Should I buy a house now with a stated income loan at 7.5 or should i wait 2 months for a 7.25% loan?

Question

AT first they tried to get me to take a 80/20 loan which I didn't want to
take...and so I asked about a 100% loan...does anyone know if this is an
okay rate (7.5%)? He said that property values might go up so we might want
to purchase now...what do you think? Washington mutals payments were the
same or higher with aslightly lower interest so I don't quite get it. He
also mentioned at the top no mortgage insurance...what is that? I thought
it was required? Then it said with insurance...is that home owners
insurance?

We are going to look at more houses tommorow. Dan wants to wait a ocuple
months till we get some bills paid off (credit cards), but I am also
concerned about property values going up more, or interest rates to a point
that we cant afford to by a house. Any thoughts?
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Answer 1

You should take a one day course in buying your first home.
Reading your questions it appears you do not know what you are talking about or what you are getting into. Buying a home is a major responsibility and if you start off on the wrong path it could cause you major problems.

Here are some definitions for you:

Mortgage insurance: Is what you need unless you own at least 20% of the house. You need to put 20% down and mortgage 80%. Mortgage insurance is not tax deductible and it can be expensive.

Home owners insurance: protector your investment. You have to have fire and property insurance to get a mortgage. A bank will not give you a loan unless you protect your investment.

Remember no matter what hire a home inspector.

Answer 2

You have some great answers already but let me add my two cents. Are you putting money down or are you doing 100% financing? I don't recommend a 100% one loan as you will be required to carry mortgage insurance. However if you do a 80/20 loan then you would not need it. A rate of 7.5% for a stated income loan is not bad at if its a 30 year fixed otherwise you should be a little lower for a Adjustable Rate Mortgage (ARM). If you plan of living in the home for more than 5 years then do a 30 year fixed otherwise find a different loan program that suites your needs better. Mortgage Insurance (MI) is different that home owners insurance so avoid it as much as possible as it can be quite expensive. I would recommend purchasing sooner versus later as home values are going up and so are interest rates. Continue to look and lock an interest rate as soon as you find a home and your offer is accepted. It usually takes 30 days from the time the purchase contract is accepted to close of escrow so you have plenty of time to pay off any credit cards. Even then your first mortgage payment is 30 days out anyway. I hope this answers your question but if you need any help please email me [e-mail].

Answer 3

Yuo should consider locking in a rate as soon as you find a house you want to buy. If the interest rates go down you can always refinance. But a quarter percent can mean alot of money in the long run.

And you will most likely have a couple of months before you have a mortgage payment so I wouldn't worry about the credit cards.

Answer 4

If you have a credit score above 680 you should not be paying 7.5%. That for people with credit in the low 600. If you want to get better rate check out this site:

http://www.firstmeridiancapital.com/9StepstoOwnership?c=1

Your Real Estate agent may be trying to scare you to purchase faster. He gets paid when he makes a sale. Are prices really going up in your area?


IF you need information call 909-489-4692, on California Real Estate.

Answer 5

there can't be a downpayment regulation yet I study an similar rumor. each and each and every monetary corporation creates its personal lending rules. you will get one hundred% financing from some lenders and only seventy 5% loans from others; in protecting with credit and employment historic previous, and so on.

Answer 6

I work for a nation wide direct wholesale lender. I can promise you would get the best rate best program, based upon your situation. If you would like more information you can contact me at (818)-921-8807. My name is Jason Wyatt. I look forward to helping you.