AboutTom Burris Expertise I can answer any question regarding Mortgage loans for Purchase or Refinance.
I currently work as a Mortgage Banker in Dallas, TX and have experience as a Mortgage Broker.
The favorite part of my job is helping First Time Home Buyers. I also consider myself an expert of Credit and Credit Qualifying for a home loan. Many of my loans are the result of showing clients how to credit qualify for a loan after they were denied in the past.
We do FHA, VA, Conventional & Subprime Financing. I have extensive experience in Investor Loans as well.
I will NOT answer questions about 'getting around guidelines', ect.
Or if I sense that you are trying to call your 'investment' property a primary residence, I will reject the question.
I will ALWAYS err on the side of caution if I sense that the question is fraudulent in nature.
Experience 4 years experience as a Mortgage Broker and as a Mortgage Banker
Education/Credentials Mortgage Professionals in Texas are required to take many ethics courses and other industry training to satisfy State mandated continuing education requirements.
Site Owner of DallasLoanGuy.com which has lots of free mortgage info for the First Time Homebuyer and Veteran Homebuyer as well.
Question Hi Tom. I'm asking you this because I'm certain i won't get a truthful answer from my mortgage provider. I had a traditional 30 year fixed mortgage with company A. Six months or so back, company B bought the loan. Today I called to change an auto payment date (Oct.) to coincide with a payday that was pushed to Friday because of the holiday. The rep said "no problem", then tried 3 ways of Sunday to get me to pay the following month payment (Sept.) a week earlier than I had scheduled (I pre-schedule 3 months at a time and all are a few days to, in some cases a day before the 15 day grace period, explaining that I would be paying less interest if I would change the pmt. date from the 15th to the 9th. First, I wasn't aware that interest increases for every day after the 1st that payment is received, (I don't remember this with the previous lender)a secondly, while I was on the site of my current lender, company B, when logged into my account, under the account # it said "Equity: Open". So, my question is 1. Is there a difference in the way interest accrues with an Equity: Open" loan vs. a Traditional loan? My loan wasn't an Equity loan with company a before company b bought it. And 2. What benefit could company B gain by classifying my loan as an Equity: Open loan? Something smells fishy here. Sorry for the long winded question but I felt a detailed explanation was warranted in order for me to get a good answer. Thanks in advance. Regards, Jim
Answer No idea why they would code the loan an equity loan for reporting. There is no advantage for them to do so.
Interest accrues the same on both loans.
Paying extra interest? Well, they are technically correct..... but the 'extra interest' is only on the principle portion of your payment. On a $150K loan, you are only paying about $150 per month towards principle for the first few years...... Interest for 1 week on $150 is less than a dollar.
Yes.... $1
Calculate it yourself.... $150 * 6% = $9 <= but this is for the year. Divided by 52 weeks it is 0.17 cents
Pay when you want. And maybe ask the credit bureaus if this is coded as an 'open line of credit'.
Because if it is.... it might look like it is close to maxed out and will drag down your credit score.
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This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here
