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[QUOTE]Originally posted by losbadgts: [QB] [QUOTE]Originally posted by venomous99: [qb] 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. [/qb][/QUOTE]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. [/QB][/QUOTE]
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