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In the process of buying a house, I'm new to this and I'm having trouble knowing who to pick as a lender. I've been in contact with BB&T and Allen-Tate, both offering 3.5%. How do you pick which company to go with and is there a better lender that I'm not looking at? Thanks
No I did not lose a sig bet, but I am really really really ridiculously good looking.
Actually getting my real estate license right now and just went through a class with a lender. I'm pretty sure all the rates are the same, depending on the type of loan. Also recommended to get a buyers agent, if you don't have one already.
You could also just use your bank as a lender
The rate is definitely important, but some lenders will charge you points to get your rate down a quarter percent or so. Check your TILA disclosures and see the actual cost of the mortgage and look at the APR, not just your interest rate. Some have high origination charges. Where do you currently live? If Wells Fargo is in your area I can recommend you to them. Just purchased my home within the last 30 days, but I have a couple years experience in the mortgage business and I chose them.
Feel free to PM me with any specific questions you have. I lended for 10 years and now have a lender as part of my wealth management team.
All rates will be relatively close but there are specifics to each lender and closing costs that you will want to pay attention to.
Congrats on taking the plunge into homeowner ship and welcome to Home Depot.
Thanks guys. I just wanted to make sure I wasn't shorting myself with the lenders I've been working with. I saw some ways to get around PMI, is it worth it. Btw I live in fla but I'm moving to NC next month for whoever asked.
What is the TILA disclosure?
used my bank. got a decent rate
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Depends what you have to do, but PMi should always be avoided if you can
What is happiness? The feeling that power is growing, that resistance is overcome.--Friedrich Wilhelm Nietzsche
They said you can take out a second mortgage and the payment would be the same.
Truth in lending. Where the mortgage company/originator discloses fees. Just depends on the PMI on how long you decide to live in the house. Normally, to avoid it you must put 20% down and depending on your sales price that could get expensive. Your PMI is a percentage based on your equity at the time of purchase, so the more you put down up to less than 20% of the purchase price the less it is. I elected to take the PMI and only put the minimum 3.5% down for FHA financing. I used the 20% that I was going to put don as down payment to update everything we wanted in the house. Just whatever you can afford. My recommendation if you have the down payment available talk with a financial advisor and see if they can earn you a greater return on the down payment $ amount than what it will cost in PMI. If they can, let him invest it for you and pay the PMI.
Not always true if you are having to put 20% down to avoid it, especially since any FA could invest that same portion of money at a greater return then the cost of PMI
I represent all of the big banks (Wells, BoA, Citi, etc.) on their mortgage interests with debtors in bankruptcy, and I can tell you that without a doubt Wells Fargo easily is the industry leader in mortgage origination, and more importantly, servicing and customer service. They actually have an overwhelming majority of the market share of residential mortgages in the USA. Go with them if you can.
Started at the bottom, now we here.....better get used to it.
So you they could do better then BB&T? I figured they would be about the same level.
In today's market you shouldn't have to pay points to get the best rate. I would suggest a credit union if you haven't checked into one. A lot of times they have far less fees than a traditional bank and can offer the same type of loans.
If you can, I would avoid the PMi by putting down the 20%. Or as close to 20% as you can to lower the PMi. The spread you would make on investing the money vs putting it down isn't enough to make a difference in your life. Especially when you factor risk in to the equation. No one ever became a millionaire by making 3-5% for 2 or 3 yrs
A side note for you. Even though rates are at an all time low, the average life of a loan (time people pay on the loan )is somewhere between 3-4 yrs.
Ok. But 20% down will get a better rate. I'm pretty stoked about my 30 fixed right now. Cheap money . Close in a week.
So If I put 20% down I can get better than 3.5%?
No just avoid PMI. But if you can afford a 20 year term, you'd be able to get a significant decrease in your rate. But I just don't think it's worth it with as low as today's rates are. That's why I suggest hanging on to the 20% and either invest it or use it to fix up the home if it needs updates. Also, what price range are you looking. I want to say its like .01% of your loan amount on PMI. So taking a $200k priced home you're talking $200 a month if only putting down 3.5%. And after you achieve 20% equity in the home like (usually 3-4 years) you can have PMI removed from your loan.
Go with the lowest rate. Just make sure you are having to pay for points to get the rate. It will be sold to one of the big banks within days of your closing.
The first quote I have is for 225k with 5% down, the PMI is $89. She told me I could just take a second mortgage, use that to pay the 20% and the payment would be about the same. She said I could write off the interest on the second mortgage as well. It kinda seems like that might be the way to go to avoid PMI. Anyone know about this?
Probably not a great idea. She is trying to get a simultaneous close on the 2nd loan (2 origination fees)
Use this tool to help compute your payments and PMI. I calculated using your loan amount at $213750 (after 5%) and your PMI came out to about $167 with a $1461 monthly assuming a $4k annual escrow. Hope that helps
My house insurance agent gave me a quote and it's about $50 a month for flood and hazard, the taxes in the area is .86%
Thinks one place I'm looking at, I added a photo of the monthly mortgage, let me know if something I did doesnt look right. Taxes in this area is .91%. I did the calculator with full price(which I wouldn't pay)
Awesome family home in nice neighborhood. Brick front w beautiful foyer. Wood floors in the dining room, family room, and kitchen. FP in the family room. Bkfast area in the kit. Large mast BR. Mast bath has dual vanities w/ garden tub. Sitting area on ...
$50 a month.. Wow. Must be nice not living on the gulf coast. My policy is $3500 a year..
Ya, I live in Fla on the gulf coast, insurance and tax rates was a huge shock to me. I've learned I can afford a lot more house than I thought I could because the tax and insurance on the monthly payment is a lot cheaper.
No. With rates what they are it may be better to keep money in bank and do less that 20%. In my case my rate was 3.5% under both scenarios, so I kept the extra 15% in cash. If I ever want to pay it down and get rid of the PMI I can do that later.
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