For all of you guys who are homeowners or newly owned

[Redacted01]

Re: For all of you guys who are homeowners or newly owned

Guess I should have asked this before I locked in...but. I locked in a rate of 4.375% for a 30 year fixed even though I had the option of 4.25% on a 7/1 ARM (they are paying $4000 in closing costs). My local bank was offering 4.25% 30 year fixed and 4.125% on 7/1 arm (nothing towards closing).
My goal would be to sell the house by the end of year 5.

I think I just gave the bank $1775 over the life of the loan. Is this correct?
loan amount: 142000 @ 4.375% vs. loan amount: 142000 @ 4.25%


I do have the option to float down by the 17th of this month. My gut tells me I should have taken the lower rate.

You can't just multiply your rate by the loan amount. It doesn't work like that. You have to do the amortization. Your payment on the first is $708.99 a month. The second is $698.55. It would cost you $3600 over the life of the loan, which as you can see, is $10 a month. You aren't breaking the bank. You'd have to do the math with the closing costs, which means the first wins in that case because you'd save $400 over 30 years, assuming $4000 is all your closing costs.

[GAMEC0CK2002]

Re: For all of you guys who are homeowners or newly owned

You can't just multiply your rate by the loan amount. It doesn't work like that. You have to do the amortization. Your payment on the first is $708.99 a month. The second is $698.55. It would cost you $3600 over the life of the loan, which as you can see, is $10 a month. You aren't breaking the bank. You'd have to do the math with the closing costs, which means the first wins in that case because you'd save $400 over 30 years, assuming $4000 is all your closing costs.

Yep. Just used an online calculator. Difference is $10.40 a month. So about $3744 over the life of the loan.

So even if I plan to sell at the end of 5 years, I should stay with the 30 year fixed?

Am I right in thinking that they'd make $624 over 5 years? ($10.40 x 60 monthly payments) ?

[Redacted01]

Re: For all of you guys who are homeowners or newly owned

Yep. Just used an online calculator. Difference is $10.40 a month. So about $3744 over the life of the loan.

So even if I plan to sell at the end of 5 years, I should stay with the 30 year fixed?

Am I right in thinking that they'd make $624 over 5 years? ($10.40 x 60 monthly payments) ?

Which means you'd come out further ahead if closing costs are paid by them.

[GAMEC0CK2002]

Re: For all of you guys who are homeowners or newly owned

Which means you'd come out further ahead if closing costs are paid by them.

What happens if I only have $4000 in closing costs , but have closing costs credit of $5000 (getting an additional $1000 in closing costs for being a teacher)? I know I can't pocket that leftover.

[Fresh Tendrils]

Re: For all of you guys who are homeowners or newly owned

We pocketed what was left. Sellers agreed to pay up to 5k and we ended up with about $500 after closing.

[GAMEC0CK2002]

Re: For all of you guys who are homeowners or newly owned

We pocketed what was left. Sellers agreed to pay up to 5k and we ended up with about $500 after closing.

When did you close?

[Fresh Tendrils]

Re: For all of you guys who are homeowners or newly owned

When did you close?

May 1st.</url>

[Redacted01]

Re: For all of you guys who are homeowners or newly owned

May 1st.

You gave them a month of free interest? Or did you go ahead and make a principal payment on the 1st as well to compensate.

[Fresh Tendrils]

Re: For all of you guys who are homeowners or newly owned

You gave them a month of free interest? Or did you go ahead and make a principal payment on the 1st as well to compensate.

Our first mortgage payment isn't due until July. Accrued interest was rolled into the closing costs.

[GAMEC0CK2002]

Re: For all of you guys who are homeowners or newly owned

The loan officer I have said she doesn't charge an origination fee , but on my GFE I have nearly a $1K "origination services" fee. She explained that those are 2 separate things with the latter being what the bank charges for setting up my mortgage. Does this sound right?

[Lava]

Re: For all of you guys who are homeowners or newly owned

Those sound like the exact same thing.

[RockinDaMike]

Re: For all of you guys who are homeowners or newly owned

Had my carpenter make up a platform bed we will be using and attaching it to a multi wood wall we made up.

uploadfromtaptalk1434249217387.jpg
uploadfromtaptalk1434249314186.jpg

[GAMEC0CK2002]

Re: For all of you guys who are homeowners or newly owned

Closing in 9 days. My cousin who's been advising me suggested I look for a roommate to help pay for wanted renovations and lower mortgage payment.
Any tips/advice/horror stories about being a live-in landlord?

[jeremym480]

Re: For all of you guys who are homeowners or newly owned

My wife is a big DIY'er and she wanted to make a seating area in our backyard. Here's what we came up with:

[Fresh Tendrils]

Re: For all of you guys who are homeowners or newly owned

Looks great, Jeremy.

We put in a chain-link fence this weekend. Judging by the passive-aggressive comments coming from the neighbors I don't think they like it. Oh well, it'll keep their damn dog out of our yard.