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Wachowski
Guest
0.10 Dollars($)
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 Posted: Wed Sep 20, 2006 3:02 pm Post subject: |
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Hi,
An 80-20 mortgage loan can be an option you can select if you can not pay for the down payment amount. But instead of selecting a no-cost loan you can wait for some more time, build some savings so that you are able to pay for the closing costs and then buy a home. |
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 jameshogg
Joined: 20 Dec 2005
Posts: 1038
Location: nevada
131.64 Dollars($)
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| Posted: Wed Sep 20, 2006 5:06 pm Post subject: |
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Hi,
As your credit score is quite good you will be able to qualify for a 80-20 loan. You can read about such loans from this page.
In addition I would also tell you not to go for a no-cost loan and wait until you have some savings for payment of closing costs.
You can read one of the previous discussions to know why I am saying this, no-cost loan details.
James |
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Caron
Moderator
Joined: 19 Jul 2005
Posts: 1428
Location: florida
240.05 Dollars($)
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| Posted: Thu Sep 21, 2006 12:31 am Post subject: RE: no down payment or no cost loan |
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Hi Guest,
You can buy a house with no down payment by selecting a suitable mortgage lender who is willing to offer you a loan without down payment. But then you may have to pay a higher rate of interest.
Lenders do charge a higher rate of interest from borrowers providing no down payment on the purchase price. Also, they charge high rates on no cost loan as the closing costs are included within the loan amount. As you are the only earning member in your family, so, if you can give yourself some more time and accumulate some savings before buying a house, that'll be great.
I would not recommend an 80-20 loan as you might have to pay a high rate of interest especially for the second mortgage. In your situation, where you couldn't save a good amount of money, it's better to avoid managing two mortgages. So, just wait for some time and gather some savings for buying the house.
Thanks,
Caron. |
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helping_user
Joined: 31 Mar 2006
Posts: 785
Location: Hawaii
146.34 Dollars($)
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| Posted: Thu Sep 21, 2006 3:46 am Post subject: RE: No cost/no down payment 5/1 ARM |
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Hi Guest,
You can take a no down payment or a no-cost 5/1 ARM loan in order to buy a house, though you may have to afford a slightly high rate of interest. But the interest rate on this ARM is around 6% currently, so you need to find a lender who is willing to offer you a loan at a preferable rate.
The interest rate on this ARM will be fixed for at least 5 years after which it will go up on a yearly basis. At the end of 5 years, you can refinance the ARM with a fixed rate mortgage. Thus for the first 5 years your monthly payments will be fixed. Within this time period, you can save a good amount of money and then use it to pay the closing costs when you refinance.
Thanks |
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