mortgages

[bobbyseal]

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Hey,

I haven't yet taken out the full amount offered to me because I had some extra scholarship aid that was helping me out. I didn't need all the money offered as student loans. However, now that I'm looking to buy, taking out that money in loans now and using it to pay part of my mortgage doesn't seem like a bad idea for a down payment

 

[joedogma]

Could someone give me some advice on an interest only loan? Is this a sucker's deal and should I stick with a traditional 5/1 ARM? I figure I plan to move in five years or less anyway and the amount of equity built up by then isn't a whole lot at the five year point...ideas?

 

[PCN]

dear joedogma,

I am in the same situation. What I was able to find was that with interest only 5/1 ARM most lenders will increase your rate by 1/8th (0.125%). On a 200K house with about 5.5% interest rate (5.625 if interest only) the higher interest-only rate (as compared to 5.5%) would make you monthly mortgage payment go up like $30-50, but at the same time you will not be paying principle so the monthly mortgage payments will also go down $200-250. So if you are not planing to gain a significant amount of equity, save your $200/month and go shoping or add that to your car payment and get a nice lexus instead of that old ford.

Could someone give me some advice on an interest only loan? Is this a sucker's deal and should I stick with a traditional 5/1 ARM? I figure I plan to move in five years or less anyway and the amount of equity built up by then isn't a whole lot at the five year point...ideas?

 

[joedogma]

dear joedogma,

I am in the same situation. What I was able to find was that with interest only 5/1 ARM most lenders will increase your rate by 1/8th (0.125%). On a 200K house with about 5.5% interest rate (5.625 if interest only) the higher interest-only rate (as compared to 5.5%) would make you monthly mortgage payment go up like $30-50, but at the same time you will not be paying principle so the monthly mortgage payments will also go down $200-250. So if you are not planing to gain a significant amount of equity, save your $200/month and go shoping or add that to your car payment and get a nice lexus instead of that old ford.

How did you know I have an old ford? Very strange.... 😱 The interest only option does make sense from a monthly stand point but in the end it feels like I would just be paying rent with nothing to show except a tax break. I have run a few numbers...

With a 200k mortgage at 5% (arbitrary numbers for simplicity sake) you pay like you said about $200 a month less with nothing going toward the mortgage with the interest only option. If I were to use a more traditional mortgage, after 5 years, I would have paid about 17K of the principal. I guess the question is do I want that 17k tied up in the house or in my hand. Any appreciation on the house is an absolute number not a percentage....if I buy at 200k and sell at 240k it doesn't matter how much principle is paid, profit is still 40k. I guess the only thing to worry about (and this is always the case) is if the house actually depreciates in value I may OWE money. It seems like a risky proposition but may make sense in the short term...

 

[PCN]

You really have a ford? That was a good guess.

I think you answered your own question. They always say you should live in a house for at least 7 years to realize your earnings. Otherwise, if its any less amount of time it is not much different then renting, except you can call it your own house. 5 years is still long enough to call it a good investment. In my case I am looking for 3 years, and this is much more of a gamble. My bigest concern is the quality of life issue, and living in a the most comfortable place my wife and I can afford.

In your case with a PI (principle + interest) mortgage you would pay somewhere in 15K on principle max/5 years. From an investment standpoint if your mortgage is like at 5% you would be earning 5% (or going less in debt by that percentage). Don't forget it is not 15K x 1.05^5=19K because you don't have 15K from day one; you are putting money away on a monthly basis. Therefore don't expect to earn more then 2K on your 15K of principle you paid over 5 years. And of course, this money is tied up for 5 years. Some have argued that you will not make 5%/year in the stock morket. I think you could average at least that over 5 years. Plus the 2K is insignificant over 5 years considering you will at least triple your income when you graduate. Quality of living is important. $200/month doesn't seem much but it could make a difference between a ford and a lexus, I guess.

BTW your house will not depreciate in value. Unless you totally get screwed and overpy on your house. Look out for crapy realistate agents. At worst your house will not appreciate. In that case you still lose money, since when you sell, unless you go FSBO you will pay 6% commissions. I am assuming you will not have the time to sell FSBO. So subtract 15K on commission
off your house that is now worth 240-250K (after 5 years). Where you can potentially get screwed is if your house appreciates at only 1-3%/year depending on the economy. If it appreciates 5-6%/year it is good, but doesn't always happen. Someone advised me to start looking at new condos/houses because the value of a property appreciates at the highest rate in the first 2-3 years as a general rule.

How did you know I have an old ford? Very strange.... 😱 The interest only option does make sense from a monthly stand point but in the end it feels like I would just be paying rent with nothing to show except a tax break. I have run a few numbers...

With a 200k mortgage at 5% (arbitrary numbers for simplicity sake) you pay like you said about $200 a month less with nothing going toward the mortgage with the interest only option. If I were to use a more traditional mortgage, after 5 years, I would have paid about 17K of the principal. I guess the question is do I want that 17k tied up in the house or in my hand. Any appreciation on the house is an absolute number not a percentage....if I buy at 200k and sell at 240k it doesn't matter how much principle is paid, profit is still 40k. I guess the only thing to worry about (and this is always the case) is if the house actually depreciates in value I may OWE money. It seems like a risky proposition but may make sense in the short term...

 

[joedogma]

Gotta keep this thread alive...

This is what tower had for me:

5/1ARM 80-20 Mortgage with (rough numbers) 5.5% on the 80% and about 6.5% on the other 20%. Add 1/8 of a point for interest only option.
1% origination fee on the 80% loan, $400 application fee, $490 underwriting fee.

They said they are looking for credit scores above 680...will take contracts as proof of employment (for spouses too) Seems like a good deal. BofA deal still may be better. Want to find out if BofA offers interst only option...



Keep posting your experiences mortgage shoppers!

 

[spari02]

Dear PCN,
first of all thanks for all the info. i have been reading your posts for the last few hours deciphiring every detail and they are extremely helpful. sounds like you should consider an additional career in financial advising. I had a question about your post to joedogma: When you are refering to the interest only 5/1 ARM you mention the mortgage payment would go up (by $30-50)AND then go down (by $200-250) and what you save is the difference...but i am confused on the going up and down part of this ordeal. can you clear that up
Thanks a lot!

I am in the same situation. What I was able to find was that with interest only 5/1 ARM most lenders will increase your rate by 1/8th (0.125%). On a 200K house with about 5.5% interest rate (5.625 if interest only) the higher interest-only rate (as compared to 5.5%) would make you monthly mortgage payment go up like $30-50, but at the same time you will not be paying principle so the monthly mortgage payments will also go down $200-250. So if you are not planing to gain a significant amount of equity, save your $200/month and go shoping or add that to your car payment and get a nice lexus instead of that old ford.[/QUOTE]

 

[wooo]

I'm not him, but I'll give it a shot. Two things are at work here:
1. Interest rates
2. Paying interest only, or interest plus some principle

Lets just make up some numbers here.

In a traditional mortgage on a $200,000 home you will pay 5.0% interest and the payments will be around $1200 (again, I made up these numbers), including interest and principle. A 5.125% loan will be $1250 a month ($50 more/month)

So, if you get an interest only loan, they will raise the interest rate to 5.125% which will cost you about $50 more/month (see above), but you will be paying only the interest portion of the loan which happens to be about $950.


So instead of paying $1200/month, you will be paying $1000/month because you are now paying the interest portion of the loan $950 plus a little more interest than a traditional loan $50 (950 + 50 =1000).

hope this helps

 

[joedogma]

Wooo has got it figured out...I crunched some numbers...here goes...

From bofa I was quoted at 5% 5/1 ARM (this was a few weeks ago, not sure if rate is still the same). For a hypothetical $200k mortgage, monthly payment (minus taxes and insurance) would be $1073.64

From Tower, again using a $200k mortgage with 80% (or a $160k loan) at 5.5% plus the 20% (40k loan) at 6.37%...monthly payment would be $1158.14. BofA has better deal...BUT...
If you opt for the interest only option, meaning you are not paying any principal, the rates go up 1/8 a point. Then your monthly would be $966

So, if you want lowest monthly, tower IO loan is the best I have seen so far. If you are a little frightened by the prospect of interest only and want a more traditional mortgage, bofa has a great deal. Both of these are great choices imho...and both have similar requirements for qualification etc...

Also, I found out that bofa doesn't offer the interest only option on their physician loans...

 

[Inidae]

Coldwell Banker Mortgage (national)
Closed on 7 Feb 05

No origination fee
No prepayment penalty
Zero points
3/1 ARM
80/20 loan
Interest only on the 80 at 5%
Principle and interest on the 20 at 8%
Middle score of 713
Borrowed $143,000

 

[Finally M3]

Anyone have any experience on non-warrantable loans? My gf and I decided on a condo that just started construction & thus is still in the process of getting FMA certification. From what I've been able to find online, I'm looking at adding an eighth of a point to whatever interest rate I will close at, and it also limits my choice of lenders. Does that sound about right?

Thanks

 

[Inidae]

Could someone give me some advice on an interest only loan? Is this a sucker's deal and should I stick with a traditional 5/1 ARM? I figure I plan to move in five years or less anyway and the amount of equity built up by then isn't a whole lot at the five year point...ideas?

Why not take the interest only loan, then use what you save (vs. taking traditional) and make additional payments toward your principal every month? That way you build your equity faster and in addition you can write off all your mortgage payments. Does that make sense, or have I oversimplified?

 

[minime]

Dr. Banker,
Does Bank of America offer anything to people in states like Ohio that doesn't have a location. Just wondering.

 

[PCN]

Never thougth that people would still be posting to this thread. Actually, i thinkpeople will prob get even more excited about this stuff after march 17th.

Haven't looked at this thread since late feb. You guys have posted great comments.


1. Dear spari02, sorry for not responding. Wooo answered your question correctly.

2. I will have to check this caldwell banker mortgage as someone suggested. It sounds like a good deal.

3. I have recently been looking at sallie mae mortgages. Their rates on 80/20 are not as good as tower. However, their closing fees are lower plus they give like 250-350 discount if you have student loans with them. Plus they are a reputable company. Once, match day hits and I know exactly where I am going I will have to do little more calculations and think about who my lender will be a little more. I'll try to post who I go with.

4. You guys don't get to geeked about this "Dr. Banker" guy. He is obviously trying to sell you his product. I am not saying BofA has a bad deal, I am just getting frustrated b/c this thread should not be free advertisement for companies. This is a forum for med students/residents and their experiences with whatever. I really wish someone would get him off this site.

BTW, this "dr banker" guy, in his argument is comparing two different lenders obviously tower and bofa have different rates (bofa has better rates). However, overall, as a general rule, standing in a graduating 4th year medstudent shoes, doing an interest only mortgage to live in a house for 3-5 years is better then principle and interest mortgage. Even if you do compare tower (interest-only mortgage) and bofa (PI mortgage), aknowledging their different interest rates; the tower interest-only mortgage "$107/month" savings are garaunteed money upfront (as a monthly mortgage payment reduction) versus bofa PI mortgage you are theoretically getting this when you sell the house after 3-5 years. To follow this example, overall with tower you will save 3700-3800/3 years gauranteed in monthly payment reductions versus 8000+/3years theoretically when you sell the house with bofa mortgage. (Note, these calculations do not take into account the compound interest savings on paid off principle that you would get with bofa. However, this will be only a few hundred dollars/3 years. Also these calculations have obviously nothing to do with the appreciation of the house that will also hopefully make you some money but is obviously dependent on the property itself and has nothing to do with the mortgage deal). Bottom line is this bofa deal does look appealing, and for some people who are not expecting a significant increase in sallary after 3-5 years (or for those neurosergeons who will be in residency for 7 years and are planing to stay in the same house) may be a better choice. But, I tend to think (and you guys are welcome to disagree with me) that since when we graduate our incomes will at least tripple (or probably more then tripple), this 4K difference/3 years (and paid out after 3 years) will mean much less then having that extra 100/month, every month, during residency on our very low low-middle class 40K/year sallary (Note, depending on the interest rate differences betwen different lenders comparing PI and interest-only mortgages monthly savings could be as high as 200-250/month if the interest rate differences are more comprable then bofa vs tower).

Overall comparing a principle and interest versus an interst only mortgage from two different lenders is like comparing apples and oranges. I think you have to take into account other very significant factors like how much you will pay at closing (are there any origination points...), also what your credit score, what the lender will actually qualify you for, reputation of the lender, will the lender consider your student loans in qualifying you, will they garauntee their rates when you close, will they be able to aprove you before you start your residency, do they have prepayment penelties (basically will they screw you when you refinance)... One other situation that I encountered in looking for a new condo: a lot of builders will want you to put down a $5000 deposit on a new condo that you are considering. You have to make sure the lender will reimburse you for this deposit or else it defeats the whole purpose of getting a low closing fees type of mortgage deal since you are paying all that money upfront.

 

[jonwilli]

if we get a tentative mortgage offer from any of these companies to start shopping for a house, can we change if we get a better offer later. For instance, if we have the paper that pre-approves us to borrow, does that also obligate us to borrow from that company.

 

[djones]

if we get a tentative mortgage offer from any of these companies to start shopping for a house, can we change if we get a better offer later. For instance, if we have the paper that pre-approves us to borrow, does that also obligate us to borrow from that company.[/Q
No, you are not obligated to use a given mortgage company just because you have been pre-approved with them.

 

[TigerPath05]

Nope, had a pre-approval from Tower and decided to go with a local company that had much better deals and NO BROKER FEE!!!

🙂

 

[NinerNiner999]

FYI - for those of you who are looking at the interest-only loan: THINK CAREFULLY before you do this. Granted, you will save a little each month, but in the long run, you will probably end up paying to sell your house even with standard appreciation after 3-4 years (using my 5/1 arm I've chipped $4500 off of the principle in 7 months, meaning my closing costs will be paid by the end of this year, leaving two years of "profit" in my pocket before I factor in resale). If you do choose the interest-only route, file your taxes advantageously and save (or invest) your returns each year...

Also remember that orgination fees, points, etc, while a pain in the ass when you buy hour home, will pay themselves back within 3 years due to tax deductions. Don't be myopic about buying a home - you get more from your home when you put more into it up front! That being said, don't get ripped off either. Expect to pay 1-2% of the home up front in "points" be it true points or origination fees. If it seems like a great deal, look further into it, because the bank will win regardless, and the better it sounds to you means the better the bank will be profiting off of your monthly payment!

Also - go with any loans that exclude PMI - why pay more money to make the bank feel better that you will be able to pay a mortgage that is less? It makes no sense to me...

 

[minime]

I called Tower Mortgage and got a similar deal as the rest of you, but they roughly quoted the closing costs as $5000. That seemed a little high and I wondered what everyone else is paying.

 

[MJArt]

I called Tower Mortgage and got a similar deal as the rest of you, but they roughly quoted the closing costs as $5000.

That is about what has been quoted to us on a 160K loan for a 200k house. We are preapproved, but are checking around for the best options. It was recommended to us to look at 3-4 different options and then choose.

 

[blueline76]

Has anyone in here mentioned B of A's "Neighborhood Heroes" mortgage program? It's apparently good for every state. I'm a police officer and my wife is a soon to be doctor. The loan is apparently for medical personnel, police, fire, and teachers. What about this Dr. Banker? This will likely be what we need to look into. We're hoping for Indianapolis and the doctor's loan isn't good in Indiana.

At this time we do not offer the Zero down Physicians loan in Ohio. We do however offer a 80/20 product that will help you avoid PMI. It is honestly not as good as the Physician loan and hear is why:

With the 80/20 program you put 80% of the loan on first mortgage and 20% of the loan on a second mortgage. This is a creative way to avoid putting your own 20% down but still avoiding PMI. This lowers your payment but there is a drawback. That 20% second is either fixed at a higher rate or in most cases tied to the prime rate (that rate that you hear about when Mr. Greenspan is on CNN) The prime rate right now is attractive at 5.5% but it has been raised 8 times in the last six months. So guess what that does to your monthly payment everytime it goes up.
I do recommend the 80/20 but only if you are in a state the the Dr. program is not offered such as Ohio.
For a list of states that we offer the zero down Physician program in go to www.mortgagesforphysicians.com. (That was for you PCN)

 

[djones]

Has anyone in here mentioned B of A's "Neighborhood Heroes" mortgage program? It's apparently good for every state. I'm a police officer and my wife is a soon to be doctor. The loan is apparently for medical personnel, police, fire, and teachers. What about this Dr. Banker? This will likely be what we need to look into. We're hoping for Indianapolis and the doctor's loan isn't good in Indiana.

Those programs allow for 100% financing but require PMI and typically offer higher than market rates.

 

[TitelistDoc]

Dr. Banker

I have some questions about the Dr. Loans. What if your credit isn't the greatest? I know we all have student loans but what if we have significant consumer loans? I am not sure what my credit score is, but I am pretty sure it is not 720. I kind of have an idea about what I would like to pay, I am just not to sure that I will qualify. My wife will be starting a new job soon that will pay about 80k. Should we wait until then even though I would rather buy now.

Thanks

At this time we do not offer the Zero down Physicians loan in Ohio. We do however offer a 80/20 product that will help you avoid PMI. It is honestly not as good as the Physician loan and hear is why:

With the 80/20 program you put 80% of the loan on first mortgage and 20% of the loan on a second mortgage. This is a creative way to avoid putting your own 20% down but still avoiding PMI. This lowers your payment but there is a drawback. That 20% second is either fixed at a higher rate or in most cases tied to the prime rate (that rate that you hear about when Mr. Greenspan is on CNN) The prime rate right now is attractive at 5.5% but it has been raised 8 times in the last six months. So guess what that does to your monthly payment everytime it goes up.
I do recommend the 80/20 but only if you are in a state the the Dr. program is not offered such as Ohio.
For a list of states that we offer the zero down Physician program in go to www.mortgagesforphysicians.com. (That was for you PCN)

 

[djones]

Dr. Banker

I have some questions about the Dr. Loans. What if your credit isn't the greatest? I know we all have student loans but what if we have significant consumer loans? I am not sure what my credit score is, but I am pretty sure it is not 720. I kind of have an idea about what I would like to pay, I am just not to sure that I will qualify. My wife will be starting a new job soon that will pay about 80k. Should we wait until then even though I would rather buy now.

Thanks

It would be a good idea for you to pre-qualify. This can be done at no cost or obligation. However, be careful about having your credit report pulled too many times as this can penalize your credit score. There are many options available to you including the possiblilty of the 100% Physician Loan and 80/20 Combo loans that have many different flavors (No Income Verification, Adjustable Rates, Interest Only, etc.). It is a good idea to get at least 3 Good Faith Estimates before you buy. Take a look at my banner ad on this site or feel free to email me at [email protected] with questions.

 

[jonwilli]

anybody have any new mortgage experiences now that we are out shopping for homes, apt, etc.

 

[Linktones]

I talked to a physician loan specialist yesterday from BOA. Not Dr. Banker and was given a quote for 140k at 6% 5/1 arm with no down or PMI. The closing costs were about $4500. My credit score is above 720. Is this interest rate good? I was hoping for around a 5% rate like Dr. Banker states they can give. Also, the closing costs seem high for a loan for this amount. I really don't know much about home mortgages so any input would be appreciated. Does it matter which BOA specialist you use or can you get different quotes from different BOA loan people?

 

[clc17]

As our economy changes and our good friend continues to come out and announce increases in note rates....so then go the mortgage rates. They are dynamic. If think you can "pay down" the interest with BOA to 5.625 but this will require paying 1pt on your loan amt, which will increase your closing costs.

 

[impetigo]

Just to throw in my 2 cents...I would find the 250k to be a little high as well.

Good thing you don't live in the SF Bay Area, where the median house price is $629,005 this year...

😱

 

[djones]

I talked to a physician loan specialist yesterday from BOA. Not Dr. Banker and was given a quote for 140k at 6% 5/1 arm with no down or PMI. The closing costs were about $4500. My credit score is above 720. Is this interest rate good? I was hoping for around a 5% rate like Dr. Banker states they can give. Also, the closing costs seem high for a loan for this amount. I really don't know much about home mortgages so any input would be appreciated. Does it matter which BOA specialist you use or can you get different quotes from different BOA loan people?

Rates for the Suntrust Doctor Loan are closer to 5.25% for the 3/1 Arm and closer to 5.625% for the 5/1 Arm as the Fed increased short term interest rates yesterday. The action has affected mortgage rates as well. The rate that you receive is also dependant upon the lock period which is simply the number of days that your are guaranteed the rate. Closing costs include local and state taxes, title insurance, and other fees that will vary by area so get more than one Good Faith Estimate and compare costs for the same rate.

 

[EctopicFetus]

Let me say I dont work for any of these companies but I think you will have a hard time beating ING's rate.

http://home.ingdirect.com/products/products.html

Their 5/1 ARM is at 4.95% which on a 140K loan is about $750 per month (of which 170 is principal and 580 in interest) compared to paying $840(Principal is about 140 and you pay 700 per month in interest) per month on a 6% loan. And all that extra money you are paying is 100% interest.

ING also states there are no closing costs.

Finally you can use bankrate.com and go to their calculators to figure out other information. Good luck!

 

[djones]

Let me say I dont work for any of these companies but I think you will have a hard time beating ING's rate.

http://home.ingdirect.com/products/products.html

Their 5/1 ARM is at 4.95% which on a 140K loan is about $750 per month (of which 170 is principal and 580 in interest) compared to paying $840(Principal is about 140 and you pay 700 per month in interest) per month on a 6% loan. And all that extra money you are paying is 100% interest.

ING also states there are no closing costs.

Finally you can use bankrate.com and go to their calculators to figure out other information. Good luck!

You're right the ING rate is very attractive if you have 20% to put down or want to pay PMI. The Physican Loans are 100% financing in one loan with no PMI. The closing costs they give for the above scenario are 1339.00 pushing the APR to 5.482%.

 

[EctopicFetus]

Actually they only require 10% down with no PMI, of course they also offer the Orange Home Equity at 5.5% No closing costs or app fees on here either.

djones, I am curious what is Suntrusts APR when the closing costs are like 4K+?

In the end the only things that matter are

1) Whats my monthly payment? - by my accounts lower with ING
2) What are my closing costs? - Also appear to be lower with ING.

I am no expert so if I am missing something please let me know.

 

[djones]

Actually they only require 10% down with no PMI, of course they also offer the Orange Home Equity at 5.5% No closing costs or app fees on here either.

djones, I am curious what is Suntrusts APR when the closing costs are like 4K+?

In the end the only things that matter are

1) Whats my monthly payment? - by my accounts lower with ING
2) What are my closing costs? - Also appear to be lower with ING.

I am no expert so if I am missing something please let me know.

It matters to those who do not have $15339.00 (10% down + closing costs) plus escrows for taxes and insurance. My earlier point is that these ING loans do carry closing costs although they are very low and that these costs do impact the APR. It appears that you have been looking at an 80/10/10 Combo Loan program with two loans and a 10% down payment. Most lenders offer these programs to avoid PMI. As I have said, it makes good sense to get more than one Good Faith Estimate to ensure that you are comparing similar programs and costs.

 

[jonwilli]

got an estimate today from BOA. 250K on a 5/1 ARM at 6.25% is around 1900/month payments, which includes taxes and insurance. Just some insight!!

 

[clc17]

Is the SunTrust mortgage good in states where there is no SunTrust branch. I know the BOA mortgages are not. I will be buying in NC and am wondering. I see BOA interest rates higher than most others, but consider that part of the "price I pay" for not having the downpayment AND not having to pay PMI (which is a big bunch of money). Just wondering and considering giving SunTrust a call. Also, does SunTrust have a lockin rate feature for their doctor loans? BOA does NOT lock in the rate...and with rates going up, and going up again in May, I am concerned my payments will just get higher andhigher.

 

[guttata]

Is the SunTrust mortgage good in states where there is no SunTrust branch. I know the BOA mortgages are not. I will be buying in NC and am wondering. I see BOA interest rates higher than most others, but consider that part of the "price I pay" for not having the downpayment AND not having to pay PMI (which is a big bunch of money). Just wondering and considering giving SunTrust a call. Also, does SunTrust have a lockin rate feature for their doctor loans? BOA does NOT lock in the rate...and with rates going up, and going up again in May, I am concerned my payments will just get higher andhigher.

You should be able to lock in rates with BOA if you have a property address. It may require 1/2 or 1 point, but in the grand scheme of things, it will likely save you money.

 

[jonwilli]

the only other thing is you can look in the paper and find much cheaper interest rates, for ex. with 5% down in the paper today, you get 4.85% on a 5/1ARM. Now this may be a crap company, who knows???

 

[djones]

Is the SunTrust mortgage good in states where there is no SunTrust branch. I know the BOA mortgages are not. I will be buying in NC and am wondering. I see BOA interest rates higher than most others, but consider that part of the "price I pay" for not having the downpayment AND not having to pay PMI (which is a big bunch of money). Just wondering and considering giving SunTrust a call. Also, does SunTrust have a lockin rate feature for their doctor loans? BOA does NOT lock in the rate...and with rates going up, and going up again in May, I am concerned my payments will just get higher andhigher.

Suntrust does offer the program in NC(having acquired CCB and NCF)and can lock in your rate for up to 60 days or you can get pre-approved and "float" your rate. BOA should be able to lock your rate as well. Let me know if I can help, www.suntrustmortgage.com/davidj. I'll email to you a good faith estimate for you to compare.

 

[clc17]

Here are my questions.

1. It says the student loans have to be deferred for 12 months. BOA actually does not require this. Mine are deferred until Dec 1, then I have to re-apply (every year). Would this lead to disapproval?

2. My husband wants to apply with me. He is active Duty Navy, has to stay where we are one more year but then is moving where i am as his commitment with USN will be over. Would he be able to be on the application with me? BOA had some trouble with underwriting but is getting by that somehow by saying that where we are now is not his permanent residence (which I consider true since all of our stuff will be in NC he will only be here temporarily to fulfill his Navy commitment.)

Now, If he can't be on the application with me how much are residents getting pre-approved for with salary of 40K. The only other debt I pay is a carpayment of about 280, two undergrad student loans of 57 per month total. We both have excellent credit scores (above 720) and have been preapproved together for 200K from BOA (thank goodness we aren't moving to San Francisco, we wouldn't even be able to afford rent!). Just trying to get an idea if its even worth me contacting Suntrust if these issues can't be resolved.

 

[djones]

Here are my questions.

1. It says the student loans have to be deferred for 12 months. BOA actually does not require this. Mine are deferred until Dec 1, then I have to re-apply (every year). Would this lead to disapproval?

2. My husband wants to apply with me. He is active Duty Navy, has to stay where we are one more year but then is moving where i am as his commitment with USN will be over. Would he be able to be on the application with me? BOA had some trouble with underwriting but is getting by that somehow by saying that where we are now is not his permanent residence (which I consider true since all of our stuff will be in NC he will only be here temporarily to fulfill his Navy commitment.)

Now, If he can't be on the application with me how much are residents getting pre-approved for with salary of 40K. The only other debt I pay is a carpayment of about 280, two undergrad student loans of 57 per month total. We both have excellent credit scores (above 720) and have been preapproved together for 200K from BOA (thank goodness we aren't moving to San Francisco, we wouldn't even be able to afford rent!). Just trying to get an idea if its even worth me contacting Suntrust if these issues can't be resolved.

I'll check on these issues with our underwriter tommorrow. My sense is that you will qualify for what you'll need without the deferral.

Better, you may qualify for a VA loan which is also 100% with no PMI.

 

[jonwilli]

has anyone done a www.lendingtree.com search and seen what they can get? There are mortgage companies that will approve you with only 5% down as well, which is 10K on a 200K loan (obviously)

 

[gas2008]

Hey guys,

Are any of you guys or gals going to buy a coop? I am a PGY-I and I am in the process of buying a 2 bdrm coop in NY. It's a lot cheaper than buying a condo, actually a $100,000 cheaper. What are the pros and cons of buying a coop vs actual real estate? I am still learning the process of purchasing real estate in NY.


thanks

 

[clc17]

still waiting to see what the underwriter says.....

 

[bobbyseal]

I looked into lending tree. I got offers back and all, but there were kind of odd people. I didn't really buy that they had great deals, etc.

For anyone who has military ties, either yourself, a spouse, or a parent, look into USAA. It's a military banking, insurance, and brokerage company. To be honest, I got approved for more with nothing down, no pmi, etc and to top it all off they have great rates. Granted you'll get better rates from ING, but then again, you need 10.1% down plus closing costs.

good luck.

 

[djones]

still waiting to see what the underwriter says.....

Sorry CLC17-have been out of the office. The Underwriter says we can include your husband's income in the qualification ratios. We can also do the VA loan but those carry a VA funding fee. Send an email or call if you like.

 

[docuw]

I am considering using Mike Smela at Physician Lender/ Carteret Mortgage. He offers basically the same loan program as BOA with 100%, no PMI, no student debt in DTI, move in/close 3 months before start date. He hasnt gotten a firm number for his interest rate yet, but estimated, on the high end, that it would be 5.75% (boy how rates have climbed since this thread started!) on a 5/1ARM, and the same rate on an Interest Only (I/O) 5/1 ARM. I have talked to him for a month via email. He seems like a good guy. The only "trick" I can find is the 1% origination fee. I sent his good faith estimate to 3 other lenders/brokers. One guy came back with an 80/20 with pretty good rates, but the 20 was HELOC and variable with the PRIME, which, as we all know, just went up. That guy told me "boy, that loan looks pretty good - I wish I could offer a loan package like that."

The summary of the GFE on a 5/1 ARM $210,000, 100%, no PMI:

• Interest Rate: 5.75%
• P&I = 1225.50 / month
• Est Closing Costs = 4214 w/ the 1% origination fee

If you wanted to Interest only, he said the rate was the same 5.75%. There was no increast. So, in the above summary, you are paying $218.75/month towards your principle. With Interest only, your monthly payment is 218.75 cheaper, or $1006/month.

I dont know, but this seems like a pretty good deal. He was still trying to get his rates finalized through his credit unions. The no PMI is truly no PMI, not 80/20, or 80/10/10. He offers this loan in almost all states as far as I can tell. I am going to Utah, and it seems like most of these national chains werent offering loans in Utah. I am getting pre-approved with the guy, and going house hunting April 8.

 

[surg4me]

I'll be starting residency (min 5 years, 7 if fellowship) so I'm also looking to purchase. I've read through this forum and found the info helpful...thanks to all the previous contributors...

It's end of March and I'm hoping to purchase a place to move into by early May. I have a few questions (i apologize if they've been already answered and i missed them).

1. how long does it take to start applying for a loan and be ready to actually purchase a condo?

2. since I've been a med student for the past 4 years (I have no paystubs), will I be able to get a loan? For example Washington Mutual requires at least 2 paystubs for their home loans.

3. how do i purchase a condo from a private seller? do i get a loan approved and have the lender pay the seller directly without going through a realtor, since the seller is selling on his own?

thanks for all your help in advance. 😍

 

[PCN]

1. shouldn't take long to pull your credit report. start calling lenders NOW.
2. I've ran into the same problem. I think the best is to find an instate broker/lender with whom you can go and talk to directly. Talk to your residency program see if they can recommend a broker who has helped previous interns to be. Basically, if you have your offer letter, many of the brokers can go to the underwriters with this info. You don't have to have a job yet, you just have to show that you will have one.
3. This might sound a little scary, but if you go by FSBO (without a realtor) you should probably have someone look at the contract (a lawye perhaps). Otherwise, I think it should go just about the same as if you are going to by with a realtor. The only difference is that with a realtor the seller is going to pay 4-6% commissions, and probably charge more by that amount

hope this helps

I'll be starting residency (min 5 years, 7 if fellowship) so I'm also looking to purchase. I've read through this forum and found the info helpful...thanks to all the previous contributors...

It's end of March and I'm hoping to purchase a place to move into by early May. I have a few questions (i apologize if they've been already answered and i missed them).

1. how long does it take to start applying for a loan and be ready to actually purchase a condo?

2. since I've been a med student for the past 4 years (I have no paystubs), will I be able to get a loan? For example Washington Mutual requires at least 2 paystubs for their home loans.

3. how do i purchase a condo from a private seller? do i get a loan approved and have the lender pay the seller directly without going through a realtor, since the seller is selling on his own?

thanks for all your help in advance. 😍

 

[Gator Fan]

I too will be looking to buy a place for residency. This forum has been very helpful since I started out knowing nothing about the whole process.

I plan to start calling some lenders this week. Just wondering what information I will need to give them when I call so that I will be prepared? And how long does it usually take to get preapproved?

 

[jonwilli]

got some prerappoval stuff. BOA ono 5/1ARM is 6.15% and SunTrust is 6.375% but has aboutt 2000 less closing costs it appears. ING does have a decent deal if you can put down 10.1%

anybody have any other up-to-date rates as they continue to rise???