100 Percent financing.
30 Year Fixed rate
6.0 Percent interest
$170,000 loan on a duplex in Great Falls Mt 59401.
No pre-payment penalty or any "hidden suprises"
great mortgtgage broker
Both my co-signer and I have credit scores above 770
2007-12-16 16:46:12 · 10 answers · asked by pieface 1 in Business & Finance ➔ Renting & Real Estate
There is no PMI
2007-12-16 17:03:08 · update #1
6% is about the best your gonna get right now. It's about the national average.
2007-12-16 16:48:33 · answer #1 · answered by Anonymous · 1⤊ 1⤋
You need to know what your PMI is being calculated at, I would suspect probably at .96. That could be a "hidden surprise". Ask your broker how much it is and if it's due up front.
Edit:
Well, you just found your hidden surprise. It's impossible for you to have a 100% loan, all of it at 6%. Either you have an 80/20 and the 2nd has a higher rate or you are paying PMI. I suggest you contact your great broker and clarify that before you get your surprise at closing.
Edit again:
To everyone that keeps saying 100% financing is extinct, please stop. You have no idea what you are talking about. Fannie Mae, freddie Mac and even 97% FHA is going stronger than ever since ARMs are not the flavor of the day. Fixed rate 100% financing is safe and secure and anyone that says you can't get 100% financing is clueless. I certainly would never ever work with a REALTOR that had no idea what financing options were available. That's very, very sad and a complete disservice to their clients!
If you plan on keeping your home, 100% financing is perfectly reasonable since the payments never change (that was the problem), and if you can make that payment for 30 years, what difference does it make with fluctuations in the housing market. Some REALTORS should be forced to be educated on mortgages before they offer their ridiculous "opinions".
2007-12-17 00:53:33 · answer #2 · answered by Anonymous · 1⤊ 1⤋
I am closing on a condo in NY on Tuesday. My total rate is 6.5% with .75 points with Countrywide. I am putting down 5% with one 95% loan. They boosted my rate which was originally 5.875% up .50% for mortgage insurance (it's called TAMI tax advantage mortgage insurance) and an additional .15% for no escrow account. The advantage of TAMI is that you get to pay off some of the prinicipal portion of my total balance instead of towards PMI (which doesn't decrease the loan balance and despite what your banker tells you it's a pain to get rid of) also it beats paying a high interest for a 2nd mortgage. The 80/20 will have has two loans , one at 6% and the other @ some other rate (probably around 10%). The problem with the 80/20 is that you will have two mortgages and as of right now no bank will give an equity line or loan with those 2 liens on the property, should you need it. I tried to work with a broker and they wanted to charge me 2 origination points and 2 discount points. Countrywide charged me .75 points with a $1,400 origination fee. Going directly to bank maybe a better than a broker.
2007-12-17 02:14:26 · answer #3 · answered by tianaramal 4 · 0⤊ 2⤋
I find this scenario highly unlikely, and you are heading for some bad surprises.
First, 100% financing is extinct. Next, If you have 100% financing without PMI, it is likely you have an 80/20 loan. The 20% loan is going to be at a signficantly higher interest rate than 6%.
You need to read the fine print on this before you sign on the dotted line, something is not right with the package you tout.
2007-12-17 01:14:55 · answer #4 · answered by godged 7 · 0⤊ 3⤋
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every monthcompanies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.
2007-12-17 05:03:23 · answer #5 · answered by Martine 1 · 0⤊ 2⤋
Yes that sounds like a great rate for right now... if you can wait another couple months though the rates are supposed to drop another quarter point from what all the news reports are saying
2007-12-17 00:50:48 · answer #6 · answered by pikap170 1 · 1⤊ 1⤋
Your monthly payment is around: $1,020 per month. Total cost that you will pay for this mortgage would be: $367,200 of which $197,200 is for interest. Sounds like an average duplex to me.
2007-12-17 15:39:59 · answer #7 · answered by Gary 5 · 0⤊ 1⤋
With 100% financing you are not going to get any better. Don't forget to include insurance and taxes in your budget or you could be getting in over your head.
2007-12-17 00:50:13 · answer #8 · answered by New England Babe 7 · 1⤊ 1⤋
Yes, that's a great rate, you can show it to a real estate attorney if you want to be sure.
2007-12-17 00:48:52 · answer #9 · answered by hello 3 · 1⤊ 1⤋
in California it would be a pretty fair deal for a first time buyer
2007-12-17 00:49:38 · answer #10 · answered by justagorilla 6 · 1⤊ 1⤋