NJ B.S. Thread

Unfortunately I feel mortgage rates will be significantly higher by then. I'm being told that there will be substantial increases by the time I am ready to buy 8 months from now when I'm ready to buy. As the housing market picks back up so will interest rates.

 

Damn. I mean I figured it would go up with inflation and what not but not a huge huge amount

 

So can anyone explain the other terms?

 

remember to keep some extra money for closing costs and shit

I think I needed an extra $7k at closing and I think I paid inspections on my credit card.

call the bank. never heard it like that.. i just know mine is 30yr fixed, 3.6% apr

 

APR is the annual percentage rate.
The true rate can be different if you pay for points (reduction in the APR) or there are annual fees. The true rate bundles this all in and factors it into how much you pay the mortgage company. I could have these reversed, forget which is the one that factors this stuff in.
The fees are upfront costs for securing the loan at that rate (not the total costs mind you), typically for getting points.
pt is the points you are getting. This is a reduction in the APR that you pay an upfront fee for. The minus signs are throwing me off though, typically you are paying money for a reduction in APR. Which must be the case since that looks like a pretty good rate.
30 day lock means the rate is guaranteed for 30 days, your closing date needs to within that window to ensure that rate.
15 year fixed means you pay for 15 years and it don't change.

And that is how you debate.

 

Thanks! I think it could also be low due to my high credit score?

 

Hi guys...

And don't forget as you shop loans - You can get a 30 year loan and pay it off early. It tends keep the required payments lower for "just in case" but then you can pay more than the required amount to shorten the loan.

 

I knew the soulless wonder had this, always good with the mortgage questions.

 

I agree but you would still end up paying a little more interest. I'd like to keep as much of my money as possible lol

 

Not always true - If you pay more than the required payment/month and ensure it is being credited to the principle, it lowers the overall amount you owe faster than anticipated and in turn, you pay less in interest.
You can also expedite the payoof by paying twice a month, if your lender will allow you to configure the payments that way.

 

Good point. I've actually changed mindset myself. My current adjustable mortgage plan to get 20% equity through an uber low rate and paying more to principle has worked. Going to refinance into a 30 year fixed with no PMI and no intentions of trying to pay it off early. Basically a mortgage is one of the best loans you can get and there isn't much benefit in paying it off to tie up your money into one big expensive thing.

I should sell this shit or something.


BTW - I'm on a plane to Vegas and drinking so take all advise rendered with a grain of salt.

 

Bolded part nails it. The benefit of a lower payment/month means if a holiday gets tight or work gets slow or something...You've got a better chance of making the minimum payments, and if things are good - you can pay up extra.

 

This and not many people end up really doing that as much as they want to and say they are going to. At a 15 year loan I am forced to pay it.

 

Is the only way to get rid of pmi early is by getting a new loan and paying up to the 20% upfront or can one do this at any point?

 

I gotcha, We will see when the time comes how much I'm making per month and how much I can afford

 

Yeah...If you can't keep yourself to a budget you won't pay it as fast...I just set up auto-pay for about 50% more than my minimum payment for every month and that is that... if I need to-I can change the auto pay to dig myself out of a hole or cover the holidays or whatever.

 

IIRC they have to stop charging you PMI when you reach 78-80% of the original value of the mortage. You can also request it to be cancelled after you establish an on-time payment history, but they can deny you and continue to charge it. Last option is re-fi w/ the down payment.

 

Don't buy Corey...

Once you get a house it's not all it's cracked up to be.

You can't even hold onto a truck for 3 years how you going to do a 30 year mortgage? Zing!

Fuck a typical McMansion with neighbors up your ass on every side.

I want land next to a river or lake that I can walk out front and shoot like Fred's. Ill build a small efficient off the grid cabin and have a huge pole barn put up.

Then Ill start mailing people packages and growing my beard long

 

Flying out of Philly? I am heading out on the 30th.