Credit and home buying wizards please enter

[MG0h3]

Ya just ask a ton of questions and be skeptical. Ive never used a broker, just a bank and Ive usually gotten the best deal with either my personal bank or the preferred lender.

I know back in the day, you could get PMI removed once you got past the 20% equity, however this wasnt the case in 2012. I put like 30% down and still had PMI for 5 yrs no matter what. I believe it was FHA so maybe they have different PMI costs and rules.

And GOOD JOB looking at that amortization table. You can really see how bad you are getting hammered up front.

 

[jbs$]

My question is this, why are you going to a Broker? You can walk into any Bank Mortgage office and get every thing that you want to know for free and without any obligation.

 

[jeffh81]

Around clear lake, league city, el lago, seabrook. And I agree if I make money on the house then great it if not it's better then the $1000+ a month stupid apt prices... Plus I hear a 4 post in in your apt garage is frowned upon

Im in galveston and can tell you that is a hot area right now so good luck

 

[13COBRA]

Eh, just budget for worst case scenario and if you can afford it and that's what you want, do it.

Sent from my SM-N920V using Tapatalk

 

[Kevins89notch]

I went thru the FHA 3% route and my PMI is over $200!!

I'll third the PMI sounding WAY low. I know about nothing in terms of buying a house, but was just talking with a friend 2-3 days ago. He financed 235Kish and said he pays $160 a month PMI.

 

[Never_Enough]

Having no car payment will definitely help with how much you get approved for. However, if you are approved for enough to get what you want with the car loan, then don't pay it off as that $ is helping you more in the bank IMO.

 

[Malern28us]

With regard to PMI, I am being educated/directed differently. ....and in all fairness, my situation might be different. However, take this for example.

A $400k loan with 10% down (roughly $55k up front payment) incurs a PMI, per month, cost of $60. If I put down 20% (roughly $95k total up front payment on a 400k home), it would take 650 months to "recoup" that additional $40k in down payment with PMI costs. It isn't as simple as "just avoid PMI" as I've been told...and I'm even being recommended by my broker to go with 10-15% down, accept PMI, and move on. Doing an 80-15-5 also is frequently more expensive than accepting PMI due to higher interest rates for those 15 and 5 loans.

In my case, the PMI is something I'm going to probably accept as I plan on living in my new home for 5-6yrs then turning it into a rent house and utilizing the equity, other 5-10% that I don't put down on my first house, and future savings to purchase another home to live in longer term.

I had PMI and you better thoroughly investigate your assumed amount.
The company that carried my PMI required that I carried $250k of insurance on a $93k mortgage which is just absurd. The difference in my homeowners insurance was $1k/year to carry their $250k minimum. When I refused, they tried billing me for additional insurance through their preferred insurance company that they referred to as gap insurance.
I will never, ever do business with Quicken Loans.
I refinanced with Chase and couldn't be happier!
Word to the wise, find out who your loan will be owned by and what chance they have of selling your mortgage to another bank.

 

[ON D BIT]

With regard to PMI, I am being educated/directed differently. ....and in all fairness, my situation might be different. However, take this for example.

A $400k loan with 10% down (roughly $55k up front payment) incurs a PMI, per month, cost of $60. If I put down 20% (roughly $95k total up front payment on a 400k home), it would take 650 months to "recoup" that additional $40k in down payment with PMI costs. It isn't as simple as "just avoid PMI" as I've been told...and I'm even being recommended by my broker to go with 10-15% down, accept PMI, and move on. Doing an 80-15-5 also is frequently more expensive than accepting PMI due to higher interest rates for those 15 and 5 loans.

In my case, the PMI is something I'm going to probably accept as I plan on living in my new home for 5-6yrs then turning it into a rent house and utilizing the equity, other 5-10% that I don't put down on my first house, and future savings to purchase another home to live in longer term.

Not sure where you're getting your numbers.
If you put 55k and borrow 400k that's more than 10% down. It's a little more than 12%.

Don't listen to mortgage brokers. They are here to up sell you. If it's not interest rate it's points. If it's not points it's pmi etc. The mortgage is going to be your biggest expense in other words your biggest waste of money.
Ex: 200k house, 180k w/ 10% down at 4% interest is a total cost of home is 438k. Or costing you 258k in fees.
160k loan w/ 20% down total cost of home is 417k.


My advise to op is pay off car and all cc and build cash in hand and debt to income ratio. Come in with 20% or more down and enjoy your life in your new home. Don't buy too much home 20-25% max of take home pay.

 

[DKS2814V]

Not sure where you're getting your numbers.
If you put 55k and borrow 400k that's more than 10% down. It's a little more than 12%.

Don't listen to mortgage brokers. They are here to up sell you. If it's not interest rate it's points. If it's not points it's pmi etc. The mortgage is going to be your biggest expense in other words your biggest waste of money.
Ex: 200k house, 180k w/ 10% down at 4% interest is a total cost of home is 438k. Or costing you 258k in fees.
160k loan w/ 20% down total cost of home is 417k.


My advise to op is pay off car and all cc and build cash in hand and debt to income ratio. Come in with 20% or more down and enjoy your life in your new home. Don't buy too much home 20-25% max of take home pay.

Those numbers include closing and fees. Downpayment of 20% on 400K is 80K, sure...but all the other fees associated (if you can't get the seller to help with closing) add to the DP, as I'm sure you're aware of.

 

[ON D BIT]

Thanks. You said a 400k loan not a 400k purchase price. And the closing costs or fees associated with the loan can all be negotiated so I prefer to leave those out.
Yes those fees sound accurate.