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Do any of you know about today's mortgage market?

Discussion in 'The Okie Corral' started by teumessian_fox, Apr 29, 2012.

  1. teumessian_fox

    teumessian_fox

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    Hypothetically speaking, for a couple with excellent credit and no indebtedness other than an existing mortgage.

    If said couple wanted to purchase a ~ $300,000 house, what are banks requiring down?

    What is the current 30 year fixed?

    What would the payments be re the above scenario?

    thanx
     
  2. teumessian_fox

    teumessian_fox

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    One other scenario.

    Assume the same numbers as above, only, with zero indebtedness.

    Scenario #1 would be in case the couple were to buy (if they could get the loan, what with an existing mortgage) and sell their existing home later.

    Scenario #2 in the event they sold the house first.
     

  3. gjk5

    gjk5 Pinche Gringo

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    I have been a mortgage lender for nearly 20 years.

    You say you have no debt other than another home, what is the equity position on that home and the amount of reserves you have (for both homes)? What kind of loan is on the existing home (FHA or Conventional most likely?)

    That is a big one, different loan programs will require different amounts of equity in the other home and different amount of reserves for both. Even if you can carry (qualify for) both payments.

    You can get away with as little as 0% down in some cases (VA, USDA Rural Development). Count on 5% for Conventional. You will have PMI up to 20% down, after that the amount down may have a bearing on your rate (to about 25-30% then it's moot).

    Rates; again, there are SO many different programs it's hard to nail down. 3.75%-4.5% on a 30 most likely.

    Payments are largely dependent on LTV (loan to value ratio), loan program and Mortgage Insurance rates for the given program (and LTV).

    Clear as mud?

    I suggest finding a knowledgeable local mortgage professional (not a large bank desk jockey) and under no circumstances deal with one of the internet idiot companies like Quicken.
     
    Last edited: Apr 29, 2012
  4. gjk5

    gjk5 Pinche Gringo

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    To clarify: reserves would be the amount you have remaining in liquid assets AFTER the down payment on the new home.
     
  5. CAcop

    CAcop

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    You really need to talk to a local mortgage broker.

    My wife and I got a loan for pretty much what you are looking for. Ours was a USDA loan that required no down payment. They are tricky in that you can only buy in certain areas, there can be no outbuildings other than sheds, and no swinning pools.

    The FHA loan wanted 3.5 percent down which we had in equity from our prior place. It did have a slightly better rate but that may have been the volitility in the market.
     
  6. Haldor

    Haldor Formerly retired EE.

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    I wouldn't with go any less than 20% down. No way am I paying mortgage insurance.

    I also wouldn't go any longer than a 15 year mortgage either (when I refinanced last year it was for 10 years).

    If you can't handle that financially then perhaps you are buying too much house? I have approximately $60K in equity in my house right now (even with the market declining %15 in the 4 years since I bought it). In nine years I will own it free and clear. If I needed to sell right now I could do so and walk away with enough money to buy a new house.

    Imagine you lost your job. Then imagine you found a new one only it required a relocation, and you are upside down on your house. What are you going to do then?