View Full Version : Mortgage help
peason
07-07-2005, 09:57 AM
I just purchased my dream home on a lake not too far from my current home. I am gambling here, since I made a non-contingent offer. Anyway, I can swing a couple of mortgages for awhile, but I wanted to know if anyone has advice on ways to save money on a mortgage?
Any one done this recently? and if so I need some tips. I have already been pre-approved and am set to close - but I have a month to work with and I want to get my best deal.
east tx skier
07-07-2005, 10:01 AM
A down payment of over 20% will get you around mortgage insurance. I've had two very good experiences with Lending Tree getting way low rates on fixed rate mortgages.
Datdude
07-07-2005, 10:06 AM
I don't know much about them, but the Quicken Loans they are advertising on TV are interest only I believe. The payments are pretty low for the dollar amount borrowed
What Datdude said.
If you are wanting a smaller payment initially, so you don't get stuck for an extended period with two large payments and in trouble, you could do an interest only type loan.
I believe there is no penalty of pre-pay with these loans - so you can pay a "normal" monthly payment or, if needed, you can make the smaller payment of interest only until your old house sells.
I'm not very well versed on the details and as far as what type of rate you can expect versus a 30yr fixed, but it might be something to look at. Many different lenders are offering this type of loan.
Stritt
07-07-2005, 11:31 AM
Country Wide will do a 100% 80 1st....20% 2nd....No Pmi....Interest only. I think Credit Score needs to be 700+. I have had 3 homes through them and our current home is through them as well. I went that option on this home due to the appreciation of homes her in Florida. $280k is about $1700 with Taxes. They have never sold the notes.....then again I have only had the notes on avg 2-3 years...... :(
bfrank
07-07-2005, 12:58 PM
check out interest only mortgages. They will allow a minimum payment. When you can, you can pay down the principle later when you can. This will give you the lowest payment possible. Also Washington Mutual and Quicken both have minimum payment options (not as low as Interest only, but the next best thing).
you can find them both on the internet. Good luck
Footin
07-07-2005, 01:16 PM
IMHO I would stay away from any kind of adjustable mortgage right now. Interest rates are at all time low which means the probably only have one way to go in the future, UP!
Lock in now if you can.
Just my .02 cents.
my advice
get a mortgage broker you can TRUST and let him show you all the options.
Yes, he will make money on the deal but most often, he will find you avenues you hadn't known and save you time and your arse from getting into a downward spiral of a deal.
We have an interest only on our house, the rate is based on the Libor scale. Rate increases have been occurring nearly monthly but in very small increments. It is a good deal if fixed rates are high, getting it when we did has served the purpose. We are looking to refi in the near future and lock it down.
Summerset
07-07-2005, 01:47 PM
I was in the mortgage business before getting back into the boat business. I am still a licensed broker in the state of Wisconsin. I would be glad to help you with your situation and answer any of your questions. There are so many options out there. Feel free to e-mail me at rajfooter@yahoo.com
Jeremy Anderson
Summerset Marine
262-740-BOAT
Rates aren't that much higher than they were two or three years ago so you never really know, but that is the exposure with an Interest Only loan. It'b be nice to lock in, but you don't want to run the risk of having a full payment for too long and losing your dream home. I'd think you'd have to do a worst case scenario type of financial planning excercise and determine how long you could carry both mortgages. Start by assuming that you'll get a 30yr fixed on the new home.
The question is - how quick do you think you can sell your old home...
sten76
07-07-2005, 07:46 PM
The thought process I go through on any investment is the return. If the return is going to be large, which is should be on a lake home, go with the smallest payments possible. Which in turn would be an interest only loan. Again if the ROI is going to be big, do not put any money down, go with the 80% and 20% interest only loans, plus you get all the tax benefits of the interest. On the flip side, if the ROI is not short term, but long term, you would need to go with a more traditional loan.
It all depends on your situation and cash flow.
Good luck, and I can explain my situation if you want PM me.
Stritt
07-07-2005, 10:01 PM
Agree with Sten
Maristar210
07-07-2005, 10:21 PM
I can really identify with this.
We put an offer on a home, in an exclusive area, with private water access, based upon the assumption that we could sell our existing house.
Can you say CRAP SHOOT? I knew you could....
Nine and one half months later.... we closed on the old house. Cost me about $15000 in payments, that I swallowed. I would not wish this on my worst enemy.
All in all in worked out well and even the wife would now agree we made "the right move".
You get one run on this earth, and one run only. Live life, be happy, die happy, if you are pissed ...fix it :smile:
Steve
6ballsisall
07-07-2005, 11:15 PM
I just purchased my dream home on a lake not too far from my current home. I am gambling here, since I made a non-contingent offer. Anyway, I can swing a couple of mortgages for awhile, but I wanted to know if anyone has advice on ways to save money on a mortgage?
Any one done this recently? and if so I need some tips. I have already been pre-approved and am set to close - but I have a month to work with and I want to get my best deal.
I don't know what you have in equity in your old place. If you are wanting to sell, find yourself a Realtor that has a guaranteed sale program. Most Realtors will tell you they do or the company does but when it comes time to put their name on the line with ink the story changes really quick. The advantage to you is after X amount of days if your old place doesn't sell they agree to buy it from you. The disadvantage is they won't agree to buy it at 100% of value. If the Realtor can't offer you a 86% buyback rate move on, they are wasting your time.
Just an option
If you want trutful advice on how to pick a real Realtor just ask. I deal with them everyday of the week, I know most of the tricks of the trade
mgurley
07-08-2005, 09:52 AM
Country Wide will do a 100% 80 1st....20% 2nd....No Pmi....Interest only. I think Credit Score needs to be 700+. I have had 3 homes through them and our current home is through them as well. I went that option on this home due to the appreciation of homes her in Florida. $280k is about $1700 with Taxes. They have never sold the notes.....then again I have only had the notes on avg 2-3 years...... :(
I just did that very thing with Countrywide. I am pleased so far.