For all of you guys who are homeowners or newly owned

[ScoobySnax]

My wife and I plan on doing a 15 year fixed mortgage if possible. The payments will almost be twice as high, but the thought of having it paid off before my eventual kids graduate is exciting. If you do bi-weekly payments, you could possibly shave a year and a half off of that. Great idea if you can afford to do it.

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[23]

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

I've heard of a 15 year mortgage but from the discussions somehow it didn't come out to the payments being twice as much money at a time

Have you calculated it at all?

Aggies... yes sir

[ScoobySnax]

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

Yeah, it's not really twice more like a 50% increase (i.e.$1400 to $2100). Still pretty significant, but well worth it.

EDIT: From bankrate.com:

$250k Mortgage w/ $10k down and a 5% fixed rate:

15 year mortgage: $1976.98/month - Total Payments - $355,857.58
30 year mortgage: $1342.05/month - Total Payments - $483,141.28

That's a lot of money lost on interest payments on the 30 year vs. the 15 year. However, if you know you're going to be there for the long haul, then the 30 year may work for you as well.

[23]

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

Yeah, it's not really twice more like a 50% increase (i.e.$1400 to $2100). Still pretty significant, but well worth it.

EDIT: From bankrate.com:

$250k Mortgage w/ $10k down and a 5% fixed rate:

15 year mortgage: $1976.98/month - Total Payments - $355,857.58
30 year mortgage: $1342.05/month - Total Payments - $483,141.28

That's a lot of money lost on interest payments on the 30 year vs. the 15 year. However, if you know you're going to be there for the long haul, then the 30 year may work for you as well.

Man those are some scary looking numbers

It almost seems like a game of discouragement to try to stop you from trying to buy one

[23]

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

Yeah, it's not really twice more like a 50% increase (i.e.$1400 to $2100). Still pretty significant, but well worth it.

EDIT: From bankrate.com:

$250k Mortgage w/ $10k down and a 5% fixed rate:

15 year mortgage: $1976.98/month - Total Payments - $355,857.58
30 year mortgage: $1342.05/month - Total Payments - $483,141.28

That's a lot of money lost on interest payments on the 30 year vs. the 15 year. However, if you know you're going to be there for the long haul, then the 30 year may work for you as well.

Just a mini update

These numbers look around what we qualify for and kinda what we're looking at

I told them about 1500 or so a month... would end up to somewhere around that kind of mortgage (250K).. the interest rate is probably around 4.25-4.5% though and they only require about $7,500 down

Honestly in this great state thats boo boo money. It hardly gets you anything..small rooms and all of that, but at this point im tired of the IRS coming after me saying i make too much, its time to move err own


This is the point im at now, and just gathering all of the info it took to apply for the loan and stuff, I felt like i was getting raped. The IRS and the broker...all the stuff they asked for man they dig into your business hard

[duffman]

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

Just a mini update

This is the point im at now, and just gathering all of the info it took to apply for the loan and stuff, I felt like i was getting raped. The IRS and the broker...all the stuff they asked for man they dig into your business hard

And you are only in the beginning, wait until you get to the point where you put an offer in on a house and you are in contract and just waiting for the mortgage to get through the underwriting process (when it actually becomes official). They dig even harder.

Couple things I learned going through mine last spring:

1) Be prepared to explain any large deposits in your bank account that have occurred in the last two months or so, and especially as it gets closer to the closing date.

2) Once you get approved for the mortgage DO NOT use your credit cards for anything. Even the slightest change in your credit score can cause them to flip out and reject the mortgage. This is a bigger concern if you are going to be borrowing close to the maximum amount that the bank has preapproved you for.

3) If anyone is giving you money towards a down payment, check with the broker to make sure that it's ok to qualify it as a "gift". There are restrictions on how much "gift" money can be used to obtain certain mortgage types. You will probably have to get the person who gave you the gift to authorize something saying that it was a gift and not a loan. Banks are super paranoid about people using money borrowed from somewhere else as a down payment.

Good luck man, I know it seems like a crazy amount of money (and it is) but personally, I couldn't imagine going back to renting at this point. There's just something awesome about knowing that I could rip out a wall or two if I wanted to and not have anyone to answer to about it, except my fiancee of course

[C the Lyte]

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

Man those are some scary looking numbers

It almost seems like a game of discouragement to try to stop you from trying to buy one

It's not nearly as bad as it looks once you dive in! But I know that initial feeling!

[bigeastbumrush]

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

Just a mini update

These numbers look around what we qualify for and kinda what we're looking at

I told them about 1500 or so a month... would end up to somewhere around that kind of mortgage (250K).. the interest rate is probably around 4.25-4.5% though and they only require about $7,500 down

Honestly in this great state thats boo boo money. It hardly gets you anything..small rooms and all of that, but at this point im tired of the IRS coming after me saying i make too much, its time to move err own


This is the point im at now, and just gathering all of the info it took to apply for the loan and stuff, I felt like i was getting raped. The IRS and the broker...all the stuff they asked for man they dig into your business hard

$7,500 down on a $250K mortgage?

[23]

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

It was like a 3% down or something like that bigeast

I was approved for something much bigger than 250k... about double that


Duffman... I keep hearing our broker say how tedious the process is and how people always say how crazy things get

did you just give me some insight because nobody ever offer any details as to what they mean when they say that

Thats for the information also, going to pass it along to the wife : )

[bigeastbumrush]

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

I understand. Just don't get what $7,500 does to your principle because it's just a drop in the bucket.

I never get caught up with preapproval amounts (ie., you can afford x amount of a house).

I always look at how much you're willing to spend per month on a mortgage (how much you can afford) and then work backwards.

It seems you have done that.

[23]

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

That is pretty much what i've done

The 7700 helps get the loan to cover the insurances as apart of what im paying

I pay the 3%...sellers pay the closing costs

[cjonesfan921]

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

Yeah, it's not really twice more like a 50% increase (i.e.$1400 to $2100). Still pretty significant, but well worth it.

EDIT: From bankrate.com:

$250k Mortgage w/ $10k down and a 5% fixed rate:

15 year mortgage: $1976.98/month - Total Payments - $355,857.58
30 year mortgage: $1342.05/month - Total Payments - $483,141.28

That's a lot of money lost on interest payments on the 30 year vs. the 15 year. However, if you know you're going to be there for the long haul, then the 30 year may work for you as well.

SCARY!

I know no matter what, I will make sure to put as big a down payment as possible, when the time comes.

There is no way the financial side of my brain can look and say yes pay over 200K in interest! :o

[duffman]

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

Tedious doesn't even start to describe it haha, I must have sent over my bank/401k/IRA statements about 5-6 times while it was going through underwriting. It seemed like every few days my broker would call and instead of telling me "Great news the mortgage is approved!" it was always "So...they want to see updated statements again" or "They claim they never got the last ones you sent over". Plus I had a cash gift coming from my parents to help with the down payment (it was really a loan which I paid back, but you definitely do NOT want the bank to know that) so the bank wanted to see all of my parents statements AND they had to explain where their previous two months worth of deposits had come from.

I heard somewhere that the underwriting companies are rated on how many mortgages they let through that wind up in foreclosure. So if you are buying close to your pre-approval limits or don't have a lot of cash reserves after downpayment and closing (both of which applied to me at the time) they are going to be rougher on you, so yours might go a lot smoother than mine did.

Basically, be prepared to deal with alot of BS and them asking for tons of documentation and such, just gotta grin and bear it until its over.

[23]

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

I hear you man.. that sounds like insanity in itself

I took bigeasts advice and put everything in PDF format. I think he might've tried to tell me what you just said without saying it lol

I plan to ask you guys alot of questions though so keep checking in on this thread

I really hope it doesnt take us long to find what we need, and no I dont plan on paying close to that maz amount.. that would be like paying 4 grand a month just for the mortgage, and I refuse to do that in a very first home

[Dirty Turtles]

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

Luckily my mother works for a real estate lawyer, so she helped me out tremendously along the way in the purchase of my house.

My bank allowed up to 29% of my monthly income to go towards my mortgage payments.

Bought the real estate for 25,000$ and added in 15,000$ for complete remodeling of the existing house which was damaged by fire. My father is a carpenter, so we did the work ourselves for free.

Ended up paying around 1,500$ in closing costs, with no money down and mortgage payments of 335.16$ (including home owner's insurance and real estate taxes in escrow) for 30 years.