Equity in home how to suck it out?

I have a brand new home that I built and it sits on 6 1/2 acres of land it will apraise out to between 420-450k , but I still owe 190k. I would like to suck out as much equity as possible.

My credit score is at an all time low of 601 and Im self employed so I would need a stated income program, I do not want to wait 6-8 weeks to get the equity money as I need the funds now to pay off credit cards and a couple of trade companys that supplied the material or labor to help build part of the home.

Can anyone help me without trying to charge me up front fees of 40k etc please do not tell me that you want to check my credit and try to jerk me around for a few weeks and then tell me you cant do the deal as some have done already. I am looking for someone who can really get this deal done and in a short time period and I will not allow anyone to check my credit again as its killing my credit score over and over again with brokers who say this and that and cant deleiver what they say.

Help me if you can thanks

what stat are you in? And a lot of places can do it in 3 weeks if everything goes well. What is your rate on your first mort? Cause if it is hight then why dont you refi and cash out.

Have you thought of the heloc route? You can - or should I say a good mortgage broker, can close on a heloc within 1 week! You will have to have your credit pulled however. I think that you are going to find that to be the case no matter what scenario is presented. But, if it is cash you are looking for and relatively quickly, you might want to consider a heloc. Your scores (I am assuming 601 is the middle?) plus trying to go stated will be tough. Shop around and ask the bank what their min. required fico score is to qualify given the parameters you set forth. As you know, do not let anyone pull your credit again until you have a solid confirmation the deal can be done! As mentioned in a previous post, you can always go another route and just do a cash-out refi. That should run you 4 weeks max. Not too sure who is running 6-8 weeks out but that is way too long of a turn around time!

If youre goingthe refi route, you should be able to pull out between 200-250k with out too much trouble stated…and in about 3 weeks. Your rate would be in the 6.35-7.35 range. On a HELOC its will be a bit tough stated with a 601…but not impossible. 1 week closing on a HELOC, stated…probably not BEst of luck to you.

Oh and as for closing costs youre probably going to be looking at looking at about 22k.

Wow, 22k for closing costs are you serious!? And the original post of 40k for closing costs…That is insane. No wonder so many people are wary of the mortgage industry. Those closing costs are ridiculous…my company charges from $2-2400 depending on the bank (excluding title insurance)…If the quotes out there for closing costs are running $22-40k KEEP SHOPPING!!!

Im guessing at 4-6% of loan amount for closing costs. That includes title insurance…broker points etc…, sure closing costs can be 10k but there will be points on the back…making the rate higher.

Seriously though, if you can close loans for 2k and not charge them borrower points on the back, you guys are incredible. Just out of curiousity what makes up the 2000-2400 that your company does charge?

The $2-2400k range for closing costs depends on the bank I use. Each bank has their own fees so there is room for variable in that estimate. This figure encompasses all of the fees the bank charges, the appraisal, the attorney, credit report, survery, MLC, flood cert, and a few other misc items (courier, ups, etc.). This range for cc does not change, this is what I charge for every deal. Points (if necessary)and title insurance are excluded. But it is not necessary to charge points on every deal. It all depends on what the yield spread is. Using 4-6% of the loan amount to calculate closing costs is too high. I don’t know if you have any mortgage experience but I’ll throw this in here anyway. And if you do, then you’ll already know this and maybe a newbie can pick up some new info. If you calculate your title insurance separately that will help you have a more accurate estimate as to the overall cc. The formula to calculate TI is 2.5% per thousand dollars borrowed. i.e. on a $400,00 loan amount it would look like this to find the cost of TI: 2.5x400=1000. So your TI would be $1000. Hope that answered your question ;D

Ok…so basically the $2000-2400 is for paperwork the appraisal, and the bank attorney. Title charges, broker points, and any misc broker fees are seperate in your company’s closing costs ? I understand that points may not be necessary depending on the yield spread…do you disclose that information to the client and ask them what they would prefer? a high yield spread and a high rate or a lower rate and the same points up front?

So basically the closing costs are the same if you take the brokers points off the back and charged them up front? My 4-6% for closing costs includes brokers points up fron, because usually the client would rather pay the points at closing rather than have their interest rate inflated… I guess my office does things a bit differently, at my office we always offer the client the choice on where they would rather give the points… Having worked at a real estate law firm for many year before getting into the mortgage business I have yet tomeet a client who knew about yield spreads…and the majority of them who did discover that that on top of the thousnads they paid for closing costs their broker hreceived 2-4% at the expense of their interest rate, thought that it was unfair practice…but of course, you and I know that it is not…nonetheless, Ifound that my clients do appreciate that we explain to them about brokers points in closing costs, and how yield spreads will affect their rate if they chose that route.

SO based on your explaination I stand corrected…and if we had the same policies as your company…our closing costs would be $1650.00 ($15.00 for the credit report, $250.00 for the bank attorney, the rest for appriasal, and application fees, etc…)

YSP’s can be a great thing… It allows us to work with each clients’ individual needs and determine the correct rate for them as well as what our compensation will be. With that being said, I always have my clients’ best interest in mind and always review the option of paying points at the time of closing. I do let my clients know that if they would like to pay points the compensation for that expense is reflected in a lower rate. With most of our investors we are not required to disclose the ysp, but the banks that do require we disclose that info very few question what that figure represents. I’ve had maybe a handful of people ask me what that figure is, and I tactfully explain what the ysp represents (without going into too much detail as to my compensation). As you noted, most clients are not thrilled to know that in addition to the cc the broker is being compensated an additional %. But it certainly is not unfair practice (unless brokers abuse the system). Since I started in the mrtg. business I always make sure to guide my clients in the correct direction and then offer a few different options. Granted, there are those cases where there is only 1 option as you know! So in the end it looks like our fees are pretty similar, they are just represented differently- based on the way our companies structure payment either up front or on the back. :wink:

First off, Laura… If you were a professional loan officer you would have a little more decency in your tone with respects to your thread replies…

Second, you know you can’t get a heloc done in a week… 5 days… come now… (unless you have title and a complete file to submit)… that’s going to be your argrument… but that’s not what you stated… Some states take 7-10 days to retrieve title policy alone… not to mention the title opinion from an attorney… Stop acting as if you’re “Wonder Woman”. - this only increases to the confusion of the mortgage industry that you mentioned earlier… because now, people are going to think that it only takes a week to get a Heloc…

Thirdly, a professional in this business shouldn’t assume anything…

Where do you get $2-$2400? Something like this estimate tells me that either you are even trying to estimate or you don’t have a very good clue about what’s going to happen in this loan. Neither situation is good.

It’s called a Good Faith Estimate… and your estimate is again deceptive… after all your little calculations… now I do agree that $22k is outrageously high, but without more information how could you decide that $2-2400 is the right answer.

as is this statement you just made:
“This range for cc does not change, this is what I charge for every deal”.
and this one: “Points (if necessary)and title insurance are excluded.” Please.

What? Come back to earth.

Unless your company has a warehouse line, you should be disclosing yield spread (YSP) on every transaction upfront. This is were you become deceptive again… but this time it’s at your clients expense… and with your experience you should know that this disclsoure of ysp upfront is regulated by the Federal Trade Commission or “FTC”.

Here is the correct definition of YSP: disclosure of yield spread premiums. Also known as par plus or service release premiums, these are payments made to banks, lenders, mortgage bankers, mortgage brokers and other originators when they sell or transfer a loan to another lender or to Fannie Mae or Freddie Mac. Current practice requires that premiums paid at closing be disclosed on the settlement statement.

Until Culpepper or some other decision changes how things work, right now it is still necessary for the broker to disclose any rebate on the Good Faith when it will be disclosed on the Hud Settlement Statement according to 24 CFR 3500.7(c). Because the FAQ published by HUD on their RESPA web page (see question 35) requires that the rebate be disclosed on the Hud statement, it must be disclosed on the Good Faith Estimate.

That being said, you’re in violation of RESPA and the FTC.

Some borrowers don’t see the fine print with which most yield spread premiums are disclosed. I can assure you, I have no fine print. You can take steps to prevent that from occurring while you compliantly disclose the premium by pointing out the yield spread premium on the Good Faith when you review it with your borrower and explain what a yield spread premium is, why it is estimated in a range of numbers, and how it is calculated. You may have to spend some time on this issue if the consumer doesn’t seem to understand but the extra time you spend educating the consumer may prevent you from spending much more time responding to a complaint filed by someone who simply did not understand. At this same time, you can address the fact that the Good Faith is an estimate and that you don’t know exactly what the yield spread premium may be, if there even is one. That said, use your common sense. If you know there’s going to be a yield spread premium, tell the consumer that up front and don’t hide behind an estimate that includes zero as a possibility when zero isn’t a possibility. If the consumer is surprised at closing that there’s a yield spread or the size of it, it usually wont be good for you in the long run. Remember that long-used, but oh-so-true saying that a happy customer tells one person but an unhappy one tells 10 (and one of them may be your friendly regulator).

I am for full upfront disclosure in every mortgage transaction.

Lastly, a piece of advice for you.

Experience does not make a good loan officer it makes you old., Honesty and Integrity makes a good loan officer… and if you had the experience you would have a website…

Everybody out of the water! There’s a loan shark.

by the way, who is MPI, Inc… and why are you hiding behind them?

Do you feel better about yourself now? Go ahead, give yourself another pat on the back. If you’re through attacking my credibility without knowing the first thing about me or my professional life as a mortgage broker, we all might be able to continue posting without concern of personal attacks. You are flat out rude and inconsiderate. I would appreciate if you would STOP attacking me personally and professionally. AND, stop attacking the posts I have contributed. And as for your piece of advice, I have one for you in return, unfortunately I cannot post it! Nor will I waste my time entertaining your ego!!! But you keep typing away pages upon pages of posts…You’re bound to find someone who will stroke your ego. Out of the water everyone Mr. Honesty and Integrity is making his way through! And he sure is on a roll, bravo…I am sure you have “entertained” many readers with your slander this evening. Not what these forums are for FYI.

EAHF, did you ever get that deal done? 8)

LOL…Way to be the voice of reason Mark. :wink:

NOTE: I’ll do it for $10K + .125 in YSP… and that’s not an estimate! ;D