Buying a house?

Question

I am in the process of buying a house.What do you think is the best deal kind of a loan or mortgage.

Answer 1

That depends on your situation. Fixed rate mortgages are preferred over ARMs, as your rate will not change. However, most first time buyer's loans are ARMs and yet they do not know what an ARM is and are surprised when their rate goes up. Steer clear of interest only UNLESS you intend to pay extra toward your principal each month.

You don't have to put 20% down to avoid PMI, and instead can get an 80/20 loan, just as the first person indicated in his answer.

Good luck!

Answer 2

It depends on how long you plan to live there and how good your credit is. If you are going to move in 5 years then a loan like a 5/1 arm might be good because the rate will be fixed for 5 years and then will change to the going rate at the time and you will have to have good credit when the 5 years is up.

On the other hand if you plan to live there a long time a 30 year fixed is best. You can always make some extra payments on it to pay it off earlier which will lower the amount that you pay for interest, but your payments will be lower than a 15 year fixed.

The best way to go is a 20% down payment because you will not have the Private Mortgage Insurance on top of your payment. But if you do not have that much down you can still get a loan, you will just have to pay the mortgage insurance.

There are many mortgage brokers out there and some are OK and some are not. The bad ones will charge you a lot for your closing cost. Personally I think it is best to go to a real bank.

Answer 3

definitly go for a fixed rate mortgage and if you can, put down 20% to save on the PMI.

The reason for the current housing slump is mainly due to the market recently being flooded with so many forclosures. Many of these people bought way more house than they can afford and to make matters worse, bought with an adjustable rate mortgage (ARM) or interest only. Usually the payments stay low for a period of a few years depending on the loan and then you either have to refinance the home or end up paying a super huge payment. So all these people are now finding out that they can not afford their homes.

Answer 4

DO NOT go for an "interest only" loan !!

ALSO any lenders offering a tiny interest rate like 1.20% are not telling you the whole story. It may look good but with both of these types of loans, you get more money tacked on to the principal EVEN if the lender say NO its not like that. YES IT IS !! Pay attention and even ask your lender if you can have a tape recorder in the meeting & at the signing! They will change their tune or just tell you to go else where, you then know they were full of crap in the first place!!

Answer 5

depends what type of loan... feel free to call or e-mail me for some estimates.
6.25% on a 30 year fixed with 0 points is a fair deal. depending on your loan amount exc...

are you putting a down payment?

If you want to do 100% financing i would break it up into 2 loans for you. Do an 80% 1st lien and a 20% 2nd lien. The 2nd can be fixed or a home equty line. I'll give it to you both ways. Talk to you soon.

Answer 6

F.Y.I you don't need 20% down to avoir PMI. You can just take a second mortgage. Either do an 80/20 mortgage structure or if you have 5% to put down do an 80/15/5. Good luck.

Answer 7

First of all, stay away from mortgage companies if you possibly can. They get huge commissions when they can sell you a high interest loan. (and they will tell you that's all you can qualify for, not true).

Just call local banks and talk to their home mortgage departments to see where you stand. Their rates are standard.

Don't see your name in the newspaper in 6 months under "foreclosures" from bad, unregulated, mortgage companies.

Answer 8

How much do you want to put down? Do some research, and then ask more specific questions and you'll get more focused help.