Mortgage Question

[stomachmonkey]

Gettin ready to find a mortgage for the new place. Looking for a 30 yr fixed.

My FiCO is in the 700's, have not checked wifes yet but and sure she is at least in the high 7's low 8's.

We will be putting down a bit more than 40%.

So LTV of 60.

Monthly will be under 20% of income.

No other debt or loans.

Am I an attractive borrower?

What kind of deal can I expect to get?

Can I ask for lowest rate, no points/fees etc...?

[Dueller]

You're a dream borrower.

Should have no points, a rate of 5.75% or so on 30. Might look at 20 or even 15 yr fixed. I've seen 15's at 5.375%. The difference in P&I might suprise you that its not that much.

I'd ask for no origination fee and see if they'll cover some of your closing costs. No PMI either.

[Dueller]

Another thing you might consider is the amount of the loan. Up to a point, the smaller the loan the higher the interest rate. E.g., an $80K loan will have a slightly higher interest rate than a $125K loan. Ask your lender where the breaks are.

[Porsche-O-Phile]

Agreed. Put the minimum down to avoid PMI or other nonsense, put the rest in overseas securities.

[911Rob]

Great news! Congrats.

Change the 30 years to 15, imo. 20 max!

[Por_sha911]

Rates, points, fees, etc are all negotiable. Be able to have a poker face and get up to walk when they say "Can't.." and they'll change their tune.

[p911dad]

Send my Little Friendly Loan Company a request and we will process it promptly You and your wife have great credit, as you no doubt know.

[Flatbutt1]

stomachmonkey, those numbers putyou in a very good position. I'm 56 years old , paid off the first mortgage and my FICO is just over 800. I took a new mortgage last month to do a major renovation/rebuild. I got my loan for 20 years at 5.75, no points, no escrow, minimal closing costs.

[Moses]

Originally Posted by Wayne at Pelican Parts

I don't get it, these guys are starving, why are they so inflexible?

-Wayne

Because they are living in million dollar houses and driving hundred thousand dollar cars. They need to shovel a lot of coal to keep that locomotive running.

Many of our local brokers were making more than $1,000,000 per year. Sadly, some of them grew to believe they were worth that kind of money.

[RANDY P]

best conventional rates (what they advertise on TV for 30/fixed) applies to you, assuming you actually show the income on paper.

rjp

[RANDY P]

Easiest way to shop: Call up and ask for the best quote on a conforming fixed. You have no add's - 60% LTV purchase 720+ FICO full doc.

say it in that manner, the LO will understand.

[RANDY P]

Originally Posted by Wayne at Pelican Parts

HA, you'd think. I told my mortgage broker that I wanted some money back from the potential $10,000+ fee he'd get for simply filling out the paperwork. He said no, I walked and went direct to the bank (saved a bunch too). I don't get it, these guys are starving, why are they so inflexible?

-Wayne

Probably since anyone with a RE license and without a 2nd or primary job other than RE is starving. We get lots of calls up here from CA. Banks typically have fixed costs, on the average anyone going to a retail bank gets charged at least 2 points, regardless of loan amount.

PS I'd suspect your finances are a nightmare to read - complicated.

rjp

[Porsche-O-Phile]

15-year is a good plan in theory but most people can't afford to do it. Especially now when housing is still about 50% overvalued and still WAY out of whack with household incomes.

When the times comes, I will probably (like most) use a 30-year fixed to get in the door and either (1) overpay or (2) refi to a 15-year or 20-year fixed down the road when I can. Depends on interest rates though.

Simply overpaying makes a HUGE difference.

Make sure you get a loan without "prepayment penalties". If it has one, I'd literally throw it back in their face and walk out/go somewhere else. I don't need B.S. like that.

[sammyg2]

Lenders are under a microscope right now and are very reluctant to negotiate. Some are scared to death to agree to anything. A while back they could sell any loan easily no matter how bad, that isn't the case anymore. If they make a loan they might be stuck with it long term instead of flipping it, most don't like that proposition so they are reluctant. Which is ironic, because they are reluctant to do the business they are in.

A 20 yr fixed at 6% with no points and minimal escrow fees is a very good deal now. Anything less than 6% is gravy.

[Rick Lee]

If you add one extra P&I payment per years (divide it by 12 and add that much in extra princ. each month), you knock seven years or 84 payments off the end of a 30 yr. loan. No need to have the larger min. monthly payment obligation on your credit report with a 15 or 20 yr. loan.

[stomachmonkey]

Originally Posted by Rick Lee

If you add one extra P&I payment per years (divide it by 12 and add that much in extra princ. each month), you knock seven years or 84 payments off the end of a 30 yr. loan. No need to have the larger min. monthly payment obligation on your credit report with a 15 or 20 yr. loan.

That's what we were doing with our last place. We just rounded up to the next k which worked out to 13 payments. We also paid bi monthly, 1 months payment split in 2 2x's a month which also shaved time off.

[stomachmonkey]

So my rate is 5.875.

Closing looks like this.

Think I'm stuck with HOA, survey and Title Ins., ~$4k

Seem reasonable?

Wife wants to shop it but I'm not interested in aggravating myself for a couple hundred bucks.

No docs needed so I can be done and closed in 5-7 days.

[Dueller]

Everything looks reasonable except title insurance. Usually inly $3/1000. Are you borrowing $950K?

They should be able to negotiATE on the loan processing fee, underwriter fee and application fee.

[911Rob]

Hmmm? Where I live we can either get a Real Property Report by a licensed surveyor or title insurance? Not sure about where you live? FWIW.

[stomachmonkey]

Originally Posted by Dueller

Everything looks reasonable except title insurance. Usually inly $3/1000. Are you borrowing $950K?

They should be able to negotiATE on the loan processing fee, underwriter fee and application fee.

Thx,

TX has AFIK, has the highest title ins rate, it's ~8/1000

The other stuff combined is under $1k which I really don't have patience to argue.

I'll make a play for a reduction but if no I could care less.

I just don't want to go thru the pain of comparison shopping to save a couple of bucks.

Sometimes things are what they are, when I was getting married my wife was breaking my chops to go Tuxedo Shopping. (I already owned one anyway)

I explained to her "there are 4 tuxedos, w/tails and w/out, cumber bun or vest, those are the choices"

She insisted so one Sat we go a rental place, check out the 4 options then head off to the next place. She walks in and takes a quick look, hmmm, nothing diff here, lets check another place.

We hit 3 places, I kept my mouth shut, 4th place she looks at me and says "you were right, thanks for not rubbing it in"