Which bank for a mortgage?

The amount you borrow is ammortized over 25 years

You chose either to pay either floating or fixed rate ( open or closed mortgage )

The open rate floats with the prime rate and there is no term , you are not locked in , and the rate is prime + (x)

In a closed term , you lock into a rate for a given amount of time , the term length dictates the rate , longer term , higher rate

Prime is 3%
1 year closed at about 2.5%
5 year closed at about 3.39%
7 year closed at about 4%

Generally you can also increase your payment by up to 15% per year or pay down 15% of the principal at time of borrowing annually without penalty

 

I would do a 15 year if I could afford to. It doesn't make sense paying $1500 rent versus $1150 for a condo, includes HOA. Even with the problems that may come I could come out a little ahead and finally get a house later on. I consider this a small risk. Back in 2005 when prices were sky high there was no way in hell I would of paid $300k for a condo, I am in California. Condos are actually selling for more reasonable prices. I have seen plenty that previously sold for $320k now listed for $160k. Can't get a decent house for that much around here. So now is my chance.

 

definitely try USAA as said before. We were pre-approved in no time with them when we bought in april. however, we ended up getting a better rate through the builders lender and had the closing costs payed for. I was surprised USAA couldn't do better, especially since we both have OUTSTANDING credit, but their process was still quick and easy.

 

with my mortgage, through MCAP, I can pay up to 25% of the amount owing per 52 week period in addition to the monthly payments without penalty... not that I could if I wanted to. the way my lawyer explained it, I could pay 25% on May 31st then another 25% on June 1st (took possession on June 1st).

 

Wow , 25% ?

Never heard of that before

 

I am gonna try USAA. If they can't give me the loan amount I am looking for I will consider Lending tree, after some research. Seems like a loan broker after looking into it for a few minutes. I am confident in being able to pay a $1150 mortgage and HOA included when I have been just fine paying $1500 for rent.

 

are mortgage brokers free to the borrower in the states?

 

What do you mean? They make a commission depending on the pricing structure of the branch they're with but the borrower doesn't actually pay them anything outside of the normal fees.

Fink

 

does the borrower pay a fee to the broker for their services?
here the lender pays the mortgage broker a commission, the borrower does not pay the broker anything.

 

If you can find one of those short sale condo's that has a Bank of America mortgage on it...

you could do well.

BofA has streamlined their short sale process, and love to hold a new note for the new owner.

Talk to a local Broker/Realtor who is a short sale specialist, and one who has BofA experience.

Good luck.

 

yes.

the lender pays the mortgage brokers commission.

however, indirectly...the borrower is paying for it. just not up front, and not on paper directly.

just like a buyer can hire a buyers agent (Realtor or Broker) at no cost tho him/her...the property seller pays commissions. however #2, indirectly the buyer is ultimately paying the commission...because the buyer is the one coming to the table with money.

I could get deeper and cause some heads to explode (or at minimum cause some headache or heartburn)...but I won't waste your time.

 

thanks

 

Since you qualify for USAA, also try PenFed. I use them and Wells Fargo (oddly enough).


They have great rates and offer different types of loans, like a cool 5/5 ARM (only adjusts once every five years instead of 5/1 like most banks adjusting every year, good for shorter term loans if you dont plan to keep for 30+ years)

 

I've had a mortgage with Wells Fargo, Bank of America, & now Chase. Never had any problems with the big banks. No need to fear them. Best thing to do is try the military banks first or go with a mortgage broker that works with different institutions to find the best deal for you.

 

this ^^^

unless you are a seasoned individual with many real estate purchases/mortgages behind you.

 

Y'all know...

at some point, you will realise...

mortgages are for rookies.

 

Ya , but you have to get started oldtimer

 

Indeed...

At one point I had a half dozen of them.

Also, under some circumstances...even if you are a billizillionaire (which I'm not, I'm old and poor), they have their place.

 

Anybody ever hear or deal with Guild Mortgage?