firsttimebrownstoner's Profile
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March 12, 2008
Cost for electric and plumbing upgrades
We just received the report from the structural engineer on a 3000 SF four story brick federal townhouse we are about to purchase and it came back with several necessary repairs. Among them were a complete upgrade to the electricity and the plumbing throughout the house. The engineer's estimates were ~50k each for plumbing and electric. He also estimated 50k per floor for taking down walls, refinishing the plaster, removing lead paint, etc. On top of this was an assumption of another 30% for general contractor fees. Can anyone give a sense for whether these estimates seem fair or very high? Any thoughts on pros and cons of using a GC, and costs?
February 21, 2008
seeking advice on securing jumbo financing
We are about to enter into contract on a brownstone in BK and will need to secure financing. The purchase price is ~$1M and we will be putting 20% down. So we are left with a few options to get to either a 30 year fixed or a 7/1 ARM - either one shot jumbo with very high rates, or splitting it into two pieces. Does anyone have any suggestions on creative ways to get our all-in APR down, or on Jumbo lenders that do not securitize and thus have lower rates than the big lenders are offering right now?
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Not so fast Brownstoners...
Jumbo mortgage rates not seeing much relief - Congress' plan to help the jumbo-loan market -- passed two weeks ago as part of the Economic Stimulus Act -- still is a work in progress. Key details of the plan were left to the Department of Housing and Urban Development to nail down, which may take until next month. What's more, the securities industry's biggest trade group last week surprised lenders when it recommended that larger loans be in effect isolated from smaller mortgages in the "secondary" market, where loans are packaged into securities for sale to investors. That could keep interest rates on jumbo loans higher than some borrowers had hoped, analysts say. LA Times 2/22/2008
Posted by: moreteasir at February 22, 2008 11:02 AM in response to seeking advice on securing jumbo financing
Citi (which has generally pretty high rates)- will give 5.875 on a jumbo with FICO above 700 (or 720? I forget). I think that's pretty good. As for conforming limits- that won't change for a while. The GSE's have to first change policies- then that goes out to lenders- and then the lenders change underwriting. Its up to you, but I think 7/1 is pretty safe. Lots of people got in trouble with 2/28 or 3/27 but seven years is a long time so if you have a good rate- you can lock in seven years and then during that time- try to refi with a fixed (although new closing costs would suck).
You never mentioned with APR you were offered. Also- no one is securitizing now.
Posted by: panda10 at February 22, 2008 2:00 PM in response to seeking advice on securing jumbo financing
Citi is offering 5.875 on a jumbo?? Yeah, maybe with 10 or 12 points. That is completely unrealistic... especially since conforming rates are in the mid 6's at the moment.
Posted by: guest at February 25, 2008 10:48 AM in response to seeking advice on securing jumbo financing
Your rate will be much higher on your second so I would not advise that. You should take a 5 year arm @ 5.125%. I do a lot of business with Ridgewood as well. When the new conforming limits come out there will still be adjustments. Email me your work number and I will take care of you on Mon. If the guidelines change we can switch you to a fixed. jayrhee@gmail.com
p.s. Some mortgage brokers here pretend to be clients but if you want Brooklyn references I have many people who can vouch for me...
And my underwriter showed me that Citi is discounting I think ARMS now but that is for existing pipeline only...
Posted by: guest at March 2, 2008 12:22 AM in response to seeking advice on securing jumbo financing
Rates should go down on Mon but the way the market is you never know. You can lock and if the rates go down and that bank won't allow a floatdown I'll switch it to another...
Posted by: guest at March 2, 2008 12:28 AM in response to seeking advice on securing jumbo financing
Thanks very much for all of the helpful replies. As an FYI to anyone interested, the conforming limit on a 2 family is actually $533k. And local thrifts that take in deposits and hold loans on their balance sheets is definitely the best bet if you want a 30 year fixed jumbo...
Posted by: firsttimebrownstoner at February 21, 2008 10:22 PM in response to seeking advice on securing jumbo financing