I am buying a new house soon ( first buyer ...) advice ...

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etguy
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I am buying a new house soon ( first buyer ...) advice ...

Post by etguy » Mon Aug 12, 2019 9:01 pm

My bank gave me these rates :

30 years and 20 yrs ...3.3 %
15 years ... 3.0 %

I intend to live there until my kids reach college or at least 15 yrs. Are those okay prices given rate is trending down .

Student2
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Re: I am buying a new house soon ( first buyer ...) advice ...

Post by Student2 » Mon Aug 12, 2019 9:28 pm

You need to include whether or not you are paying points and what your closing costs look like. These, and the interest rate are the triumvirate of profit for mortgages. Without knowing all 3, it's hard to say whether you are getting a good rate. I would recommend you spend some time on the mortgage professor's website (https://mtgprofessor.com/home.aspx and use the calculators and "quick portage shopper". You will see what the current rates (points and closing costs) are from an "upfront mortgage broker" [i.e., completely transparent lender]. If your numbers still look good, you're probably in good shape. Oh, and your rates will depend on your credit score; usually 740 and above gets the best rates.

When you shop for mortgages, the Mortgage Professor recommends shopping for a no-cost mortgage. That's a mortgage with no closing costs (no closing costs, but still includes escrow payment, interest, etc.) and no points. That sets two of the 3 elements that can be changed in a mortgage negotiation and forces the banks to compete only on interest. When you find the best mortgage under those terms, you can then ask for the terms you want.

If you get quotes, and you should (you wouldn't take the first offer you heard for a car, would you?), you should request them on the same day. Mortgage rates vary daily so there's no point comparing apples & bananas from different days. Alternatively, if the numbers you get from the "Quick mortgage shopper" look close to those you got from your preferred bank, you're done.

Good luck!

Student2

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etguy
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Re: I am buying a new house soon ( first buyer ...) advice ...

Post by etguy » Mon Aug 12, 2019 9:55 pm

thank you student2 appreciate inputs and I will use the resource that you gave me.

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etguy
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Re: I am buying a new house soon ( first buyer ...) advice ...

Post by etguy » Mon Aug 12, 2019 10:09 pm

am actually building a new house and will be done in 6 weeks. I never discussed closing cost with my the builder .how does the closing cost work in this situation ?

dru808
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Re: I am buying a new house soon ( first buyer ...) advice ...

Post by dru808 » Mon Aug 12, 2019 10:15 pm

I’d prefer the 30 and pay down like a 15 if you desire. If you get into a financial rut you can go back to the 30 payment schedule.

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Re: I am buying a new house soon ( first buyer ...) advice ...

Post by oldcomputerguy » Tue Aug 13, 2019 9:11 pm

This topic is now in the Personal Finance forum (mortgage and loan issues). — mod oldcomputerguy
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

TropikThunder
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Re: I am buying a new house soon ( first buyer ...) advice ...

Post by TropikThunder » Tue Aug 13, 2019 11:34 pm

etguy wrote:
Mon Aug 12, 2019 10:09 pm
am actually building a new house and will be done in 6 weeks. I never discussed closing cost with my the builder .how does the closing cost work in this situation ?
The closing costs won't change based on the fact it's new construction, unless the builder offers to pay part of them. The closing costs will mostly be determined by the lender and title/escrow company. Also, if you've gotten rate offers from your lender, you should have also gotten a Closing Disclosure form (or at least a summary) that itemizes the estimated costs of the various items (down payment, title insurance, title fee, tax fee, flood certification, pre-paid interest, taxes and escrow, etc). Hard to tell from your post, but if these terms are unfamiliar to you then I would question whether you are ready to sign for a mortgage.

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Re: I am buying a new house soon ( first buyer ...) advice ...

Post by jharkin » Wed Aug 14, 2019 7:09 am

+1, your lender should (or will upon ask) give you an estimate of closing costs along with the rate. This will have:

Fees for obtaining the mortgage - which are often negotiable and can vary greatly lender to lender:
* origination fee
* points (to buy down the interest rate)

... Misc. escrow fees (some are fixed, some you can comparison shop, some are optional):
* title fees
* title insurance fees (mandatory lender coverage and optional - but highly recommended- owners coverage)
* attorney fees
* county recording fees
*various paperwork, wire transfer, etc fees

... and "prepaids" various ongoing fees you have to pay up front to get started:
* partial month interest
* partial month property tax
* 1st year of homeowners insurance
* a few months of advance escrow if you are rolling tax and insurance into the payment


As mentioned above I think you would be well serverd to do a lot of research on sites like mortgage professor etc. I suspect you might only be talking to the lender the builder is pushing?? If yes you definitely want to go comparison shop some on your own.

Do you have your own real estate attorney representing you?


-----------------
FWIW, if its a no-point no fee rate - 3.3% is a great rate on a 30. Nearly an all time historic low. I just moved a few months ago and got 4.1.

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blaugranamd
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Re: I am buying a new house soon ( first buyer ...) advice ...

Post by blaugranamd » Wed Aug 14, 2019 8:00 am

Assuming no fee, no points, and excellent credit those are good. I've seen 15 year rates at 2.875% though from some smaller local lenders so look into local credit unions near you.
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Fire2030
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Re: I am buying a new house soon ( first buyer ...) advice ...

Post by Fire2030 » Wed Aug 14, 2019 9:37 am

Congratulations on building your home!!

Instead of comparing interest rates comparing APR from various lenders and loan options will be helpful as well.

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etguy
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Re: I am buying a new house soon ( first buyer ...) advice ...

Post by etguy » Sat Aug 17, 2019 5:15 pm

thank you guys for advices ( which i needed it given obviously not experienced ). few things : no points , and lender told me this going to be a Jumbo loan . not too sure how it affects me the fact that this is a Jumbo loan ?

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