- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Answers (15)
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
I also suggest going with the 30FRM. If things don't go as planned you still have a super low rate and will not have the expense of a refinance.
Happy funding, Rudi
Happy funding, Rudi
- Clay Branch, "Georgia Loans"
- Contributions:7829
you do know that just two extra princiable payments a year will cut your loan down to fifteen years,
smallsteps, 2 extra payments per year on the 4.375% rate would reduce the term to 22.5 years, not 15. In order to payoff in 15 years the OP would have to add an additional $1200/month to the P and I payment of $2300, that is an additional 6.2 payments per year.
smallsteps, 2 extra payments per year on the 4.375% rate would reduce the term to 22.5 years, not 15. In order to payoff in 15 years the OP would have to add an additional $1200/month to the P and I payment of $2300, that is an additional 6.2 payments per year.
- smallsteps47
- Contributions:1
personally,i would go for the 30 year fixed @ 4.375%,thats an excellent rate and if you have a little more you can send in on the princable.each month that would be great .you do know that just two extra princiable payments per year will cut your loan down to fifteen years,ive been in my home now for 12 years @ 5.500,i started @ 6.775%.i had one free refianance,just 2.225 drop in my loan lowered it fron $675.00 to $450.00.a savings of $225 per month,ask you closing agent about ,,one free refinance,some loans come with it,this was with counrytwide,which is b of a now so i dont know of they have dropped that option or what.,but if you intend to be there ten or more years go for the fixed ,the chances of it going down anything worth while /i think are not so good,as soon as they can there going to raise rates,but i dont think it will be for another 2 or 3 years,, just my opinion ,hope it helps good luck and god bless, and remember,,keep it simple///1% on a loan that size will make a difference,you could use that 1% to send in on the princable, from sending in extra princiable im have a balance of $ 43,682.31,home valued @ 136.900.00.you cant even rent in this part of sherwod for less then 800/850/ for something half way decent,so @ 450,5.5 im good,hope it helps
- chinnis1st
- Contributions:4
Thank you all for the responses.
Tim,
Purchase price is around 512K and I am putting 10% down so the loan amount I was looking is around 460K.
I haven't received any papers yet from CU but once I get them I would dbl check and ask around to make sure the rates are accurate as they say.
Thanks,
MK
Tim,
Purchase price is around 512K and I am putting 10% down so the loan amount I was looking is around 460K.
I haven't received any papers yet from CU but once I get them I would dbl check and ask around to make sure the rates are accurate as they say.
Thanks,
MK
- Tim T Wells
- Contributions:63
About education:
B.S. in Economics 2000
MBA - 2009
Thank you!
- Tim T Wells
- Contributions:63
I just love how you guys are bashing on large mortgage lenders here. :)
Keller I was a mortgage broker not too long ago myself, so I understand how you feel...
Keller I was a mortgage broker not too long ago myself, so I understand how you feel...
- KellerWmtn
- Contributions:1
LOL, as if we all needed further proof that Wells Fargo phone officers are by and large under-educated order takers! Thanks Timmay!
- Tim T Wells
- Contributions:63
Hi Clay,
Now I see what you are saying. 460K - Loan Amount
When the customer says he is going to have PMI and such low rates I assumed it's a conventional loan size.
It looked to me like 460,000 purchase price (not a loan amount) with 10% Down. 414,000 - Loan amount
To my knowledge it must be a conventional loan if it has MI premiums.
MK would please clarify to us once again is it 460,000 a purchase price or the loan amount?
Clay,
Thank you for catching this!
Now I see what you are saying. 460K - Loan Amount
When the customer says he is going to have PMI and such low rates I assumed it's a conventional loan size.
It looked to me like 460,000 purchase price (not a loan amount) with 10% Down. 414,000 - Loan amount
To my knowledge it must be a conventional loan if it has MI premiums.
MK would please clarify to us once again is it 460,000 a purchase price or the loan amount?
Clay,
Thank you for catching this!
- Clay Branch, "Georgia Loans"
- Contributions:7829
So Tim, does that mean you have a Jumbo 10/1 at 3.375%?
- Tim T Wells
- Contributions:63
I agree with what was said before.
Most of the loans that are done today are Conventional/Fha loans even if you go through a local bank they will probably going to end up doing Fannie/Freddie/FHA loan for you.
Please make sure you understand whare are the caps/limits/first year adjustment are...
The rate looks a little high to me for 5 yr arm, you can possibly get a 10 yr arm at this rate...
Most of the loans that are done today are Conventional/Fha loans even if you go through a local bank they will probably going to end up doing Fannie/Freddie/FHA loan for you.
Please make sure you understand whare are the caps/limits/first year adjustment are...
The rate looks a little high to me for 5 yr arm, you can possibly get a 10 yr arm at this rate...
- wayne lancaster, "funds2"
- Contributions:1172
The reason the ARM is so such an attractive option is the 2% max. increase yrs. 6-10. The normal cap is 5% max increase yr. 6 and 2% thereafter with a 5% life of loan cap. Be absolutely sure the ARM disclosure states 2% is max first increase and life of loan increase, as otherwise not a good deal since nothing else would beat 4.375% fixed
(interesting that is average rate for 10 yrs on the ARM) You do not mention what happens on the ARM loan after 10 yrs., but unless it stays at max. 5.375% for 20 yrs there is food for thought as it doesn't compare favorable with 4.375% 30 r fixed.
(interesting that is average rate for 10 yrs on the ARM) You do not mention what happens on the ARM loan after 10 yrs., but unless it stays at max. 5.375% for 20 yrs there is food for thought as it doesn't compare favorable with 4.375% 30 r fixed.
- Clay Branch, "Georgia Loans"
- Contributions:7829
What is the margin and what index is used?
- chinnis1st
- Contributions:4
Thank you....
Yes. It is from a credit union.
Yes. It is from a credit union.
- shapiroamg
- Contributions:3058
I would also agree that the 5/5 is a good deal. I assume its a local bank or credit union?
- Clay Branch, "Georgia Loans"
- Contributions:7829
The 5/5 is a good deal if you own for 10 years or less and the caps are 2/5.
30 year fixed or 5/5 arm
Need some advice...
I am being offered following interest rates and I am trying to weigh in among the available options..
Loan amount: around 460K.
Down payment: 10%
Fixed 30 year :
4.375% with 0 points
4.250% with 1 point
4.125% with 2 ponts
There is also 5/5 arm option with interest rate...
3.375% with 0 points.. and a max cap of 2% for next 5 years. So even if the rates go up in next 5 years.. I will be paying 5.375% the next 5 years..
Considering that I will stay put for at least 10 years in that house, does it make sense to go with 30year fixed or take advantage of this low 5/5 arm interest rate. This way I might be able to pay more towards principal so I can avoid PMI very soon.
Any advice's are appreciated..
Thanks,
MK
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.