Do you think one of them is using gear pt. 2

3J said:
damn i overslept today.. and i had to get up and cook for 3 hours... its 1pm and i have just started my day.. fml
Click to expand...

Hahaha sounds like you needed that sleep though. It's 4:30 for me and I'm about to take a nap before going to the gym :p
 
Cripes mortgage crap is technical.

So, whats your opinions on the housing market.
Will interest rates continue to climb for the next 6 years or so?
 
71Avido said:
Cripes mortgage crap is technical.

So, whats your opinions on the housing market.
Will interest rates continue to climb for the next 6 years or so?
Click to expand...

Lol what part are you confused about?

It's my understanding that rates will most likely continue to climb for at least the next 3. They've been at their lowest in a long time over the last few years. It's still relative to what market area you are in though. Some places will climb higher and faster than others.
 
3J said:
damn i overslept today.. and i had to get up and cook for 3 hours... its 1pm and i have just started my day.. fml
Click to expand...

we just napped and it was over an hour. it's like 6pm here, god knows when we passed out, i feel like a grumpy piece of shit!
 
CptFKNplanet said:
Lol what part are you confused about?

It's my understanding that rates will most likely continue to climb for at least the next 3. They've been at their lowest in a long time over the last few years. It's still relative to what market area you are in though. Some places will climb higher and faster than others.
Click to expand...

The strategy side of it.

I just met with a mortgage originator that explained an interesting option.
Using a 5/1 adjustable instead of a standard 30 year fixed.

The 5/1 adjustable has a rate of 2.99% while the standard 30 year is 4.750%
For the 5/1 loan, the 2.99% is locked for 5 years and for every 1 year after that, the rate can only go up a max of 2% annually.

So by doing a 5/1 I can stand to save a significant amount of money short term but it exposes me to an unknown APR down the line. What I'm trying to do is come up with a strategy that eliminates my private mortgage insurance and speeds up how quickly I can pay this place back.

My plan at the moment is to:
Get out of PMI by paying the 20% down.
Use the 5/1 loan @ 2.99% APR for the first 5 years.
At the end of 5 years, I'll have 2 options: Continue with an adjustable rate that can only climb a max of 2% annually - OR - refinance to a fixed rate. Sounds simple but I need to figure out how the money I'll be saving by doing a 5/1 will compare to what I'd pay on refinancing.

In addition to that I'll need to figure out a plan for the house, if I don't plan on living there for more than 5 years, the 5/1 is a no brainer.
 
just had a PT come to my office and do kinesio tape on my spine.. t2-4.. this stuff is great.. been using it for 2 years now..

trying to get this damn neck to heal..
 
71Avido said:
The strategy side of it.

I just met with a mortgage originator that explained an interesting option.
Using a 5/1 adjustable instead of a standard 30 year fixed.

The 5/1 adjustable has a rate of 2.99% while the standard 30 year is 4.750%
For the 5/1 loan, the 2.99% is locked for 5 years and for every 1 year after that, the rate can only go up a max of 2% annually.

So by doing a 5/1 I can stand to save a significant amount of money short term but it exposes me to an unknown APR down the line. What I'm trying to do is come up with a strategy that eliminates my private mortgage insurance and speeds up how quickly I can pay this place back.

My plan at the moment is to:
Get out of PMI by paying the 20% down.
Use the 5/1 loan @ 2.99% APR for the first 5 years.
At the end of 5 years, I'll have 2 options: Continue with an adjustable rate that can only climb a max of 2% annually - OR - refinance to a fixed rate. Sounds simple but I need to figure out how the money I'll be saving by doing a 5/1 will compare to what I'd pay on refinancing.

In addition to that I'll need to figure out a plan for the house, if I don't plan on living there for more than 5 years, the 5/1 is a no brainer.
Click to expand...

I'd only recommend doing an ARM (adjustable rate mortgage) if, like you said, you aren't gonna live there longer than the life of the loan. It will definitely cost you more in interest no matter how you look at it. After 5 years, you'll be at almost 13% APR... and trust me, a "max" of 2% means it's gonna hit that every year unless it goes over the "ceiling" on your rate. My guess, is the ceiling is 12.99% which is why they said it can go up 2% every year. Definitely ask your loan officer what the max rate it can adjust to is. ARMs are tricky, kinda like balloon mortgages. I'd advise staying away from ARMs. We don't do those here, ever. As for PMI, you can either do what you said or opt to pay it all upfront in your closing costs. It sounds like you're looking at a Conventional loan, have you looked into FHA? No PMI on FHA, 10% down... rate may be a little higher though, and there is MI (mortgage insurance not through a private company) through the life of the loan but it's a lot cheaper. Just make sure you talk everything through with your loan officer. Did you go to a bank (Wells, BofA, etc), or a private lender?
 
You must log in or register to reply here.
Back
Top