Did you use the site agent? They are very nice, professional and represent the builders interests and not yours. If you used an outside agent, the time to get this resolved was before you signed the agreement. Builders don't like to discount and they often have arrangements with specific lenders that may benefit them.
If you have a choice, determine the most likely time period you expect to live in the home. Compare the total cost of ownership using both lenders over that period and choose the deal that is best for you.
Before you further commit ask the builder to reconsider allowing you to have the discount but using your lender. The worst they can say is no.... more
If your name is on the mortgage and deed, the only way to get your name off these documents is to have an attorney handle the transaction for you. This is much more complicated than selling a used car because it involves real estate law and dealing with the mortgage company. Like heart surgery, don't try this on your own! You could end up in a real legal and financial mess.
The best bet is to have your friend and his girl apply for a new mortgage. At settlement (conducted by a real estate attorney), you will receive your share of the money. A new mortgage and a new deed are issued in their names, and you no longer have financial or legal responsibility for the property.
If you are thinking of taking the $60,000 and having your friends "take over payments", you are thinking of a transaction called an "assumption". This was done years ago rather frequently, but no more. Read your mortgage documents carefully. Unless your current mortgage is over 20 years old, you will find language prohibiting assumptions and you will find your initials or signature on the page.
Be smart. Get your money and get your name off the deed and mortgage!... more
This question gets asked every few months, and I will say the same thing I have been saying for years. If you would have asked me this question in 2002 or 2003, when rates really started to drop, I would have told you that the next year they would be back up to 8.5%. Every time I say that they can't drop any more, they do.
For those who quote 2.75%, that is on a 5 year ARM, so I wouldn't want people thinking that is the way to go, and it can be very dangerous for the wrong person.
I have someone right now who I am refinancing into a $900,000 10 year fixed (not a 10/1 ARM) for 3.5% with very low closing costs. He wanted to know why would a bank go that low? You can see the answer in Ron's response, the banks are paying 1.5%, or less, on deposit money. So, who's getting the good deal? And, they are getting all their money paid back in only 10 years.... more
It is quite common for a lender how currently holds a second mortgage with a balloon to "rewrite" the loan. So that part of this I believe. What is strange is that they want to do it 2 months before the balloon. If I were you, I'd pressure them to get it over with now. They may not be too inclined to do it thinking that rates will be higher in 20 months but so what. If I were you I wouldn't want to leave this to chance.... more