BRAG: Just got approved for a home mortgage

[Artsemis]

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Variance: don't have a house picked out and living w/ 2 friends

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and who are you moving in with? or is it a house just for you?

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hmmmmmmmmm

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I read that as he is currently living with 2 friends, not that he will be......

but I have reading comp problems ldo

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lol I read it the same way. Runyon, play more CS.

[Butcho22]

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How much money/month does a $175k mortgage translate too? What kind of interest rate are they quoting you?

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Well, I'm going to put 15-20k down, so the actual mortgage will be more around the 160k area. The monthly payment is around 1,100 - 1,200 including mortgage, taxes and insurance. I was quoted at 6.5% 10\1 APR 30 yr loan.

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As a first time home buyer with money to put down, wth are you taking a 10/1 loan?

Are you planning on making interest only payments or something?

[IronFly]

maybe he doesn't plan on living with his buddies in this bach pad for more than 10 years.

[Gone Forever]

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Congrats ... I'll be going down a similar road myself in the near future. How much money/month does a $175k mortgage translate too? What kind of interest rate are they quoting you?

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Standard 30 Year AM Loans:

7% = $1164.28
8% = $1284.09
9% = $1408.09
10% = $1535.75

40 Year AM Loans:

7% - $1087.50
8% - $1216.80
9% - $1349.88
10% - $1486.01

50 Year AM Loans:

7% - $1052.95
8% - $1188.73
9% - $1327.50
10% - $1468.43

30 Year AM Interest Only Loans:

7% - $1020.83
8% - $1166.67
9% - $1312.50
10% - $1458.33

OP ask me any questions you have before you go see some random mortgage guy. There is a TON you need to know before you even attempt to find a home.

[AceLuby]

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maybe he doesn't plan on living with his buddies in this bach pad for more than 10 years.

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Pretty much it, plus this is what will give me the lowest payments for 10 yrs. By that time I can either re-fi or sell.

[Piece of Cake]

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This is actually a really good time to buy. Interest rates are still climbing and LOTS of houses are being foreclosed or have been on the market for a long time. Pretty much anything under 250k is having a really tough time selling in my area. This equates to dropping prices along with the ability to lowball and have the seller pay closing costs.

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I'd agree it's a buyers market and that houses are selling lower than they were at the top a while back. I was simply inquiring as to how much MORE downside there is. If there are more sellers than buyers, and more foreclosures hitting the market, and rates are going up (meaning people can afford less and less), it sounds to me like there is more downside. I'm no expert but simply because they're at a discount doesn't mean to me that real estate is still good in the short term <2 years, thus my question.

Is there something to make you think that we've hit the bottom, that there will be no bubble burst, and that you wouldn't be able to find an even more favorable market for less in 12 months? I'm not trolling - I don't know the anwswer and of course BBV is not the place for such a discussion but whatever. Additional real estate purchases are however possibilities for me, especially in markets hit the worst, (i.e. Florida) however I'm not fond of catching a falling knife. Is there something that makes you think that the trending conditions you stated will not persist or worsen and thereby afford even better deals a year or 2 from now?

Congrats again and gl with you purchase.

[hamsamich]

Threads like this make me hate living in NY. 175k won't even buy a one bedroom condo infested with roaches here.

ohh...congrats btw.

[Gone Forever]

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maybe he doesn't plan on living with his buddies in this bach pad for more than 10 years.

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Pretty much it, plus this is what will give me the lowest payments for 10 yrs. By that time I can either re-fi or sell.

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That's not really a bad loan. As long as the area you are looking to buy in is an area that's appreciating or at least not depreciating you should be fine with interest only.

If the market starts to decline since you're not paying off any of your principal then that money that you put down (which has now become your equity) will start to disappear.

Just keep an eye out on the market and don't be afraid to spend $300 every year getting the place appraised so you'll have a true idea of where you stand in your particular area.

Houses are financially dangerous. Most people have been tricked into thinking they're assets, but, the reality is that they are, in fact, HUGE liabilities.

[RoundGuy]

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Houses are financially dangerous. Most people have been tricked into thinking they're assets, but, the reality is that they are, in fact, HUGE liabilities.

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This is misleading. Please clarify.

[AceLuby]

Piece of Cake - I honestly don't know how the market will turn out, and to be honest I really don't care. I just came into some life insurance $$ for the downpayment, interest rates are climbing and it doesn't look like they are stopping soon, and there are A LOT of options for a first time homebuyer. Couple that with the fact that one of my friends is staying w/ me in a 1 BR apt makes it a perfect time for me to buy.

Gone Forever - The loan is NOT an interest only loan. It's a fixed rate loan for 10 yrs and then is adjusted every year for the next 20. Also, the houses I'm looking at are WAY undervalued and will easily appreciate over time as long as I take care of it. Not too worried about that though.

All in all I appreciate the comments coming, it's really getting me excited to move.