Can I Find Out Interest Rate Without Asking Seller?
I'd like to screen houses for interest rate BEFORE calling the owners. (Need to find low interest rate for Subject-To deals.)
I once looked up a loan document on the computer at the recorder's office, and it showed the amount of the loan, but I didn't see the interest rate. Was it there and I just missed it, or do they record it only with the loan company?
If I called the loan company, they probably wouldn't divulge that information about someone else's loan, would they?
Anybody know for sure how I can find out interest rates on prospective purchases?
Bottom line: I want to spend my phone calling only on owners that have the interest rate I'm interested in.
Thanks for any help.
I've never seen any recorded docs with interest rates showing.
Notes aren't themselves recorded, normally, and they're the only docs that bear interest rates, in writing.
A mortgage or deed of trust do not have anything written into them, normally, re the interest rate being charged.
So my answer would be no, not a workable way to proceed.
You should familiarize yourself with the different lenders knowing who the subprime (B/C Lenders) who have higher rates (Household, Fremont,BNC, Option One, Argent, Ameriquest, etc.). People with Chase, Washington Mutual, Wells Fargo, Bank of America, etc. are conforming Fannie Mae lenders that generally have lower rates. This is generally true, but since loans to get sold, there may be an occassion or two where this formula will not work. But 9 out of 10 times you'll know.
Thanks, everybody, for the good advice!
asdrebates
I think your putting the horse before the cart. I wouldn't spend to much time researching interest rates on people who might not be intersted in sub-2. What if u spent all your time finding this info out and the seller said no thank you to the deal. I would get the seller to agree to the sub-2 idea, and ready to sign a deed before I started to put forth my time to do any reasearch.
If it is an adjustable, the note may be recorded and you can figure about what it is.
If not you can figure out by asking them :
1) What is the monthlly payment.
From there you know the original loan amount, term (usually 360mo) and thus able to figure out the interest rate.
I have done it on several occasions.
Ask them if the pament includes insurance/and/or taxes
i just ask the seller. sometimes the rate is one of the lest important issues...km
I agree with Kenmax (just ask the seller) but my advice is to always confirm this independently. As Energy said above, it doesn't hurt to ask, and if they won't tell you in advance, then they're probably not a good candidate for sub2.
If they do tell you and you do go see them, have them sign an authorization for release of mortgage info which will allow you to contact the lender and get the real skinny on the loan.
It's not that all sellers are liars, but some of the people I've seen actually have no idea what they're paying for interest, so I write down everything they say and then verify it myself. Same goes for property taxes, insurance, homeowner assocation fees, etc.
Andy
ditto to ary's advice........km