Posted by Karen on May 21, 2007 at 14:08:34:
Does Lynx Financial do loans in DE. If so, please provide Todd’s number.
Thanks.
Lynx Financial - Posted by JFM
Posted by JFM on May 16, 2007 at 22:36:10:
Has anyone ever done business with Lynx Financial. I’d like to hear about it if you have. Thanks
Re: Lynx Financial - Posted by wes
Posted by wes on May 18, 2007 at 14:51:15:
If you are speaking of the Lynx Financial in the Atlanta Market (that floods the Radio with advertising). They, as well as several other companies specialize in the NO Closing cost loan.
Nothing wrong with this concept.
Just be aware that if you choose this option, you will be paying a higher interest rate than you would if you were to pay all or even part of your closing costs up front.
In my office, we use to call Lynx occasionally and get a quote. At that time they were usually about 1/2 point higher than if you were to pay your own fees. But to be fair, they do offer you the choice of paying fees and getting a lower rate ((at least they did at that time).
As a pretty good rule-of-thumb, if you plan to have the loan for many years, you will come out better paying fees up front and getting the lowest interest rate.
If you only plan to have the loan for a few years, then the no or Low closing cost option is better.
You actually have to sit down and do the math as to which is best and where the break point is by learning what the exact fees will be in addition to the interest rate offered.
For example, a loan of $150,000 amortized over 30 years @ 6% would give you a monthly payment (principle and interest) of $899.33 At 6.5% the payment would be $948.77.
Not a big difference (about $48.77 per month)!
So here’s a test. If for this 30 year loan, you save $48.77 per month over 20 years (240 months), how much would your save?
If your answer is $11,704.80, you are …wrong!
Yes $48.77 X 240 is $11,704.80. But remember, this was a loan amortized over 30 years.
If you put the figures into an amortization table, you will find the actual interest paid figure is about $14,200.
So what would you expect to pay in closing costs for a $150,000 loan??? My personal Rule-of-Thumb was anything over 2% of the loan amount was (usually) too much. Therefore,lets just say $3-4 thousand dollars is average…
Either way you should realize you would be paying 2-4 times more in interest over 20 years than if you paid the average fees associated with a $150K loan and got a 1/2 point lower interest rate.
Hope this helps!!
Re: Lynx Financial - Posted by Rob
Posted by Rob on May 18, 2007 at 14:50:00:
Sure, I’ve gotten most of my loans through them. If its for investment properties you will want to speak to Todd Swartz eventhough he does owner occupied too. In my experience if they can’t get it done then its no need for me to continue. I have his phone number if you want.