Please advise how can I get the lowest possible mortgage payment for a house around the $200k price range. My income is around $30k+ and my credit score is 700+ with no debits. I am a 1st home buyer also.
2007-06-29 13:39:02 · 12 answers · asked by teedoe3 1 in Business & Finance ➔ Renting & Real Estate
You have to ask yourself a few questions before you go see a mortgage broker about financing a house. Do you really want a house and are you willing to sacrifice for the house?
The other question is your possibility of getting another job with a pay raise or getting a pay raise in your present job.
Acacia is correct in his assessment, you can get a 40 or 50 year mortgage. Now the naysayers will tell you that you will be paying more in mortgage interest. Go to the questions are you willing to sacrifice to own a home? If the question is yes then this might be the vehicle to get you where you want to go.
The others indicated you should not take an adjustable mortgage. Please do not be afraid of adjustables. The main thing you need to know about adjustable mortgages is that they will adjust.
Normally they adjust upward. Your loan docs will explain this, the period of adjustment, approximately how much the adjustment will be per month so you can add this amount to your current payment and now you have your new monthly mortgage payment.
The reason people tell you not to accept an adjustable mortage is because for some reason, down the line you forget that you have an adjustable. You also forget that the adjustable will go up. You further forget that you sign loan docs stating that you were getting an adjustable mortgage, if is not a secret. You sign the loan docs.
Now the best thing for you to do is find you a mortgage broker, tell him you want to purchase a house and this is about how much you have to pay per month.
If you are offered an adjustable mortgage sit down with the mortgage broker, and get him to explain the adjustable, when it will adjust, the amount money wise it will cost you per month additional for your monthly mortgage.
You have to know what you are qualified to purchase even if you have bad credit.
speculation is just that speculation.
So the first thing you should do is contact a mortgage broker so you can complete a loan application, after which he will run your credit report.
This credit report will give him your credit score. Get a cup of coffee or your favorite beverage when filling out the loan application this is not a 15 minute chore.
Your credit score will tell him what loan programs you are qualified for as well as the interest rate you can expect. This credit score will tell if you are able to get a 100% loan and if not how much cash you have to bring to the table as your down payment.
There are lots of documents and information the mortgage broker will need. I will give you a few to get you started.
#1 Six months of all bank statements you use currently, as well as any statements from your 401k at your place of employment
#2 One months of pay stubs from all that are going on the mortgage.
#3 Two years of federal income taxes and W-2s
After discussing the best loan program for you and agreeing on the program you want, the mortgage broker will issue you a pre-approval letter. Don't forget your good faith estimate (GFE). This will give you an idea of the cost of your loan. That
is in addition to any down payment how much additional cash you must bring to the closing table.
In order to preclude PMI when a lender will finance 100% of the house you are buying the mortgage industry have solved that problem by offering a 80/20 loan. Don't be afraid of them.
You have to understand that the increase in payment if the loans are adjustable.
Your first mortgage (80%) might be a fixed product, while your second (20%) could be an adjustable product. If you don't understand the product ask your mortgage broker and don't leave until he/she has explained it to your satisfaction.
Now once this has been established you should connect up with a real estate agent to find you a home. Upon finding a home you like the real estate agent will then prepare a sales contract for you and the seller to sign.
The mortgage broker will order an appraisal of the house to prove the value.
Once all the documents necessary has been collected the mortgage broker will order loan docs for the program that you agreed to earlier. Again don't plan on spending a lunch hour there to sign loan docs this is a process so be prepared to be there for awhile.
Don't sign the loan docs if anything has change from what the mortgage broker explained to you. Call and get an explanation.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-06-29 18:12:56 · answer #1 · answered by loanmasterone 7 · 0⤊ 0⤋
The only way you can do this is by getting a neg am loan. What this means is you get what your broker will say is a 1% loan or there abouts, when in actuality you get a 7.5% or higher, and the interest you don't pay goes toward the principle. The only reason to do a loan like this is if your property is going to appreciate 20% a year or more(which is very unlikely). On the neg am loan, whenever your princple reaches 110% or so, your payment will jump to fully amoritized, which in this case would be around 1538 a month. With current rates and a normal, 30 year fixed mortgage, to get a payment around 600 bucks you need a mortgage of around 100k, and that doesn't include taxes, insurance. You will also need private mortgage insurance if you don't place 20% down. Those are the facts, anyone telling you any different is selling you something.
2007-06-29 16:10:50 · answer #2 · answered by blibityblabity 7 · 1⤊ 0⤋
600 Mortgage Payment
2017-01-12 03:36:12 · answer #3 · answered by burnell 4 · 0⤊ 0⤋
Don't ever go for Adjustable Rate Mortgage. See 220 K loan will need to be paid as about 1100 a month for normal 30 yrs loan.
You also have a good credit score .So go for 40 or 50 yrs mortgage ,then you will have the best options of homeownership as well as the reduced payments .The only problem in this case is that you have to pay more money as you pay the interest for 20 more yrs than the 30 yrs ,but with the inflation effect with time you won't loose .
regards,
kish
kishgarner_acacia@yahoo.com
2007-06-29 17:58:22 · answer #4 · answered by kishgarner_acacia 1 · 0⤊ 0⤋
$600 a month hope that is not with taxes included in the mortgage because now days most likely Those are going to run a sweet $200-300 per month.
2007-06-30 09:16:51 · answer #5 · answered by Pengy 7 · 0⤊ 0⤋
Sorry, but you can't do this without a HUGE downpayment. You would need about half down to secure a $600 a month mortgage on that house.
2007-06-29 13:49:47 · answer #6 · answered by godged 7 · 0⤊ 0⤋
The only legal way that is possible is not even worth the hassle and the trouble it may cause you in the long run.
2007-06-29 13:53:16 · answer #7 · answered by house-hunter 2 · 0⤊ 0⤋
to optain a lower payment you need a ballond mortage and is your planing to live on the same house more that 5 years I didn't recomend
2007-06-29 13:42:53 · answer #8 · answered by vrostar 3 · 0⤊ 0⤋
you do not qualify for this house unless you have about 160 grand to put down. be realistic, home ownership is expensive. if you get a ARM, you will regret it later.
2007-06-29 13:43:18 · answer #9 · answered by Anonymous · 1⤊ 0⤋
Put down the biggest down payment you can.
2007-06-29 13:41:43 · answer #10 · answered by Emily Dew 7 · 0⤊ 0⤋