Home Mortgage Question
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  1. #1
    Registered User Frugal Girl's Avatar
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    Thumbs up Home Mortgage Question

    At the beginning of June, we got a 100% loan for $84,000 for our home for 6.25%, $670 a month at a 30 year fixed rate. We wouldn't have to bring any money to the closing table, as it was included in the mortgage.

    Yesterday, I found out from dh that the loan didn't get locked in at 6.25%, but 6.87%. I called these loan people and haggled and got it where the loan is now 6.5%, $648 a month, 30 year fixed, but now we have to bring $1200 to the table.

    Since interest rates have gone up, we can't get anything any lower than 7.2%

    These are my options:
    1. Pay the $1200. ( I have the money to do it.)
    2. Scrap the whole plan and wait until another time.
    3. Move to another apartment.

    What I am wondering is "AM I GETTING SCREWED?" does this sound like a good deal? WHat have you had to pay for closing costs? Any advice?

    Thanks so much!

  2. #2
    Registered User Holly's Avatar
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    About 1500.00 closing costs when we fiananced in 2000.

  3. #3
    Registered User TheRootedNomad's Avatar
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    Our morgage laid out almost identical to yours back in 1998. (We paid 84,900). I don't think that's getting screwed. I don't remember what we had to come to the table with but the 1000-1500range sounds about the norm. That said if I had to do it over again I'd save and either put a minimum of 20% down so that I didn't have to pay PMI, or save, get the same morgage I would've gotten and then make a huge (at least 20%) payment in the first couple of payments. I haven't run exact numbers yet but I think the second way saves lots of the intrest you pay in the beginning of a moregage.

  4. #4
    Registered User geckoace's Avatar
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    this basically happened to us too. i think its what they do. but all in all since your payment will be lower i don't think you are getting screwed.
    Reba

    When you come to the end of your rope, tie a knot and hang on.
    Franklin D. Roosevelt

  5. #5
    Registered User FrugalMomof3's Avatar
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    I dont think your being screwed at all, your monthly payment is even lower since putting that money down. I had to put down over $3500 the first time I got a mortgage and we bought the house at $66,900.

  6. #6
    Registered User Frugal Girl's Avatar
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    Thanks so much to all of you. This is the first time my husband and I have bought a house. It's so confusing with all the numbers they throw around and everything.

    I appreciate your honesty and your help! I love you guys!

  7. #7
    Registered User mikandmari's Avatar
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    If you look at the the big picture, 6.5% is still a really good rate (especially without a huge down payment). Historically, rates are still very low. In the 1980s 10% or more wasn't unusual. We bought our house in 1996 at 8% (now refinanced, of course!).

    You're getting a good deal. But I have to ask, what state are you in that you can still purchase a home for $84,000? Lucky you!

  8. #8
    Licence to Kill Luv2BeFrugal's Avatar
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    Sounds like you got a good deal...hope you really enjoy your new home!

    I agree...I would LOVE to have access to a home for $84,000...can't even get a condo here for that...
    Kace - married to Dh for 14 years

    Always pinchin' pennies!

  9. #9
    Registered User Frugal Girl's Avatar
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    I live in Kentucky. There have been a lot of new subdivisions in this area that have gone up. Everyone wants to live there. SO there are quite a few homes left by the wayside.

    Also, this is a two bedroom house. Not many people want them either.

  10. #10
    Registered User PplAmanda's Avatar
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    I don't think you are getting screwed either. I bought my home a bit over 2 years ago. I did 100% financing and the seller paid all closing costs. I financed $76,900 over 30 years at 5.75% fixed rate loan. My house is 1300 square feet, 3 bedrooms, 1.5 baths on 1.5 acres in a great older subdivision less than a mile from the best elementary school in the county. I love Arkansas

  11. #11
    Registered User Frugal Girl's Avatar
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    Wow that sounds like a great deal! You really got a steal.

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