Please recommend the best mortgage program for me!

livinginnky · Posted: Mon Feb 04, 2008 12:36 pm Post subject:

Make sure to have them give you a "Good Faith Estimate". That sounds like a really great deal. I can't say that I ever saw FHA financing without PMI though. Are you getting a 15 year loan or 30 year. That rate and fees is amazing.

Could you private message me the name of the bank? I would greatly appreciate it.

plantationcat · Joined: 31 Jan 2008 Posts: 5 4.15 Dollars($)

We are definitely getting a Good Faith Estimate--it's a 30 year rate. Hopefully the rate won't go up this week until we lock in!

Samantha · Posted: Tue Feb 05, 2008 12:19 am Post subject: RE: loan offers

Yes, even I was going to ask you whether you have recived the good faith estimate and in case you don't understand any fes charged, you can simply ask the lender to do a breakdown of the costs and clarify these.

How long are you going to stay in this house? if you are looking for a long term loan, a 15 year would be good. Otherwise, you can try out with 1 year ARM or 5/1 year ARM as rates on such loans are lower currently.

Hope this helps...

God bless you.

Samantha

evolovik26 · Posted: Tue Feb 05, 2008 7:44 am Post subject:

Sorry to burst the eximent buble but FHA is strictly regulated by the HUD and ALWAYS has MI on 30yr loans. That is 1.5% upfront MI and the recurring monthly MI
Be carefull you could be getting sold on something else. Go here http://www.hud.gov/ll/code/llplcrit.html and check if they even approved to do FHA might be bait and switch or they covering for something.

But if you get it done id like to know what they did and how Smile

livinginnky · Posted: Tue Feb 05, 2008 11:01 am Post subject:

Thanks for the information.

It does appear to be a good deal. As with most sites they do have several disclaimers about "subject to change at any time" OR "Mortgage insurance may be needed, which could increase the monthly payment and APR." I found the last quote on the page that quotes the rate at 5.625 w/ .8 points for 30 years fixed rate. It actually says that there will be no MI on another page. I recommend proceeding but as said above... be careful.

How much are you putting down? On their site it requires you to put at least 5% in their calculator. I don't think the quote on site is for FHA either. As I agree with Eugene, I have never seen FHA without MI, even if you put 20% down.

Best of luck and let us know how it turns out.

shayneroy · Joined: 12 Nov 2007 Posts: 30 12.32 Dollars($)

Goodluck!

I just want to add up one small thing that's missed out, for some one in a simailar scenario can also consider a "Lender Paid Mortgage Insurance" Program on a 100% financing. I always refer this to my customers since it is much much more flexible and easy than a 80/20 or a PMI - Conventional loan.

Yes, for a LPMI program the interest rate could be higher by 0.125% -0.25% but it's certainly worth because it eliminates the multiple component factor in your mortgage payment.

0.10 Dollars($)

shayneroy · Joined: 12 Nov 2007 Posts: 30 12.32 Dollars($)

Practically, an average life of a mortgage loan is 3-4 years. So, it's been almost always observed that people have the tendency to either refinace or sell the property off. Hence, considering that fact, when you seek 100% financing, it would be time for you to refinance already anyways or you can always do a streamlined transaction with your existing bank to get rid of the LPMI.

plantationcat · Joined: 31 Jan 2008 Posts: 5 4.15 Dollars($)

So...correction. Although the update is good news still! We found the house and signed the contract yesterday & applied for loan & locked in at rate today.

We are getting a FHA 97% financing loan with a 5.5% rate. Although we were hoping for 100% financing, the sellers are going to pay all of our closing costs. And really, it doesn't hurt to have that little bit of equity.

The program with no fees, no closing, no PMI apparantly does not apply to FHA loans...since the FHA rate is lower you can't have your cake and eat it too! Oh well....

As far as how long we'll be in the house, it just depends on the market. We're planning to have children in the next few years, so we got a house big enough that we can stay as short (3 years) or as long (30 years) as we need to. This way, if the market peaks we can sell and still afford to buy somewhere else--it's in a neighborhood that will retain it's value.

Thanks again for all of the input!

gmakerley · Posted: Thu Feb 07, 2008 10:56 am Post subject:

from all the posts and your newest information, i think you have done well.
congratulations and best wishes.

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