Hi, I am planning to take a home mortage out and it is so confusing when you talk to different brokers , it almost seems that they get us in one way or the other like PMI, points, mortgage rate, even .25% would make a huge difference on the mortgage payment over the years. Can anybody suggest what things to look out when talking to a banker/broker. Please suggest some good sites or good banks to go to if you had any prior experiene. Thank you.
2007-01-23 14:13:28 · 4 answers · asked by 360SD 1 in Business & Finance ➔ Renting & Real Estate
I have gotten 4 loans from the company below. In my life I have gotten dozens of RE loans. These guys are wonderful.
www.eloan.com
My sister and brolaw just used them and they were thrilled.
Study some of the info on www.bankrate.com
And yes, they get you one way or the other. It all balances out over the span of 8 yrs. But in this market you'll want to hedge your bets and get a fixed rate. Don't let anyone talk you into an adjustable, Just DONT
very best of luck,
2007-01-23 14:24:37 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Typically you should be able to do a 100% at 6.5% that would be today's rate that would be no points but that will have pmi. If you want a good rate you are going to have pmi unless you do an 80/20 loan which is an 80% first mortgage and a 20% second mortgage. The down side to that is the 20% will have a higher interest rate today that would have been 8.125%. Either way if you get with a good broker that is not trying to rape you, you should get these loans with no points. These are the loans my company is currently offering. Do your home work, don't let everyone pull credit on you as this may lower your credit score. Get a good faith estimate from everyone that you have interest in and go with the best scenario. When your talking with lenders remember rates are changing everyday, maybe only by an 1/8 or so but they are moving. Currently rates are up .250% since last week.
2007-01-23 16:31:57 · answer #2 · answered by Paul 2 · 1⤊ 0⤋
HUD publishes a guide for the homebuyer entitled "Special Information for the Home Loan Applicant." Most people in the industry call this the HUD Booklet. You can find it at www.hud.gov. It's very easy to read and explains everything you need to know. Your lender is also supposed to supply this booklet at the start of the application process.
For Mortgage Insurance information, go to www.privatemi.com. This will explain the laws surrounding MI and different payment options. The HUD website also has MI information.
Read these documents a couple times and you'll understand what you're doing and be ready to talk to the loan originators. Congrats on wanting to do your homework ahead of time and good luck with your home purchase!
2007-01-23 14:23:03 · answer #3 · answered by CJKatl 4 · 1⤊ 0⤋
It depends on your credit score what your rate will be & points it's on the seller sometimes they pay 4 the closing here's an example on our house a fixed rate was 6.5% on a $108,000.00 and we put $6500.00 down no house payments for 2 months a 30yr mortage.We found our house on realtor.com we seen a sign for a realtor & called her.We found our mortage broker thru our landlord we worked with her for almost a year we had 2 clean up our credit.It was worth it in the long run.Good Luck
2007-01-23 14:29:50 · answer #4 · answered by sugarbdp1 6 · 0⤊ 1⤋