Posted: Tue Jan 02, 2007 5:59 pm Post subject: new and stupid
hey guys let me give you a quick breakdown of my life, I just moved to lakeland florida about 6 months ago after becoming a firefighter/EMT, I lived in south florida before that where an average home is like 400k, now here I can get a place below 200k, I make about 40k a year and have a beacon score of 640. My girlfriend also lives with me and makes about what I do. so we went looking at houses just for fun yesterday and we saw a few we liked, one was a 1600ft townhouse for 160k and a nice 1900ft home for 235k. I think the house is out of our range, but she has big eyes and doesn't think about money much. the truth is we don't have any money saved up but want to buy before prices start going back up, I believe I may qualify for several first time buyers grants because of my position. ok here are my questions
-what down payment assistance programs can I qualify for?
-what is the best type of mortgage to get for the long run?
-is it better to get something thats really cheap like an interest only and then refinance a few years later? or just go with a traditional fixed rate?
-realistically how much should I be expecting to pay each month for a mortgage, tax, and insurance?
thank you guys for any help you can give me, I am sure I will have hundreds of more questions soon enough. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
You can take a 100% piggyback mortgage where you will not have to make a downpayment.
Quote:
-what is the best type of mortgage to get for the long run?
Secondly for the long term, 30 yr fixed would be suitable option, if you do not have plans of moving out.
Quote:
-is it better to get something thats really cheap like an interest only and then refinance a few years later? or just go with a traditional fixed rate?
I would also suggest that do not go for an interest only, refinancing after a few years will be better.
Let me tell you that nothing stupid about asking things beforehand instead of repenting after making a wrong choice.
what exactly is a piggyback mortgage I've heard of it before.
I don't plan on moving for atleast 10-15 years.
ok so I go with a fixed rate, but what rates are considered good now? and is there a way I can find out how much my insurance will be as well as my taxes?
thank you
Posted: Tue Jan 02, 2007 8:40 pm Post subject: RE: down payment assistance
Hi Silentneko,
Welcome to the forums.
Regarding the down payment assistance that you are looking for, you can enquire at the local and state agencies conducting bond programs. There are purchase limits off course for which one needs to qualify provided he has earns the required money.
Also, you can look out for some non-profit companies providing down payment assistance. It's a kind of gift assistance worth 3% of the home sale price. But for this, you'll have to show the authorities that you have qualified for a loan.
Then there is the chance to get 100% gift funds from the FHA. All you need to do is approach the offices and enquire about the assistance.
Posted: Tue Jan 02, 2007 9:03 pm Post subject: RE: loan advice
Hi Silentneko,
Welcome to our forums.
Doesn't matter if you have too many questions. We shall be happy to answer you and help you out. It's a community where people share their problems and discuss among them to find out some kind of solution.
For the long run, you may go for fixed rate loans as they require somewhat stable payments throughout the loan term. As you don't have sufficient savings now, so I won't advice you to go for an adjustable rate mortgage where rates can be low initially but then they shoot up at regular intervals. And, then if you fail to bear the payments as they go on rising, tat become painful indeed.
You can still go for an interest-only loan and refinance later on when rates are low compared to you existing loan. This will help you to keep aside some cash for savings.
Piggyback doesn't seem to be a good option. I personally feel making the down payment is much better than going for a combination of two loans (as in piggyback). I will cost you less I believe and save you from paying interest on two loans.
Now, the payments – well, that will depend upon the loan program you are choosing and the lender you are dealing with. What you can do is look out for lenders, gather all kind of data – the rates, fees and possible monthly payments, then compare them and decide which program to go for.
Rates on the second loan in piggyback are quite high compared to that of the first.
Currently fixed rates seem to be around 5.50% and 30 year loans are available at near to 6% rate of interest.
Since you are planning not to move within 10-15 years, a fixed rate is a feasible option for you. _________________ Procrastination is the enemy of your financial sucess
Posted: Wed Jan 03, 2007 3:27 am Post subject: hud down payment program in florida
Neko, if you are looking for some down payment assistance, you can go for the assistnce available from HUD. Just go through hud.gov/local/fl/homeownership/programs/countylist03.cfm to know more about it.
Posted: Wed Jan 03, 2007 4:08 am Post subject: calculations of monthly payments
Hi silentneko,
For a fixed rate loan of 30 years at a rate of 6%, you will have to pay $1199.10 as the sum of principal and interest. Besides there are property taxes, homeowners insurance and private mortgage insurance premiums paid on a monthly basis.
it seems I make to much for the hud programs, but I am looking into a program offered just for firefighters and police that will give me up to $15000. using that as a down payment I think I might be able to get away from the 100% financing, but now where to look for a loan? are there home town hero programs that apply to mortgages?
Yes, Hometown Heroes Homebuyer assistance programs are available which can help in covering down payment and/or settlement costs related to the purchase of the house.
You should contact the County Executive of your county to get all details about applicability of such a program in your region.
Wouldn't he qualify for a Next Door Program since he is a Firefighter/EMT? _________________ Wenzel Ablola
Loan Officer
Allied Home Mortgage Capital Corp.
alliedsandiego.com
silentneko
We can then refer other people in need to such helpful organizations.
