anyone in the law profession or mortgage profession that can shed some light on this stuff....we see an add for a low rate based on 40-50% down of the loan. we based this on a house for 290 with 50% down and got the following answer.......
ps. company name is Personal Financial Management. already checked the bbb and nothing bad in 3 years......read below for her info.

"It was a pleasure speaking with you recently. As discussed, I am also sending a Good Faith Estimate and pre-approval letter.



Allow me to briefly explain our Equity Slide Down Program. Based on the information you provided during our conversation, we would go to one of our National Lenders for a 30 year, $219,000 mortgage at today’s rate of 6.625% for 0 points. Approximately five days after settlement, we would place a wrap-around mortgage contract on this first mortgage, changing the terms and conditions to $145,000 for 30 years at 5.375 %



At Personal Financial Management, we encourage our clients to review their mortgage transaction as part of their total financial plan. As our name indicates, we also provide financial counseling services to our clients. I would welcome an opportunity to meet with you to review your current financial situation and answer any questions you may have regarding our Equity Slide Down mortgage program. Please call me if you wish to set up an appointment or should you have any questions."





Sincerely yours,



OPFM, INC, T/A

PERSONAL FINANCIAL MANAGEMENT





Julie Musser



/cb

Mortgage Consultant

 

Wrap-around

Class ... A wrap around loan is alway to benefit of who? THE LENDER.

Class ... A equity slide down program is what? A trick to get people interested in accepting a wrap around mortgage.

I would humor them and find out the payoff amount at time of close and then a payoff amount at the time of the wrap-around close. If the payoff goes from 219K + a couple of days interest to 145K at time the wrap around closes. If that is the case, which I know it will not, I would jump on it. I would refinance with my bank at 145K and let the old guys worry about where the hell the 54K went.

 

we asked alot of questions and found this answer to be really sad and a little scary for anyone caught up in it....see below..

"Would you be legally responsible for the higher lien should our company
closed? You are right; it is a question that needs to be asked.
However, we truly have no answer for this. The mortgage, note and
subrogation agreement that you sign at the 2nd settlement states that we
are assuming the payment on the higher lien, and you are now responsible
to repay us on the lower loan amount. I have had clients take these
papers to attorneys to evaluate, some feel you are protected, some
don't. We have attorneys in this product; we also have attorneys that
do not like this product. I would be happy to send you these documents"



i did get the doc's like they said but need a lawyer to decifer the talk.....we are bagging it for sure and with rates coming down anyway we will just go with someone more legit....

 

Ok I may only have been in the Mtg. Industry for 1.5yrs but this sounds pretty bad. I wouldnt want to take over someone elses loan and surround it with another loan of my own.
Anymore, you can go to a locally owned bank or credit union and pretty much gurantee a 6-6.75%fixed rate with 2-3pts. I would simply go with a 30yr fixed, and do 1 of 2 things, put a huge downpayment down if you have one, or simply buy the rate down like I did. My 4k I put down on a 123k home, to simply buy down the rate is going to save me a ton in the long run. I had amoritized it out but I forget where that paper went.

 

If you have good credit and debt to income ratio you might try Everhome Mortgage an online bank with low costs and easy application. They come to you for signing.

 

Remember; If it sounds to good to be true, it probably is. It sounds like a shell game. What they will do is get your mortgage then turn right around and sell it to say Wells Fargo or B of A. They made thier money and your going "WHA?"