I'm highly considering using the builder's lender to take advantage of the incentives such as, 10k towards closing and 2 yrs paid HOA fees.
I had them run the numbers quickly on a 80/20 30yr fixed and the rate on the approximation was 7% on 80 and 10% on 20. Closing costs were about $13,000 on a $350k mortgage.
What should I watch out for? This deal seems to be pretty good given the fact that they are paying most of closing costs and 2yrs of HOA fees ( @ $185 per month).
2007-03-26 06:57:42 · 3 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Well you are financing 100%, which means you have a higher payment. Just make sure you don't have a prepay so that you can re-fi the rate & term in 2-years, if you need to....but otherwise, sounds like the standard developer deal for new construction.....
2007-03-26 07:06:49 · answer #1 · answered by boston857 5 · 0⤊ 0⤋
I did this and ended up with a Sweetheart deal. Just know that they will bank your loan and sell it to someone else for servicing. I had 3 different mortgage companies in 3 years since the pool kept getting sold. That was my only downside was who do I pay this month...
2007-03-26 14:06:19 · answer #2 · answered by AuntLala 3 · 0⤊ 0⤋
it doesn't hurt to check with one or two more independent lenders...thats what i did.
2007-03-26 14:01:22 · answer #3 · answered by miztiffany 3 · 0⤊ 0⤋