purchasing a home and wondering if we have a good deal

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jayk238
Posts: 616
Joined: Tue Jan 31, 2017 1:02 pm

purchasing a home and wondering if we have a good deal

Post by jayk238 » Mon Jan 21, 2019 10:20 pm

Buying thru Chase - have a hard time finding anyone that will finance 3 %

3% down
home costs 251k
rate is 4.375 with 900 in points cost
PMI is 117
fees 995 to Chase + third party fees

Not really wondering if its a smart buy, just wondering if the above is reasonable or if its too much to Chase

total monthly including property taxes, fees, principle interest is 1567

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fortfun
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Re: purchasing a home and wondering if we have a good deal

Post by fortfun » Mon Jan 21, 2019 10:28 pm

jayk238 wrote:
Mon Jan 21, 2019 10:20 pm
Buying thru Chase - have a hard time finding anyone that will finance 3 %

3% down
home costs 251k
rate is 4.375 with 900 in points cost
PMI is 117
fees 995 to Chase + third party fees

Not really wondering if its a smart buy, just wondering if the above is reasonable or if its too much to Chase

total monthly including property taxes, fees, principle interest is 1567
What are the total 3rd party fees? Are they baking something into those? How much are the 900 points costing? What if no points? Why is Chase financing with 3% and no one else? How long is the term of the loan? Can rates increase?

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F150HD
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Joined: Fri Sep 18, 2015 7:49 pm

Re: purchasing a home and wondering if we have a good deal

Post by F150HD » Mon Jan 21, 2019 10:39 pm

why not take out a piggyback loan for 20% and avoid the PMI.
Long is the way and hard, that out of Hell leads up to light.

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unclescrooge
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Re: purchasing a home and wondering if we have a good deal

Post by unclescrooge » Mon Jan 21, 2019 11:20 pm

jayk238 wrote:
Mon Jan 21, 2019 10:20 pm
Buying thru Chase - have a hard time finding anyone that will finance 3 %

3% down
home costs 251k
rate is 4.375 with 900 in points cost
PMI is 117
fees 995 to Chase + third party fees

Not really wondering if its a smart buy, just wondering if the above is reasonable or if its too much to Chase

total monthly including property taxes, fees, principle interest is 1567
Get a quote from Bank of Internet. I've personally never gotten a good rate from Chase.

bloom2708
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Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: purchasing a home and wondering if we have a good deal

Post by bloom2708 » Tue Jan 22, 2019 10:47 am

Not what you want, but this is probably not a "good deal" for your financial future.

3% down is no buffer for the declines that will come at some point.

PMI will haunt you for several years. It will take a long time to get to 20% down because the first years are front loaded with interest payments with very little principle being paid down.

The allure of buying a house is very very strong. Even when you are not prepared (saving enough).

Houses are so much more than just the principle/interest payment. But, they are learning experiences. I hope it works out!
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words: Whole food, plant based

athan
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Joined: Fri Nov 13, 2015 4:33 pm

Re: purchasing a home and wondering if we have a good deal

Post by athan » Tue Jan 22, 2019 10:55 am

Go to Bankrate.com and search for the best mortgage prices.

My first house was financed through Chase. Since then I have learned a lot, and have figured out that the online companies are the least expensive by far. I recently used a company named Garden State Home Loans. Easy to work with and the lowest prices around.

dsmil
Posts: 675
Joined: Tue Sep 08, 2009 10:51 am

Re: purchasing a home and wondering if we have a good deal

Post by dsmil » Tue Jan 22, 2019 10:59 am

It seems reasonable to me. I entered it into Aimloan.com and the only difference was that Aimloan's fee was $400 less.

sergio
Posts: 452
Joined: Sat Jun 20, 2015 6:52 pm

Re: purchasing a home and wondering if we have a good deal

Post by sergio » Tue Jan 22, 2019 11:08 am

The PMI is going to become annoying pretty fast and removing PMI often a hassle and costs money. In most situations you can only remove PMI with an appraisal at 20% equity (a hassle, costly, and not guaranteed) or by waiting until the date at which the loan balance falls to 78% of the original balance (prob 10 years in your case). Can you put 5% down? That may drop your PMI to something a lot more manageable. Or take out some sort of piggyback loan.

Topic Author
jayk238
Posts: 616
Joined: Tue Jan 31, 2017 1:02 pm

Re: purchasing a home and wondering if we have a good deal

Post by jayk238 » Tue Jan 22, 2019 11:11 am

fortfun wrote:
Mon Jan 21, 2019 10:28 pm
jayk238 wrote:
Mon Jan 21, 2019 10:20 pm
Buying thru Chase - have a hard time finding anyone that will finance 3 %

3% down
home costs 251k
rate is 4.375 with 900 in points cost
PMI is 117
fees 995 to Chase + third party fees

Not really wondering if its a smart buy, just wondering if the above is reasonable or if its too much to Chase

total monthly including property taxes, fees, principle interest is 1567
What are the total 3rd party fees? Are they baking something into those? How much are the 900 points costing? What if no points? Why is Chase financing with 3% and no one else? How long is the term of the loan? Can rates increase?
Sorry the 3.375 costs 900 dollars in points.

The total third party fees are title insurance etc. i called around and they are the same w pretty much every lender. I was told they cant change them.

The only other one i found was rocket mortgage financing 3%
Loan is 30 years fixed

Topic Author
jayk238
Posts: 616
Joined: Tue Jan 31, 2017 1:02 pm

Re: purchasing a home and wondering if we have a good deal

Post by jayk238 » Tue Jan 22, 2019 11:12 am

athan wrote:
Tue Jan 22, 2019 10:55 am
Go to Bankrate.com and search for the best mortgage prices.

My first house was financed through Chase. Since then I have learned a lot, and have figured out that the online companies are the least expensive by far. I recently used a company named Garden State Home Loans. Easy to work with and the lowest prices around.
I did. There was only one other lender and its not someone i wish to go with

Topic Author
jayk238
Posts: 616
Joined: Tue Jan 31, 2017 1:02 pm

Re: purchasing a home and wondering if we have a good deal

Post by jayk238 » Tue Jan 22, 2019 11:12 am

dsmil wrote:
Tue Jan 22, 2019 10:59 am
It seems reasonable to me. I entered it into Aimloan.com and the only difference was that Aimloan's fee was $400 less.
Right and by going w chase i have the preferred card so i get 625 dollars cash back...

JGoneRiding
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Joined: Tue Jul 15, 2014 3:26 pm

Re: purchasing a home and wondering if we have a good deal

Post by JGoneRiding » Tue Jan 22, 2019 11:21 am

unclescrooge wrote:
Mon Jan 21, 2019 11:20 pm
jayk238 wrote:
Mon Jan 21, 2019 10:20 pm
Buying thru Chase - have a hard time finding anyone that will finance 3 %

3% down
home costs 251k
rate is 4.375 with 900 in points cost
PMI is 117
fees 995 to Chase + third party fees

Not really wondering if its a smart buy, just wondering if the above is reasonable or if its too much to Chase

total monthly including property taxes, fees, principle interest is 1567
Get a quote from Bank of Internet. I've personally never gotten a good rate from Chase.
I don't know it's beating quotes I have seen recently from quicken and bank rate. Honestly I would lock fast and then maybe look a little but rates are going up daily it seems and 3% down is always a tough spot to loan with

athan
Posts: 235
Joined: Fri Nov 13, 2015 4:33 pm

Re: purchasing a home and wondering if we have a good deal

Post by athan » Tue Jan 22, 2019 11:38 am

jayk238 wrote:
Tue Jan 22, 2019 11:12 am
athan wrote:
Tue Jan 22, 2019 10:55 am
Go to Bankrate.com and search for the best mortgage prices.

My first house was financed through Chase. Since then I have learned a lot, and have figured out that the online companies are the least expensive by far. I recently used a company named Garden State Home Loans. Easy to work with and the lowest prices around.
I did. There was only one other lender and its not someone i wish to go with
Seems like you have done your homework, and have a prior relationship with Chase. I think you should lock the rate if you are sure you are ready to buy.

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fortfun
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Re: purchasing a home and wondering if we have a good deal

Post by fortfun » Tue Jan 22, 2019 6:43 pm

jayk238 wrote:
Tue Jan 22, 2019 11:11 am
fortfun wrote:
Mon Jan 21, 2019 10:28 pm
jayk238 wrote:
Mon Jan 21, 2019 10:20 pm
Buying thru Chase - have a hard time finding anyone that will finance 3 %

3% down
home costs 251k
rate is 4.375 with 900 in points cost
PMI is 117
fees 995 to Chase + third party fees

Not really wondering if its a smart buy, just wondering if the above is reasonable or if its too much to Chase

total monthly including property taxes, fees, principle interest is 1567
What are the total 3rd party fees? Are they baking something into those? How much are the 900 points costing? What if no points? Why is Chase financing with 3% and no one else? How long is the term of the loan? Can rates increase?
Sorry the 3.375 costs 900 dollars in points.

The total third party fees are title insurance etc. i called around and they are the same w pretty much every lender. I was told they cant change them.

The only other one i found was rocket mortgage financing 3%
Loan is 30 years fixed
What does the 4.375 bump up to without paying the points? What's the break even payment? Banks usually make money on points because they know people usually don't end up living in the house long enough to break even, or they refinance before they break even.

Topic Author
jayk238
Posts: 616
Joined: Tue Jan 31, 2017 1:02 pm

Re: purchasing a home and wondering if we have a good deal

Post by jayk238 » Tue Jan 22, 2019 8:01 pm

fortfun wrote:
Tue Jan 22, 2019 6:43 pm
jayk238 wrote:
Tue Jan 22, 2019 11:11 am
fortfun wrote:
Mon Jan 21, 2019 10:28 pm
jayk238 wrote:
Mon Jan 21, 2019 10:20 pm
Buying thru Chase - have a hard time finding anyone that will finance 3 %

3% down
home costs 251k
rate is 4.375 with 900 in points cost
PMI is 117
fees 995 to Chase + third party fees

Not really wondering if its a smart buy, just wondering if the above is reasonable or if its too much to Chase

total monthly including property taxes, fees, principle interest is 1567
What are the total 3rd party fees? Are they baking something into those? How much are the 900 points costing? What if no points? Why is Chase financing with 3% and no one else? How long is the term of the loan? Can rates increase?
Sorry the 3.375 costs 900 dollars in points.

The total third party fees are title insurance etc. i called around and they are the same w pretty much every lender. I was told they cant change them.

The only other one i found was rocket mortgage financing 3%
Loan is 30 years fixed
What does the 4.375 bump up to without paying the points? What's the break even payment? Banks usually make money on points because they know people usually don't end up living in the house long enough to break even, or they refinance before they break even.
Break even is approx 4 years for the step higher interest. We plan to stay 5 min barring exigencies

momvesting
Posts: 104
Joined: Tue Apr 12, 2016 9:18 pm

Re: purchasing a home and wondering if we have a good deal

Post by momvesting » Tue Jan 22, 2019 8:08 pm

Dumb question and hopefully I can phrase this correctly, but by buying down the rate you are increasing the loan amount. How much more time does that add that you must pay PMI using standard amortization? Make sure that is included in your break even calculations.

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