posted                             

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Originally posted by 5.t0es:
Who was the large guy joe working at chase in sac area? Used to have some decent info before i bought my first home! Ill try and did his s/n up

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quote:

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Originally posted by losbadgts:
Well I have the 20% for the price of the home im looking for. The only thing that kinda questions me is that there is really like 80 to 100 bucks difference between 20% to 3.5% and in my mind I feel ether I keep keep most of my down and spend on upgrade

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posted                             

quote:

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Originally posted by losbadgts:
Well I have the 20% for the price of the home im looking for. The only thing that kinda questions me is that there is really like 80 to 100 bucks difference between 20% to 3.5% and in my mind I feel ether I keep keep most of my down and spend on upgrade

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quote:

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Originally posted by 135.0:
If you have the 20% you'd be better off putting it down vs paying pmi. Pmi is of absolutely no benefit to you, the only way to collect on the policy is the bank collecting if you don't pay. Your better off lighting your money on fire. But honestly if you are having problems understanding the difference between 3.5% vs 20% you better go back to your loan officer or bank and have then prepare some new quotes ASAP. I mean this should be the biggest purchase of your life, so you should know as much as you can first.

You do realize closing costs are another 2-3% of the sales price too they don't let you finance, right!?

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quote:

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Originally posted by RAP66:
We did FHA 3% down, it was easier in our situation to be able to buy our house. We carried the loan for 3yrs then refinanced to remove the PMI and get a slightly lower interest rate.

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posted                             

quote:

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Originally posted by 86hatchkid:

quote:

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Originally posted by RAP66:
We did FHA 3% down, it was easier in our situation to be able to buy our house. We carried the loan for 3yrs then refinanced to remove the PMI and get a slightly lower interest rate.

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This is what I plan to do in the near future I also did the FHA 3% down.

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posted                             

quote:

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Originally posted by 86hatchkid:

quote:

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Originally posted by RAP66:
We did FHA 3% down, it was easier in our situation to be able to buy our house. We carried the loan for 3yrs then refinanced to remove the PMI and get a slightly lower interest rate.

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This is what I plan to do in the near future I also did the FHA 3% down.

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posted                             

quote:

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Originally posted by TEXAS:
Move to Texas

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posted                             

quote:

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Originally posted by 5.t0es:

quote:

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Originally posted by losbadgts:
Well I have the 20% for the price of the home im looking for. The only thing that kinda questions me is that there is really like 80 to 100 bucks difference between 20% to 3.5% and in my mind I feel ether I keep keep most of my down and spend on upgrade

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huh? your WRONG. tack on 200-300 a month for mortgage insurance plus your 80-100 extra principal...upwards of 400 a month

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posted                             

quote:

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Originally posted by venomous99:
to the original poster, i suggest you do a lot of reading on the pitfalls of home loans and understand very clearly the pros and cons going with the various types. it sounds like you're quite a ways from getting there.
make a sound and analytic decision on which type of loan works for you since one plan that works for someone else may not necessarily work for you.
some things to consider:
-do not drain your bank account to make up the 20%. its more important to make sure you have enough reserves in your bank account to survive 6 months in case of an emergency(i.e lost job, injuries, etc).
-pmi is not the end of the world if you choose to go conventional with less than 20% down or FHA. some FHA loans require 10 years of payment before the pmi is lifted even if on paper your projected equity is higher than 20% or whatever the threshold is. a refi will generally take care of this.
-when presented with a nice rate, look at what the closing costs are especially points to buy down a rate(i.e ask the agent what the APR is and how that compares to rate as that will give you an idea of the cost to acquire the loan). if your short term goal is to eventually refi, dont pay down the interest rate if there are points involved or if you do, find out what the break even point is in terms of years vs other loans and find out what suites you best. ppl often make the mistake of paying exorbitant closing costs to acquire a more attractive lower rate without even realizing the cost and then end up refi'ing in a few years. thats wasted money.

keep in mind, closing costs for a home about 500k or more will run you around $10k but many times will be rolled into your principle if you cant fund it. if you're truly trying to reach 20%, factor in that $10k or whatever it is.

go on trulia and talk to several loan officers to get more information. believe me, the avg joe home buyer doesnt know jack shiet about this stuff even if theyve bought a few homes or have gone through the process.
i probably learned the most by picking the brain of a loan broker i trusted and who eventually did 3 home loans for me. then again, the math and finance didnt scare me at all since its all stuff i understood.

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posted                             

quote:

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Originally posted by losbadgts:

quote:

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Originally posted by venomous99:
to the original poster, i suggest you do a lot of reading on the pitfalls of home loans and understand very clearly the pros and cons going with the various types. it sounds like you're quite a ways from getting there.
make a sound and analytic decision on which type of loan works for you since one plan that works for someone else may not necessarily work for you.
some things to consider:
-do not drain your bank account to make up the 20%. its more important to make sure you have enough reserves in your bank account to survive 6 months in case of an emergency(i.e lost job, injuries, etc).
-pmi is not the end of the world if you choose to go conventional with less than 20% down or FHA. some FHA loans require 10 years of payment before the pmi is lifted even if on paper your projected equity is higher than 20% or whatever the threshold is. a refi will generally take care of this.
-when presented with a nice rate, look at what the closing costs are especially points to buy down a rate(i.e ask the agent what the APR is and how that compares to rate as that will give you an idea of the cost to acquire the loan). if your short term goal is to eventually refi, dont pay down the interest rate if there are points involved or if you do, find out what the break even point is in terms of years vs other loans and find out what suites you best. ppl often make the mistake of paying exorbitant closing costs to acquire a more attractive lower rate without even realizing the cost and then end up refi'ing in a few years. thats wasted money.

keep in mind, closing costs for a home about 500k or more will run you around $10k but many times will be rolled into your principle if you cant fund it. if you're truly trying to reach 20%, factor in that $10k or whatever it is.

go on trulia and talk to several loan officers to get more information. believe me, the avg joe home buyer doesnt know jack shiet about this stuff even if theyve bought a few homes or have gone through the process.
i probably learned the most by picking the brain of a loan broker i trusted and who eventually did 3 home loans for me. then again, the math and finance didnt scare me at all since its all stuff i understood.

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thanks man I really appreciated. Yea I been talking to a few people already and trying to figured whats best for me. The reason I asked about FHA its because I didn't know much about it and reading or asking loan officers is not the same as asking people that have gone through it. I have the 20% and closing cost but who wouldn't want to keep more money on there saving for protection. So far the rate im getting is 4.25% with 20 percent down.

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posted                             

quote:

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Originally posted by losbadgts:

quote:

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Originally posted by venomous99:
to the original poster, i suggest you do a lot of reading on the pitfalls of home loans and understand very clearly the pros and cons going with the various types. it sounds like you're quite a ways from getting there.
make a sound and analytic decision on which type of loan works for you since one plan that works for someone else may not necessarily work for you.
some things to consider:
-do not drain your bank account to make up the 20%. its more important to make sure you have enough reserves in your bank account to survive 6 months in case of an emergency(i.e lost job, injuries, etc).
-pmi is not the end of the world if you choose to go conventional with less than 20% down or FHA. some FHA loans require 10 years of payment before the pmi is lifted even if on paper your projected equity is higher than 20% or whatever the threshold is. a refi will generally take care of this.
-when presented with a nice rate, look at what the closing costs are especially points to buy down a rate(i.e ask the agent what the APR is and how that compares to rate as that will give you an idea of the cost to acquire the loan). if your short term goal is to eventually refi, dont pay down the interest rate if there are points involved or if you do, find out what the break even point is in terms of years vs other loans and find out what suites you best. ppl often make the mistake of paying exorbitant closing costs to acquire a more attractive lower rate without even realizing the cost and then end up refi'ing in a few years. thats wasted money.

keep in mind, closing costs for a home about 500k or more will run you around $10k but many times will be rolled into your principle if you cant fund it. if you're truly trying to reach 20%, factor in that $10k or whatever it is.

go on trulia and talk to several loan officers to get more information. believe me, the avg joe home buyer doesnt know jack shiet about this stuff even if theyve bought a few homes or have gone through the process.
i probably learned the most by picking the brain of a loan broker i trusted and who eventually did 3 home loans for me. then again, the math and finance didnt scare me at all since its all stuff i understood.

---

thanks man I really appreciated. Yea I been talking to a few people already and trying to figured whats best for me. The reason I asked about FHA its because I didn't know much about it and reading or asking loan officers is not the same as asking people that have gone through it. I have the 20% and closing cost but who wouldn't want to keep more money on there saving for protection. So far the rate im getting is 4.25% with 20 percent down.

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posted                             

quote:

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Originally posted by venomous99:

quote:

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Originally posted by losbadgts:

quote:

---

Originally posted by venomous99:
to the original poster, i suggest you do a lot of reading on the pitfalls of home loans and understand very clearly the pros and cons going with the various types. it sounds like you're quite a ways from getting there.
make a sound and analytic decision on which type of loan works for you since one plan that works for someone else may not necessarily work for you.
some things to consider:
-do not drain your bank account to make up the 20%. its more important to make sure you have enough reserves in your bank account to survive 6 months in case of an emergency(i.e lost job, injuries, etc).
-pmi is not the end of the world if you choose to go conventional with less than 20% down or FHA. some FHA loans require 10 years of payment before the pmi is lifted even if on paper your projected equity is higher than 20% or whatever the threshold is. a refi will generally take care of this.
-when presented with a nice rate, look at what the closing costs are especially points to buy down a rate(i.e ask the agent what the APR is and how that compares to rate as that will give you an idea of the cost to acquire the loan). if your short term goal is to eventually refi, dont pay down the interest rate if there are points involved or if you do, find out what the break even point is in terms of years vs other loans and find out what suites you best. ppl often make the mistake of paying exorbitant closing costs to acquire a more attractive lower rate without even realizing the cost and then end up refi'ing in a few years. thats wasted money.

keep in mind, closing costs for a home about 500k or more will run you around $10k but many times will be rolled into your principle if you cant fund it. if you're truly trying to reach 20%, factor in that $10k or whatever it is.

go on trulia and talk to several loan officers to get more information. believe me, the avg joe home buyer doesnt know jack shiet about this stuff even if theyve bought a few homes or have gone through the process.
i probably learned the most by picking the brain of a loan broker i trusted and who eventually did 3 home loans for me. then again, the math and finance didnt scare me at all since its all stuff i understood.

---

thanks man I really appreciated. Yea I been talking to a few people already and trying to figured whats best for me. The reason I asked about FHA its because I didn't know much about it and reading or asking loan officers is not the same as asking people that have gone through it. I have the 20% and closing cost but who wouldn't want to keep more money on there saving for protection. So far the rate im getting is 4.25% with 20 percent down.

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whats the APR? dont confuse rate w/ APR. they are different in most cases especially if points are paid upfront. remember just cuz someone is offering you 2.5% that doesnt necessarily mean its better than 4%. it depends on your goals w/ the loan and your situation.

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posted                             

quote:

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Originally posted by losbadgts:

quote:

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Originally posted by venomous99:

quote:

---

Originally posted by losbadgts:

quote:

---

Originally posted by venomous99:
to the original poster, i suggest you do a lot of reading on the pitfalls of home loans and understand very clearly the pros and cons going with the various types. it sounds like you're quite a ways from getting there.
make a sound and analytic decision on which type of loan works for you since one plan that works for someone else may not necessarily work for you.
some things to consider:
-do not drain your bank account to make up the 20%. its more important to make sure you have enough reserves in your bank account to survive 6 months in case of an emergency(i.e lost job, injuries, etc).
-pmi is not the end of the world if you choose to go conventional with less than 20% down or FHA. some FHA loans require 10 years of payment before the pmi is lifted even if on paper your projected equity is higher than 20% or whatever the threshold is. a refi will generally take care of this.
-when presented with a nice rate, look at what the closing costs are especially points to buy down a rate(i.e ask the agent what the APR is and how that compares to rate as that will give you an idea of the cost to acquire the loan). if your short term goal is to eventually refi, dont pay down the interest rate if there are points involved or if you do, find out what the break even point is in terms of years vs other loans and find out what suites you best. ppl often make the mistake of paying exorbitant closing costs to acquire a more attractive lower rate without even realizing the cost and then end up refi'ing in a few years. thats wasted money.

keep in mind, closing costs for a home about 500k or more will run you around $10k but many times will be rolled into your principle if you cant fund it. if you're truly trying to reach 20%, factor in that $10k or whatever it is.

go on trulia and talk to several loan officers to get more information. believe me, the avg joe home buyer doesnt know jack shiet about this stuff even if theyve bought a few homes or have gone through the process.
i probably learned the most by picking the brain of a loan broker i trusted and who eventually did 3 home loans for me. then again, the math and finance didnt scare me at all since its all stuff i understood.

---

thanks man I really appreciated. Yea I been talking to a few people already and trying to figured whats best for me. The reason I asked about FHA its because I didn't know much about it and reading or asking loan officers is not the same as asking people that have gone through it. I have the 20% and closing cost but who wouldn't want to keep more money on there saving for protection. So far the rate im getting is 4.25% with 20 percent down.

---

whats the APR? dont confuse rate w/ APR. they are different in most cases especially if points are paid upfront. remember just cuz someone is offering you 2.5% that doesnt necessarily mean its better than 4%. it depends on your goals w/ the loan and your situation.

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huh now thata something I didn't know. Glad have u guys to help me with this. I will double check on the apr. This whole time I been more worried about looking for the right home for my fam. I though I had everything ready with my credit being great good down payment and all but there is a lot to look into. So thanks so much on all this info. One thing for sure though I dont jump into anytype of deals until I really feel good about it.

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