The Jesal is house shopping.
04-10-2006, 02:09 PM
#42
probably not gonna get much better any time soon. also realize my home equity loan was adjustable from the get go. started under 7% now it's like 10%...so i probably need to refi. im actually not too sure what the going rates are on new HEL's but have heard many say they are high.
04-10-2006, 02:46 PM
#43
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Thread Starter
Originally Posted by GoDucksCLSPride
For an 80/10/10 it goes like this...
You can opt for whatever you choose on the 80%. For instance, you can choose a 5/1 ARm on the first mortgage (80%) [30 year term is the standard. ARM of fixed is your adjustment period for that loan]
for your second, youll have a 10% second mortgage which will come in the form of a HELOC that adjusts with prime, or a 30 year fixed at a high rate. Both options are EXTREMELy common so dont worry about the high rate second. Thats just what they are. I can go into further detail about the benefits of each if you like. Let me know.
Then of course you have your remaining 10% in a down payment all totallying 100%
You can opt for whatever you choose on the 80%. For instance, you can choose a 5/1 ARm on the first mortgage (80%) [30 year term is the standard. ARM of fixed is your adjustment period for that loan]
for your second, youll have a 10% second mortgage which will come in the form of a HELOC that adjusts with prime, or a 30 year fixed at a high rate. Both options are EXTREMELy common so dont worry about the high rate second. Thats just what they are. I can go into further detail about the benefits of each if you like. Let me know.
Then of course you have your remaining 10% in a down payment all totallying 100%
This is what i was planning on doing. 80/10/10
Now if i did a 5/1 ARM does that mean for 5 years 80% loan can change rates on its own and i cant refinance it together with the 10% loan for a lower rate till after 5 years? So basicly if the market sky rockets then so do my rates.
Im trying to read that other thread that soopa made and its making me cross-eyed.
Since rates are high and keep going higher.. whats the best way to go around it?
Or should i forget the idea of moving this year and try to save up more to reach 20% to put down? I dont want to drain my savings just for the downpayment...
Last edited by Crazy Bimmer; 04-10-2006 at 02:50 PM.
04-10-2006, 03:24 PM
#45
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Originally Posted by Crazy Sellout
Or should i forget the idea of moving this year and try to save up more to reach 20% to put down? I dont want to drain my savings just for the downpayment...
Sounds like you just answered your own question. My suggestion:
1 - Live at home for 1 more year
2 - Sock away as much money as you can (no car mods, no luxury items)
A year from now you'll enjoy finding a place that's nice, within budget, and still let's you keep money in savings for emergencies.
04-10-2006, 04:34 PM
#46
Originally Posted by Crazy Sellout
I keep hearing how interest rates are soo high. Is it a bad time to look then?
04-10-2006, 04:36 PM
#47
Originally Posted by Crazy Sellout
How can you take out an home equity loan to make the 20% downpayment if you didnt get the house yet? Isnt that taking out two loans then?
A friend of mine who just bought a house put down 5%, got a home equity for 15%, and mortaged 80%. He did two mortages though (as opposed to a Home Equity). This way both rates are fixed and he won't get screwed as the prime rate keeps increasing...
04-10-2006, 04:50 PM
#48
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I thought 30 year fixed were high 5 to low 6 percent. Thats not bad. I took a 5/1 ARM at 4.65% and put 20% down...the next place I buy is gonna be a big enough townhouse that I won't wanna move around...UNLESS I can find a single family home in the same price range. I'm gonna stay where I'm at for another year, then put it on the market...unless for some reason a 30yr fixed goes above 7 or 8%.
04-10-2006, 05:57 PM
#49
Senior Moderator
Yeah, if you don't have the 20% down, you'll be taking out 2 loans... Lots of people do it that way, but I'm old fashioned, and waited till I had the 20% down before I bought...
If you think interest rates are high now, listen to this... I got preappoved at 8.125 and it was 7.125 when I bought (30 year note).... So rates are still pretty low compared to 5 years ago... (fyi, I refin'd in 2003 w/ a 20 year note @ 6%, I missed the low point by a little, but dropping a 1 1/8 was good enough for me).
Don't forget, you can write off interest paid on a house on your taxes too, so that helps w/ the savings...
If you think interest rates are high now, listen to this... I got preappoved at 8.125 and it was 7.125 when I bought (30 year note).... So rates are still pretty low compared to 5 years ago... (fyi, I refin'd in 2003 w/ a 20 year note @ 6%, I missed the low point by a little, but dropping a 1 1/8 was good enough for me).
Don't forget, you can write off interest paid on a house on your taxes too, so that helps w/ the savings...
04-10-2006, 10:25 PM
#50
The Creator
You don't need to do 80/10/10...
Like I said, learn your options, and then talk to a professional.
I ended up going with a Fannie Mae Flex 100 - a program for first time home buyers - at 5.125%.
It's essentially 100% financing, I only put about $6000 down in total - including closing costs/etc.
It ended up being much cheaper for me than an 80/10/10. This was the best option offered to me through both my bank and my broker.
Granted, I have to pay PMI ... but this totals barely $150/mo... and with the upgrades I've done to the house... I should be able to re-appriase and lose the PMI. Although I haven't researched this in-depth yet.
Anyway - moral of story - absorb every opinion, but don't consider any of them until you've talked to someone who's trully in the know. You have to weigh the pro's against the pro-sumers. Somewhere in the middle is the sweet spot.
Like I said, learn your options, and then talk to a professional.
I ended up going with a Fannie Mae Flex 100 - a program for first time home buyers - at 5.125%.
It's essentially 100% financing, I only put about $6000 down in total - including closing costs/etc.
It ended up being much cheaper for me than an 80/10/10. This was the best option offered to me through both my bank and my broker.
Granted, I have to pay PMI ... but this totals barely $150/mo... and with the upgrades I've done to the house... I should be able to re-appriase and lose the PMI. Although I haven't researched this in-depth yet.
Anyway - moral of story - absorb every opinion, but don't consider any of them until you've talked to someone who's trully in the know. You have to weigh the pro's against the pro-sumers. Somewhere in the middle is the sweet spot.
04-11-2006, 06:35 AM
#51
dɐɹɔ ǝɥʇ ʇɐɥʍ
Originally Posted by soopa
You don't need to do 80/10/10...
Like I said, learn your options, and then talk to a professional.
I ended up going with a Fannie Mae Flex 100 - a program for first time home buyers - at 5.125%.
It's essentially 100% financing, I only put about $6000 down in total - including closing costs/etc.
It ended up being much cheaper for me than an 80/10/10. This was the best option offered to me through both my bank and my broker.
Granted, I have to pay PMI ... but this totals barely $150/mo... and with the upgrades I've done to the house... I should be able to re-appriase and lose the PMI. Although I haven't researched this in-depth yet.
Anyway - moral of story - absorb every opinion, but don't consider any of them until you've talked to someone who's trully in the know. You have to weigh the pro's against the pro-sumers. Somewhere in the middle is the sweet spot.
Like I said, learn your options, and then talk to a professional.
I ended up going with a Fannie Mae Flex 100 - a program for first time home buyers - at 5.125%.
It's essentially 100% financing, I only put about $6000 down in total - including closing costs/etc.
It ended up being much cheaper for me than an 80/10/10. This was the best option offered to me through both my bank and my broker.
Granted, I have to pay PMI ... but this totals barely $150/mo... and with the upgrades I've done to the house... I should be able to re-appriase and lose the PMI. Although I haven't researched this in-depth yet.
Anyway - moral of story - absorb every opinion, but don't consider any of them until you've talked to someone who's trully in the know. You have to weigh the pro's against the pro-sumers. Somewhere in the middle is the sweet spot.
The mortgage broker you went through wasn't Russ, was it? He probably knows some people that you know.
04-11-2006, 09:40 AM
#52
The Creator
Originally Posted by Tireguy
No shit, no wonder you had so much money for improvements.
The mortgage broker you went through wasn't Russ, was it? He probably knows some people that you know.
The mortgage broker you went through wasn't Russ, was it? He probably knows some people that you know.
Yes, I saved up enough money to put a full 20% down on the house (and then some)... only to realize during the mortgage process that it would have been a total bozo move unless I planned to stay here for a major length of time.
The money I would have used to put down on the house is the money I used to double it's value.
04-11-2006, 09:46 AM
#53
The Creator
* Granted... I would not have been afforded the same luxury had I not been a first time home buyer.
First time buyers have a ton of options. The federal government, and most local governments, want you to own property. Take advantage of that.
In Albany, for instance, there's a ton of incentives for owner occupied properties... a move to lessen the spread of "student ghettos".
I know many other college towns are doing the same thing.
First time buyers have a ton of options. The federal government, and most local governments, want you to own property. Take advantage of that.
In Albany, for instance, there's a ton of incentives for owner occupied properties... a move to lessen the spread of "student ghettos".
I know many other college towns are doing the same thing.
04-11-2006, 10:32 AM
#54
Senior Moderator
Thread Starter
Im still going ahead with my plans on finding a place.
Now if i want a lower interest rate, can I get my father to be a co-borrower with me? Or would that be a bad idea?
Just worried my credit score isnt good enough. Right now its only 680 with some mistakes on the report.
Now if i want a lower interest rate, can I get my father to be a co-borrower with me? Or would that be a bad idea?
Just worried my credit score isnt good enough. Right now its only 680 with some mistakes on the report.
04-11-2006, 10:47 AM
#58
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Look into first time homebuyers programs. Do a search and make some phone calls.
In FL I was approved for $25,000 down payment assistance and the fact that Im in the Medical field got me a low rate.
Theres stuff out there. Just take the dive and call around.
In FL I was approved for $25,000 down payment assistance and the fact that Im in the Medical field got me a low rate.
Theres stuff out there. Just take the dive and call around.
04-11-2006, 11:05 AM
#60
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What about using those CC check for the balance of 20%.
I get those 5.99% until pay off and no transaction fee check all the time. I even had one w/ 0% for one year.
I get those 5.99% until pay off and no transaction fee check all the time. I even had one w/ 0% for one year.
04-11-2006, 11:36 AM
#61
Originally Posted by soopa
No, it wasn't... but I know him. He's friends with phil2 - who may pre-date your membership.
Yes, I saved up enough money to put a full 20% down on the house (and then some)... only to realize during the mortgage process that it would have been a total bozo move unless I planned to stay here for a major length of time.
The money I would have used to put down on the house is the money I used to double it's value.
Yes, I saved up enough money to put a full 20% down on the house (and then some)... only to realize during the mortgage process that it would have been a total bozo move unless I planned to stay here for a major length of time.
The money I would have used to put down on the house is the money I used to double it's value.
04-12-2006, 08:09 AM
#62
The Creator
680 is a fine score for a ~200k mortgage. A good bank/broker should be able to get you a very good interest rate.
Besides, like Chr said, the government is going to sponsor 25% of your interest anyway
Besides, like Chr said, the government is going to sponsor 25% of your interest anyway
04-12-2006, 09:01 AM
#63
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Originally Posted by soopa
Anyway - moral of story - absorb every opinion, but don't consider any of them until you've talked to someone who's trully in the know. You have to weigh the pro's against the pro-sumers. Somewhere in the middle is the sweet spot.
04-13-2006, 12:42 PM
#65
dɐɹɔ ǝɥʇ ʇɐɥʍ
Originally Posted by Mike97 3.0P
So how should Jesal go about finding someone that is truly in the know that is looking out for Jesal's best interests and not his own?
I'm by no means a veteran in business or RE, however, I have been doing it long enough and have many great contacts in different fields, networking with people you know and trust makes life a LOT easier no matter what size house/RE project your getting involved with.
05-04-2006, 05:06 AM
#66
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Originally Posted by Crazy Sellout
Im still going ahead with my plans on finding a place.
Now if i want a lower interest rate, can I get my father to be a co-borrower with me? Or would that be a bad idea?
Just worried my credit score isnt good enough. Right now its only 680 with some mistakes on the report.
Now if i want a lower interest rate, can I get my father to be a co-borrower with me? Or would that be a bad idea?
Just worried my credit score isnt good enough. Right now its only 680 with some mistakes on the report.
IS that your best score or worse score...rememeber they use your average score between the 3 credit reporting agencys. Lets say your FICO score is between 650-700 they will base your % rate terms and conditions how much money you need to but down etc.. of 675.
Don't be fooled by a 5/1 arm option unless your 120% sure your going to sell it within 5years.
If you have mistakes on your credit report get them sorted out before you do anything....
05-05-2006, 11:16 PM
#67
Old fart
Originally Posted by Crazy Sellout
Im actually thinking Streamwood IL for those who know the area.
05-06-2006, 06:00 AM
#68
Originally Posted by Crazy Sellout
Im still going ahead with my plans on finding a place.
Now if i want a lower interest rate, can I get my father to be a co-borrower with me? Or would that be a bad idea?
Just worried my credit score isnt good enough. Right now its only 680 with some mistakes on the report.
Now if i want a lower interest rate, can I get my father to be a co-borrower with me? Or would that be a bad idea?
Just worried my credit score isnt good enough. Right now its only 680 with some mistakes on the report.
I don't think you will need your father to co-borrow with you unless he has a significantly higher score than you (like 750-800), or unless your income isnt enough to support your monthly payments. (Debt to Income Ratio).
Also, to touch point on your first concern w/ remodling and cash on hand. If you do not have enough money after purchasing a house to remodel or make upgrades, you can always negotiate a side-deal with the seller that you will buy the house at X amount more than the original asking price, and after the deal closes, the seller will give you back the X amount you payed extra. This works out because the bank does not give out loan for the house for anymore than the sales price, so with the seller claiming the sales price at X amount, you will get a loan for that amount, and the seller will refund you the money once the deal closes and he gets paid. This way you end up with having extra cash from the loan to do improvements.
05-11-2006, 12:33 PM
#69
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Originally Posted by Crazy Sellout
Im still going ahead with my plans on finding a place.
Now if i want a lower interest rate, can I get my father to be a co-borrower with me? Or would that be a bad idea?
Just worried my credit score isnt good enough. Right now its only 680 with some mistakes on the report.
Now if i want a lower interest rate, can I get my father to be a co-borrower with me? Or would that be a bad idea?
Just worried my credit score isnt good enough. Right now its only 680 with some mistakes on the report.
680 doesn't require your daddy to co sign it. Just make sure you take your time and find the house you want. Don't settle for less, it's not a car. It'll be something you might live for awhile.
07-06-2008, 01:04 PM
#78
Go Giants
Originally Posted by GreenMonster
I think he bought a place ages ago, but just forgot to update this thread...
07-06-2008, 04:57 PM
#80
Needs more Lemon Pledge
Fear of commitment?