Just signed on our first house (PICS INSIDE)

[GT1999]

The more you talk the more scary it all sounds.

What is your APR on your loan?

3.25 just like I said in the original post.

 

[Tweak155]

Even if they aren't I'll still buy it. I have a lot invested in it already.

- Time and effort looking. My fiancee has a very specific area we had to look in
- $500 attorney fee for contract work and clauses, advice, and time
- ~$300 home inspection
- ~$200 Radon testing


It would have to be very costly for me to want to back out of it. Like:

Inspector: "Hey, you have termites"
Me: "FFFFffhhhhh"
Me (To Lawyer): "Get us out of this mess"

I'd be more cautious. Would you rather lose $1k or a possible tens of thousands in work that could need to be done just blasting through the deal? $1k is a drop in the bucket in the long run.

 

[Vdubchaos]

3.25 just like I said in the original post.

You don't understand what APR is.

IT"S NOT INTEREST ON THE LOAN.

Reason # 20 why you are not ready to buy a house. Before you even apply for a loan or even THINK about looking at houses, you should know this.

PS. Don't worry, you will know soon enough....make sure you are sitting when you do.

With that said, tags= classic

I'd be more cautious. Would you rather lose $1k or a possible tens of thousands in work that could need to be done just blasting through the deal? $1k is a drop in the bucket in the long run.

Agreed

There should never EVER be time where you cannot pull out...out of the BIGGEST purchase of your life. EVER

Knowing that this is a 1950s house you are also putting LOT OF FAITH on whoever did the renovation. Because no inspector can look thru a wall and I'm sure you watched Holmes on Homes.....

 

[iRONic]

3.25 just like I said in the original post.

You don't understand what APR is.

IT"S NOT INTEREST ON THE LOAN.

Oh shit...

 

[Vdubchaos]

Well...somewhat (it does have some play in it) but not exactly "just interest"

just to be more politically clear.

:biggrin::biggrin::biggrin:

I will let him do the research (and not do it for him).

Anyways, take a close look at APR on your good faith estimate. You know what GFE is....I hope......right?

 

[xanis]

edit: for tha lulz

 

[GT1999]

I just called our lender and chewed them out for never telling me anything about APR.

I told them if they don't get me accurate numbers before 4pm today I'm going to close all of my accounts and switch banks.

After sitting down with loan officers for hours, including a district manager, nobody ever mentioned there being an APR.

 

[iRONic]

I just called our lender and chewed them out for never telling me anything about APR.

I told them if they don't get me accurate numbers before 4pm today I'm going to close all of my accounts and switch banks.

After sitting down with loan officers for hours, including a district manager, nobody ever mentioned there being an APR.

Um, you need to educate yourself also, dude. C'mon...

 

[Vdubchaos]

I just called our lender and chewed them out for never telling me anything about APR.

I told them if they don't get me accurate numbers before 4pm today I'm going to close all of my accounts and switch banks.

After sitting down with loan officers for hours, including a district manager, nobody ever mentioned there being an APR.

WOW

Bro...slow down, getting WAY ahead of yourself. Didn't I tell you anger will get you nowhere and those people are now working VERY hard to screw you even more?

It's not THEIR fault. It's YOUR fault for not knowing what APR is/ignorance. I told you in the other thread, GAIN KNOWLEDGE/LEARN. No body is looking out for YOU but YOURSELF. You went from "want to buy a house" to "buying a house" in few weeks....even though many of us warned you that you might want to slow down/learn/gain knowledge.

What do you expect?

Jesus christ. The amount of face palms I do when I read your posts is just astounding. But don't worry, millions of Americans have made and ARE making similar blind decisions EVERY DAY. So you are not alone (if that makes you feel better).

Lesson #25 - don't EVER use a mortgage broker > go straight to SMALL bank or Credit Union with competitive rates (stay away from big banks). Talk to their Mortgage associates and get quotes > running spreadsheet > compare compare compare. There is a GOOD reason why I say that. Finding a decent/good broker is like trying to find needle in the hay stack. MOST of them are SCUMS. (very few can be useful/get you what YOU really want)

You are shopping for LOAN just like you would be for a house. It took me over 2-3 months just to find a decent lender.

 

[xanis]

I just called our lender and chewed them out for never telling me anything about APR.

I told them if they don't get me accurate numbers before 4pm today I'm going to close all of my accounts and switch banks.

After sitting down with loan officers for hours, including a district manager, nobody ever mentioned there being an APR.

LOL

 

[HardcoreRobot]

Correct, he is WAY off on the numbers.

But to his defense Interest is a tax deduction (which is nice)



Correct

AS I have said before, do NOT look at it as an investment BUT a place to live.

My advice to OP. Work VERY VERY VERY hard to get up to 20% equity.

Remember, faster you pay down your loan, less interest you will pay (but keep Tax write off in mind as well).

And save that 6-9 month emergency fund, matter of time before you need it!!! But don't worry, I don't have it either (same goes for millions of Americans)

I will say congrats once you close....

Gotta pay the FHA insurance for a minimum of 5 years regardless, so thats a good target date of getting to the 22%. Its also strictly by amortization, so it doesnt matter if the house goes up or down in value.

Tax deductions are nice, but not paying the interest in the first place is way better!

 

[HardcoreRobot]

oh yeah i would inspect the crap out of an old renovated house, looks can be deceiving

 

[Vdubchaos]

Gotta pay the FHA insurance for a minimum of 5 years regardless, so thats a good target date of getting to the 22%. Its also strictly by amortization, so it doesnt matter if the house goes up or down in value.

Tax deductions are nice, but not paying the interest in the first place is way better!

Correct

oh yeah i would inspect the crap out of an old renovated house, looks can be deceiving

I go by "if it's too good to be true, it probably is"

better yet

I question ANYTHING that seems perfect on the surface. There is NO perfect.

 

[xanis]

The OP has to be trolling. This is the first result on Google for "what is an apr on a home loan": http://www.homeloanbasics.com/articles/PurchasingAHome/WhatisAPRWhatDoesItMean/

No one can be this retarded... right?

 

[iRONic]

... and the Tags have been changed.

 

[Vdubchaos]

The OP has to be trolling. This is the first result on Google for "what is an apr on a home loan": http://www.homeloanbasics.com/articles/PurchasingAHome/WhatisAPRWhatDoesItMean/

No one can be this retarded... right?

Just another uneducated/jerk reaction consumer

It's what got us into this fuckin mess......sad

... and the Tags have been changed.

 

[Zstream]

The more you talk the more scary it all sounds. You paid 2 points on your loan? That's a fail. Rule of thumb is not to pay ANY points.......EVER. Points = money right into lenders pockets. Think of it as putting down payment on a car lease...it's best to pay NOTHING.

And no, it doesn't change on daily basis.

You are putting WAY too much trust/faith into your lender.

What is your APR on your loan? You don't have to answer but I will tell you that APR is a clear sign of upfront costs FOR YOU to YOUR lender. If your loan is 3.25% and you APR is anything more than .1-.2% more than that......they are taking you to the bank.

To give you an example, my first loan was 6.125/6.25APR
Refinance 5.25/5.3APR
2nd refinance 4.25/4.35APR

Since you are going with Chase and don't have a decent down payment I can already tell you will pay too much. YOU WANT TO STAY AWAY FROM THESE BIG BANKS for MANY reasons. One of them is them being really REALLY good at hiding fees.

Reason #1(you will find out VERY soon) is because their contracts are like books and there isn't many people in the industry that can even understand it (don't count on your lawyer on doing it either).

Reason #2 they are known to take their sweet time to process everything (BOA is notorious for this)....Chase little better. DO NOT count on that 45 day closing/credit. NOTHING is guaranteed unless they put it on paper/sign.

Let me take a wild guess, you are using a broker too right?

Yeah, the points thing is very bad. Can you explain the APR in a simple manner, I really never understood it well enough to fully comprehend the consequences. I do know the lower the APR the better the loan is.

 

[GT1999]

I have all of the closing costs disclosed by the lender and have had them since day one on a pre-approval, but never an APR. We went over the closing costs meticulously yesterday, line by line for my exact loan amount. With the closing costs known, and getting a credit back from the seller, you guys are WAY overreacting that APR is a big issue, driving me insane thinking I'm going to get royally screwed which I do not think is going to happen. I have all of my paperwork in front of me. So it's my fault they didn't give me all the information needed on APR?

 

[Chapbass]

Looks like something in Mt. Prospect, Des Plaines, Park Ridge? I live right in that area. Never was a fan of 1950's style homes that are in the area, but this one looks very solid, especially that kitchen...

Good buy! congrats on a home! I'm looking myself, so this gives me a pretty good frame of reference

 

[Vdubchaos]

Yeah, the points thing is very bad. Can you explain the APR in a simple manner, I really never understood it well enough to fully comprehend the consequences. I do know the lower the APR the better the loan is.

it's pretty complicated and I don't have time to copy/paste or explain on my own.

Here is Cliff notes:
Good indicator of "closing fees"/how much bank AND broker will make off of you (if you are using one, again I don't EVER recommend that)
Keep it below .1-.2 at most of the actual interest on the loan

The goal is to get the bank to make money on interest and VERY little/none on the actual closing. They do their best to get as much as possible on closing.

I found that many big banks state "within .1-.2" but when you call them and ask them for list of all the fees....you quickly find out how full of shit they are. Also keep in mind, you will find yourself going thru spreadsheets every week or 2 as #s are updated and can NEVER predict what those #s will be for closing (but will have a general idea what they should be).

HSBC was the worst out of the bunch (when I was looking). Just cut out all big banks all together for moral reasons (if you ask me)

I have all of the closing costs disclosed by the lender and have had them since day one on a pre-approval, but never an APR. We went over the closing costs meticulously yesterday, line by line for my exact loan amount. With the closing costs known, and getting a credit back from the seller, you guys are WAY overreacting that APR is a big issue, driving me insane thinking I'm going to get royally screwed which I do not think is going to happen. I have all of my paperwork in front of me. So it's my fault they didn't give me all the information needed on APR?

By law, they HAVE TO!!! It's there because people like you that refuse to research/educate themselves about the process. Our government FORCED the lenders to do so.

Who is your lender? Is it a bank or a broker?

 

[iRONic]

I have all of the closing costs disclosed by the lender and have had them since day one on a pre-approval, but never an APR. We went over the closing costs meticulously yesterday, line by line for my exact loan amount. With the closing costs known, and getting a credit back from the seller, you guys are WAY overreacting that APR is a big issue, driving me insane thinking I'm going to get royally screwed which I do not think is going to happen. I have all of my paperwork in front of me. So it's my fault they didn't give me all the information needed on APR?

If you have the GFE it should be addressed in it.

 

[momeNt]

Yeah, the points thing is very bad. Can you explain the APR in a simple manner, I really never understood it well enough to fully comprehend the consequences. I do know the lower the APR the better the loan is.

APR just annualizes the other costs and fees and calculates it in terms of percantages.

http://www.money-zine.com/Calculators/Mortgage-Calculators/Mortgage-APR-Calculator/

 

[sdifox]

banking is so fucked up in the states.

up here. you are quoted an interest rate, that is what you pay. The only fee we pay to bank is when they send an appraiser, just to make sure you are who you say you are and house is what you say it is. That is like 300 bux.

If your down payment is not high enough (20% I think) , you have to buy insurance, but this is a government agency so it's x% tagged on top of your mortgage rate. Bank just collect on the agency's behalf.

Banks here make money from the interest alone.

I really don't get what the bank has to do with your taxes and stuff like that. My closing cost has nothing to do with the mortgage. Even if I decide to pay closing cost from mortgage, it would have increased the total of the mortgage and no extra fee from bank side. I pay my lawyer a fee for the paper work.

 

[Vdubchaos]

If you have the GFE it should be addressed in it.

Yep, and if it's not (usually it's right up top nice and clear) I suggest you RUN....not walk, FAST!!!

 

[Vdubchaos]

banking is so fucked up in the states.

up here. you are quoted an interest rate, that is what you pay. The only fee we pay to bank is when they send an appraiser, just to make sure you are who you say you are and house is what you say it is. That is like 300 bux.

If your down payment is not enough, you have to buy insurance, but this is a government agency so it's x% tagged on top of your mortgage rate. Bank just collect from the agency's behalf.

Banks here make money from the interest alone.

I really don't get what the bank has to do with your taxes and stuff like that.

Many GOOD banks in US do above as well. All of my loans were similar in cost (mostly).

But many pray on ignorant consumers as there is BILLIONS to be made.

I'm sure Canada is not exempt from that.