Mortgage rates and advice

Steven Reed said:Quincy:

wiredotter12 As stated by: Thanks for the response... Sure, every mortgage is tied to a specific loan—that’s the rule—but isn't there a massive flaw in how banks prioritize collections when mortgages are spread across multiple pieces of land? If a guy can't do much with property that's already encumbered by various liens, wouldn't it make more sense to consolidate everything into one single mortgage against the most valuable asset? That way, you could actually move freely with the cleared properties and focus all your resources on settling the debt on that one primary piece of real estate—right? So, to wrap this all up: The current setup is practically useless—it leaves everyone stuck, and frankly, the big banks aren't seeing a dime from it either. If you consolidate those mortgages—it’s like cleaning up a cluttered garage to actually find what you need—you gain much better control over your liquid real estate assets; plus, the banks will likely walk away with a little something for their trouble. The cost for the transfer—everything from the request to processing and final notarization—would run about a few thousand bucks. A friend of mine doesn't have a fifth piece of real estate to leverage for a new mortgage—the kind he'd need to clear those four existing debts—which would effectively free up all that land. So, yeah—that entire plan is dead in the water.

Hmm. 🤔
A few things here escape me:
How exactly do you think banks walk away empty-handed? Every single loan is backed by real estate as collateral—if a borrower defaults, the bank simply moves in and collects. It’s not rocket science. 🤷
Why on earth would anyone need to combine mortgages just to deal with their properties? — Who is stopping him from selling right now? Of course, there’s the tiny little catch—that any proceeds from the sale have to go directly toward paying off the loan secured by that land. Simple enough, isn't it? 🤷It looks to me like someone is trying to dump every single loan onto one piece of property—effectively using the cash from other sales to cover their tracks while leaving the debts unpaid. There isn't a theoretical chance that any halfway competent bank in the US would ever agree to such a ridiculous scheme.
One could always approach a single lender to request a refinancing of loans held elsewhere—using the property itself as sufficient collateral, of course. The idea is simple: Bank A pays off Banks B and C, leaving you with just one mortgage to juggle. However, speaking from my own experience—and let's be honest here—banks aren't exactly throwing a parade over the prospect of taking over someone else's loans right now.

1) True, but when everyone is underwater—both the borrowers and the banks—loans don't get paid immediately. They get pushed back until "conditions improve" or some refinancing scheme is found.
2) I admit that part is a bit fuzzy too... but it seems the issue is selling the fourth property while it's still encumbered. The intention is to repay the loans, but the challenge is figuring out a way to clear all those mortgages and debts quickly and profitably. That's the bottleneck.
3. Yes, but right now, that option seems like the best move for both my friend and the banks.

So I'm weighing this idea of launching a new venture, and I’d probably need to pull a loan for something like $150,000 over a 5 to 7-year stretch... I'm trying to wrap my head around what the actual requirements are to land a loan like that, specifically how much collateral I'd need to have sitting there to back it up, and just what kind of monthly payments we're talking about since I haven't even touched interest rates for this kind of thing yet... The business would basically be running a mix of transport services and tourism stuff...

cosmicwalker82 said:So I'm weighing this idea of launching a new venture, and I’d probably need to pull a loan for something like $150,000 over a 5 to 7-year stretch... I'm trying to wrap my head around what the actual requirements are to land a loan like that, specifically how much collateral I'd need to have sitting there to back it up, and just what kind of monthly payments we're talking about since I haven't even touched interest rates for this kind of thing yet... The business would basically be running a mix of transport services and tourism stuff...

- The ratio of the loan amount to the appraised value of your property usually sits around 1:1.5 or maybe 1:2.
- Not every bank offers mortgage-backed loans.
- The property needs to be "clean"—meaning you have clear ownership with no liens or encumbrances against it.
- Generally, this type of loan comes with higher interest rates.
- Financing for transport companies isn't exactly a top priority for lenders right now (unless you already have reliable, high-credit customers and long-term annual contracts, which can be tough for a newcomer to secure).
- For tourism-related financing, it might be worth checking with the Federal Reserve to see if they have any active programs available; they used to have specific models to boost tourism.
- If you're looking to acquire vehicles for the transport side, leasing is usually the easiest route.

It’s honestly a bit sad 😢 how difficult it is for someone just starting out to get the credit needed to launch a business, hire staff, and actually grow the economy... yet I turn on the TV and see certain people bragging about how much they're stimulating economic growth 👎... I'm still waiting to see how they're actually doing that. 🙄

Here is the situation I am facing:
I own a 60-square-meter apartment registered entirely in my name, but since my parents currently reside there, the idea of me moving in solo is off the table. My goal is to leverage this property to secure a $30,000 mortgage so I can purchase a smaller place that actually suits my lifestyle. What I am struggling with is the lack of clarity regarding the requirements for this kind of loan. Does the lender focus primarily on my debt-to-income ratio and monthly payroll deductions? Will I be required to find a co-signer to back the loan? Furthermore, which major US bank would you recommend approaching for the best terms? HELP!

😍

Rachel Smith9 said:Here is the situation I am facing:
I own a 60-square-meter apartment registered entirely in my name, but since my parents currently reside there, the idea of me moving in solo is off the table. My goal is to leverage this property to secure a $30,000 mortgage so I can purchase a smaller place that actually suits my lifestyle. What I am struggling with is the lack of clarity regarding the requirements for this kind of loan. Does the lender focus primarily on my debt-to-income ratio and monthly payroll deductions? Will I be required to find a co-signer to back the loan? Furthermore, which major US bank would you recommend approaching for the best terms? HELP!

😍

In an age of endless internet access, Google, and banks on every street corner, I don't get why you're starting with a forum. 🤷

First off, any info you pick up here needs to be verified at a bank anyway. Second, no matter what anyone tells you, the bank gets the final say. And third, there is already a massive amount of stuff written about this online.

Honestly, Jamie Newman5, you absolute blockhead... I haven't seen you around this forum in ages. Look, forget about Google or whatever search engine you're obsessing over right now; I'm not looking for an algorithm's take.
I want to hear from the people here—real people, not some automated noise. I want to hear what Jamie Newman5 actually knows through experience, and more importantly, I want to hear everyone else's actual perspectives.

Yeah, you can definitely get a loan on that apartment; it doesn't matter if your parents are living there right now.

It’s highly likely they’d approve you for something around $30,000. It really comes down to the appraisal—an appraiser comes out, looks at the property, and gives their professional estimate.

Honestly, $30,000 is barely enough for even a studio apartment. If it covers anything, you might have to stretch that amount quite thin.

Keep in mind, the interest rate will be pretty steep—probably in the 8, 9, or 10 percent range. You might want to reconsider and look into a standard mortgage instead. With a mortgage, the property you're buying serves as the collateral, which keeps your interest rates lower. Plus, between government programs and the banks themselves, residential mortgages are more heavily incentivized right now. I won't bore you with all the technical details, but it's just a better deal.

With a standard mortgage, the property itself acts as collateral, and they’ll likely require you to carry a life insurance policy.
If you go the home equity route using the apartment where your parents live, that becomes the collateral. However, they would probably insist that you have your direct deposit set up with them as well.

So, I see... it actually makes more sense to go with a mortgage on the property you're buying rather than a different kind of loan. I hadn't realized that. Thanks.
And obviously, I know $30,000 is pocket change—you could barely scrape together enough for a parking spot in most cities with that amount. 😁
But what am I supposed to do when wages are stagnant? My paycheck is tight as it is, and my parents are already struggling just to make ends meet on their social security. I don't have any extra real estate to fall back on, so I figure if I can at least secure a small studio apartment now, who knows where things might lead down the road. 🤷
The part I’m struggling to wrap my head around, though, is how it's even feasible to put a mortgage on a home you haven't actually purchased yet because you lack the upfront capital. 😁
I assume this happens right at the moment the purchase agreement is signed... but doesn't that mean the seller has to be involved in the signing process for the loan as well? Man, that sounds complicated. 😁

Rachel Smith9 said:So, I see... it actually makes more sense to go with a mortgage on the property you're buying rather than a different kind of loan. I hadn't realized that. Thanks.
And obviously, I know $30,000 is pocket change—you could barely scrape together enough for a parking spot in most cities with that amount. 😁
But what am I supposed to do when wages are stagnant? My paycheck is tight as it is, and my parents are already struggling just to make ends meet on their social security. I don't have any extra real estate to fall back on, so I figure if I can at least secure a small studio apartment now, who knows where things might lead down the road. 🤷
The part I’m struggling to wrap my head around, though, is how it's even feasible to put a mortgage on a home you haven't actually purchased yet because you lack the upfront capital. 😁
I assume this happens right at the moment the purchase agreement is signed... but doesn't that mean the seller has to be involved in the signing process for the loan as well? Man, that sounds complicated. 😁

Look, let's put it this way.
Take a long, hard look at whether you can actually see yourself living in that tiny studio for the long haul. If you're thinking that won't be enough space for you eventually, don't beat yourself up—it's not your fault, that's just the reality of the market right now. Maybe consider saving for a bit first. Treat it like you're paying the monthly installment on a non-existent loan; put that money into a separate savings account and see if you can actually handle the lifestyle hit.
On one hand, having your own place is great for independence. I don't know what your social plans are, but eventually, you'll likely reach a stage where you want to move in with a partner, or maybe your salary will jump, or real estate prices will shift. Whatever you buy now probably won't cut it later, and then you're stuck dealing with the headache of selling it just to upgrade to something bigger.
The reality is you'll probably spend money furnishing that place, only to find yourself furnishing a completely different setup in a few years.

The only thing I don't get is how it’s even possible to put a mortgage on an apartment you're buying when you don't have the cash to buy it in the first place. 😁

Fiat money and massive bonuses for guys in suits. That's the short version.

To put it more simply, until just a few years ago, it was perfectly standard and logical in the US to take out multiple loans against a property you bought on credit—mortgages. Basically, you have nothing, you buy an apartment on credit, you live in it, and then as property values rise, you use that equity—the difference between the purchase price and current market value—to secure a second or third loan against that same property that wasn't even yours to begin with. 😁

So, compared to that, what we have here is a walk in the park.

As for how the mortgage actually works, the bank typically pays the funds directly into the seller's account—the person you're buying from.
Then, a lien is recorded against the property title.

Rachel Smith9 said:So, I see... it actually makes more sense to go with a mortgage on the property you're buying rather than a different kind of loan. I hadn't realized that. Thanks.
And obviously, I know $30,000 is pocket change—you could barely scrape together enough for a parking spot in most cities with that amount. 😁
But what am I supposed to do when wages are stagnant? My paycheck is tight as it is, and my parents are already struggling just to make ends meet on their social security. I don't have any extra real estate to fall back on, so I figure if I can at least secure a small studio apartment now, who knows where things might lead down the road. 🤷
The part I’m struggling to wrap my head around, though, is how it's even feasible to put a mortgage on a home you haven't actually purchased yet because you lack the upfront capital. 😁
I assume this happens right at the moment the purchase agreement is signed... but doesn't that mean the seller has to be involved in the signing process for the loan as well? Man, that sounds complicated. 😁

Sponzy, Sponzy, where are you headed, buddy? That apartment is going to belong to the bank for the next 30 years, not you, and you'll just be living with a massive weight around your neck. Just rent. It’s easier. You won't care if interest rates drop or spike, or if there's an earthquake tomorrow, or if real estate prices decide to skyrocket again.☕

I own three properties and I'm seriously considering selling everything just to become a renter.🙂

Are we talking about mortgage rates or residential housing here? 🤔

Lawrence Cruz said:Are we talking about mortgage rates or residential housing here? 🤔

We need to Combine all these different variables into one cohesive picture... 😁

Quincy:

Jamie Newman5 As specified by: Sponzy, Sponzy, where exactly do you think you’re headed with this? That apartment is going to be nothing more than a gas station in thirty years, not your home, and you'll be the one left holding the bag when it happens. Honestly, just sign the lease and stop overthinking it. Who cares if interest rates dip or spike, or if an earthquake hits tomorrow, or if real estate prices decide to go on another manic upward spiral? Just commit and deal with the fallout later.☕ I currently hold title to three separate apartments, and I am seriously weighing the option of liquidating my entire real estate portfolio just to rent a place for myself.🙂

Is there really any debate to be had about whether owning your own home is superior to being stuck in a cycle of paying someone else's mortgage through rent? To me, the choice seems almost self-evident when you weigh the long-term implications of both paths. When you pay rent, you are essentially pouring capital into a void, building equity for a landlord while gaining absolutely nothing in return for your own future stability. It feels like a constant uphill battle where the finish line keeps moving further away. Conversely, investing in real estate allows you to anchor yourself, turning monthly expenses into a tangible asset that grows alongside the market. Of course, the upfront costs can be daunting, but isn't the goal of financial planning to build wealth rather than just subsidize someone else's lifestyle? 😕

Whoa, easy there—don't let the moderators of this sub hear you 😲
. They might ban you from the forum, the internet, and then show up at your house to wrap it in yellow police tape like something out of a movie.

While I generally agree with your sentiment, 😍 just keep it down, okay?
What you really need to consider is whether you truly grasp the weight of thirty years. For instance, I’m still figuring that out myself; I’ve got five years left to go, and in my lifetime, the entire economic landscape has been flipped upside down. We transitioned from the planned economy of America into a full-blown capitalist society. In that same span, we saw a nuclear meltdown happen right here in Europe, and we lived through a civil war where the front lines were barely 60 miles from the capital while the city itself was being shelled. There was a period where wages were practically nothing, followed by an era where every single family in the US felt pressured to buy real estate just because everyone they knew was doing it. Take my case: a married couple with two kids had a little bit of savings tucked away. Neither had a steady job, yet back in 2007, they were actually considering buying a vacation home on the coast just because it seemed like the "standard" thing to do. Fortunately for them, they didn't have enough saved, and their loan application was denied. Today, they are both unemployed.

The point is, the situation has shifted dramatically.

Try saving for a year. Set aside what would be your monthly mortgage payment (I can send you a link to a mortgage calculator so you can see what your projected payments would look like) and see how that goes for you.

It’s just another sponsor. Typical. Everyone looking for a handout these days, chasing that quick check from some big corporation like Amazon or Walmart. It’s all part of the game now. Just more noise in an already crowded room. Jamie Newman5 says:
Is there actually any point in paying rent when you could just own the damn thing? Seems like a waste of money. You're basically just handing cash to some landlord who doesn't care about you. Owning property... it's different. It's an asset. Or at least that's what they tell you. Still, the market is a mess right now. Everything is overpriced. But yeah, renting feels like throwing money into a void. Ownership is better. Usually. Hard to say for sure anymore. 😕

Ask someone carrying a massive mortgage how they’re sleeping lately. Ask them where their head actually goes when they close their eyes at night. It’s all there.☕

You’re free as a bird out there. You can always buy a place later—prices are dropping every single day anyway. You aren't losing anything by renting right now because rental rates have absolutely cratered. Just rent and enjoy the ride.🙂

This thread isn't strictly about mortgages, but still... this one is

Hey everyone!
I have a few things on my mind and would love to get some perspectives, especially from anyone who has actually been through this before.
My husband and I are looking into buying a house using a mortgage, so I’m curious if anyone here has experience navigating the mortgage process in the States or perhaps abroad...
The other thing I'm wondering about is what the actual closing procedure looks like when you're buying a home...

Thanks!! 🙂

Taking out a loan right now? Not exactly a brilliant move. Just look at what happened in Greece or check out the threads here regarding the USD exchange rate—people aren't exactly optimistic. Things are looking pretty grim across Europe: Ireland, Spain, Canada, you name it. At the very least, keep this in mind and read the original post:

Anyway, good luck.

Question 🙂

I am wondering if it is possible to secure a mortgage from a bank if I don't meet the standard credit requirements, provided I have property to use as collateral? My plan is to open a local business and use that commercial space as my security...

Hey everyone!
I really wanted to give a heads-up to anyone looking at mortgage or home improvement loans through Chase that require a property appraisal. Seriously, do yourselves a favor and double-check if your place actually meets their strict "legality" standards before you even start the process.
Here’s the deal: I ended up getting absolutely fleeced by RE/MAX for $467 just because I expanded my balcony and made a few other tiny tweaks to the house. They know perfectly well that in the US, a huge chunk of residential properties have some kind of zoning quirk or unpermitted addition that wouldn't pass their rigid criteria, but they won't tell you that. They'll let you wait for like two weeks and $467 then hit you with the news that your property doesn't qualify...

It's honestly shameful how some companies operate just to squeeze extra cash out of people. If they had just given me a little warning or mentioned the potential issue upfront... I mean, it's not like it was just $4.75 bucks, it was $1400
!
Total low blow.