As I Live and Learn | |||
My universeLinksLabelsRecent Posts |
Wednesday, March 11, 2009PlanningSo, looking at the other side of this thing - the buying of a new house - I'm definitely going to need a mortgage. My biggest concern after recent news was that I'd need 20% down to get anything. Thankfully that doesn't seem to be true. Some research has shown options. Here's info I found important, this time all from interest.com:
The 7 biggest mortgage mistakes Mistake 1. Getting a mortgage at all if you don't plan to stay put. Not a problem, I'm expecting this next place I'll be in for like 20 years. Mistake 2. Not checking -- and fixing -- your credit. Done -- not needed, thankfully. Mistake 3. Getting anything other than a fixed-rate mortgage. No problem, not intending to. Mistake 4. Passing up an FHA loan. Okay, let's look at this one. According to their own guide: FHA loans great for buying, refinancing The big disadvantage to FHA loans is that all borrowers must buy mortgage insurance, no matter how much equity they have or the size of their down payment. That's the price borrowers pay for having the government stand behind their loan.So once you get past the 5 good points, you find out you have to have PMI the whole loan, there's an extra 1.75% charge for an FHA loan, AND there's an interest premium for the first 22%. I'll just take the normal PMI that disappears after 20%. Thank you. Mistake 5. Borrowing too much money. Okay. So stay within the budget. And recalculate what you can afford every so often. I should be able to do that. Mistake 6. Getting just one quote. WOw, are they right! Looking at Mortgages and Mortgage Loan Rates in Livonia, MI some lenders are charging over $2000 in fees for a mortgage, with one charging $4728 where another is charging $1250 for the same amount with 0 points at a lower rate! Amazing how different banks are doing. The only point that I haven't looked into yet is credit unions, as suggested by How to Land the Best Loan. I remember reading somewhere that you should be able to get a 30/year fixed at competitive rates for $1000 in fees or less. Here's hoping! Labels: Home Buying |
||
Spotlight Posts
1980s-1990s toggle1992-1996 toggle1996-2000 toggle2000-2005 toggle2006- now toggle |