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Originally Posted by yster
With the interest rate he offer me? is it high or low ? ( im living in sacramento)
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It doesn't seem unreasonable. The rate on a 2nd mortgage is always higher because it is more risky to the lender.
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Originally Posted by yster
is the loan prossessor lying to me? or is he trying to put me on traps ( because im just starting my new life, so i don't have any experiance to tell)
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It's always possible. I don't see mention of how much you're being charged for closing costs? This is where many lenders can nail you.
Did you shop around for deals from other lenders? Bankrate.com is a good source for finding lenders in your area.
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Originally Posted by yster
is the mrotgage above appropriated ?
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I won't go so far as to say it's inappropriate, but it's very risky. I don't know how much you make, but have you written up a budget to see if you can afford this? The mortgage payment is $2100/month. The tax bill may be $500/month now, but that can quickly rise. You have to pay for insurance on your house. You have to pay for maintenance and repairs.
With a 5-year ARM, after 5 years, you will have to refinance at the going interest rate which could potentially be much higher than it is now.
Also keep in mind that although real estate prices have been shooting through the roof for several years, they have been leveling off and could potentially drop. If this did happen and you had to sell, you could owe more on the house than you can sell it for. And that's not even counting realtor fees and the like.
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Originally Posted by yster
r there any messages can you guys suugest me to talk to the loan prosessor ?
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I would encourage you to hold off for a little bit and think before doing this. It seems you're rushing into this without doing the necessary research. Also speak with other mortgage companies to give yourself some comparison.
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Originally Posted by yster
btw, you guys mentioned about PMI (Private Mortgage Insurance) , can you guys tell mw what is that really mean? , in my case above, do i pay PMI (Private Mortgage Insurance ??
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PMI is insurance that you have to pay to protect a lender in case you default. You have to pay it if you have a loan that exceeds 80% of the house's worth. Your loans are structured in a way so that you don't have to pay PMI. Instead you have to pay a higher interest rate for the 20% loan.