ciloh@euqroT

brand new luxury condo. 2br, 1,400sq ft. upscale neighbourhood in the chicagoland area. askin price: $265,000

mortgage deal:


5-10K down,
7.5%- 30 year fixed. No pmi. 1,789 a month for the first year, 1,900ish with tax, as from the 2nd year

-or-

adjustable: 3 year fixed. 6.0% intrest, 1,604.17 a month for the first year.

If you guys need anymore info let me know. What is the best deal I can get for this place?

thanks!

Scrib

First... How long are you planning on staying there???

Second... Those rates sound INSANELY high. Check your PM. I just did my mortgage through this bank, got great rates... Very well respected bank in Illinois, who can also do loans in Indiana.


But regardless of the rates, you first need to figure out your time of staying there. If you're planning on 3 or more years, go with either a higher adjustable loan, that fits your time frame, or if this is 7+ years, I'd go fixed. Rates are still low. But that 7.5% is just a rip. Is your credit really bad or something? You should be able to get low 6% rates right now on a 30yr mortgage.

Check your PM.

ciloh@euqroT

thank you so much scrib! I plan on staying 7+ years. I will give your friend a call!

Sarlacc

Mommy and Daddy buying you a condo to get your ass out of their house finally...

Scrib

7+ years requires a fixed rate unless you feel like gambling with your mortgage.

IMHO, rates are still very low and may never return to these levels...

If you can get a 6% rate and be done with it, I'd do it. No sense in locking in for three years and then being at the mercy of the rate once the 3yr ARM is up. Sure, you can refinance, but who's to say the rates wouldn't be at 9% three years from now.


You never know...

dfreder371

Everything here sounds a tad high to me. But too many varaibles to make a sound judgement. Location? Location? Location?

Sherman, roll the wayback machine to late 1997. I got my 1,100 sq. ft. condo in Palatine in a very nice location w/a one car garage. Three sliding glass doors and a deck I could park two Cl's on. 2 bedroom, one bath. Suits me just fine. Next neighboring condo unit to the north is across 100 yards of my back yard (municipale owned property.) $113,000.
6.65%, Payment $850 per month, association fee $198. I'm 52, place will be paid for when I am 55 or 56.

In the SAME 1997 TIME FRAME, there were condos about a mile to the west, and they went for $260,000 or so, and they were friggin' Palaces, I shit you not. One place had a bedroom that was so huge, if I put ALL my furniture in it, it would appear sparce. If no furniture was in there, John McEnroe could go in there, shut the door and do some serious practice.

If this is in lake bluff, yea, great. Carpentersville? You're getting hosed.

But, soldier on and do you research. When I moved here to palatine, I was seriously wondering how in the hell I was gonna make the mortgage payments on time. In that time, I have bought three new Acuras, invested in the stock market, and right now, My HOA payments were paid in full in January 04, and my next mortgage payment is due in December 04. It's hard at first, but as every year goes by, it gets easier.

GreenMonster

Hopefully I'm not the only one who remembers Mr. Peabody (the dog) and Sherman (his pet Boy) Wasn't Prof. Phineas J. Whoopie the actual inventor of the wabac machine...

Gixxster

I think you guys are showing your age, because I have no clue what/who you are talking about.

edit: Great advice through, way to help him out.

GreenMonster

Never watched the Rocky and Bullwinkle show, eh??

ju5tchi11in

you can also get a 5 or 7 year ARM.

Those will give you at least a 6% at the moment... yeah how did you end up with a 7.5%?

a 3 year ARM you can still get around 4.5% 4.7% which will really help you out in the short term and then by then you should have a a better fix on the finances... refinance at well who knows in 3 years but I don't think it will be above 7.5% which you are willing to pay at the moment.

Eggplant-EX

7.5 rate with no PMI and hardly any down seems reasonable.

I calculated a 6.5% rate and that comes out at $1,611. Big chuck of change difference. Keep shopping but if you are limited in funds for downpayment, this is not a bad deal. You really have to shop and try to find a loan with PMI to compare. The money you save on a lesser rate will help pay your PMI. Then after a year or two, you can just pay for an Appraisal to scrub out the PMI.

Check out FHA as they only require 3% down with PMI.

Really have to compara alot and run all the numbers to see what sort of deal is bearable for you.


I got a 5.75% rate (20% down) for 20 years with $900 closing. Woo hoo!!! But then I work for a Bank.

phil2

The rates are insanely high....right now can do 100% no pmi for 6.99% 30 yr fixed....

BigPimp

What is your credit like? That will answer the question for those rates. If the credit is 'challenged' as we say in the biz, maybe those are good rates. Only way to find out is to compare. Look around.

Condo price question is hard to answer since we don't know the area. Condos in downtown Philly start at 290K for 1000sq ft, so those look like a bargain to me.