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06-02-2009, 12:36 PM
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Mortgage rates...
...are unfortunately creeping up. I am shopping around for different rates to see what is the best I can get. Embassy Bank of Lehigh Valley is supposed to be tried and true. They have a 25 year (they don't do 30 year) mortgage at a 5.5% interest rate and you only need 10% down (I have a little over 10%) and pay no pmi. They said that the rate floats for 60 days and you can lock it at any time. You also HAVE to pay biweekly...which I think is interesting (we all know that you pay off a place sooner that way...they don't charge a fee for it - it is just the way the mortgage works).
My friend that closed a few weeks ago got a 5.12% interest rate which I know isn't a huge difference, but it makes a difference when a home is in the top of your price range. I am checking with some other banks to see what I can get with 10% down - but they all seem to be higher than they were just a few weeks ago. But with the 5.5%, 25 year mortgage...I think it makes my monthly payments just a tad too high. Humph. 
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06-02-2009, 01:06 PM
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Better make sure they don't charge a fee for making extra payments toward the principle.
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06-02-2009, 02:56 PM
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Honestly, financing companies are probably starting to gear up for what will be almost assuredly be high inflation.... by starting to raise rates, they can get people locked in at a higher rate so that they aren't stuck with a boatload of 4.5% mortgages when then-new mortgages are going at 10+%... (call me a pessimist)
__________________
"Praestantia per minutus" ... "Acta non verba"
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06-02-2009, 04:57 PM
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Yeah it looks like I am looking at a 5.2%-5.5% right now. I am still looking around and working things...
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06-03-2009, 06:24 AM
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I closed my mortage in April at 4.87% on a 30 year fixed, 20% down.
I'm amazed if you can get 10% down without PMI. I think you'll find most banks will insist on it. I also found that with less than 20% down, the conditions on debt to income, equity in assests, etc, were severe. They told me with 10% down, all payments, including the mortage could not be greater than 41% of net income - not gross. You have to prove at least 30% equity in assets as well as prove their total value. In your situation, you may want to check out FHA financing. You need 2 years of tax returns and there is a bunch of paperwork, but the down payment requirements are less.
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06-03-2009, 06:26 AM
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Oh, and don't forget to factor in your $8,000 tax credit! I wish I could have gotten that. I already owned a home, plus make too much to qualify
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06-03-2009, 06:52 AM
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Yeah! I can get the $8,000 at closing and I am going to use that to start my emergency fund and get a couch, tv and bedset..and some kitchen stuff. The rest of the house can wait!
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06-03-2009, 07:07 AM
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How do you get it at closing?? Are they advancing it and building it into the loan?
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06-03-2009, 07:13 AM
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It is a separate 0% loan that gets paid back when you get the actual tax credit next year.
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11-17-2011, 01:17 AM
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How do you get it in the end they are to move forward and build it into the loan?
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