I don't know. I applied on their website yesterday and they said I should hear back in 1-3 days. Then, I got an email from them saying thank you for applying.....yada yada yada.
The posted loan rates are apparently just marketing hype. Do you really believe there is a 1.95% fixed rate loan out there today, as KMT advertises on this site?
I tried to contact KMT to inquire about this loan product. I was instructed to fill out the online loan application, then I never heard from anyone at KMT.
Instead, about four days later, I got a few telephone calls from lenders responding to my online "loan application". None of these guys heard of a 1.95% fixed rate loan product.
Apparently, KMT is trying to be a clearing house for loan applications (like LendingTree), and is using what appears to be false or misleading advertising to attract business.
I've heard of the 1.95% fixed loan. Thought not through kmtpartners, unless my contact is a affliate and I didn't realize it. In actuality if memory serves correctly it is simmilar to an ARM. The 1.95 is "fixed" for I believe it was 6 months, but could have been a year. Then increased to to market average "fixed" interest rate for the remainder of the loan term. So in a sence your looking at a introductory rate, like they give on credit cards.
If you want my contacts name and phone number I would be happy to give it to you. She returns her phone calls in very timely manner.
I may have an advantage here, as I signed up to be a representative. I got a code number, a free website, and a bunch of useless marketing and advertising ideas, such as where to advertise for free. I figured i would test it out and no one ever responded.
i changed their suggested wording and got a email that said runs ads verbatim to what they suggest as any changes may cause problems.
if anyone wants to be a loan broker, try wes-state mortgage. sure, you have to pay for the program, but atleast these guys are reputable.
Quote:
On 2003-09-04 11:08, illusvfyre wrote:
I've heard of the 1.95% fixed loan. Thought not through kmtpartners, unless my contact is a affliate and I didn't realize it. In actuality if memory serves correctly it is simmilar to an ARM. The 1.95 is "fixed" for I believe it was 6 months, but could have been a year. Then increased to to market average "fixed" interest rate for the remainder of the loan term. So in a sence your looking at a introductory rate, like they give on credit cards.
If you want my contacts name and phone number I would be happy to give it to you. She returns her phone calls in very timely manner.
Scott <IMG SRC="images/forum/smilies/icon_eek.gif">
illusvfre if you can that number will be highly appreciated Thanks so much
HEY! I may have figured the 1.95% out. Today, I talked to a hard money lender and he said they charge 1.5%. I was excited until I figured out 1.5% PER MONTH => 18% annual. 1.95% would equal 23.4%.
The 1.95% loans are what we call neg amortazation loans. They are for OO with good credit and max LTV of 80%.
The payment is fixed for one year but the rate adjusts every month. So after the first year your balance can be higher than when you started.
For more than 80% the rate is a little higher.
My concern for the products is that even with the bump in rates that we have had rates are still low. So when looking at the risk / reward I am concerend that rates are going to go up. Not that I know any more than anyone in this group. But I would hate to have a mortgage that cold be at 11% in two years.
What happpens if your rate is at 11% but you were not able to raise rents?
The programs are real and are funded by the big names but don't blindly sign up for them.
These loans should be utilized for short term money only. Correct the 1.95% is a teaser rate and can neg am on you and probably will. BUT if you can acquire this for 12 months WITH NO prepayment penalty it could be worth it still. Just keep in mind that payoff may be higher at closing due to neg am.
I am a mortgage broker, and have been for 10 years.
One key distinguishing factor in dealing with different is the Customer service or lack of therefore.
As to the 1.95% . this type of ARM is offered by several companies, including myself.
Yes there could be negative amortization. You usuallly get several payment options. Obviously if you choose to pay 1.95% and the true rate is say 5%, then the difference is added to your mortgage balance.
But guess what gang..
The clients who go for these types of programs tend to be the more sophisticated and wealthier clients.
The real advantage here is that they are making a conscious decision to pay absolutely as little as possible for their mortage payment, and invest the addtitonal savings where they can yield higher returns.
However, in the current interest rate environment, its not a bad move for the average home buyer to go ahead and lock in a 6% or so interest rate for the next 30 years. Then they would not have to worry about their rate theoretically being able to climb up to 11% someday.
By the way if anyone needs a loan in Illinois shoot me an email.
just talked to someone re the 1.95% that has that loan here you have 4 options to pay each month from deferred interest,interest only,fixed rate or ****Must Reach Senior Investor status before posting URL's***hing like a few more things to think about while working on a project.
And I am looking for an investor/partner for the n California ****Must Reach Senior Investor status before posting URL's*** have about 15 fixers I am looking at right now with one being held up by the Medical paperwork but not too much of a biggie
Mike
Tried to send them an email to ask them about their investor programs, and it bounced back. That tells me all I need to know.
I don't know. I applied on their website yesterday and they said I should hear back in 1-3 days. Then, I got an email from them saying thank you for applying.....yada yada yada.
I guess I'll let you know in 1-3 days.
Ronnie
The posted loan rates are apparently just marketing hype. Do you really believe there is a 1.95% fixed rate loan out there today, as KMT advertises on this site?
I tried to contact KMT to inquire about this loan product. I was instructed to fill out the online loan application, then I never heard from anyone at KMT.
Instead, about four days later, I got a few telephone calls from lenders responding to my online "loan application". None of these guys heard of a 1.95% fixed rate loan product.
Apparently, KMT is trying to be a clearing house for loan applications (like LendingTree), and is using what appears to be false or misleading advertising to attract business.
I just figured that to mean 1.95% over prime.
I've heard of the 1.95% fixed loan. Thought not through kmtpartners, unless my contact is a affliate and I didn't realize it. In actuality if memory serves correctly it is simmilar to an ARM. The 1.95 is "fixed" for I believe it was 6 months, but could have been a year. Then increased to to market average "fixed" interest rate for the remainder of the loan term. So in a sence your looking at a introductory rate, like they give on credit cards.
If you want my contacts name and phone number I would be happy to give it to you. She returns her phone calls in very timely manner.
Scott
I may have an advantage here, as I signed up to be a representative. I got a code number, a free website, and a bunch of useless marketing and advertising ideas, such as where to advertise for free. I figured i would test it out and no one ever responded.
i changed their suggested wording and got a email that said runs ads verbatim to what they suggest as any changes may cause problems.
if anyone wants to be a loan broker, try wes-state mortgage. sure, you have to pay for the program, but atleast these guys are reputable.
Quote:
On 2003-09-04 11:08, illusvfyre wrote:
I've heard of the 1.95% fixed loan. Thought not through kmtpartners, unless my contact is a affliate and I didn't realize it. In actuality if memory serves correctly it is simmilar to an ARM. The 1.95 is "fixed" for I believe it was 6 months, but could have been a year. Then increased to to market average "fixed" interest rate for the remainder of the loan term. So in a sence your looking at a introductory rate, like they give on credit cards.
If you want my contacts name and phone number I would be happy to give it to you. She returns her phone calls in very timely manner.
Scott <IMG SRC="images/forum/smilies/icon_eek.gif">
illusvfre if you can that number will be highly appreciated Thanks so much
HARD-MONEY LENDERS, PLEASE STAND UP PLEASE STAND UP!!!
LETS TALK.
HEY! I may have figured the 1.95% out. Today, I talked to a hard money lender and he said they charge 1.5%. I was excited until I figured out 1.5% PER MONTH => 18% annual. 1.95% would equal 23.4%.
Maybe. It's just a thought.
Mussetter,
Hey all it takes now is to find out. Let me investigate.
The 1.5 - 1.95 % PER MONTH sounds like a good explanation!
The 1.95% loans are what we call neg amortazation loans. They are for OO with good credit and max LTV of 80%.
The payment is fixed for one year but the rate adjusts every month. So after the first year your balance can be higher than when you started.
For more than 80% the rate is a little higher.
My concern for the products is that even with the bump in rates that we have had rates are still low. So when looking at the risk / reward I am concerend that rates are going to go up. Not that I know any more than anyone in this group. But I would hate to have a mortgage that cold be at 11% in two years.
What happpens if your rate is at 11% but you were not able to raise rents?
The programs are real and are funded by the big names but don't blindly sign up for them.
These loans should be utilized for short term money only. Correct the 1.95% is a teaser rate and can neg am on you and probably will. BUT if you can acquire this for 12 months WITH NO prepayment penalty it could be worth it still. Just keep in mind that payoff may be higher at closing due to neg am.
Just heard of a hard money lender and visited thier website. Rehab Funding is the lender.
Has anyone heard of or used this lender before?
Thanks!
Scott
Hello Scott,
How about hittiing me with that website on a private message.
Thanks Dave
I'm still waiting. KMT hasn't called me, emailed me, anything.
Luckily, I found another lender. Whew.
Ronnie
[addsig]
I am a mortgage broker, and have been for 10 years.
One key distinguishing factor in dealing with different is the Customer service or lack of therefore.
As to the 1.95% . this type of ARM is offered by several companies, including myself.
Yes there could be negative amortization. You usuallly get several payment options. Obviously if you choose to pay 1.95% and the true rate is say 5%, then the difference is added to your mortgage balance.
But guess what gang..
The clients who go for these types of programs tend to be the more sophisticated and wealthier clients.
The real advantage here is that they are making a conscious decision to pay absolutely as little as possible for their mortage payment, and invest the addtitonal savings where they can yield higher returns.
However, in the current interest rate environment, its not a bad move for the average home buyer to go ahead and lock in a 6% or so interest rate for the next 30 years. Then they would not have to worry about their rate theoretically being able to climb up to 11% someday.
By the way if anyone needs a loan in Illinois shoot me an email.
just talked to someone re the 1.95% that has that loan here you have 4 options to pay each month from deferred interest,interest only,fixed rate or ****Must Reach Senior Investor status before posting URL's***hing like a few more things to think about while working on a project.
And I am looking for an investor/partner for the n California ****Must Reach Senior Investor status before posting URL's*** have about 15 fixers I am looking at right now with one being held up by the Medical paperwork but not too much of a biggie
Mike