Juan, keep trying.... Under the 'old rules', that was the typically the case, but the rules are very relaxed now. I did a google search on "FL credit unions", and this was the first link that popped up:

http://www.creditunionsonline.com/state.php?state=FL&page=0

Ask around, surely someone local can point you in the right direction. Good luck!

as a rule of thumb, any time your 1st mortgage by itself exceeds 80% loan to value (regardless of having a 2nd mortgage or not) expect to pay extra either through PMI or a higher rate, period. PMI is useful in a situation where you are expecting a windfall after you take out the loan (like buying a new home before you sell your previous) - you can have a lower rate with PMI or a higher rate w/o PMI - if you accept the higher rate all the lender is doing is self-insuring the loan. payments between the two are similar but PMI is not tax deductible so technically its an advantage to take the higher rate.

A conforming (5.875 30 fixed) as one loan over 80% LTV doesn't exist unless you take PMI.

P-o-P, I might amend your statement...

"Stuff like this just irritates me - housing IN CALIFORNIA has always been a sacrifice, but it's simply gotten beyond the reach of "normal" people now."

Do not fall into the trap of thinking that the California housing market is anything like the market in the rest of the country.

Case in point, we are moving to the Dallas area. My wife found a very nice house for sale online, pic is below:

http://forums.pelicanparts.com/uploa...1166625467.jpg

3800 square feet, 5 bedrooms, 4.5 baths, 3 car garage, custom french doors, hardwood floors, fireplace, granite countertops, on a cul-de-sac. Asking price: $349,000. That is $92/sq ft. A whole lot of house for that price. In Kalifornia, $350k MIGHT buy you a two bedroom condo in Watts.

Homes are out there, you just need to move!

USAA is great for many things, but their mortgage rates are usually higher than other places. Dunno why, but they are.

That's great, but it's all relative. An $80,000 mortgage is just as daunting for people that have a hard time finding a job that'll net them $20k a year (because the economy sucks in that area) as it is for a half-million dollar mortgage here in SoCal for people that net $100k a year.

Location, location, location. . . There's a reason.

I might consider Texas. . . maybe. I really do like it here in SoCal though. I'd rather rent here than buy in most other areas of the country, although Texas, Arizona, New Mexico and a few others (plus Hawaii, obviously) I could probably be okay with if I had to.

Rick:

The extra payment per year is a good choice. I have set up a number of folks with bi-weekly payments which work out to the desired 13 monthly payments. Works out well for them. Of course, depending on where you are located, as many have pointed out, property values vary all over the map. It is still possible in areas of Arizona to get one heckuva deal for under a quarter mill.

It is interesting the reaction you get from people when you take their interest and principal payment, multiply it by the number of months in the contract, subtract the original loan amount and show them the interest they are paying over time!!

You're assuming that 6 figure salaries aren't available in many of these locations... but they are! Back during the 'high tech' craze of the 90s, someone was bragging to me about the big $ contract they had just landed in CA...I didn't have the heart to tell them that it would have been a pay cut :). IMO, it's NOT relative... housing is affordable, just NOT in CA for most.

Fine, you find me a job in NC paying what I'm making now with comparable work environment, etc. and I'll be all over it like Oprah on a baked ham. ;)

What kind of job do you want?

Moneyguy: Yeah, I am looking into the biweekly payment plans, not sure if I want to do that or just make an extra payment every year. As I understand it, it works out about the same. We have the biweekly plan on our car payment, supposedly is going to knock out the loan (5 years) about 5-6 months early.

P-o-P, I don't know what your profession is, but I would bet you could find a comparable position in one of the major cities in the south or midwest. You might not make as much, but the cost of living is so much less you will actually have more spending power. Just don't tell your friends, we like our little housing secret down here...

I have no idea what you do, but have no doubt that you would come out WAY ahead in many areas of NC! It ain't CA, but then again, we don't want to be :). I love CA, don't get me wrong, but when I see what many of you put up with on a daily basis (i.e. too many PEOPLE, traffic, illegals, LIBERALS :), etc.), I don't see the appeal in living there unless money is simply no object.

But you wouldn't need the same pay because of the lower housing cost. What kind of money do people make in CA to keep them living in small apartments. Ive got guys that work for me that make $50k to 100K and they can all buy a decent home.

Rick:

Go for the biweekly as long as it is not a financial burden. That eliminates the temptation to "skip" that extra payment!!

Juan - try

http://www.effcu.org/

I've also found on the mortgage front that E-trade is very agressive on the mortgage end - open up a $500 account with them and it gets even better.

Well, I'm trained as an architect (working on my CA state registration right now) with about 8 years experience in the field. Do mostly project management stuff right now with some detailing, CDs, etc. My secret diabolical plan is to obtain my CA stamp (probably another year or so's worth of work depending). Once I have that, it's relatively easy to gain reciprocity with other states and it would make relocating a bit easier.

I actually just turned down a transfer to San Diego because my wife can't get a transfer down there (no openings). It'd have to be one of those things that was a "win" and a net-gain clear-across-the-board in order to get me to do it. In other words, we'd be happier, financially better off, she'd have a better job and I'd have a better job and we mutually agree on wanting to do it.

Although I gripe about having to rent here, we do pretty well comapratively - we've both got decent jobs (which are plentiful here anyway), don't have to worry about snow or crappy weather - ever, live across the street from the beach and pay below market-rate for our current apartment. Not too bad overall. . . It'd take a pretty good thing (for both of us) to get me to pull up stakes. If you knew the details of the position I just turned down, a lot of you would probably go "huh?!?!" and scratch your heads, but like I said, it's got to be an overall net-gain, not just a big win for me and a big loss for her (or whatever the case may be).

That looks just like my friends place in plano...

We are looking in the Grapevine/Keller/Southlake area, but it wouldn't surprise me if the same builder or similar built in Plano...

I just divided my monthly payment by 12, and added that number to each payment. Thing is, my lender wanted to charge me a $25 a payment "convenience fee" to go bi-weekly. That works out to $650 a year in "convenience" fees!!!

I've overpaid enough that my mortgage payments are going down next year from this year (to keep the loan a 30 year). I'm still going to pay the same amount. I love it when equity starts building at an accelerating rate!

An architect eh? You might be amazed at what you could do in NC (or MANY places) in the south that are actually great places to live. When you consider the COL in these areas, your salary alone would probably put you ahead of the game you both are playing in CA. Something you might want to consider down the road...

I paid off my current mortgage in 4 years. It was a 15yr loan and I just paid extra every chance I had. I had one of those loan calculators and would plug in when I paid extra. It was a great motivator to see the reduction in total interest to be paid. This was not my first house and so I rolled all my equity from my last house into this one.

When I would get my payment notice from the loan holder, there was a line where I could add extra to be paid on the principle. It also stated each month the balance that was owed.