Posted on: 30th Sep, 2008 02:54 pm
I purchased my invest. property in '05. I got a 5/1int only Arm. Which allowed me to collect rent and have a nice cash flow. Never been late on a mtg payment. Now I'm looking to refi. for another ARM/ int. only and the banks are giving me the highest rates I've ever seen and saying "no" to int. only. My credit is good, and my DTI is about .50 for the top and .62 for the bottom. I know these ratios are high, but its really b/c of my primary residence. I plan to sell the property in about 5-10yrs and there is a lot of equity in the property so I'm not interested in a 30yr fixed product. Question is, why are the banks (the few that will even consider doing business w/ me) trying to give me a 30yr fixed?
Hi picture!
Welcome to forums!
I think its because of the higher DTI that the lenders are offering you a 30 year fixed mortgage. You can speak to your lender personally and ask him for other options, if available.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
I think its because of the higher DTI that the lenders are offering you a 30 year fixed mortgage. You can speak to your lender personally and ask him for other options, if available.
Feel free to ask if you have further queries.
Sussane
In my opinion, your DTI is affecting you when you are going to the lenders. They do not want to take any risk and are thus offering you 30 year fixed mortgage.
the ratios you cited are way too high in the year 2008 to obtain a loan. interest only loans are prime among the reasons why this country is in the state it's in. this is not to reflect on you, specifically, of course. as you said, some interest only loans are fine - it all depends on the circumstances and the borrower.
however, banks/lenders and investors are terrified these days - can you blame them? look at all the failures in the marketplace. a year or so ago, a 62% back ratio would have rendered an automated approval for you - not so any more.
you're asking your bankers to do more than they are able. whether you want a 30-year fixed rate or not, you may very well have to settle.
frankly, the fact that you are planning to sell your current primary in the next 5-10 years has no relevance at all to what's happening right now.
however, banks/lenders and investors are terrified these days - can you blame them? look at all the failures in the marketplace. a year or so ago, a 62% back ratio would have rendered an automated approval for you - not so any more.
you're asking your bankers to do more than they are able. whether you want a 30-year fixed rate or not, you may very well have to settle.
frankly, the fact that you are planning to sell your current primary in the next 5-10 years has no relevance at all to what's happening right now.
Getting the debt to income ratio will be key here. A good mortgage broker can sometimes structure a loan that can accompish this.