Mortgages

[jordan23]

Anyone very knowledgeable in this area. Looking to buy withing the next couple of months. First house for me, probably stay there for 5 years. Traditional 30yr fixed, 80-15-5, 80-20 nothing down???????

Any advice would be greatly appreciated. Thanks

 

[Mjolnir]

i wouldnt go with a 30 yr fixed, for that length of time. get my e-mail from jack and i can get you quotes for free. i'm a loan officer/ realtor.
good luck.

 

[jordan23]

I believe Jack is away at the WSOP

I was hoping you could give me some advice as to what is the best to go. I will email jack but I think he is away. Thanks

 

[Mjolnir]

depends on what you want to do. do you just want to make the lowest payments or do you want to make larger payments that go towards the balance owed. if your wanting the lowest payments there are many options. you can also go with pick a payment. it has 4 options 30 yr fixed, 15 yr fixed, interest only, and variable. it's good because you can pay whatever you can afford for that month.

 

[SixFive]

get a 30 year fixed. That's the safest, and if you end up liking the house and want to stay, no problem. Interest rates are low now. Why play games? Good luck.

 

[HITCH]

I WOULD LOOK INTO A 5/1 ARM IF YOUR NOT SURE YOUR GOING TO STAY THAT LONG.

 

[jordan23]

Is the pick a payment a variable rate????
How much do I have to put down to go that route???


This is going to be my starter home, hopefully stay there 5 years then buy a house that i want to stay in for 20+ years. I don't know if its better for me to keep payments small or large and take money off the balance.

Thanks for your help.

 

[HITCH]

JORDAN WHAT EVER YOU DO DONT GO TO A LENDING SERVICE OR A MORTAGE BROKER. THEY WILL RAPE YOU WITH THE POINTS. GO TO YOU LOCAL BANK IF AT ALL POSSIBLE. IF YOU HAVE TO GO TO BROKER MAKE SURE THE CLOSING COSTS ARE LOW AND 1 POINT AT MOST. SOMEONE WILL DO THE LOAN FOR THAT SO DONT GIVE IN. I ASSUME YOU LIVE IN IL. CHECK RATES FOR 30 YEAR AND 5/1 ARM & COMPARE

 

[jordan23]

Hitch

I don't live in IL, live in RI.

Guys I'm really up in the air about all this. Hear different opinions from everyone. Any advice or opinions is definately helpful. Thanks guys.

 

[onetrickpony]

How big of a loan are we talking about? The "pick a payment" is not a bad loan but you will never get 100% financing with it. I believe the most you can do is 95%. The biggest mistake most people make, especially first time buyers, is shelling out too much of their savings for a down payment. They exhaust the majority of their savings and have nothing in the event of an emergency. I have personally spoken to countless people trying to then go back and do a loan 2 - 3 months into ownership and get their equity back out for whatever reason. Rule #1 in finance, Cash is King.

 

[dawgball]

Interest rates are low now. Don't get in over your head with a payment. Stay within your CURRENT financial situation because the raises and such that you think will happen are not guaranteed.

 

[UT-Longhorn]

i wouldnt go with a 30 yr fixed, for that length of time. get my e-mail from jack and i can get you quotes for free. i'm a loan officer/ realtor.
good luck.

hey, you are the one I need to talk to. Ive got a house in the San Fernando Valley. Not really sure what I want to do with it. Typical, small, valley home. 3/2/2 built in 1948 1500 sq feet. Trying to decide if its better to sell it, or lease it out. Which would you do? Not a penny is owed on the home, just dont want to sell it and have to pay all those Capital Gains Taxes. Any suggestions?

 

[LUX]

hey, you are the one I need to talk to. Ive got a house in the San Fernando Valley. Not really sure what I want to do with it. Typical, small, valley home. 3/2/2 built in 1948 1500 sq feet. Trying to decide if its better to sell it, or lease it out. Which would you do? Not a penny is owed on the home, just dont want to sell it and have to pay all those Capital Gains Taxes. Any suggestions?

If you've owned it longer than 2 years you shouldn't have to worry about capital gains tax.

edit: let me clarify,you wouldn't have to pay CGT on $250,000 of the profit if you're single and $500,000 of the profit if you're married.

 

[skulldog]

jordan23, One type of loan to stay clear of is a Negative Amortization Loan, which they get give you a payment based on 2% or you can pay the pmt on the real rate which is say 6%, and human nature says you'll pay the 2%, the 4% gets added onto the principle :cursin: :bsflag

I'm a RE broker in Ma and we'll be licensed in RI very shortly, I'd be happy to help you out. The RE company I work for is owned by a Credit Union and we have a 5/1 arm with 0 $$ down, no PMI, No points or Closing Costs and the rate is 5.625.:hail
You must have a credit score of 650 or higher. I e-mailed the VP of lending to see if we can lend in RI

Maybe IE can give you my e-mail address.

Gl

 

[Mjolnir]

ut.
how long have you had the house? get my e-mail from jack and we can discuss it. i work with people that recomend leasing or renting out there houses every day, i think that is good if you get a very good tenant. i tend to think what if the worse thing happens. you could end up with someone who doesnt pay and they can stay there basicly 6 months for free while you are going through the process of evicting them. that 6 months can be devastating to most people. i've seen it happen.
i just sold a house close to that description in pacoima (san fernando valley) for 450,000. these properties can go quickly.
good luck

jordan,
it doesnt cost anything to get quotes from most lending institutions. just dont get quotes from everybody as every time you have your credit run it lowers your fico score. fico is important along with your debt to income ratio. you can get ball park quotes from some people if you know your fico.
gl

my company is also a bank and we handle loans everywhere in the continental U.S.
if we get the best rate from our own bank we use them, if not we go with whoever is the strongest.

 

[TAZ]

UT-Longhorn and Lux

To further qualify to exclude the $250 or $500k in capital gains from selling your house you must meet the ownership and use test. Just owning it for 2 years does not qualify. You must own and use (principal residence) the property for two years (in aggregate) in the last five. Just bringing it up because your header says Southlake Texas and you are speaking of a property in San Fernando Valley so I assuming you are not living in it now. If you are disregard.

 

[ELVIS]

va loan?

va loan?

i qualify for va. what are my advantages/disadvantages? one bank guy told me the va loan was not the great after all - i am very confused. :sadwave:


looking at buying land - then to build right away. what is my best option and how can i make the most of my $$.


the new marisa tomei commercial makes me feel warm

 

[UT-Longhorn]

If you've owned it longer than 2 years you shouldn't have to worry about capital gains tax.

edit: let me clarify,you wouldn't have to pay CGT on $250,000 of the profit if you're single and $500,000 of the profit if you're married.

well, it was willed to me. was worth $150k when I got it a few years ago, appraised for $460k this year. So im about to get married, so if i sold it to buy some other investment property, would i have to pay alot in taxes you think?

Mjolnir--i got the house in 97.

 

[skulldog]

UT, you may not have to pay a dime if the property was included as part of the departed's estate, check w either an attorney or CPA.
I'm assuming you rent it out now, if that's the case, then you could sell it and do a 1031 tax change(AKA like kind exchange) and buy another investment property without paying any taxes, but your not allowed to get any $$$ at closing.

Maybe in the future you could move into the property and live there for al least 2 years, then you pay not taxes, as long as you don't make too much of a profir, as stated above.

Elvis- A VA loan in this market that we all live in is not such a great loan for a few reasons:

1. % rate is usually higer. 2. The appraiser is very tough on the property, so if it looks rough in a photo, then the VA may have a problem lending on the property. The 1 advantage, there isn't any PMI, which is good.

As far as land goes, you cannot purchase a piece of raw land and finance it through the VA, but there are plenty of lenders who'll finance a construction loan with a little as 5% dn of the total package(land and house). But you had better have experience if your going to subcontract the work yourself. :scared

GL

 

[LUX]

UT-Longhorn and Lux

To further qualify to exclude the $250 or $500k in capital gains from selling your house you must meet the ownership and use test. Just owning it for 2 years does not qualify. You must own and use (principal residence) the property for two years (in aggregate) in the last five. Just bringing it up because your header says Southlake Texas and you are speaking of a property in San Fernando Valley so I assuming you are not living in it now. If you are disregard.

UT-Longhorn, Taz is right on about the ownership and use test. If you haven't lived there then that CGT exclusion wouldn't apply in your case. I think the best thing to do is what Skulldog said about the 1031 exchange. You can take all of your profit and invest in similar types of property.

Whatever you do, I would find a CPA who specializes in real estate and they can help you get out of that house without giving a huge chunk of the profit to Uncle Sam. Good luck and keep us posted.