any huge mortgage mistake here?

[nutmegs]

Getting ready to lock on a rate & just wanted to check to make sure I'm not doing anything disastrously wrong. Went into contract on the home over the weekend and will close May 29th.

Me: single, traditional student, about to start residency, no assets, no car payments, good credit for never having a major loan
Home: $181,000, will stay in it 4-5 years
Loan: 30 year fixed doctor's loan, 100% financing, 6.25 interest rate, 6.349 APR, 0.236 points, bring $3500 total to closing.

Thoughts?

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[Sol Rosenberg]

Closing costs are a little high, but given that you are getting a 30-year fixed with 100% financing at 6.25%, it all seems reasonable (if not too good to be true...)

 

[MJB]

I'd like to know how to go about getting a 100% loan at 6.25...or even 6.5

We have credit scores >700.

 

[nutmegs]

hahahahhahahahaha... joke's on me.

"you're over ratios. when I approved you, I didn't know you had HOA dues"

"yes you did, they've been on every GFE you've sent me"

"oh. well could you maybe pay another point and half so you can get a rate that'll bring your payment low enough? or put six months payments in reserves?"

"no."

 

[nutmegs]

I'd like to know how to go about getting a 100% loan at 6.25...or even 6.5

We have credit scores >700.

if there's a "we" involved just call around for the doctors loans- I found at least 2 that offer 30 year fixed.

"we" were trying to qualify just using me on the loan, not him (he's been self employed less than 2 years). "we" will have income at least twice what mine is alone, but there's no convincing way to explain that.

 

[Sol Rosenberg]

hahahahhahahahaha... joke's on me.

"you're over ratios. when I approved you, I didn't know you had HOA dues"

"yes you did, they've been on every GFE you've sent me"

"oh. well could you maybe pay another point and half so you can get a rate that'll bring your payment low enough? or put six months payments in reserves?"

"no."

Sounds like a load of crap/bait-and-switch to me. I hate those f**kers -- they pull that kind of crap all the time.

FWIW, none of my brokers have ever included HOA dues in my debt:income ratio.

Good luck finding a good loan. Just keep calling....

 

[nutmegs]

Sounds like a load of crap/bait-and-switch to me. I hate those f**kers -- they pull that kind of crap all the time.

FWIW, none of my brokers have ever included HOA dues in my debt:income ratio.

Good luck finding a good loan. Just keep calling....

she's submitting another thing to the second underwriter or something. whatever. I'd consider doing the 6 months in reserves as long as next year when my salary increases and the ratio comes back to something they approve of I can get the money back. the hell am I paying down a rate.

 

[mshheaddoc]

Usually 6 months in reserves just means you have to have assets to cover it not that they "hold it in reserve" unless things have changed in the past 2 years ... If you have the assets to prove 6 months in reserves depending on the program if its comparable I'd roll with it. Buying down the rate is a joke and they should have included in HOA in the ratios. That is mandatory for a good underwriter otherwise you run into HUGE issues when the loan goes to sale.

 

[nutmegs]

it looks like we are going to get what I wrote in the first post, she was able to get an exception :thup:

 

[chickenscratch]

is that from physician loans? they will add some whopping origination fees and other b.s. to your GFE, so be aware. if you can go any other way, i'd do it.

 

[nutmegs]

no, BOA, have talked with people who are familiar with this person & said she does not spring things on at the end. I am impressed with the way she handled that situation, and I'll let you know when we're closed but we're back on track for the original loan I described.

 

[nutmegs]

I got the loan & closed yesterday
Bank of America "doctor" loan
my credit: 716
my salary: $43K
purchase price: $181K
100% financing, no PMI, 30 year fixed
6.25, 6.347 APR
.236 points
total cash needed to close including reserves: $3202
I was happy

 

[mille125]

congratulations on your new home

 

[deleted126335]

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[nutmegs]

Why buy a home as a single resident?
You will work long hours and not be there so much.

Mortgage interest is unlikely to be deductible as with your income you will probably take the standard deduction.

Your residnecy is probably 5 years or so. Unless you are committed to staying in the area for longer than that, between interest, maintenance, real estate commissions on your property your are unlikely to make anything if you sell in 5 years, with substantial risk.

good luck.

hey! thanks! you know nothing about me! my boyfriend is living with me. we are very happy to have a home and not be renting anymore. I will not be taking the standard deduction. my residency is 4 years and in a good housing market. and I like gardening!! good luck!!!!

 

[mshheaddoc]

hey! thanks! you know nothing about me! my boyfriend is living with me. we are very happy to have a home and not be renting anymore. I will not be taking the standard deduction. my residency is 4 years and in a good housing market. and I like gardening!! good luck!!!!

I agree with this post. There are some markets that short term buying isn't all that bad. The analysis has been done to death but hopefully people can be smart about their money and make it work for themselves.

I couldn't stand renting.

 

[billermo]

I got the loan & closed yesterday
Bank of America "doctor" loan
my credit: 716
my salary: $43K
purchase price: $181K
100% financing, no PMI, 30 year fixed
6.25, 6.347 APR
.236 points
total cash needed to close including reserves: $3202
I was happy

Congrats! Those are awesome terms. You did well. Last year I signed at 6.5% 30 year fixed. 80% financing, 0 points. purchase price $170k $1600 closing costs.

The 100% financing with no PMI is incredible!! I wish I had been so lucky. It would be nice to have my $34k down payment sitting in a money market making 5% rather than in my house.

I love being a home owner. Sure it may cost me a little more to own rather than rent, but I know it's mine when I come home everyday. You can't put a number on that.

 

[adcomm]

Congrats! Those are awesome terms. You did well. Last year I signed at 6.5% 30 year fixed. 80% financing, 0 points. purchase price $170k $1600 closing costs.

The 100% financing with no PMI is incredible!! I wish I had been so lucky. It would be nice to have my $34k down payment sitting in a money market making 5% rather than in my house.

I love being a home owner. Sure it may cost me a little more to own rather than rent, but I know it's mine when I come home everyday. You can't put a number on that.

you also can't put a number on how completely amazing showering in our master bath is

 

[deleted126335]

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[mshheaddoc]

No mortgage mistake but HOME INSPECTION mistake.

 

[EM_Rebuilder]

Why buy a home as a single resident?
You will work long hours and not be there so much.

Mortgage interest is unlikely to be deductible as with your income you will probably take the standard deduction.

Your residnecy is probably 5 years or so. Unless you are committed to staying in the area for longer than that, between interest, maintenance, real estate commissions on your property your are unlikely to make anything if you sell in 5 years, with substantial risk.

good luck.

I dunno why, but evertime a housing question comes up, someone comes up with the repsonse above...

I like to work on MY home... the home I had in medical school generated just over 20K... It gave ME something to do in my precious spare time and I could not park my 40 foot bus at any apratment I have ever seen... and my dogs would not have a backyard to run in.

I just bought a home for residency... it needs minor work (less than my previous home) but certainly small things we can piddle at. I have 3 acres for our horse (although we might board him anyways since its cheap in the area and those places do have more places to ride), I have a place to run my four wheeler around, I can park the boat here when I find one, and I can park my bus anywhere around my house. I can pee off my back porch (front porch if its slightly dark out), I can blare my old country music out my back patio as loud as I want with little to no complaints... and I can relax on my Grasshopper ZTR mower as I mow my 3 acres.... Cant do ANY of that in an apartment. Oh yeah, and in a few weeks, I can shoot fireworks (and have new friends over) right out the back... with the smoker going on my porch.

In 4 years, I would be willing to bet considerably that I will be 'money ahead' regardless of what I sale the home for. Even if I get my money back to the penny, I think my interest paid will be less than the money I would have thrown away in rent....and I think we can agree that most places in the US will see at least some mild gain in 4 years. Even if costs me 10K, the above is virtually priceless to me...

One other thing, stay away from a realtor. They are out there to make money. I bought and sold my previous home without a realtor and just bought this home without a realtor...and plan on selling it the same way. In the age of computers it should be easy for anyone to check out an area before they buy. And the internet makes by owner listings easier than ever to view...

Off my soap box...

 

[Hernandez]

I can pee off my back porch (front porch if its slightly dark out), I can blare my old country music out my back patio as loud as I want with little to no complaints...

I am envious. I barely feel like i can walk around in boxers in my own house as close as the neighbors are in this area.

 

[deleted126335]

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[Hernandez]

The reason this type of post comes up is that it is frequently an accurate analysis. Your post spoke to the positive emotional aspects of home ownership, mine is dealing only with the financial ones. You may be able to avoid a realtor, but most people will not.

I owned my first home for 2, even after the realtor's fees and all that crap, I still came out ahead even if I barely broke even with my equity. After all was said and done, even after 2 years, I still saved several thousand over what I would have spent had I rented even a 2 bedroom apartment.

 

[deleted126335]

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