What home mortgage option would you recommend?

Posted on Aug 15, 2012 in FHA Information


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Question by diamondcattoy: What is the best source for an FHA mortgage in California? A large bank or a finance company?
I am interested in getting pre-approved for an FHA loan and have been talking to my bank and I want to know what my options are to keep my costs down and not get taken advantage of as a first-time home buyer. If you have resently had some experience with this in the Riverside County area any advise would be appreciated.

Best answer:

Answer by Big daddy
it depends on a few things, cheap one timeframe. Almost everyone is going FHA now, so the big banks are pretty backed up in their FHA divisions. Generally a finance company can get a file completed much quicker. Next are your qualifications, meaning mostly your credit and income. The lower the credit and the tighter the income, your probably better off going to a finance company as they have fha lenders that specialize in that type of scenario, but going through a broker means paying certain items, such as origination and discount, but keep in mind that any FHA discount fee you pay should be tax deductible (see a tax professional) Bottom line is anyone can promise you the starts and the moon, work with who you trust the most, not who promises you something, if they promise or quote you something, demand it in writing, this should weed out the jokers, ask about time frames, when you can expect to close, how long does underwriting take, how long is my rate lock. Talk to a few people, but do not let them pull credit, that could drive down your score, see who you like and proceed from there, good luck

What do you think? Answer below!
Question by That’s what who said?: What home mortgage option would you recommend?
I am buying a home. I will put down an offer for $ 65, medical 000. I make $ 30,000 a year and have $ 19,000 saved up towards the home. I have a credit score of 725. I was planning on getting a 15 yr mortgage, and putting 20% down, basically because I want as little debt as possible. Today, I was talking with someone who recommended putting down as little as possible (FHA 3% even) and taking out a 30 year mortgage. He said I could use the money I would have otherwise spent on the 15yr, 20% down mortgage to invest, thus making more money than i will pay extra in interest. While his thinking made sense, I just can’t be comfortable with that much debt. I am familiar with other forms of investing. He also reminded me most 30yr mortgages let you pay more than your principle, and I would have more “cushion” this way. It just seems like a better idea to get the best interest rate possible (about 4.7% for a 15yr, as opposed to 5.1% for a 30 yr). With the 20% down I would also avoid mortgage insurance. I know i CAN afford the 15yr, 20% down payment, but should I go this route? Thank you!

Best answer:

Answer by odzookers
Ask for an amortization table for each of the types. You’ll be appalled to discover how much more you’ll pay in total interest with the 30-year option. It’ll be like buying the house and paying for it 3 or 4 times.

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2 Comments

  1. Put 20% down please and if you can more than that….cause buying home is the best option right now….Why would you want to pay more in interest rates…put 20% down get over with it in 15yrs with low interest rate….As you know coming years of Democrats…will boost up the economy and will appreciate the actual paid cost of ur house….
    your thinking basically is good:)

  2. The “best” investment to make these days is to pay down debt or to not assume debt. Putting down a larger down payment means you have less of a chance of becoming upside down. Taking a 15 year mortgage gives you a lower interest rate. If you can swing it, I suggest you do it. As far as investing. Talk to anybody in the market over the past year or two. Go with the 20% down 15 year mortgage. Good luck.