mortgages

[silbenny]

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Here's my experience:
Suntrust bank- physician loan program
-mortgage for $186,400
-rate of 6.00%- locked early this month when rates where higher (discount
point of 0.125%)- lock of 30 days
-no PMI, no origination fee
-100% financed, 5 yr ARM
-closing cost of $2500 which will include survey, pest, all gover/state/local fees and doc. stamps, application fee, possessing fee, some small other fees. (doesn't include hazard insurance premium- to be paid for 1 full year in advance and 3 months buffer to be held in escrow)

Advantages of going through this particular Florida suntrust lender
-recommended to all the residents in our hospital for several yrs- no complaints to my knowledge thus far.
- doesn't charge the origination fee that a BOA lender wanted from me- hence the closing costs are standardized (based on your particular state) and much less than I expected.
- they now offer these mortgages in many states- you don't need a B & M bank, just a lender in the state (e.g. lender told me she can do PA)

Disadvantage:
-Suntrust likes to use the 1 year libor rate with a margain of 2.25 minus a small percentage for purchasing a house to set their ARM rates. Unfortunately, by using the libor rate- their ARM rates tend to be slightly higher than if going through BOA (which uses treasury bonds to set their interest rates i believe). However, with this lender you aren't charged the dreaded origination fee which more than enough offsets the higher interest rate in my opinion. I like money in my pocket now rather than saved money over 3-5 years. And I don't think that the difference in the rates is really that much.
-i did pay a very small discount fee- this is becuase i locked in for 30 days- had a locked in for 45 days the discount rate would have been higher. If i did a 15 day lock than I would have paid no discount points.

If anyone is interested please PM me and i'll give you her number. And no, she doesn't give any money towards closing cost for referrals

 

[gvmatt]

here is what i got-

first applied to wells fargo - highly recommended person to deal with - got pre-approved, but could never get a hold of the guy. used that pre-approval letter to buy our house. then had 5 days to state who the lender would be. started shopping around.
actually went with our realtor's inhouse mortgage option. burnet home loans in MN (coldwell banker). got the same package, actually got a better rate than anywhere else.

details- 5/1 arm at 80%/10/10 - no pmi.
the 80% - $138,800 at 5.125% - locked a week ago
10% home equity - $17,350 at 6.5%

closing costs - $3200 - includes 1% origination fee but was still ~$500 less than WFB

also looked into ING - but was told by realtor that they don't use out of town companies -that it has always turned out bad at closing. was told the same thing by someone else in the same area. that the $1000 savings never occurred as you have to get a real estate lawyer for closing adn invariable some other fees come up.

 

[RedBullJunkie]

This broker posted in the housing thread ... they offer the Bank of America Doctor Loan in Michigan ... I thought they didn't offer it in the state. Took a chance and called her yesterday to see if she could give me a quote ... met up with me in Ann Arbor this afternoon and actually ran my credit and typed up a prequalification letter on her notebook and e-mailed it to me while we sat there having coffee in a Starbucks. I applied with Bank One and Crossroad Lending and neither went in depth about my situation like she did, and I have to say that having her do all of that in a Starbucks was pretty impressive ... She's got a really informative website ... www.amyjalili.com. I didn't know anything about getting a mortgage, but her site really helped me.

I guess BofA doesn't have branch offices in the state, but they work with wholesale lenders, which means if a broker's company works with them, they can get you the loan ... So if you think your state doesn't have BofA branch offices there, get in touch with a broker, they may work with them ...

 

[RedBullJunkie]

This broker posted in the housing thread ... they offer the Bank of America Doctor Loan in Michigan ... I thought they didn't offer it in the state. Took a chance and called her yesterday to see if she could give me a quote ... met up with me in Ann Arbor this afternoon and actually ran my credit and typed up a prequalification letter on her notebook and e-mailed it to me while we sat there having coffee in a Starbucks. I applied with Bank One and Crossroad Lending and neither went in depth about my situation like she did, and I have to say that having her do all of that in a Starbucks was pretty impressive ... She's got a really informative website ... www.amyjalili.com. I didn't know anything about getting a mortgage, but her site really helped me.

I guess BofA doesn't have branch offices in the state, but they work with wholesale lenders, which means if a broker's company works with them, they can get you the loan ... So if you think your state doesn't have BofA branch offices there, get in touch with a broker, they may work with them ...

quick question ... I was told by her I could use only up to 3% of the purchase price in seller concessions ... has anyone gotten larger concessions than that ?

 

[jonwilli]

locked today for 60 days (will not close until Jun 17th) with Suntrust on 5/1 ARM at 5.5% on a 198K loan. I worked with David Jones who actually has given us stuff on this site. I called and got GFE from a broker, BOA, Suntrust, Wachovia (no in FL), Fifth Third Bank ( had to call about 10 people), and Carteret and this was the best deal. Closing will cost me about 2500. The standard stuff the seller pays is 2700---deed stamps, survey, etc. I would recommend David Jones out of the Atlanta area, it was 100%, no PMI, and was great to work with. Keep the input coming as we all try to get the best rates, costs to save $$$$

 

[blahole]

Great!

I think this is the exact type of info I need (and I am assuming many others who are reading this thread need).

if you guys can post quick three liners

1. Mortgage company, used/planning on using (experience), target loan amount, your credit score

2. Pertanent +/-, (interest rate, closing fees, +/-PMI, +/- origination points, 100% financing or 80/20, will they approve before having an income for the 4th years like me )

3. anything else

I must say that this thread is amazing. I have had to work quickly to find something and I really lucked out by reading all your experiences.

I checked out Bank of America but they don't have it in Michigan, and the various websites, but I ended up going with a broker. I saw that Atlas Mortgage Company had a program for residents with financial planning and it was in Michigan ...

So here's what I got:

1. Atlas Mortgage Company (Amy Jalili broker) , $192K, 754 credit score

2. 5.375 % 5-1 ARM interest only, with no pmi on 80% financing with 20%down. Closing Costs - $3500 with no origination costs.

3. They accepted my contract and didn't use my loan debt (approx. $230,000) and I get a cpa consultation after my closing to help with financial planning (but unfortunately I'm putting all my assets into my down payment so I don't know how much I'll have to really invest or put away 🙁)

 

[Patrick O]

Hello everyone,
I was wondering if anyone out there could give me some good advice on buying a house while in residency under the following conditions:

Western MA Springfield area... no where near the high prices of Boston
My salary as a PGY1 roughly $45k
my fiance's salary who's moving with me as a Derm PA $84k( in NJ now) + a productivity bonus (but lets not use that number for now)
I have roughly $177k med school loans to be consolidated and deferred,
my fiance's already consolidated loans paying roughly $600 a month
No car loans
no credit card debt
no kids
I've tried all the online calculators.... but I want to know from someone that's living it what their experience is.....I originally wanted to be under $200k for a single family home.... but after looking around in the area I think I will have to spend much more to get a descent area and house perhaps 250 or more...
Please, any info would be great.... I gather others like the BOA mortgage from what I have read.
Thanks,
Patrick

 

[Jackie1.]

I went to the bank of america here in saint louis and specifically asked them if they can get me a mortgage in Michigan. The guy then called up his boss and said b/c I want to get a mortage in Michigan, I can't b/c they have no physical branches there. I assume, jonwilli, that you worked through a broker then? b/c they were very confident that they could not work with me.

 

[Jackie1.]

Afer caling liek 20 places, the best I got was as follows for Michigan:

Midwest Financial (UMHS Financial):
zero down, zero PMI, zero points. 181K mortgage, 5/1 ARM 5.625%, NON INTEREST ONLY, so I am paying of principal. 6000K in closing fees, but that includes all escrow accounts, prepaids for summer taxes, prorated taxes from seller, and about 1400 in pure "closing costs" (survery, application, etc). I don't think people are posting their "prepaids (escrow, prorated taxes, future july 1st taxes, interest on half a month of living)" on here mostly, they are just including "closing costs" which is onyl 40% of what you need to come up with at closing after learning the hard way. Good deal.

 

[carol ann]

Afer caling liek 20 places, the best I got was as follows for Michigan:

Midwest Financial (UMHS Financial):
zero down, zero PMI, zero points. 181K mortgage, 5/1 ARM 5.625%, NON INTEREST ONLY, so I am paying of principal. 6000K in closing fees, but that includes all escrow accounts, prepaids for summer taxes, prorated taxes from seller, and about 1400 in pure "closing costs" (survery, application, etc). I don't think people are posting their "prepaids (escrow, prorated taxes, future july 1st taxes, interest on half a month of living)" on here mostly, they are just including "closing costs" which is onyl 40% of what you need to come up with at closing after learning the hard way. Good deal.

I think most people are including their prepaids because they are included on the Good Faith Estimate that the government requires....my closing costs were 4300, but that includes paying a point, so it really would have been 3000 without the point. But that's just my experience.

 

[fettucine]

Two brokers that I have gotten good faith estimates from:

1. Premiere Mortgage Funding INC. (Check website From Bankrate.com)
Contact: Daruisz Pise (734-453-8120)
80/15/5, no pmi, no points.
5/1 arm IO at 5.125% for 80% of 254,000 = $867.83/mo
5/1 arm at ~6.0% for the 15% of 254,000 = ~186.53/mo

For me keeping monthly payments down was a big concern so I did IO. My monthly payments turn out to be around $1054 + 317 (taxes) + 135 (HOC) ~$1500.

Closing costs for him total around $2199. I am waiving the escrow and paying taxes by myself, so that prorated for 6 months, paying summer ones first, around $1200. Escrow fee of 400 was in the closing costs. Hopefully I'll get most of the taxes back when I file.

Strangely as you mentioned that there are no branches of BOA in michigan, but I believe the lender for this broker is BOA.

2. Atlas mortgage Co.
Contact: Amy Jallili
80/20 no PMI, Closing costs around $3500. Waived Escrow.
5/1 arm IO at 5.5% for 80% of 254,000 = $930
30 year armotrized at 6.875% for 20% of 254,000 = $291

Again monthly payment being important, this comes around to be:
$1221 + $135 HOC + $317 taxes = $1673.

The first one is the better deal, eventhough I have to pay 5% down, which I can get from little bit of savings and some gifts.

3. Finally the last place I mention is a bit weird so be cautious.
Mortgage Capital Associates
Contact: Mike Seko (1-800-974-4434)
80/10/10 no PMI, ?Closing Costs, waived Escrow (cost is .25% of total mortgage).

5/1 arm IO at 4.5% of 80% of 254,000 = 762
5/1 arm fully armotrized for 30yrs at 7.45 of 10% of 25,400 = $158 + minor principle.

So total is around 920ish. per month. Seems very good, however there are some caveats. My condo being a new construction is unwarranted so it won't
qualify. Secondly need Credit score of > 720. Thirdly Student loans must be in deferment, if not then they are done on case by case basis. Basically what it boils down to is that they have really good rates, but very strict rules. Lastly it is based in Cali.

I am going with Premiere mortgage Funding. It is local, and he told me I have a good chance of getting it.

These are all the top ones.. I called every big bank, and TV ads, and about 10 local brokers.

hope this helps.
-f8

Afer caling liek 20 places, the best I got was as follows for Michigan:

Midwest Financial (UMHS Financial):
zero down, zero PMI, zero points. 181K mortgage, 5/1 ARM 5.625%, NON INTEREST ONLY, so I am paying of principal. 6000K in closing fees, but that includes all escrow accounts, prepaids for summer taxes, prorated taxes from seller, and about 1400 in pure "closing costs" (survery, application, etc). I don't think people are posting their "prepaids (escrow, prorated taxes, future july 1st taxes, interest on half a month of living)" on here mostly, they are just including "closing costs" which is onyl 40% of what you need to come up with at closing after learning the hard way. Good deal.

 

[timtye78]

I ended up checking with three lenders:

1)Physicianloans.com-offer only 5/1 or 3/1 ARMs. Competitive rates but everyone I know says avoid these...scary..
2)Harry Mortgage- offered me 6.000 fixed with 1% cash to table on 30 a year loan
3)Quicken Loans- offered me 6.000 fixed 30 year with ~$800 to table
This is the one I am interested in most.


My purchase deal: Loan $115,000, seller paying all closing costs and prepaids up to $3000,

Me: $130K student and private loan debt, credit ~740.

 

[hobs]

Just thought i'd give my experiences on this issue:

before doing any sort of serious thinking and looking, i read "Home Buying for Dummies". Others have mentioned it, and i found that it was a good book for general information about the financial and market aspects of real estate--figuring out a loan, getting a realtor, that kind of stuff. It was extremely useful, also, in helping me to figure out how much i could really afford. This seems to be crucial in making sure that the home isn't too much of a burden. One thing that they talked about, which may have some pertinence to people looking in San Francisco and places like htat, is that sometimes, it's cheaper and better in the long run to rent--especially if you'll be there for a few years.

Also, despite her scary makeup, Suze Orman does have some good material on the MSN website. I thought it was pertinent, especially for finding out how best to manage money.

The mortgage company I used was Countrywide, and they are fine. Good customer service. SInce i'm a student, they worked with me well to get approved and they gave me a decent rate.

One thing about the interest only: I wouldn't do it. It seems great, but the only advantage is that it's like writing off rent from your taxes. Sure, you could put the extra money into things you probably don't need anyways, or pay down student loans or mortgage, but it will likely evaporate. There is, however, a huge risk of getting burned when it's time to sell the place, and that could be very inconvenient. SO anyways, that's my opinion.

 

[NJNCdoc2be]

Just wanted to mention that we are closing on our new home on Monday. I too found the mortgage process a bit daunting. In our area (central NC) $150-160K is the average home price purchased by a resident with a working spouse (I'm in that boat).

We ended up with a 3br, 2ba new construction on .57 acres of land. We chose Allegacy FCU as our mortgage lender because of their affiliation with Wake Forest U/Baptist Medical Center. Their rates are typically .175% less than their competitors (BOA, Wachovia, etc.) and their closing costs and "funny fees" are also $250-300 less overall.

However, in exchange for the savings come lesser service, so be prepared for a more labor-intensive process.

We had wonderful experiences with Wachovia and BOA along the way. BOA was much more likely to negotiate their fees to compete and provided incentives to working with them (cash back at closing for referring another resident). The agent's name there is Dave Benson. Evidently, he was given a bad rap on SDN in an earlier thread. Though we didn't choose to work with him through the entire process, it was purely a rate issue. Many friends from the area chose him and were very happy with the level of service they received.

Sandra Simmons at Wachovia was also WONDERFUL to work with. In fact, we were very disappointed to have to switch from her when rates dropped through the floor after we had locked in. I would also highly recommend working with this knowledgeable, joyful person.

I hope this helps your search for mortgages when coming to our area and I hope it suggests to others around the country that BOA and Wachovia provide knowledgeable, friendly service. Yet be sure to check out the credit union affiliated with your hospital for extra-low rates despite less-than-great service.

 

[djones]

I just closed on a condo worth $139,800 and went through Platinum Home Mortgage Corporation. I got a 3 year ARM at 103% financing/No PMI/No prepayment penalty at 6.125% interest rate. The total of the mortgage I was approved for was $143,994 (hence 103% financing) therefore the difference was used to pay for the closing costs. Also, they didn't require an escrow account. He would have given me a much better interest rate if I had any money to put as a down payment. He had a similar great deal on an interest-only loan but I decided to go with a traditional loan instead to build some equity . Also, he did not take into account my student loans in deferment. He was always honest with me and highly knowledgeable with anything to do with mortgages. He was right on with the GFE and there were no surprises. He was always accessible through phone and replied to my emails quickly. I encourage everyone to check with him first and he can probably beat any offer you receive elsewhere.

The company website is: ephmc.com
My personal consultant was: Alan Lacey (616) 575-9220 [email protected]

FYI-Hard to imagine him "beating any offer that you receive elsewhere" when 3 year ARM rates are below 5%

 

[djones]

I just closed on a condo worth $139,800 and went through Platinum Home Mortgage Corporation. I got a 3 year ARM at 103% financing/No PMI/No prepayment penalty at 6.125% interest rate. The total of the mortgage I was approved for was $143,994 (hence 103% financing) therefore the difference was used to pay for the closing costs. Also, they didn't require an escrow account. He would have given me a much better interest rate if I had any money to put as a down payment. He had a similar great deal on an interest-only loan but I decided to go with a traditional loan instead to build some equity . Also, he did not take into account my student loans in deferment. He was always honest with me and highly knowledgeable with anything to do with mortgages. He was right on with the GFE and there were no surprises. He was always accessible through phone and replied to my emails quickly. I encourage everyone to check with him first and he can probably beat any offer you receive elsewhere.

The company website is: ephmc.com
My personal consultant was: Alan Lacey (616) 575-9220 [email protected]

Also, you didn't need 103% financing because at that you could have gotten a 100% loan with zero closing costs at a better rate in a 3 yr ARM Dr. loan that doesn't consider deferred student loan payments. (You wouldn't now owe more than your condo is worth.)

 

[USAF MD '05]

Hey all-
I just got my house in San Antonio through David Benson (dr. Banker ) at BOA. There is another thread somewhere that bashes him. My experience with him and his company has been awesome. My realtor in Texas said that he and his partner Matt were some of the best loan officers he's worked with. Period. They busted their butts for me to expidite the process so that we could get my daughter enrolled in a rapidly filling school. Closed via mail yesterday.
Terms...192,000$, 5.125% 5/1 Arm.
Call these guys- they will take care of you.

 

[DrDawg]

Started reading this thread way back when it was only a couple of pages long. My fiance and I decided to use a broker because of my less than awesome fico (678) and not having any cash for a down payment. Everyone basically said they could beat each others loan. We wanted a 7/1 because of my long surgical residency and research goals. We were quoted 5.5% with about $3500 in closing cost and locked in a month and a half before closing. We were doing our walk thorough when our broker called and told us that we weren't able to get our loan and had to scramble into a 5/1 at 5.625%. I wasn't happy. The paperwork didn't get there until several hours after our closing and we missed our flight. When we finally got our HUD (after signing everything else) our closing cost were now $6k, and of course we didn't bring that much. Our closing attorney had called us and told me that he thought $2500 would cover everything. Bottom line is that there were a ton of charges not on our GFE besides the typical things, VA required a city and county stamp. our lender required 1 year prepaid home insurance. ect. My experience was enraging especially since I stayed in contact with everyone throughout the process to ensure everthing was going smoothly. If anyone out there has a dual degree in real estate law I would love to talk to ya

 

[djones]

Started reading this thread way back when it was only a couple of pages long. My fiance and I decided to use a broker because of my less than awesome fico (678) and not having any cash for a down payment. Everyone basically said they could beat each others loan. We wanted a 7/1 because of my long surgical residency and research goals. We were quoted 5.5% with about $3500 in closing cost and locked in a month and a half before closing. We were doing our walk thorough when our broker called and told us that we weren't able to get our loan and had to scramble into a 5/1 at 5.625%. I wasn't happy. The paperwork didn't get there until several hours after our closing and we missed our flight. When we finally got our HUD (after signing everything else) our closing cost were now $6k, and of course we didn't bring that much. Our closing attorney had called us and told me that he thought $2500 would cover everything. Bottom line is that there were a ton of charges not on our GFE besides the typical things, VA required a city and county stamp. our lender required 1 year prepaid home insurance. ect. My experience was enraging especially since I stayed in contact with everyone throughout the process to ensure everthing was going smoothly. If anyone out there has a dual degree in real estate law I would love to talk to ya

Really sorry to hear about this. If you want to PM me with questions, I'll help where I can.

 

[pikachu]

Does consolidating your student loans in the middle of a mortgage application affect the financing at all? I'm already pre-approved and I don't want to consolidate my student loans, but screw up the house financing.

 

[fettucine]

enc: Just a suggestion, if you can afford 20% downpayment, you should qualify for a much better rate than 5.5%. I am guessing close to 5.125% Also go with a company that does in house underwriting, so they can tell you within 2-3 days after appraisal whether you will be approved or not or prolly even before. Two places that come to mind are Country wide loan in Farmington Hills (Belinda Lopez) ph# 248-668-9600 ext 221. And Chase JP morgan home mortgage (C Ann Moody) ph #248-203-6180. Countrywide's rate are a bit higher but still competitive in michigan market. I personaly went with chase, cuz they had lower rates. Both can potentially close with 10-14 days.

Try to avoid brokerage unless they do in house underwriting, I know of two other people aside from people posting here, who should have closed but 5 days before closing, either the bank rejected the locked rate or some time of problem came along, and now they have no place to live when they start residency. You can always shop around later and refinance with a broker.

My 2cents as always.
-f8

 

[xanthines]

Does anyone have any idea of what the real estate market is like in Cleveland? I'm about to embark on the masochistic journey of MD/PhD-dom and thought it would be a good idea to own as opposed to renting for 7-8 years. How can I get a feel for whether or not prices will go up (ie increased value on my home/condo)? Is there some website or publication that shows trends or makes predictions for housing prices in Cleveland? Or for that matter in any city?

Thanks!

-X

 

[APACHE3]

I tried to read throught all the post...too many...which banks are Dr friendly?

AMsouth?
SUntrust?
BoA?

I have Amsouth and BoA acounts, but I'm looking at program in the South. ANybody know about First Tennessee?

Thanks

 

[APACHE3]

Why would you choose an ARM over a fixed rate? Thanks

 

[Deleted member 72527]

Why would you choose an ARM over a fixed rate? Thanks

Lower interest rate usually. However, due to a fluke of the recent bond market the rates have been almost identical in the past month or so. Go figure.

 

[mackie]

Bump!

 

[CoffeeFreak]

avoid mortgage brokers if possible...try to use a depository bank first...if you get a preapproal for your loan within minutes then something is wrong. It takes at least a day or two to get a "real" pre-approval. That is like giving meds while glancing at the patient. They need to spend at least an hour with u. Now that I am on this topic let me tell you about he BIGGEST SCAM in the mortgage industry. LENDING TREE SUCKS! The idea that Lending Tree promotes is that they match you with 4 banks to give you the best rate. Not true. This is why. There is a list of 300+ banks on lending tree. They pay LT 2 ways #1 for each lead they get from LT from your automated profile which is like $20 and #2 if they close the loan the bank, really you, pays LT $500 for each closed loan. So let me ask you. Do you think lending tree is going to match you with the bank with the lowest rate? Or is lending tree going to match you with the bank that has the higest loan closing ratio? The difference is $500 to lending tree for a closed loan.

Don't use a loan office unless you can sitdown with them face to face. I invest in real estate and have had over 50+ closings. Many of them have been bad.

 

[md/mph'06]

So my SO and I are about to go through this crazy process of purchasing a home in the DC/MD/VA metro area. I am in the one in med school, fiinishing up this May and he is a data analyst, i.e., he's working and has far far less debt-income than myself. Here's my issue/concern: (1) My credit score is 762. His is 620. (2). It seems like we can't even get pre-approved together until I have my signed residency contract? Since we won't get our residency contracts until what, like 3 weeks or so after Match Day, I fee like time is being wasted when we (my SO and I) could have already found a home and be in the process of closing. So my question is, is there any way around me having to wait for my residency contract before my SO and I can be pre-approved and approved to purchase a home? I plan to my residency in the DC/MD area and right now, we plan to use B of A since we each have our own individual checking accounts and combined savings accounts with them. Can anyone provide info? Also, since I am banking on nailing a GI fellowship in the same area and we plan on buying a bigger home once I'm finished in 6 years, what time of mortgage would be better? Thanks guys!

 

[ptolemy]

md/mph:
I don't know why you wouldn't be able to get pre-approved, I matched last yr, and was pre approved before I officially knew where I would do my prelim year. you should be able to get pre-approved.

However, you cannot use your income from residency towards your loan (as I understood it) unless you are earning $$ when you have to start paying your mortgage. (So I closed on May2 since that meant my 1st payment wasn't due til July and My check started coming in last week of june)

 

[md/mph'06]

thanks, ptolemy!

 

[isomer79]

Just wanted to thank the admins for bringing back this thread. As a fourth year student I've found it extremely helpful in thinking/planning my financial situation for the next couple of years.

Of interest to people....

1. The Fed raised the rate again for the 11th time in a row today. Guess the sooner you lock in a rate in the coming year the better as they signaled they will likely continue to raise the rates.

2. There has been a lot of discussion of different mortgages, 100% vs. money down, points and origination fees, etc....and everyone assumes that the property will appreciate, or at the very least retain its value.
However it should probably be remembered that buying a property is like any investment. There is the potential for your house to actually depreciate, and the warnings of the real estate "bubble" bursting (especially here in the northeast) are only getting stronger. You can cushion any potential losses with some money down in the beginning. Otherwise when you borrow the full 100%, you risk owing money when you sell the house at a lower price. It's just another risk to consider when deciding on mortgage options.

3. Just because a property appreciates, the money you earn x number of years down the line may not buy any increase in buying power. There was a great article in the New York Times recently about families in NY and CA whose houses had appreciated almost 100% over 5-8 years, but the prices of everything else in the area had as well so they weren't really any better off. Their only option was to move to another area of the country where prices weren't so high. Obviously this could be of benefit to those of us in rapidly growing areas planning on relocating anyway, but again you run the risk of the bubble bursting.

 

[CoffeeFreak]

Believe it or not rates could actually decrease. The correlation between interest rates and mortgage rates in not as reliable as it once was. Yes in general as the 10yr bond increase the 30 yr fixed decreases. My point is, in my humble opinion, I believe that rate will continue to move sideways for another year esp, w/ Katrina.

As for loan programs I would not consider any mortgage program "bad" but rather as appropriate or inappropriate. Suitability is a huge factor. Interest Only, 2 year ARMs may be appropriate. Even after the fixed periods there are "caps" that are written in the loan documentation. ONE WORD OF CAUTION. Mortgage brokers/ loan officers see the initials M.D. and they are going to promise you anything and charge the crap out of you. There are 2 ways a loan officer is paid. Yield Spread (a fraction of your rate) and origination fee and sometimes "junk" fees like inflated "processing" and other crappy fees.

Some people think they are slick and say they don't want any origination fees then the loan officer will say agree to thins and them bump and increase in you rate.

I was a former mortgage broker before I decided to invest. I have been around the block and I HAVE NEVER MET AN HONEST LOAN OFFICER. It is the nature of the beast. It is very difficult to determine what is fact and fiction w/o being on the inside. Your goal should be to find the "least of evils". I would research on the web...there is some guy called the "mortgage doctor" and he can be googled..i think he teaches as Wharton. He has written some fine articles.

As far as the "bubble" talk goes...take it with a grain of salt. You can't make a blanket statement for the entire nation regarding real estate. Each area is different.

Hope this helps.

*******NO ENDORSEMENT OR ADVERTISEMENT****DO NOT CONTACT ME AS I CANNOT PROVIDE ANY ADVICE*****THESE ARE JUST MY THOUGHTS**

 

[hermione]

I don't know if this is of value to anyone, but I just started looking into some of these dr mortgages, and have not found one that is good for a duplex/multi unit property. They are all for single residences thus far. My husband and I were thinking of buying a two-family home to help supplement our mortgage payment, ie living in one half and renting the other. Not sure how this will work out. Anyone have any ideas as far as dr loans that will allow you to buy a two family home? I was interested in the dr loan most specifically because I don't want to wait until I have a paycheck to purchase a home. (Not too convenient since I will need a place to live while earning that first paycheck!)

 

[Finally M3]

No one's posted on this thread in a while, thought I would contribute some current info:

5.75% 30 year fixed with 1.625 discount points up front, 20% down
$1750 for assorted closing costs

This is a non-warrantable condo loan, with a 90 day lock (yes, 90, our condo won't be done until March)

Man, am I envious of y'all who got loans last year. 🙁

PS We're planning on staying > 5 years in the area, thus the 30 yr. That and the difference between 30 yrs and ARMs have dropped dramatically.

 

[EctopicFetus]

1.625 points up front. Have you looked at eloan.com? That does seem awful high to me but I havent gone down this path this yr yet.

 

[EctopicFetus]

1.625 points up front. Have you looked at eloan.com? That does seem awful high to me but I havent gone down this path this yr yet.

My bro in law just bought a new house in TN and got 6% on a 30 yr with 1 point. good luck..

 

[APACHE3]

So I need a house in Virginia in about 90 days. No money down, would like to avoid points, or at least include them in the mortgage..what should I ask for? Everyone WAS doing 5/1 ARM. What does that mean? And I still dont get why you would want an ADJUSTABLE rate mortgage?? Cant I just pay interest first 3-5 years until I get out of residency? Thanks 😱

 

[EctopicFetus]

So I need a house in Virginia in about 90 days. No money down, would like to avoid points, or at least include them in the mortgage..what should I ask for? Everyone WAS doing 5/1 ARM. What does that mean? And I still dont get why you would want an ADJUSTABLE rate mortgage?? Cant I just pay interest first 3-5 years until I get out of residency? Thanks 😱

Ask for the stuff you mentioned.. 5/1 ARM is an adjustable rate mortgage where the rate is FIXED for 5 years then becomes variable and adjusts every yr. You would want an adjustable because.. if you are a resident who will do a 3 yr residency and would want to get into a nicer home after residency you can pay LESS in interest for those 3 yrs. For example a 30 yr fixed rate is lets say 6.25% and the 5/1 ARM might be 5.75 so you would save 0.5% on your loan. On a 200K loan you are looking at saving $2000 per yr.

Yes you can get an interest only loan, these will have a higher rate but a lower overall payment since you arent paying any prinicipal. By doing this you arent building up any equity.

 

[EctopicFetus]

For everyone looking for a mortgage!!

My fiancee is a loan officer with direct lending in MI. She is getting us, and a few MD friends into some nice loans. If anyone's interested, PM me.

btw, she can, and will, beat anyones offers.

Is this only in MI or does she doe stuff in other states?

 

[bla_3x]

Yes you can get an interest only loan, these will have a higher rate but a lower overall payment since you arent paying any prinicipal. By doing this you arent building up any equity.

With those, however, don't you still collect on the appreciation??
I an a total virgin in the house buying worls, but if you buy a "new" house in a area prospected to appreciate well (like in Phoenix valley, my friends made 100K on appreciaten alone within 1 year), wouldn't interest only be a great choice for residency???

 

[EctopicFetus]

With those, however, don't you still collect on the appreciation??
I an a total virgin in the house buying worls, but if you buy a "new" house in a area prospected to appreciate well (like in Phoenix valley, my friends made 100K on appreciaten alone within 1 year), wouldn't interest only be a great choice for residency???

Yep it would.. you just have to keep this in mind. Basically look at it like this, you are gonna borrow money (say 200k), in 3-5 years when you sell you will still owe 200K, now if that house becomes worth 250K then you will make 50K (minus real estate broker costs), if you do a regular loan then on 200K you will pay say $300 per month off, then in 3 years you would have paid off 10K or so. So if you sold at 250K then you would only have 190K on your mortgage so you would get 60K. (of course you are only pulling out money you put in). This is a nice safe way to save some money.

During residency it could be wise to do interest only if you can get it. But like I said you will pay a higher interest rate as well. I hope this helps.

 

[lvspro]

Is this only in MI or does she doe stuff in other states?

Her company covers all 50 states.
I truly hope that those who deal with her post their experience.

 

[Finally M3]

1.625 points up front. Have you looked at eloan.com? That does seem awful high to me but I havent gone down this path this yr yet.

longer lock with the loan being non-conforming pushed my rate up a bit higher.

 

[APACHE3]

Anyone know which banks offer interest only doctor loans?? Bank of America does NOT, Thanks

 

[TommyGunn04]

Anyone know which banks offer interest only doctor loans?? Bank of America does NOT, Thanks

I know this has been addressed before, but I still don't understand why people think interest only loans are actually a good idea. In the overwhelming majority of cases it seems like a quite poor idea. If you're doing it so that you can buy a house you really can't afford (Boston, Cali, etc.), then you really can't afford the house and shouldn't be buying it, because you're just creating an enormous amount of financial risk for yourself. You could really get hosed if/when the housing bubble bursts. The fact is, appreciation is a very big if, NOT a certainty, and interest-only loans are predicated on the assumption that your house will appreciate enough for you to break even or make a profit on the "purchase" after only 3 years or so (in the case of an IM residency). Interest only loans are VERY risky in the short term. And if you end up deciding to stay, you face the possibility of getting slammed with massive payments just a few years down the line, when you start having to make up for your lack of paying any principal.

Clark Howard has some great information about mortgages and home-buying here: http://clarkhoward.com/shownotes/category/4/
http://clarkhoward.com/shownotes/category/4/125/131/

Are there really that many residents getting interest only mortgages???

 

[APACHE3]

I agree that interest only loan is not sound advice in the long-term, but in the unique situation where doctors and lawayers income will change dramatically in the spate of a few months, and other pressing financial requirements such as auto, furniture, maybe even daycare, over-ride the red flags. I'm moving from Europe to US. I have NOTHING to my name, no car, no fork, no spoon. I have to not only get a home for my family (2 y/o, 4 y/o) try to get a house in a good school district, get not one but TWO cars (used) for myself and wife, furniture, student loans (violins playing) etc.... So having a few hundred dollars a month extra can be a life saver. Maybe my wife will work eventually, but again, I will be the only income provider for now. I'll study every proposal given to me. I would like to hear from anyone who has done the interest only path. Or should I do a balloon payment? is that same thing? Thanks 🙂

 

[APACHE3]

Well, I don't qualify for the super doc loan, because my FICO is just south of 700. I charged all my USMLE exams and interview expense on my credit cards and I had no idea it would screw me like this. Jan. last year I had a 786 FICO!!!! So now, I'm really not sure if its worth buying "just a house" if its not really what we want. Who knows maybe I'll move after residency. Is it worth buying a home for only 3 years?? And mortgage company could care less that in 36 months, my salary will go from 44K to 160K. really frustrates me.... 😡

 

[EctopicFetus]

Yeah sucks.. maybe you can take out that medloans loan and pay off your Credit cards. Then your score should pop back up. I think you can borrow up to 12K..

 

[APACHE3]

Actually, Equifax has me with 2 numbers of 784, 694 anf I think Transunion? has me at 690, so the mortgage company says they have to take the LOWEST number. Yeah, I'll throw some large payments at the cards to get the balance down, I did already use the resident loan from Nellie Mae, but stupid me did not MAX it out!!! oh well, live and learn. I am approved for 145K, so I guess I shouldn't complain, but it really doesn't get us what we thought. And the mortgage co. did split the loan so I don't have to pay PMI!! Still don't know how that works! I'm glad mortgage financing was not on Step 2, and I hope its not on Step 3!!! 😀

 

[EctopicFetus]

What they are gonna do to "split" your loans depending on what you can put down. They will give you the traditional 80% which will be at say 6% and then a Home equity (HELOC) for either the extra 10% or 20% depending on the down payment. The HELOC will be at a higher rate say 6.75% or more.

I hope this helps. If you get it from the same lender then it will prob be one payment. Try to pay that one off first since the interest rate is variable.

Hope this helps.