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Originally posted by venomous99:

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Originally posted by losbadgts:

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Originally posted by venomous99:

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Originally posted by losbadgts:

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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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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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the APR helps u compare loans vs just rate since there are other cost variables you need to factor in like points(if applicable) that get tacked onto your closing cost. a buddy of mine got a killer rate of 2.5% 2 years ago but when i looked more into his deal, he didnt realize the APR was like 4% since he was paying like 6 points or something like that.
the rate sounds good and all only if you decide to go long term but if you're like many that choose to refi in less than 5 years, you're probably better off taking a higher rate w/ 0 points. again, do the calculation on how many years you'll break even where that loan starts to become favorable over others. remember, a 3.5% loan doesnt necessarily mean its better than a 4% loan.....just depends on your situation and the terms of the loan

1 point = 1% of your mortgage loan=.25% of interest rate deduction. example: $400k loan to buy down .5% of rate equates to 2 points = $8k of added loan cost.

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Originally posted by NEIGHT:
I'm just in here soaking up info....

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Me too!!

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Originally posted by stanger00:
I bought a house earlier this year when rates were starting to creep back up and have since crawled back down.

Anyway, I bought a home with my GF at the time, we are engaged now, and we went with a conventional loan. We got a fixed APR and only put 5% down plus closing and our PMI is based off of our credit score which was really the only shitty part of the process. We had a very good broker to help walk us through our options with going with a FHA loan or a conventional loan. For us, after discussing, we decided to go conventional.

Yeah, we pay PMI but we will be able to refinance out if our home climbs up in value at no cost. At this rate I don't see us getting out of our PMI until we sell our home for another. We only plan on living here for the next 5ish years. I'm a veteran so the next home we will use a VA backed home loan. Couldn't use it on this home because we are not married.

If I had the money we would of put 20% down but we didn't.

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Originally posted by 135.0:

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Originally posted by stanger00:
I bought a house earlier this year when rates were starting to creep back up and have since crawled back down.

Anyway, I bought a home with my GF at the time, we are engaged now, and we went with a conventional loan. We got a fixed APR and only put 5% down plus closing and our PMI is based off of our credit score which was really the only shitty part of the process. We had a very good broker to help walk us through our options with going with a FHA loan or a conventional loan. For us, after discussing, we decided to go conventional.

Yeah, we pay PMI but we will be able to refinance out if our home climbs up in value at no cost. At this rate I don't see us getting out of our PMI until we sell our home for another. We only plan on living here for the next 5ish years. I'm a veteran so the next home we will use a VA backed home loan. Couldn't use it on this home because we are not married.

If I had the money we would of put 20% down but we didn't.

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You won't even have to refi, just when you see values up call the bank and get an appraisal. Maybe 3-400 bucks and off the PMI goes.

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Originally posted by 135.0:
Go with conventional 5% down.

FHA is stupid as fuck unless its the only thing you can do.

http://www.cbsnews.com/news/is-an-fha-loan-still-a-good-idea/

Or buy in Elk Grove with 20% down from the city and 3% down from you.

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Originally posted by venomous99:

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Originally posted by 135.0:
Go with conventional 5% down.

FHA is stupid as fuck unless its the only thing you can do.

http://www.cbsnews.com/news/is-an-fha-loan-still-a-good-idea/

Or buy in Elk Grove with 20% down from the city and 3% down from you.

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thats a loan(not free money) from city and is there to help first time home buyers and eiligibility is limited to those making less money(max gross income of $80k for 8 ppl in a household...wow). its a pretty damn nice deal since the interest is low especially for those w/out enough for a down.
http://www.egplanning.org/housing/pdf/homebuyer-assistance-program-summary.pdf

there are some other programs(i.e BMR = below market rate) in other cities to help first time home buyers w/ lower income as well if you qualify.

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Originally posted by 135.0:

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Originally posted by venomous99:

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Originally posted by 135.0:
Go with conventional 5% down.

FHA is stupid as fuck unless its the only thing you can do.

http://www.cbsnews.com/news/is-an-fha-loan-still-a-good-idea/

Or buy in Elk Grove with 20% down from the city and 3% down from you.

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thats a loan(not free money) from city and is there to help first time home buyers and eiligibility is limited to those making less money(max gross income of $80k for 8 ppl in a household...wow). its a pretty damn nice deal since the interest is low especially for those w/out enough for a down.
http://www.egplanning.org/housing/pdf/homebuyer-assistance-program-summary.pdf

there are some other programs(i.e BMR = below market rate) in other cities to help first time home buyers w/ lower income as well if you qualify.

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Yes the city is a deferred payment loan which means you don't make any payments on it until you pay off your original 30 year mortgage. The trick is to make less than their max income and still qualify for the house.

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Originally posted by venomous99:

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Originally posted by 135.0:

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Originally posted by venomous99:

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Originally posted by 135.0:
Go with conventional 5% down.

FHA is stupid as fuck unless its the only thing you can do.

http://www.cbsnews.com/news/is-an-fha-loan-still-a-good-idea/

Or buy in Elk Grove with 20% down from the city and 3% down from you.

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thats a loan(not free money) from city and is there to help first time home buyers and eiligibility is limited to those making less money(max gross income of $80k for 8 ppl in a household...wow). its a pretty damn nice deal since the interest is low especially for those w/out enough for a down.
http://www.egplanning.org/housing/pdf/homebuyer-assistance-program-summary.pdf

there are some other programs(i.e BMR = below market rate) in other cities to help first time home buyers w/ lower income as well if you qualify.

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Yes the city is a deferred payment loan which means you don't make any payments on it until you pay off your original 30 year mortgage. The trick is to make less than their max income and still qualify for the house.

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the program was created to help lower income families on buying a house. its perfect for ppl trying to scam the system. LOL

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