Just locked in at 5.5%

[Mill]

I was thinking it would be more, but I am getting a fixed rate on a 5/1 year ARM. Rate is fixed for 5 years and then you have to refinance after 5 years or pay the loan off.

I was thinking I was gonna get stuck with a higher rate, but I can deal with 5.5% just fine. I swear I filled out 300 pages of crap today alone.

 

[spliffstar69]

I finished a 3/1 recently at 3.6% pay of at the end should work out good for me.

when rates go do go up home sales are going to suck badly.

Hope no one is planning on selling soon.

 

[Entity]

Congrats; hope you don't get hit too hard at the end of the 5. I was looking for a while, but it appears that house ownership is still a few months away, at best.

Rob

 

[Keego]

courtgratulations! I have a 3.9 on my car :>

 

[Mill]

Did I mention the house appraised at 207k and the purchase price was only 194.6k? I am ecstatic!

 

[Kelvrick]

Originally posted by: Millennium
Did I mention the house appraised at 207k and the purchase price was only 194.6k? I am ecstatic!

Sweet. My mom/brother's house in Orange County is about 70k above our purchase price right now, after about 2 years. Now that interest rates are going up again, home prices are going to go down again.

 

[dirtboy]

My house has already appreciated $35k and it hasn't even finished being built yet. I bought it for $165k and I already have realtors saying they can get me $200k easy. meh.

 

[Mill]

Originally posted by: dirtboy
My house has already appreciated $35k and it hasn't even finished being built yet. I bought it for $165k and I already have realtors saying they can get me $200k easy. meh.

Yes, the pre-construction appraisal was around 175k. The area I am buying in has had growth of 35.1% in the past four years and has almost limitless land to expand. Plus, there are lakes all around, very low property taxes, and lots of privacy.

 

[TuffGirl]

Sweet deal! Is this a newly constructed house? When do you get to move in?

 

[Mill]

Originally posted by: TuffGirl
Sweet deal! Is this a newly constructed house? When do you get to move in?

Yep, and I get to move in on the 19th of this month. Just doing the final stuff right now like Final Inspection, bill transfers and waiting on closing.

 

[Lucky]

Funny you should mention this, just got done reading an article from yesterdays (tuesday) Wall street journal about a rash of homebuyers thinking they were "locked in" but they really weren't. Reasons ranged from the lenders gambling with the rate hoping they will go lower (to profit off the difference), to brokerage companies being so backlogged/swamped that by the time your loan hits them the rate is so much higher and you aren't really "locked in". At 5.5%, right now that's a damm good rate but be weary and it not be hurt to grab a copy of the paper and read the article.


(ah, thought that 5.5% was a 30yr fixed, which is at about 6 1/4 right now, I think. )

 

[Mill]

Originally posted by: Lucky
Funny you should mention this, just got done reading an article from yesterdays (tuesday) Wall street journal about a rash of homebuyers thinking they were "locked in" but they really weren't. Reasons ranged from the lenders gambling with the rate hoping they will go lower (to profit off the difference), to brokerage companies being so backlogged/swamped that by the time your loan hits them the rate is so much higher and you aren't really "locked in". At 5.5%, right now that's a damm good rate but be weary and it not be hurt to grab a copy of the paper and read the article.


(ah, thought that 5.5% was a 30yr fixed, which is at about 6 1/4 right now, I think. )

Yeah I read over all the paper work before I signed. I am locked until 10/11/03. 60 day lock after which the mortgage company can change the rate. Since I am closing on the 19th of August I am going to make the deadline.

I totally agree that people need to be careful before they sign something. Make sure you understand something, because in cases like this you need to ask questions. BTW, the reason it is lower than the 30 year fixed is it is a 5/1 ARM. Five Years of fixed 5.5 and then adjustable in the year after unless I refinance or pay it off. I am going to pay it off more than likely. Yes, I lose the tax savings, but I have been working to see how much I will actually save. Well will see, but after 5 years I will only have 57k left on the mortgage. I dunno if I will take out a new mortgage or not and try to invest it with my other assets. Got to see what is going to be better tax and planning wise.

 

[Lucky]

Well, I hope it turns out well. I don't mean to put out paranoia, but there were several people chronicled who *were* locked-in (written confirmation) yet when it came time to close...bank says "sorry, (we) or (title company) or (x) screwed up, we can't give you that rate now.

Yeah, I know why it's lower. I think my father is doing the same thing but on a 3 year period. He got some ridiculous 3.xx% rate.

 

[TuffGirl]

Originally posted by: Lucky
Funny you should mention this, just got done reading an article from yesterdays (tuesday) Wall street journal about a rash of homebuyers thinking they were "locked in" but they really weren't. Reasons ranged from the lenders gambling with the rate hoping they will go lower (to profit off the difference), to brokerage companies being so backlogged/swamped that by the time your loan hits them the rate is so much higher and you aren't really "locked in". At 5.5%, right now that's a damm good rate but be weary and it not be hurt to grab a copy of the paper and read the article.


(ah, thought that 5.5% was a 30yr fixed, which is at about 6 1/4 right now, I think. )

I happen to work for a mortgage company. The way to ensure that what Lucky said doesn't happen to you is find out when your ratelock expires. It's anywhere between 15-60 days of your ratelock but there's a definite date of expiration by when your loan must close, prior to funding. Are you doing your loan directly with a mortgage lender (retail) or through a mortgage broker (wholesale)?


EDIT: Bah I see you already did what I posted. Heh.

 

[Ameesh]

Originally posted by: Millennium
I was thinking it would be more, but I am getting a fixed rate on a 5/1 year ARM. Rate is fixed for 5 years and then you have to refinance after 5 years or pay the loan off.

I was thinking I was gonna get stuck with a higher rate, but I can deal with 5.5% just fine. I swear I filled out 300 pages of crap today alone.

congrats man, i also went with a variable, i got a 7/23 balloon at 4.625% but that was a while ago before the rates went up.

Welcome to the homeowners club

 

[Ian]

Millenium it sounds like you have a 5 yr Balloon and not a 5/1 ARM. A 5/1 ARM switches to a 1 yr ARM that is tied either to the LIBOR or Treasury Index + a Margin.

 

[Mill]

Originally posted by: Ian
Millenium it sounds like you have a 5 yr Balloon and not a 5/1 ARM. A 5/1 ARM switches to a 1 yr ARM that is tied either to the LIBOR or Treasury Index + a Margin.

That is what it does. It switches to 1 year ARM after the 5 years of fixed. The name of the loan is 5/1 ARM 5/2/5 CAPS. That is what is on the Uniform Loan App and the rate lock. I don't actually have to pay the loan off at the end of five... I have the 1 year ARM after that and can refinance. I guess I wasn't clear.

 

[FeathersMcGraw]

Ouch, they weren't kidding when they said rates were jumping up. I'm at 5.625, and that's on a 15-year fixed.

 

[rh71]

I refi'd for $0 total from 6.125% to 5.875% (30yr fixed) thru Wells Fargo the other day. It knocked me to just under $2k/mo. in mortgage payments! Woohoo!

 

[royaldank]

I got my house at the end of July. I ended up with a 1/1 ARM because I don't expect to live there but a few years. My current rate is good till Jan '05, at which point it can go up or down 1%. This happens every Jan. with a +5% total cap (1% each year). Refi anytime I want after 90 days. I'm currently at 3.5%. I work at a mortgage co so I didn't have to pay origination or points on that either.

Had to mow for the first time last night. Hadn't done that in years. Oh well, so goes home ownership.

 

It's always fun to move into new construction. Did you get to do all that fun stuff like picking out carpet colors, and paint colors, and where the electric and cable outlets would be located?

 

[Mill]

Originally posted by: jumpr
It's always fun to move into new construction. Did you get to do all that fun stuff like picking out carpet colors, and paint colors, and where the electric and cable outlets would be located?

I did get to pick some of it, but I started looking at the house when it was 80% done.

 

[Fausto]

Originally posted by: TuffGirl
Sweet deal! Is this a newly constructed house? When do you get to move in?

More importantly: when's the first kegger for southeastern ATers? :beer:

 

[pyonir]

Congrats Mil :beer:

 

[Banana]

Cool! I'm also closing on new house, on the 18th. I did a 30 yr loan at 5.375. With rates so low, I'm wondering whether or not to pay down the principal or invest my $ elsewhere!

PICS of house?