Looking for best rate on second purchase

cheappower82 · Joined: 25 Jan 2008 Posts: 1 1.72 Dollars($)

I'm planning to upgrade to a 1700+ sq ft home w/5 acres from my current ~1400 sq ft home on a .5 acre lot. Property taxes here in Alabama are relatively low, so I'm thinking I don't necessarily need to go the escrow route (pay taxes and insurance out of pocket).

I'm estimating a $30k return on the sale of my house. My projected home sale price is $170k (my neighbor's home).

I want to know my options of what type of loan that will get me the best rate. I probably won't opt for points because I may not own/reside for more than 5 years in the new home.

Any suggestions?

ckalvesmaki · Posted: Sat Jan 26, 2008 7:00 am Post subject:

What is the purchase price of the new home? A 5/1 ARM may be the best route to go........what are your redit scores? In order to avoid escrows on a conforming loan......you need to have a 80% or better loan to value.

0.10 Dollars($)

As stated above, the purchase price is ~$170k. I will NOT go ARM.

My current mortgage is VA, but from what I understand, I may save some costs with my $30k down payment with a conventional type loan.

BTW, this is FSBO on the new purchase

lisascherzer · Joined: 04 Jan 2008 Posts: 749 0.10 Dollars($)

Hi Cheappower82,

The 30 year fixed rate mortgage is right around the same as the 5/1 arm so I would definately suggest the fixed rate mortgage. You can put as little as 5% down with good credit and should qualify for a 30 year fixed rate at 5.50% with no points.

brad · Posted: Thu Feb 07, 2008 12:39 pm Post subject:

Good Afternoon Cheappower82,

From what I see with the rates today the 30 yr is at 5.50% but the 5/1 ARM is under 5 at 4.875%. You could go conservative on a 7 yr arm at 5.125%. . There are many options so try to check them all out because rates are on the rise right now.

Maybe they will come back down next week but who knows!

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