Loan=158,900 Downpayment= 83,900 Finance=75,000 / 30yrs

ssherry3 · Joined: 29 Jun 2008 Posts: 1 2.02 Dollars($)

I'm single. Age 53. Live in eastern NC. Steady job @ 19.00/hr. Take home pay about 1850 /month. Credit Score = 900. One son in 1st year community college living in townhouse. I pay all his living & school expenses. 2nd son is recovering from a near fatal accident but plans to start some college in Fall of 2008 and currently living with me. I pay his private BCBS @ 285.00 /month and pay-as-I-can on any remaining medical expenses. I'm currently renting @ 600.00 / month. No other expenses except 4,000 owed on car and basic living expenses such as utilites, cell phone, car insurance,etc. Getting ready to purchase home near college so both sons can live with me in order to cut their school/ living expenses. Want a fixed rate with payments near 400.00/month. So far this is what I have calculated: Home purchase price=158,900. Down payment=83,900. Will Finance 75,000. (Will have 58,000 left in money market). Closing date on house is set for Aug 1, 2008. Currently bank with BOA who suggested not putting taxes into escrow. Question: What is the best plan for me? What are the best rates and monthly payments I can expect to find and from what lender? Any other advice would be great. Thank you....Sherry (AND I am already pre-qualified through BOA.)

brian1 · Posted: Sun Jun 29, 2008 3:28 pm Post subject:

Marty stop with the spam
$400 is going to be very difficult when you add in taxes and insurance. If you dont pay them monthly you will get hit with three large payments through out the year.Paying down a nig amount and still having some money left is wise. No need to exhause all of your reserves. It would be wise to have someone run the numbers and show you your options. Sounds you are doing a good job being a Mom with both boys in school. I asmire the want to make adjustments to afford them that luxury.
Good Luck
Brian

Caron

Hi ssherry,

Welcome to our forums.

Looks like you have a great credit score. Smile

And not much debts to worry about. The down payment is impressive. And, you are likely to get much better rates considering the credit score you have, tough there are other factors involved. Since you are yet to get approved with BOA, there's pretty much time left for you to contact some other lenders and find out what they have to offer you. Then compare all offers and try to choose the best.

I suggest that you check out How much you can afford and then go for a no-obligation free loan consultation with our community lenders. The lenders will analyze your situation and suggest options that best suits your situation.

If you have further queries, please don't hesitate to discuss.

Good luck

gmakerley · Posted: Mon Jun 30, 2008 8:08 am Post subject:

i guess i am skeptical about a 900 credit score, inasmuch as the maximum the bureaus hit is 850. i may be quibbling, though, as you may very well hit the 800's anyway.

i would think that your prequalification with BofA would stand you in good stead, but it never hurts to shop around. i do think, however, that rate shopping is a waste of time.

i have to agree with brian (this is getting monotonous, brian!) that you'll have much difficulty in keeping your monthly obligation to $400 or less - that is, unless you go for a variable rate product. if that number is all that important to you, then variable is likely the only option. even at 6%, you'd be looking at $450 per month (not including taxes and insurance).

again, even though you have the option of not maintaining an escrow account, you'll still need to be able to make those annual payments, so budgeting is critical there. based on what you've said, however; it seems a non-escrow situation wouldn't be troublesome for you.

by all means, shop around if you feel you must, but i would suggest shopping for the best service you can get, as rates will generally be quite comparable no matter who the lender is.

john · Joined: 23 Jun 2008 Posts: 36 17.30 Dollars($)

I hate to say it but i think you may want to wait until you are ok with the boys to get the home.. Then again i do not know too much about you, thing is that if something were to happen (son gets sick, act of god etc etc etc) then missing a mortgage payment will affect the good score you have. 850 is the highest but im sure you were just saying that because its perfect credit. If you think you can handle it one idea might be a home equity line with fixed rate option. The payments would be lower but the loan would still be qaulifed off of the adjustment. These guys are right though about shopping around, that loan amount wouldnt have much affect on the payments if the rate was a half point or so either way. maybe a difference of 10 dollars or so per month, im not in my system but it should be little to no difference payment wise...

Best of luck, also remember that the line of credit is a revolving interest account and should only be used as a temporary fit in my opinion. Basically like a credit card attached to your home, but this credit card interest is tax deductible...

good luck.

Guest 0.10 Dollars($)

I'd pay off the car. This will help your cash flow.

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