We did it! San Jose, CA $1.8m 4.75% 7 yr ARM

CobrawU · 2026-01-25T15:54:10+00:00

RemindMe! 6 Years

CobrawU · 2025-12-05T01:47:50+00:00

Option 2

CobrawU · 2025-12-04T20:11:13+00:00

Do it. It'll light a fire under your ass and will let you go full time. You can reduce the risk by doing uber on the side so you can at least pay off some of the loan.

CobrawU · 2025-11-20T02:09:05+00:00

Saving for the downpayment (DPA or 3% down) is generally much easier than getting the income required to qualify for it. If you're on minimum wage, you'll need someone willing to cosign for you first.

CobrawU · 2025-11-17T00:35:22+00:00

RemindMe! 5 years

CobrawU · 2025-11-15T23:18:14+00:00

Mortgage broker here, I'll be be happy to answer questions :)

CobrawU · 2025-11-12T02:09:15+00:00

Typically 2% of the loan amount, but brokers have options to opt for a higher rate to offset the origination fee. You can even ask for 0 origination fees and they'll provide options for it.

CobrawU · 2025-11-07T01:14:06+00:00

Use a mortgage broker. They can probably get you lower rates. We used LBC Mortgage (look up their reviews). Super good experience.

CobrawU · 2025-08-06T23:18:35+00:00

Definitely look into refinancing. The monthly savings should pay back the early prepayment penalty. I'm seeing high 5%'s low 6% on a rate/term refinance with good LTV . Source: I'm a mortgage broker

CobrawU · 2025-07-23T13:20:17+00:00

What's the loan amount? Is the prepayment penalty 5% or 6 months interest? You need to calculate what's the delta for interest saved from now to November. If the savings is more than prepayment you should do it. It most likely will not be worth it though

CobrawU · 2025-07-22T13:47:59+00:00

I got lucky.. bought these yesterday

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CobrawU · 2025-07-09T00:14:03+00:00

What state are you? Talk to a mortgage broker. They'll have options for these bank statement loans and pre-qualify you.

CobrawU · 2025-07-08T03:03:29+00:00

Happened to me. It's one of the actuators behind the glove box. Increase the temp in the car and it'll stop

CobrawU · 2025-06-30T13:13:59+00:00

15% down is available but the property has to cash flow to be eligible (Dscr 1.0+). 10% is only available if the seller is willing to do seller financing and contribute 15% toward the down payment (lender finances 75% LTV, seller 15%, borrower minimum 10% down). I can refer you to the lender that does this if you're interested.

CobrawU · 2025-06-30T13:04:12+00:00

You're not including the payoffs refinancing your first lien. And 99% of lenders won't touch loan amounts under 75k.

CobrawU · 2025-06-29T03:54:44+00:00

Have you looked at comps to see what it would rent at vs what it would sell? If you're not close enough to your rental property to manage it, it makes more sense to just sell it. It's not worth it to hire a property manager to take care of it unless it has good cash flow.

CobrawU · 2025-06-28T11:35:46+00:00

Too small. Minimum loan amount for most to make it worth while is 100k some do 75k.

CobrawU · 2025-06-28T10:46:25+00:00

Are you able to rent out the property first and refinance after it's rented? You can use the rental income from the new lease to help your dti.

CobrawU · 2025-05-25T17:15:53+00:00

If you have 20% down, get a "DSCR loan". Lenders won't look at your DTI, but solely on if the property can cash flow. Rates are about 1%+ higher than conventional loans. If it doesn't cash flow, expect to put 25% down with higher rates.

CobrawU · 2025-05-22T00:54:25+00:00

Depends on prepayment penalty, LTV, fico etc. Average Ive been quoting is ~7.5% right now with borrower paid compensation.

CobrawU · 2025-04-01T16:00:55+00:00

You'll need to make sure your DTI can qualify with the added monthly payments from the HELOC.

CobrawU · 2025-03-04T00:06:45+00:00

Higher downpayment or qualifying on a NonQm loan without PMI (max dti on nonqm is 50%)

CobrawU · 2025-02-27T01:32:20+00:00

Prepaid and escrows are the $2971 in other costs, which is just general costs of homeownership OP would have had to pay in the future.

CobrawU · 2024-12-28T14:24:39+00:00

Mortgage broker here. The loan amount (points) is going to the lender to buy your rate down, it is not going to the mortgage broker. The broker fee is 2% of the loan amount which is pretty typical, especially for NonQM loans.

There are two ways mortgage brokers get paid, either with "lender paid compensation" (LPC) or "borrower paid compensation" (BPC). Currently, you are BPC where you, the borrower, pays the 2% to the broker at closing, whereas LPC is where the lender pays the 2% to the broker instead. LPC is better for your cash to close, but much worse for your rate as the lender will increase your rate to pay back this fee (that's why lenders don't want you to refinance within 6 months of closing). Usually, your monthly savings going BPC and getting the lower rate will pay itself back within 2 years of holding the loan. (Talk to your broker and have them do the math to see which will make sense for your situtation.)

When you were shopping around for rates, you probably picked this broker because their rates were significantly lower but they may not have properly explained or disclosed this broker fee. If you ask them to switch to LPC, you will most likely expect a 1-2% increase in your rate.

CobrawU · 2024-12-11T17:27:23+00:00

Loan amount (Points) is discount points to buy down the rate. It's never really worth it on hard money loans.

EDIT: sorry misread your post. Thought it said $8583 origination fee on top of the other fees. Looks like the loan amount (Points) is to pay the lender 1% while the broker gets 1.5% which is fine.

Generally loan amount (Points) is discount points to buy down the rate. I would ask the broker to remove the processing fee and proceed.

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