So I'm Looking to Buy a House

[msparks]

Originally Posted By: Bill in Utah
Look for whoever will give you the best rate. Watch out for points and closing costs.

15 year fixed that is no more than 25% of your TAKE HOME pay.



I agree with the 1/4 take home pay, maybe not the 15 year fixed, sounds like Dave Ramsey Gibberish.

Lock your house in today, with today's dollars. 30 years it don't matter, our dollars will inflate in the near future, the banks will be the ones sucking because when inflation hits, the dollars will be worth less, well your dollar will still be the same.

You can get a 30 year, and pay it off in 15 if you so desire. That's what I would do.

As far as credit union or bank, if you really care about those scumbags in the finance system then I guess the credit union is the lessor of both evils. All financial institutions that are tied to the FED are bad in my book, just find the one with the lowest cost.

 

[Steve S]

I did the 30 year loan and payed it off in 15 years and haven't regretted it at all. The 30 year loan payments aren't a whole lot lower but the interest adds up in 30 years.
Yes on the upfront fees, and not to buy a house in a developement with maint fees for the developement etc.

 

[Steve S]

Also study up on all the areas you want to buy in and if the areas are getting better of getting worst. Learn the valuse of comperable properties and don't overspend. Buying a house is and should be a pain in the you know where because it is the largest purchase you can make no matter what the price.

 

[D189379]

I don't understand why everyone recommends Fixed rates so much. It's been proven that variable rates save you more money ovr the life of your mortgage. I was offered a fixed rate of 5.75%, but the variable rate I chose has now dropped to 1.9%. We're in a recession, they aren't exactly going to jack up rates anytime soon.

 

[PandaBear]

Originally Posted By: D189379
I don't understand why everyone recommends Fixed rates so much. It's been proven that variable rates save you more money ovr the life of your mortgage. I was offered a fixed rate of 5.75%, but the variable rate I chose has now dropped to 1.9%. We're in a recession, they aren't exactly going to jack up rates anytime soon.


Depends on when did you get your fixed or variable rate.

If you bought a house when the rate is high:
You can refinance regardless of fixed or variable mortgage when the rate drop.

If you bought a house when the rate is low:
When the rate increase, you can stay with the low fixed mortgage with your fixed, but you cannot refinance to another low rate mortgage.


Do you seriously think that the rate is going to stay at 1.9% forever?

 

[javacontour]

It's my opinion that with the inflationary pressures building with all the money being printed to bailout the economy, a variable rate mortgage will be a bad thing soon.

I guess there are various ways a VRM is set up. Some are indexed to some other financial benchmark. Others can probably just go up every so often.

Those indexed to another benchmark may be good now. But if inflation takes off, no variable rate mortgage will be a good place to be, they'll all adjust up.

 

[D189379]

Originally Posted By: PandaBear
Originally Posted By: D189379
I don't understand why everyone recommends Fixed rates so much. It's been proven that variable rates save you more money ovr the life of your mortgage. I was offered a fixed rate of 5.75%, but the variable rate I chose has now dropped to 1.9%. We're in a recession, they aren't exactly going to jack up rates anytime soon.


Depends on when did you get your fixed or variable rate.

If you bought a house when the rate is high:
You can refinance regardless of fixed or variable mortgage when the rate drop.

If you bought a house when the rate is low:
When the rate increase, you can stay with the low fixed mortgage with your fixed, but you cannot refinance to another low rate mortgage.


Do you seriously think that the rate is going to stay at 1.9% forever?


No, but I also don't think it's going to go up past 5.75% in the next 4 1/2 years when my term is up. So if my rate stays below that I'm laughing. If my rate goes a bit above that I'm still laughing. If rates skyrocket to 10% tomorrow I'll be in bad shape, but that won't happen in our current situation.

 

[D189379]

Originally Posted By: javacontour
It's my opinion that with the inflationary pressures building with all the money being printed to bailout the economy, a variable rate mortgage will be a bad thing soon.

I guess there are various ways a VRM is set up. Some are indexed to some other financial benchmark. Others can probably just go up every so often.

Those indexed to another benchmark may be good now. But if inflation takes off, no variable rate mortgage will be a good place to be, they'll all adjust up.


Mine is tied to prime and I can lock it at any time (+ a few points) if I forsee impending doom (runaway inflation) anytime in the future.