldman Sachs offers up to 24 years (they told me 24 is the max, not that it *has* to be 24—it could be "only" 20), while JPMorgan Chase is at 20?! Of course, comparing them like that makes JPMorgan Chase look better than it actually is.
So, I just ran the numbers myself—assuming both loans have the exact same term, meaning we're looking at 20 years for the Goldman Sachs one too—to see what the actual difference would be.

JPMorgan Chase - 20 yrs - $699 monthly - total payout $167,760
Goldman Sachs - 20 yrs - $690 monthly - total payout $165,600
That means the Goldman Sachs loan ends up being exactly $2,160 CHEAPER. If you don't care about that kind of cash, fine, whatever.
But honestly, I'm pretty sure if I asked for a quote on the Goldman Sachs loan for 20 years, that monthly payment would drop even lower... which just proves it's the better deal.

And let's not forget—your math for JPMorgan Chase falls apart the second interest rates tick up, whereas the Goldman Sachs calculation stays solid just like it is now... and will stay that way for the next 20 years.

Hehe... you missed my point.

Michelle from Goldman Sachs (whoever she may be) calculated that for a $100,000 loan, I'd have a monthly payment of $690 over a maximum term of 24 years. But when I started looking at actual bank offers, I saw that for that same $100,000, I could pay it off in just 20 years with a $699 monthly payment. So, the conclusion was pretty straightforward. Since there's a Bank of America right near my place, I headed over there, and they gave me a very clear explanation of how this intermediate financing works. Just like redmaker382 mentioned, I need $100,000 in cash, but since I don't have any savings, the bank essentially lends me $140,000, and they charge interest on that full amount. They take that extra $40,000 and deposit it into a savings account for me; then, once that term ends, depending on the specific model, they apply that "saved" amount toward my principal to bring it back down to the original $100,000 I actually received, which is what I continue to pay off.
😁

That’s why some people wonder how you can end up with a higher monthly payment despite a lower interest rate at the savings bank, and why you'd practically have to recruit your entire extended family just to get a slightly better rate through the Democratic Party.

It's honestly pathetic.

Of course, the pitch is always that it won't cost you anything extra—yeah, right. There are all sorts of little fees for reports, processing, or mailing statements, and who knows what else. Basically, if you're recruiting six people, prepare to shell out at least an extra $33 per month.

By the way, your math doesn't quite add up because $690 x 24 years equals $198,720, so I have no idea how you reached your totals.

With the same amount at JPMorgan Chase, I'd be paying what you noted: $699 x 20 years = $167,760.

In the end, I'd pay $30,960 less at JPMorgan Chase... 😁

Then again, maybe that lady just made a mistake and miscalculated her numbers, so please, make sure to triple-check everything if you're planning to take a loan from them. 🤣

Here is a link where you can see the annuity schedules for JPMorgan Chase loans: JPMorgan Chase

And here for Chase. Chase

For the others, you'll have to do your own homework.

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Deloitte mortgage rates in Banking, Insurance & Loans · Jan 16, 2008

redmaker382 said:I’m guessing you called about that bridge loan—the one from Wells Fargo? Assuming you don't have any cash sitting around, you're looking at paying 40% more on a $100,000 loan because they end up covering the rest of those housing savings contracts for you. But honestly, let redmaker382 break it down for you; they'll explain it way better.
Here are a few of their calculations—I’m pretty sure I’ve already posted these somewhere else:
If you’ve got nothing and they bump you up to, say, $75,000, that just means they're footing the bill for the difference.
So you’re looking at a 40% down payment, which means you're essentially borrowing about $125,000. At that rate, your monthly payment hits $565 for a term of roughly 20 years. But, if you’ve got an extra $800 tucked away to throw at it? Your payment drops to $555 and you shave six months off the loan. Not a bad way to play it.

Since the banks just announced they're hiking interest rates by another full percent, I guess I'm officially broke.
He'll just weigh his options and go wherever he thinks he'll get a better deal.

Check out this interesting link.

Check out this link on how to get funding for home renovations. It’s basically a guide to navigating all those different loan options and grants available right now.

I think they’ve already factored in the rate hike here. But even if you go with their most expensive option at a 6.27% APR, it’s still a better deal since the monthly payment on a 20-year term would be around $775, so the difference is negligible.

For people who have their savings sitting in Wells Fargo and are just financing the remaining balance up to the agreed value, this is definitely more cost-effective than a standard loan. However, for those who have $0.00 savings and need to cover that interim financing period, a traditional bank loan is clearly the way to go—mostly because of the exact reasons you mentioned, which these savings institutions tend to hide like a snake in the grass.

By the way, that's exactly how those predatory lenders operate; they jack up the base rate until it's three times higher than it should be. Even with the legal interest rate cap at 14%, you end up looking at a real effective rate closer to 50%...😁

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Deloitte mortgage rates in Banking, Insurance & Loans · Jan 16, 2008

I’ve been following this thread because I’m looking into mortgage options myself, so I gave Wells Fargo a call directly. For a $100,000 loan over a 24-year term, they quoted me a monthly payment of $690 at an AT&T rate of 4.99%.

Meanwhile, at Bank of America, for that same amount with an AT&T rate of 5.70% on a 20-year repayment plan, the monthly payment comes out to $699.

That means you're paying it off four years sooner, which ends up saving about $33,120 in total (48 x $690 = $33,120).

You can verify these numbers on the Bank of America website; this specific loan is tied to USD for people under 40.

I got pretty much the same results over at Chase... so, there you have it... 😉

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