man oh man why didn't i lock when it was like 5.27

looks like 5.5% for me

1/28/2008 1:38:58 PM

Quote :

"If you can't manage to squirrel away even 20% of 110K for some kind of down payment, I'm going to go out on a limb and say you're living above your means. I mean, holy shit, 9.25%? That's insane."

come on dude, who the shit has 20% downpayment. Yes, our combined salaries are formidable, but we've only been making this much recently. I graduated in 2005, and only recently have I doubled my salary by performing my ass off. My wife took a teaching job only last year. So its not like we've been making that much for a long time.

Also, that's 20% downpayment for 180K not 110K. Thats 36K large...not a paltry sum of money, and not one I'm raiding my 401K for, which is the only savings that will get close. My money market account had nearly 10K but my wife and I were married only november of last year. You may say 'we aren't ready' but dude we are. We both have credit in the high 700s and the banks said we could borrow near 250K.

How are we not living 'at our below our means' by going with a 179K house again? Just b/c we didn't put the old tradition 20% down? No one does anymore, it's stupid, if you can get a good deal on 100% down, why bother.

9.2 percent on that 20% piggyback loan aint bad sir. Beats paying PMI by at least 60 bucks a month and I can concentrate on paying that off first, it's basically like a pretty strong car loan.

1/28/2008 1:45:44 PM

I was able to put 20% down. My house cost about the same as yours and my income is much less than your combined income.

1/28/2008 1:49:32 PM

Well you must have had a lot of savings. Kudos to you, I had alot of money invested but not something i could liquidate for a down payment. I felt like the market was prime to get a house and a great deal (which it is) and time was of the essence.

The statistic on first time home buyers getting 100% financing is quite large. I think it's silly to chastise anyone that doesn't have that 30-40K just holed up ready to liquefy. I mean look at it like this, just because a bunch of idiots who got crappy ARMs and were unprepared to make their payments are now foreclosing.....well, that doesn't mean that there are legitimate and strong 100% LTV borrowers. Their eyes were too big for their wallets. Aiming for the moon and all that. With my income and credit I bought a house below my means for a reason. It was a prudent choice, yes, not as prudent as the whole 20% downpayment but our careers took off in short amount of time. So did our marriage.

[Edited on January 28, 2008 at 2:10 PM. Reason : l]

1/28/2008 2:08:47 PM

Oh, I don't expect most people to pay 20% down, especially first time home buyers. It just sucks if you are forced to move and you don't have any appreciation. Even a 5% down payment (80-15-5) could save a lot of people some trouble down the road.

1/28/2008 2:11:30 PM

80-15-5's are barely around anymore where it's worth it. I find most people doing lender-paid mortgage insurance as it's only about a .125% or .250% hit to the rate to do it.

1/28/2008 2:54:51 PM

Yeah, I still don't see how it is costing him 9.25%.

1/28/2008 3:05:49 PM

Quote :

"No one does anymore, it's stupid, if you can get a good deal on 100% down, why bother. "

There's no such thing as a good deal on 100% financed. I can understand your desire to get into a house, but holy balls it's so much more money over the life time of the mortgage and even if you sell, you've still lost a ton of money unless you get some kind of insane appreciation on the house.

1/28/2008 4:06:10 PM

dude, it's a starter home. It's a bad mental assumption here that you're thinking in terms of what this means for the entirety of the loan. Like 30 years....

I'll be staying at this place maybe 4-5 years TOPS so 100% financing is no big deal at all. Maybe it would be if I was thinking long term but this is my first house, nothing more, nothing less. Most first time home buyers stay an average of 5 years. I'd say that is generous in our case. So I found a place up in North Hills where I know the area is sound, will appreciate unless shit goes haywire, and we will enjoy while we have it.

Plus, getting a low payment without liquefying so much at first allows you to take that money and invest it elsewhere where it can build interest. I'd rather put the extra money in aggressively funding a Roth IRA and 401K than dumping it all in the house for equity. Granted, I will be paying off just fine, and I understand that having the savings gives you a distinct advntage and all..but to say that 100% financing is a plum bad idea is really stupid imo.

1/28/2008 4:15:16 PM

You can withdrawl from your 401k in a first time home purchase you have X amount of years to pay yourself back.

I'm sure you've actually mapped out what your dwelling of interest needs to appreciate to, to counter 100% loan interest, HOA, and property tax. It's not hard math, and youre educated. You don't need to feel obligated to explain yourself. You honestly wouldnt fathom the people who buy homes out of college who havnt played with calc.exe for 10 minutes. If they can get college graduates "to stop throwing away money on rent" , its no damn wonder we're in a forclosure crisis.

Best Wishes



[Edited on January 28, 2008 at 6:35 PM. Reason : .]

1/28/2008 6:31:40 PM

Quote :

"Yeah, I still don't see how it is costing him 9.25%."

on a fixed rate 2nd mortgage i can.

1/28/2008 8:15:04 PM

any investors in here currently receiving cash flow from properties?

1/29/2008 1:05:59 AM

dose interest rates be climbin back up now

1/30/2008 3:46:27 PM

oh yeah, intra-day repost for the worse thx to the fed cut.

1/30/2008 3:47:52 PM

from what i've heard from folks, they should drop pretty low for 3 to 4 hours tomorrow...

1/30/2008 4:50:53 PM

Why just 3-4 hrs?

1/30/2008 4:55:48 PM

because sometimes the interest rates are MOODY

1/30/2008 5:04:32 PM

^yeah what he said

i'm not an expert by any means, but was told by an expert today that there should be a 3 hour time slot where the rates dip and for me to keep an eye on it in case i want to lock in.

1/30/2008 7:44:23 PM

how much of a dip?

and where can you get up to date interest rates? Seems like sites like bankrate only have daily rates instead of hourly

[Edited on January 30, 2008 at 10:01 PM. Reason : .]

1/30/2008 10:01:20 PM

Quote :

"from what i've heard from folks, they should drop pretty low for 3 to 4 hours tomorrow..."

hahahahhahahahahahaha

your expert is no expert.



mortgage backed securities ended down for the day (down = not good) on the 5.5% coupon. the 5.0% coupon was down 3x as much. it will take a SIGNIFICANT improvement for rates to move .125% or more tomorrow. i'd bet my life on it not moving a whole .125% to the rate tomorrow.

in case anyone was wondering, RATES do not move every day in the real world... only the amount paid for/by each rate. if the market moves enough, you can see a whole rate change with the same amount paid on that rate, but typically the points just change by .125-.250 in a given day. the last week or so has been very volatile and we've seen .25% rate changes in a day. that should be over for a bit.

most local banks do not work this way, but places where you'll get the best deals for the widest range of products work this way (lenders/brokers without much overhead - i.e. not any retail outlet like countrywide/wells).



and if i'm wrong i'll be busy locking loans so won't be too worried

[Edited on January 30, 2008 at 10:34 PM. Reason : ]

1/30/2008 10:32:19 PM

^she mentioned something about the situation with the feds and how rates rose some earlier today based mostly on speculation and that they should dip back down tomorrow. she's been in the mortgage industry for over 20 years and was very confident that tomorrow would be the day to lock in, so i'll keep you posted.

my 30 year fixed went from 5.5% to 6.125% (in the last week) and she said it will should be lower tomorrow. i'll post back though.

http://www.ezerk.com/2007/01/31/home-loan-refinancing-when-do-you-have-to-close/

Quote :

"Mortgage rates fluctuate on an almost hourly rate, but they do follow a trend. You can read about general mortgage rate in your newspaper’s finance section or hear it on the evening news. When the Federal Reserve Board raises or lower rates, it will eventually impact mortgage rates. But other factors also affect mortgage rates, making it difficult to predict exact changes."

[Edited on January 31, 2008 at 12:06 AM. Reason : /]

1/31/2008 12:05:05 AM

MORTGAGE RATES DO NOT NORMALLY FLUCTUATE ON AN HOURLY RATE.

Rarely do they change even from one day to the next, usually takes a couple of days for a full rate change.


Lately it has been more volatile so we've seen bigger swings, but I'm speaking generally.




Also, I hope you're getting 6.125% on 100% financing with no mortgage insurance, and not a better scenario (i.e. 5% down or paying monthly mortgage insurance). That's a really bad rate otherwise.

1/31/2008 7:47:16 AM

market looks good this morning. won't see a RATE change, but about halfway.

1/31/2008 9:09:47 AM

Quote :

"6.125% on 100% financing with no mortgage insurance"

Jeez, that would be a good rate. When I locked the best I could find was 6.625% with lender paid-MI. If you find that quote above, you best be locking the shit out of it.

1/31/2008 9:35:59 AM

i just locked in a refi at 5.8% (two minutes ago) with no pmi with a letter to refi with no fees if the bottom drops out before i close.

so i went from 7.25% 100% financing with pmi to 5.8% with no pmi.

[Edited on January 31, 2008 at 9:52 AM. Reason : /]

1/31/2008 9:52:03 AM

well that's a refinance. i was referring to a new purchase 100% LTV.

1/31/2008 10:01:25 AM

Who does mortgage rates by tenths?

1/31/2008 10:11:04 AM

Quote :

""6.125% on 100% financing with no mortgage insurance""

that's about that i got.

1/31/2008 10:44:47 AM

i'm working on a large apartment complex and two church loans tonight (of six on my docket at the moment) - if anybody is a part or an organization looking at construction, refinance, or purchase of a new location on multifamily for churches it's looking like now is the time to do it (we also still have good rates on our not for profit checking accounts and i'm seeing churches aren't even being offered interest bearing accounts elsewhere so it can double the benefit)

hotels are also pretty easy to get done at the moment with traditional bank financing while the perm market for conduit loans is locked up (but i figure there's probably better odds of somebody on tww being on a church finance committee than owning a hotel)

[Edited on January 31, 2008 at 11:46 PM. Reason : odds]

1/31/2008 11:44:57 PM

So I am trying to start the process of transitioning from renting to owning property. I figure enough of you have been doing this that I can get some info here. I am single so I am not lookin for anything super nice, mainly limiting myself to anything less than 100k so keep that in mind. Most of the places I have found are smaller single family type condos or townhomes. I am trying to setup a few showings just to get a better idea of what I am actually looking at. Here are a few questions I have off the bat:

1. Should I even be worried about viewing places yet, or do I need to worry more about taking a look at my credit score and getting pre approved for a loan before I even start looking?

2. Everyone keeps telling me its a buyers market so if possible I should try to buy now rather than wait even 6 months. How true is that?

3. I dont have a ton of money stashed away for a down payment, I could come up with a couple thousand but probably at minimum around 5% at this time. How badly is that going to hurt me?

4. Being my first home purchase I will probably only be staying here for maybe 5 years tops, Id just like to be getting some money back from my investment rather than continuing to toss money into rent month after month. Am I really better off or am I getting sucked into the "throwing money away on rent" philosophy?

5. Any suggestions on lenders that cater to my needs? I havent checked my credit score in a while so I cant tell you what it is (hell where is the best place to check that?) As said Im not lookin to borrow more than 100K and probably more in the 70-90k range, and at most I would have around 5% to put down although Id rather get 100% financed if its not going to hurt me too badly so that I can still have a nice cushion of money saved away.

6. Any other questions or info that would be helpful in giving me helpful feedback just let me know.

2/7/2008 8:57:06 AM

1. If you are actually considering buying a place right now I would go ahead and get pre approved. If you are just looking around to get a feel for what you like then that is less of a concern.

2. I think in 6 months from now it will still be a buyers market and most analysts predict things won't turn around until 2009 at the earliest.

3. You'll have to get a piggyback loan or pay pmi but loans for even 100% are still possible, just tighter restrictions than before.

4. You're probably in good shape to buy if you know you'll be there 5 years. I wouldn't buy if you thought you would be there less. Closing costs + selling costs eat up a lot of money and with little money going towards principle the first few years it's hard to come out ahead if you only plan to live there a few years unless you get lucky and get some serious appreciation which isn't possible in most markets these days.

5. I know a few people that got 100% financing that could probably give you advice on that. I'd just shop around when you are serious about buying and compare rates + closing costs to see who will give you the best deal. You definitely want to check your credit score. You can do that online, but I don't recall the link offhand.

6.
http://www.bankrate.com/brm/news/real-estate/BuyerGuide2004/buyers-guide-home.asp
http://www.bankrate.com/brm/news/real-estate/BuyerGuide2004/fthb_home1.asp
Go to the bookstore and read the idiots/dummies books for home buying and for mortgages

2/7/2008 9:47:52 AM

1. I think the most prudent way to handle this is to have your credit score run once by a reputable lending institution, perhaps a broker if you'd like. I could refer one who is fantastic when first home buyers if you'd like (email me kainen@gmail.com)...as I'm sure others on here could refer one too.

I suggest this first to get an idea of how much you could borrow...that sets the tone and they'll give you an estimate of what that looks like, monthly payments etc to see what you could afford. This will gauge the prices of the property you should search for. Plus you'll have the double benefit of having a pre-approval letter which you'll need at some point anyway when you get serious

Be sure to get your estimates in 30 year fixed, or I would recommend that.


2. No one can predict this stuff. Rates are still pretty good so I wouldn't delay and wait til the housing market could potentially heat up in the spring.


3. Not at all. Unless your credit is ass you can get 100% Loan to Value (LTV) on your purchase. Save that cash on hand for potential closing costs, auxillary costs, and initial setup for the house. You'll need it. Downpayment is nice but not when it liquidates all available cash you'll need.


4. Well, looking at houses less than 100K aren't really giving you flexibility to aggressively make an investment and turn it around to sell it for big profits down the road. But if you choose a smart neighborhood, sound property, and find something that appeals to the most mainstream of potential market buyers out there generally you'll be good. Stress to your buyers agent your needs and balance that with potential you'll get a good value out there.

GET a buyer's agent pronto though..it costs you nothing as there is 6% or so set aside in any transaction where half goes to listing agent, half buyer's agent. So it's a no brainer. I have a guy who kicks ass. Love him. He's down to earth, funny, and just such a nice guy. One of those people you can trust and admit to him you know shit and be like 'help me' and he will. Email me at kainen@gmail.com for that.

Someone might have to help with advice on sub 100K townhomes as some of those are in little communities where they have double agents instituted... is that true? Not sure.


5. Some people in this thread can help you here. My guy was from Alera Financial and they have been uber helpful. He explains everything out right, is honest, and they coordinate the loan to a tee. there's many others out there that could help too....but be careful and wary, b/c the industry is largely full of sharks. When they say they can lend you all this money, don't let your eyes get too wide....always get detailed 'good faith estimates' when you get quotes, have them spell out all fees involved - if they get vague...drop em.


[Edited on February 7, 2008 at 9:51 AM. Reason : ]

2/7/2008 9:50:36 AM

Thanks for the replies, basically being my first home and knowing I dont have a ton of assests I am aware I probably am not gonna find something I can turn around in 5 years for profit. However, why I am lookin for something sub 100k is that will put my payments in the neighborhood of what I would be willing to pay for rent to get into a one or two bedroom place. I see it as smarter if I am going to rent or own at the same price to try to own a place. Even if I only break even or lose a bit of money, seems wiser to me to get money back out of a home rather than shipping several hundred bucks a month out that I will never see any percentage of back. As of now the only substantial bill I have is my student loans, I am CC debt free and just paid my car off so thats why I am lookin into buying now that I have cleared up all previous financial obligations. I will say that my income at present is just a hair under 40k a year (before taxes... damn you IRS) if that gives you a better idea of why I am looking for something under 100k. I could afford more, but being my first home Id rather get my payments in the 500-600 a month range to make sure I have plenty of wiggle room on other things that come with owning a home like water, electric, cable and still leave myself extra monthly income to try to invest or save for if I need it in the future.

So seems like if I do go view some places it should be more casual just to see what kinda places I am looking at, but in the meantime I should work on finding out my credit score, lookin for a buyers agent, getting some mortgage applications filled out and getting pre approved. I suppose it would be helpful to know how much money I have to work with and an idea on what my payments will be so I know better on what to look for price wise. 30 year fixed seems the most sound way to go simply because your payments are what they are and you wont get any surprises down the road like so many people have had happen lately with all the ARM's.

2/7/2008 10:25:17 AM

Doss2k what is your monthly rent payment?

2/7/2008 7:28:18 PM

Chillin at Lake Park right now, so a nice cheap $300 a month.

2/8/2008 8:10:05 AM

What is the difference between lake park and a 100k condo?

2/8/2008 9:14:25 AM

At the rate my bank quoted me, which I doubt I will use as Im sure I can find better elsewhere with mortage, interest, taxes, and insurance its around 775 a month.

2/8/2008 1:23:38 PM

Are you looking for a house for under 100k? or are you considering condos and town homes too?

Reason I ask is you are gonna be hard pressed to find a single family home for under 100 thousand. You can probably find a townhouse or condo, but then once you factor in HOA dues you are spending more than you might have for the single family home with no dues.

2/8/2008 1:33:15 PM

Actually mainly what I was looking at was a condo/townhome. I am not at the point in my life I need a house with land and all that to take care of as well. Not to mention this is more of a 5 year or so living situation.

2/8/2008 2:17:32 PM

As of today, I'm a homeowner!

2/8/2008 4:42:17 PM

Congrats

2/8/2008 4:46:54 PM

Quote :

"Chillin at Lake Park right now, so a nice cheap $300 a month."

I assume this is with roommates? Are you going to have roommates if you buy a place? It's going to be hard to rationalize a place as a good investment if you are going to be paying more than twice what you are now.

2/8/2008 9:54:38 PM

Yes the $300 is in a 4 bedroom place, I am looking to get my own place which if renting is going to cost me quite a bit more than $300 a month. It also would be an option if I get a place with more than one bedroom to rent out the other room.

2/9/2008 10:18:07 AM

does anybody know of any first time homebuyer programs that pay off dept into the loan?

2/11/2008 10:34:32 AM

wat

2/11/2008 10:36:45 AM

Quote :

"wat"

2/11/2008 10:43:04 AM

i once heard of a first time home buyer program that say the borrower had like 2000 owed to somebody it would pay up to a certain amount off and wrap it in.

2/11/2008 10:46:27 AM

Uhhhhh, you mean like a home equity line of credit or a home equity loan?

2/11/2008 10:47:07 AM

no this is for first time buyers only. It helps to get them into a house. I know it existed like a year ago but I'm not sure if its gone away now or not.

2/11/2008 10:48:23 AM

You mean like 2000 closing costs rolled into the loan?

2/11/2008 10:49:21 AM