House Prep
I still need to do a few things before the tenants move into House #1. I plan to go over there tonight and do a final cleaning. I'll also install the security alarm battery and garage door lockset. I also want to take some more pictures of the place - both inside and out - so I have a snapshot of its condition right before they move in.
Agent
I haven't heard from my agent in two days. I sent her an email yesterday morning, asking her when the tenants would like to meet on Saturday. I also asked if she was going to be there. Last night, I sent her another email, explaining to her that I wouldn't be able to get to her office to sign the lease until Thursday afternoon. I also asked her about the addendums I requested a couple of weeks ago, and asked her to have those available when I come in on Thursday.
Broker
Aye Carumba! I'm hoping this will be my last time using a mortgage broker to finance my properties. After this, I'm going to start calling banks and get loans directly through them. Not only will it save me some $$$, but I'm hoping some of the red tape will disappear as well. If you may recall, I told you I agreed to get an option ARM on House #1. At the time, he quoted the rates at around 1.375% for the MTA portion and around 2-2.5% for the lender's margin. Well, he called me yesterday and said the rates have gone up some. I can now expect to pay around 5% total at the beginning. Not a big deal, but now I'm starting to question if this was such a good move - especially since I heard Greenspan today say the fed expects to keep raising rates. Another blow my broker gave me was the lender is going to enforce a prepay penalty on the loan. I can either pay 1.5 points and get no prepay, 1/2 point and a one-year penalty, or 0 points and a 3-yr penalty. ARGH!
2 comments:
I have never in my life obtained a mortgage where the rate quoted did not rise between the time of the quote and the signing of the loan, even during periods where rates in general were falling. This has got to be one of the biggest scams around. Now I always try to get an interest rate lock so I can be sure the rate won't rise before closing.
I agree. What frustrates me about my loan is I was hoping for a <5% rate at the beginning. Now, the only 'pitch' worth mentioning is the fact that I can make regular payments, IO payment of eg amort payments. It's nice to know I have the option of the latter two, but my main reason for getting this loan was the initial low rate. Had I known it would already be in the 5%'ish range, I would have opted for a longer-term low-interst rate with no frills.
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