super low mortgage rate...

[psloan]

chubby wallet (the other deal board) has a few great threads on mortgages in the finance forum. I used info from there to go from a > 7% 30 year to a 6.375 30 year and then later to a 5.8375 30 year all fixed with no cost to me other then pre paid interest.

--pat

 

[bookem dano]

I fyou are wondering what the 'real' cost of a loan is after uncle sam gives you a tax break....

http://nt.mortgage101.com/partner-scripts/1191.asp?p=AADCDan

 

[bookem dano]

One other thing to note...
Try to put SOMETHING down.

I've been looking at http://www.countrywide.com which has a great site that does do a lot of the loan breakdowns, but it isn't 100% accurate. On the site, it allows you to do a no down payment loan lookup and the interest rate on that was a half a point higher than what you could get if you would be able to put 5% down. On there site, the rate for a 5% downpayment was just about what they showed assuming you had 20%. Plus, there are ways to get rid of PMI.

Some people say points is a bad thing to pay, but if you pay points and lower your required monthly payment, but still pay the original payment, I would think you would be ahead.

http://www.lendingtree.com has some good calculators too.

I wish there was a good calculator that let you find out just about all the information you would ever need to know about loans. They have calculators to help tell you if paying points is worth it, but then it doesn't allow you to add in extra payments.

 

[cheap]

Can someone explain to me what 0 points means? Never heard of it.

 

[Nightwatch]

I just refinanced yesturday.... 5.5% / 0 points / 0 originaltion fee

When the paperwork was done the lender was rolling all associated fees into my loan, all fees totally about $2000. These fees were 2% VA charge (charged by VA, not lender), title insurance, and some other stuff. Plus this price included next months payment. I had them redo the paper so I would pay all these fees up front. This lowered my monthly payment more which is better because it's a VA and it's assumable. The lower the payment, the more attractive to a buyer.

As far as what "points" means, it's like a percentage. If you get you loan for 6% / 1 point and your house cost $100,000, then you are paying an additional $1000 to get that rate.

 

[daddio1949]

Hi,

Points are not always a bad idea. If you plan to stay in your home for over 10-years, they may be a cheaper way to go. But, they are not as beneficial when you are refinancing as when you are purchasing a home. On a purchase you can write the total amount of the points off in taxes in one year(if you itemize), but on refinancing they have to amortize them over the life of the loan.

Hey, I usually analyze mortgages in Excel. Using Excel I was only off by 4 cents in my amortization schedule after 4 years on my previous mortgage (when compared to the lender's final statement). I periodically made extra principal payments during the 4 years so I'm very confident about these calculations. The best loan comparison program that I know of is in the SAS computer program. This program allows you to compare fixed vs variable, with & without points etc.

Comparing loans is tricky.

Greg

 

[Fritzo]

I just got 4.825 from our bank. Closing costs were $2000, but we got $978 back and skip next month's house payment (+ we got a $100 bonus from a sale they were running!). Our house payment went down $130/month (we were at 8%!). The savings are incredible. I got this through Sky Bank, but I don't think they're nationwide.

 

[Fritzo]

Originally posted by: sworshs
Don't jump into a mortage according to the rate you see today, cuz by the time you get all the documents in, the rate may change already. The agent can quote you a very good rate today, but after all the paper work and everything, when it's ready to lock in the rate, that's the time you will know what kind of rate you are getting!

No...most banks lock you in when you sign the paper.

 

[Grovebaby]

I went to priceline but couldn't find the mortgages.

 

[yodayoda]

Originally posted by: OhMan
Hi, all:

Just got a email from aapexmortgage.com and they quoted me with the following mortgage rate:

30yr Jumbo - 5.5% w/ 0 points
15yr Jumbo - 4.875% w/ 0 points
3yr Jumbo Arm - 3.5% w/ 0 points
5yr Jumbo Arm - 4.250% w/ 0 points

I'm not sure about their APR though...

This seems to be VERY competitive, any experience dealing with this mortgage company?? Any thoughts or comments?? Any other even better deals out there for 5yr Jumbo ARM? Thanks!

i am an account executive at a mortgage company. beware these kinds of teaser rates. in general, fewer than 1% of applicants will qualify for this type of loan. often, it is assumed that you are borrowing less than 65% of the value of the home (65% LTV), less than 40% of your income is used to pay debts (40% DTI), proof of cash reserves, astronomical credit scrores (median FICO 720), and no late payments in the last 4 years. these can be very very difficult to qualify for--for instance, lets say you accidently miss a copay on a doctor's visit. you may have a $50 collection in your credit report. say goodbye to that teaser rate.

also, because they are brokers, they are going to run around town trying to find someone to finance the loan. this can lead to several dozen inquiries to your credit report. each inquiry past the first one per 3 months can lower your FICO score 1 point.

 

[vanln]

I need advice from you all expertise on loan. I 'm going to get a loan bi-weekly @ 2.95 rate? Anyone can tell me is bad or not. I feel a trick somewhere, but i can not figure out. If this program is great why alot of people still go with fixed or ARM prgram? Should I go for it or not. Base on loan officer, I will paid off my house in 25 year with low monthly payment?

 

[kof]

Never bet on the future.
As a knowledgeabale old fart I have a little experience.
Bought the present house at a variable "federal rate +1%" about 19 years ago.
Rates at that time were 12%.
Asked at the time what would happen if the rates dropped.
Got lots of laughs.
Sunk down to about 8%, refinaced lower to get a fixed rate.
Right now the original loan would be dirt cheap.
Fix it an forget it.

 

[yodayoda]

Originally posted by: vanln
I need advice from you all expertise on loan. I 'm going to get a loan bi-weekly @ 2.95 rate? Anyone can tell me is bad or not. I feel a trick somewhere, but i can not figure out. If this program is great why alot of people still go with fixed or ARM prgram? Should I go for it or not. Base on loan officer, I will paid off my house in 25 year with low monthly payment?

2.95%? that sounds like a negative amortization rate. also called a 11th district loan, a neg am works like this: i have to pay 2.95% interest on my money, amortized for 30 years BUT my note is actually something like 5%. each month i am only paying a portion of the interest while the rest of the balance gets capitalized onto principal. the upshot of this is that after a few years, i owe more than what i started with. after a few years, after the principal owed reaches some threshold of the original loan (like 110%), the loan automatically converts into a ARM at the market rate (LIBOR + margin).

these loans aren't even legal in some states. my advice--stay the hell away from them because it is really easy to wind up upside down on the whole thing. get into a fixed rate now while the rates are at 40 year lows.

 

[yodayoda]

if you guys have any questions, you can PM me. get a RESPA packet and tell me what the TIL (truth in lending) and GFE (good faith estimate) say, ok?