Open to your thoughts on finding the best rates/terms on a mortgage. May be purchasing a house soon. I know, the market is horrible. But that's why I'm buying!
Finding the best mortgage
- Thread starter levi
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Having bought a house within the past year, I can tell you without doubt you're swimming with sharks.
Pick four banks, preferably local. Put in applications. Do them within 30 days of each other so your credit rating doesn't take multiple hits for multiple inquiries. Don't be afraid to play one bank off another: "Well... your competitors across the street offered me THIS..."
And a word of advice: repeat after me: "I will only accept a 30-year fixed mortgage."
Absolutely, positively stay away from mortgage brokers. They do NOT have your best interests at heart.
Lastly, be sure you ask each bank what they charge for an "origination fee." This is money that goes straight into their pocket at closing. Prepare to be stunned.
Pick four banks, preferably local. Put in applications. Do them within 30 days of each other so your credit rating doesn't take multiple hits for multiple inquiries. Don't be afraid to play one bank off another: "Well... your competitors across the street offered me THIS..."
And a word of advice: repeat after me: "I will only accept a 30-year fixed mortgage."
Absolutely, positively stay away from mortgage brokers. They do NOT have your best interests at heart.
Lastly, be sure you ask each bank what they charge for an "origination fee." This is money that goes straight into their pocket at closing. Prepare to be stunned.
I hear you about the sharks, HardbodyLoyalist.
Started off with 3 different loan originators, told each one I was talking with others and didn't give a d--- who got my business, just wanted the best rate/terms period.
Of the 3, only one seems at all interested in my business. He's shown me an online site for those in his business that give rates, qualifications, etc for most any institution in the area, showing exactly what I qualify for. This guy has repeatedly impressed me with his knowledge and his willingness so far to share it with me.
I'm amazed at the other 2 who seem basically disinterested. The real estate business ain't good around here at all, and I can't even get them to give me a call back on questions... Must have been my approach originally - "Give me the best rate or I'm walkin'."
Our credit is outstanding and I use that for all the leverage I can. Looking for something for no fees/closing costs, and yes, only a 30 year fixed. Preferably one that is set-up with bi-weekly payments or at least will accept them.
Started off with 3 different loan originators, told each one I was talking with others and didn't give a d--- who got my business, just wanted the best rate/terms period.
Of the 3, only one seems at all interested in my business. He's shown me an online site for those in his business that give rates, qualifications, etc for most any institution in the area, showing exactly what I qualify for. This guy has repeatedly impressed me with his knowledge and his willingness so far to share it with me.
I'm amazed at the other 2 who seem basically disinterested. The real estate business ain't good around here at all, and I can't even get them to give me a call back on questions... Must have been my approach originally - "Give me the best rate or I'm walkin'."
Our credit is outstanding and I use that for all the leverage I can. Looking for something for no fees/closing costs, and yes, only a 30 year fixed. Preferably one that is set-up with bi-weekly payments or at least will accept them.
JHZR2
Staff member
I dont knowif youve bought before, but if not, or not recently (been renting fora while or whatnot), see if your state has a 'first time homebuyer' mortgage program. Salary requirements are part of it, bit for in NJ, for example, the max salary is pretty high, so I didnt have an issue when I bought.
The rates were very favorable, and the only real requirement is that you need to stay in the location for 7 years. I bought a house that I knew would fit the bill permanently, as a major expense that I wanted to avoid was that of real estate commisions incurred when 'trading up'.
NJ real estate isnt cheap, but I bought a reasonable home with 10% down and a good rate. This was nice because it let me avoid raiding emergency funds, retirement, etc., to scrounge up a more sizable downpayment (I maxed out my contribution to my 401k for the years before, so I had more retirement savings and investment than non-retirement).
Worked quite well...
JMH
The rates were very favorable, and the only real requirement is that you need to stay in the location for 7 years. I bought a house that I knew would fit the bill permanently, as a major expense that I wanted to avoid was that of real estate commisions incurred when 'trading up'.
NJ real estate isnt cheap, but I bought a reasonable home with 10% down and a good rate. This was nice because it let me avoid raiding emergency funds, retirement, etc., to scrounge up a more sizable downpayment (I maxed out my contribution to my 401k for the years before, so I had more retirement savings and investment than non-retirement).
Worked quite well...
JMH
Why the love for a 30 year mortgage?
I believe he meant make sure you get a fixed rate rather than promote a 30 year loan.
JHZR2
Staff member
I'd say because of the flexibility.
Provided youre not lazy, or easily distracted, and there areno penalties (usually the case), you CAN absolutely pay a 30 year mortgage off in 15 or 10 or 5 years.
People dont because of laziness, in the form that they dont want to have the discipline to pay more towards principle.
What the 30 year gives you, especially these days where, despite the doom and gloom, real estate has appreciated still today much more significantly than most incomes, is flexibility. Homes arent cheap, in most areas worth living. My town has seen no reduction in home prices or demand, for example. Say youre relatively young, buy a house, have two working partners. Say the wife wants to take a year off because she is having kids. Say you want your wife to stay home for a long period of time. Discipline or not, it is much harder to live on one salary than two. So what should you do? Wait to pay off the mortgage before kids? My home and my mortgage work for me, not hte other way around...
So having a longer mortgage allows you to pay off the mortgage aggressively, over the same duration as any shorter mortgage, but gives you more flexibility during 'life events'.
If you do pay aggressively and ahead of schedule, then the difference in interest isnt that huge. IMO, the flexibility is worthwhile.
Maybe Im wrong...
JMH
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...see if your state has a 'first time homebuyer' mortgage program.
Probably wouldn't work for us. We once had a VA assumable mortgage. That was great! Name, address, SS# on a 3"x5" index card and the mortgage was ours! Not kidding.
Probably wouldn't work for us. We once had a VA assumable mortgage. That was great! Name, address, SS# on a 3"x5" index card and the mortgage was ours! Not kidding.
good advice
JTK
$100 Site Donor 2025
Maybe it depends on the area, but we went through the mortgage broker recommended by our real-estate agent/company when we purchased our second home. A local well known place right around the corner. We did our research before hand, but they got us a sweet rate and made the process super simple. Just popped in once to sign the papers & that was it.
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