Buying a house

[tontod]

This will be my 1st home purchase!! My final offer was accepted, and the inspection yesterday was completed successfully, the only thing was they need to install GFCI outlets in the kitchen, which I think they will agree to do.

Now for the financing - I just called BoA, they quoted me 5.875%, whereas a week ago I was quoted 4.875%, gone up 1% in a week?? Whats a good site to compare rates - lendingtree? Also, where can I get estimates of closing costs - same place I get the loan from? Need to find an attorney too .....

 

[Dr. Detroit]

YES! rates just increased 1% point in basically a day.

You can wait it out to see if rates will go lower but I doubt they will.

 

[DrVos]

Rates have gone up over the past week, though 5.875 is a bit high. You should be able to find something in the 5.25-5.5 range

You can get whats called a Good Faith Estimate from your lender. It will outline the loan terms and associated closing costs. It's free and only takes a little time for them to draw up. Try and get some GFE's from various banks and CU's in your area. See if someone can recommend a mortgage broker.

 

[DrVos]

Also, if you are willing to pay points up front, a broker may be able to get you a better deal. I'm looking at paying 3 points for a 5% rate on an investment property right now.

 

[JS80]

Best advice: don't buy right now.

 

[Aharami]

link

doesnt look like rates are going to drop down to sub 5 range again. sucks. I've been putting off refinancing in lieu of my wedding planning and other stuff.

 

[Gibson486]

Originally posted by: JS80
Best advice: don't buy right now.

Why?

 

[vi edit]

Originally posted by: DrVos
Also, if you are willing to pay points up front, a broker may be able to get you a better deal. I'm looking at paying 3 points for a 5% rate on an investment property right now.

3 points? Good grief....on a $300,000 property that's almost $10,000. And that's not tax deductable either. Wouldn't you be better off taking a shorter loan and using the points paid to cover the higher P&I payment?

I got no idea what your loan amount is so I'm just throwing a number out there.

 

[DrVos]

Originally posted by: vi edit

Originally posted by: DrVos
Also, if you are willing to pay points up front, a broker may be able to get you a better deal. I'm looking at paying 3 points for a 5% rate on an investment property right now.

3 points? Good grief....on a $300,000 property that's almost $10,000. And that's not tax deductable either. Wouldn't you be better off taking a shorter loan and using the points paid to cover the higher P&I payment?

I got no idea what your loan amount is so I'm just throwing a number out there.

It's for a $133,000 loan so we're looking at something a bit closer to the 3500 mark. I'm still evaluating if it's worth the initial outlay, since it will take 6 years to break even. I'm planning on holding on to this property for the long term, so I think it's still worth it.

 

[Dr. Detroit]

Originally posted by: Gibson486

Originally posted by: JS80
Best advice: don't buy right now.

Why?

12% of all mortgages are past due. 50% of all suprime are in foreclosure!

States like California with a budget nitemare are going to be laying off tens of thousands of employees and cutting the welfare checks.

Expect unemployment to increase across the nation and mortgage default rates to continue to increase/

 

[ViviTheMage]

Originally posted by: Fmr12B
YES! rates just increased 1% point in basically a day.

You can wait it out to see if rates will go lower but I doubt they will.

Any proof to that?

 

[Scarpozzi]

Are you a member of a credit union? Check your area and see if you can get an in-house loan through them. Rates are generally lower than other places and they're less likely to sell your loan down the road if it's in-house. 30 years are sometimes sold....10/15 year mortgages aren't most of the time...it all depends on the CU.

Also, some credit unions don't raise rates daily. Some review them bi weekly or monthly. You might be able to get rates from earlier in the month if you lock in now.

 

[imported_Imp]

Hope you checked for signs of a grow op.

 

[tontod]

Originally posted by: Scarpozzi
Are you a member of a credit union? Check your area and see if you can get an in-house loan through them. Rates are generally lower than other places and they're less likely to sell your loan down the road if it's in-house. 30 years are sometimes sold....10/15 year mortgages aren't most of the time...it all depends on the CU.

Also, some credit unions don't raise rates daily. Some review them bi weekly or monthly. You might be able to get rates from earlier in the month if you lock in now.

Yeah, I just filled out their pre-approval form herel, they said a 30-year fixed is 4.875% with 1 point, 5.125% with no points. Hope I get those rates.