My first mortgage?

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11 Responses to “My first mortgage?”

1. redwine on: 23 November 2009 at 9:27 pm

   go and look at your local newpapers for rates. Also go to sites like bankrate.com and see what rates they have. Google searches for mortgage rates are also a excellent thought to find out what rates are. Lastly, question people who have mortgages, who their brokers are and call those people and get rates. Question for first time homebuyer products, many are offered with lower rates.

   The key things to figure out are the type of mortgage you want and closing costs/points associated with the mortgage. A 30-year fixed is the safest bet, the rate and therefore payment will not change for 30-years, but it is usually the most expensive (highest rate) product. If you can afford the payements of a 15-year mortgage (loan expires in 15 years, instead of 30), you can build equity quicker. ARM and hybrid ARM are a way to get a better interest rate, but you run the risk of higher resets on the floating rate parts. Bankrate also has a section on understanding mortgages. You should definately know the type of product you get yourself into.

   Last thing is points and closing costs. Depending on your credit, you can likely avoid these costs, or at least minimize your closing costs. Look for a loan where they will cap these costs. I personally don’t like points, so I would say avoid them also. Excellent luck.
2. can't say on: 23 November 2009 at 9:27 pm

   You should check out a few banks to see how their interest rates compare. The higher the interest rate, the longer you’ll be paying for your mortgage. There are variable and fixed rates. Variable is probably excellent for now since the rates will likely go down. If they start going up you can switch to a fixed rate which means the interest rate stays the same until your term is up.

   So you get a 20 – 30 yr mortgage and you will have to refinance when your term is up, which could be annually or every 4 or 5 years, depending on what you choose.

   You have the option of getting Life Insurance on your mortgage. If you die, your mortgage is paid. Which is excellent if you have kids or don’t want to leave the burden on your family. If you have a partner, you can add him/her onto the Life Insurance as well. Keep in mind though, the premium stays the same and your mortgage amount decreases, so you might be better off getting regular Life Insurance for the 20 – 30 yr term and not bother getting it on your mortgage. That way if you only have 5 yrs left on your mortgage, your dependants get the full amount of the insurance instead of paying off the small amount on the mortgage.

   You save a bit of money by paying weekly instead of monthly or bi-weekly.
3. JEDI Master YODA on: 23 November 2009 at 9:27 pm

   CONGRATULATIONS!!!
   On your choice to getting a NEW home and finished the era of paying RENT.

   The first thing you should do is go to your local Bank or Credit Union and make an appointment with a "Home Mortgage Consultant" at Wells Fargo, Home Mortgage if there is one in your area?

   Get a FREE Consultation for Mortgage Loan financing, options and programs for "FIRST TIME BUYERS".

   Next, Question the HMC to give you a "PRE-APPROVED LETTER" which will give you piece of mind of what mortgage amount you can afford prior to your housing search.
   It’s FREE.

   Here are some additional resources for you:

   http://www.homestore.com

   http://www.city-data.com

   http://www.50states.com

   http://www.census.gov

   $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

   A HMC can be a fantastic resources to you!

   More knowlege is available at:
   http://www.wellsfargo.com

   $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

   Have a fantastic week ahead!
   EXCELLENT LUCK!
4. angela on: 23 November 2009 at 9:27 pm

   Tell the lender you are a first time buyer and question if they have any special programs for first time buyers. You’ll want to find out how much you will need for a down payment. It could range from nothing to 20%. Question what the interest rate is and if it is fixed or variable. Question if there are any points or origination fees. Points and/or origination fees are usually a percentage of the amount you are borrowing. You pay this up front and usually get a lower interest rate. So, if you borrow $100,000 and there is 1 point then you’ll have to pay $1000 at closing in addition to the other closing costs. Question if there is an application fee and if they can pre-approve you. Question if they escrow the insurance and taxes. That means they would charge you a small extra each month but they would pay the insurance and taxes when they come due.
5. shamieya on: 23 November 2009 at 9:27 pm

   I bought my house a couple of years ago too. Search online to see if there is a first time home buyer program in your state. All I did was go to a bank that was participating in the program, filled out an application and got pre approved for an amount, then looked for a house. These programs give you a fantastic interest rate too. Otherwise, if this a small term buy or a flip, look for the best rate possible with the least prepayment penalty. If this is a long term buy, look for a low fixed rate mortgage. There are so many options, but don’t get caught up in all the hype. If you go to myfico.com, you can find out your credit score and what kind of interest rates someone with your credit score should be getting.
6. Robbie G on: 23 November 2009 at 9:27 pm

   Your best bet is to talk to other friends of yours who have bought a home in the past. Question them some questions first to familiarize yourself with the terminology. The reason I tell you this is: Some banks will take advantage of you if you tell them you are a first time homebuyer, and as you say, don’t know what you’re doing.
   I have been a mortgage broker for 5 years, and I have had countless clients come to me after talking to a bank about being a first time home buyer, and they end up trying to rake them over the coals.
   If you do go to a bank, question them for availablity in the following programs:
   My community mortgage – Designed for those who are first time homebuyers, but will qualify you for a lower rate then posted at the bank.
   Low Income Financing – Designed for borrowers who make less than 60k per year in most cities. This will get you a lower rate then posted in the bank
   Low income census tract – Designed for homes bought in areas where the medium income is below the average. This also gets you a better rate.
   Fannie Mae Flex – A program designed to get you in a home for no money down, while still getting you a rate in the low 6% range.

   When you question a bank about these specific programs, they will assume you really know what you are doing, and will give you their best available rates. Excellent Luck!
7. reinkefj on: 23 November 2009 at 9:27 pm

   First take a deep breath. Then, marshal your resources. Do you have a relative that is financially sophisticated? Use them as your sounding board.

   If you haven’t signed for the property yet, or maybe even if you have, find and retain a Real Estate attorney that you can afford. It’s a GIANT mistake to get into a real estate deal without a liar … err, I mean lawyer. Don’t use the seller’s. Don’t use the mortgage company’s. Have your own. When I bought my first house in 1975, that single piece of advice from my Mom saved me about 15k$. My lawyer said "my client isn’t responsible for that" about a dozen times. Without him, I’d have said "yeah whatever".

   Then you need an accountant. Same deal. Cheaper and simpler. Have them review whatever you are going to sign up for. Promise you’ll let them do your taxes and I bet they’ll come dirt cheap. Shop around. I SHOULD have done that with my second house and I’d have saved a bunch of bucks.

   Then you need a "home inspector". Licensed, certified, insured, with lots of references. This is no guarantee of being problem free, BUT, when you’re in front of Judge Judy you can saw "I didn’t know about houses so I hired him! Pointing accusingly to the defendant.) It’s all about changing unknown risks into modest upfront costs.

   Find or found, the house of your dreams.

   Now you are ready to consider mortgages.

   You can get them from a bank, brokerage, mortgage broker, credit union, and private lenders. Start with a credit union. (IMHO you’ll we get the most honest deal there.) Find a rich relative with a brokerage account and as if they can get you a deal. (I have a Merrill account and my relative could have gotten a mortgage with them with my "sponsorship" — not cosigning — at an attractive rate. Dumb, but they wanted to do it on their own. I reckon they made a mistake. But not my problem.)!

   Look at the type (Suggest you want fixed), term (15 if you can afford it), points (extra interest cost), fees (Yuck!), and gimmicks (i.e., credit life insurance; buyer protection).

   Your lawyer, accountant, and home inspector can tell you if you are getting a "honest deal". No balloons, teaser aprs, negative amortizations, interest onlys, nothing tough.

   Your family member, or Yahoo answerer, can tell you if you can afford it. No more than 20% of your salary in mortgage payments. OK 25%, but that means no eating out.

   Hope this helps, and you’re pleased with your new mortgage, let me know how it turns out,
   fjohn

   Ferdinand J. Reinke
   Kendall Park, NJ 08824

   Webform that makes an urgent email => http://2idi.com/contact/=reinkefj
   Web page => http://www.reinke.cc/
   My blog => http://www.reinkefaceslife.com/
   LinkedIn url => http://www.linkedin.com/in/reinkefj
8. walkinandrockin on: 23 November 2009 at 9:27 pm

   Don’t question – what’s your rate? What are your fees? This gets you a quote as low as possible, but usually a excellent mortgage company will be competitive. The trick is to find a excellent mortgage company – one that is honest, will care about you and your transaction, communicates, has options, and clarifies the vital things to you in terms that are simple for a beginner to know what is happening. You need someone to trust, in small.

   The best way to get that is to get referrals from people you know and trust that have used a mortgage broker recently. Yes, do a small research, so you get some thought of what’s happening, but it is most vital to find that trust. Then, look also for experience and skill in understanding you and your needs.

   To get started, you can go to my website and read through articles and definitions to get a starter course

   http://www.fnmshome.com

   Lending in all 50 states
9. Yanswersmonitorsarenazis on: 23 November 2009 at 9:27 pm

   Question the first broker you shop with for a copy of your credit report. Send that to other brokers, and question for excellent-faith estimates based on what they reckon they can get you, based on your income, assets and credit.

   You’ll want to look for fixed rates, first of all. Anything under 6.5% is excellent, under 7% is ok (especially if you have no down-payment). If your credit score is over 620, you shouldn’t have to pay more than 7% for any type of mortgage, though mortgage insurance would be an additional cost, and is sometimes reflected with a higher rate.
10. stephen l on: 23 November 2009 at 9:27 pm

    You need to find a loan officer you trust or is referred to you via someone. I recommend Smart Choice Mortgage. They do business in most states and are your best opportunity for someone to say yes. ADDITIONALLY, IF YOUR CREDIT IS SUSPECT, THEY SOMETIMES FRONT THE MONEY TO GET YOU INTO A CREDIT RESTORATION PROGRAM SO THAT YOU CAN QUALIFY FOR A LOAN. Check out the free evaluation form at the source website and a Smart Choice loan officer will contact you within 24 hours. Excellent luck.
11. insureman613 on: 23 November 2009 at 9:27 pm

    I was recently in the same boat as you and it can be confusing as anything. You could start at http://www.bestmortgageanswers.info and do some research about the various offerings.

    Two vital things to remember are, you can get a better rate from an internet company that shows all of the options, but, if you have a local bank that you use, and the quote you a price, you can bargain with them, using your knowledge of other rates.

    Also, make sure that you talk to someone who can clarify the various types of loans that are appropriate for your particular situation, as different scenarios require different solutions.