Home Mortgage Question

**Frugal Girl** · 06-19-2007, 06:27 AM

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!

**Holly** · 06-19-2007, 06:29 AM

About 1500.00 closing costs when we fiananced in 2000.

**TheRootedNomad** · 06-19-2007, 06:56 AM

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.

**geckoace** · 06-19-2007, 07:54 AM

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.

**FrugalMomof3** · 06-19-2007, 08:53 AM

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.

**Frugal Girl** · 06-19-2007, 10:15 PM

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!

**mikandmari** · 06-20-2007, 02:13 PM

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!

**Luv2BeFrugal** · 06-20-2007, 02:22 PM

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...

**Frugal Girl** · 06-22-2007, 06:14 AM

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.

**PplAmanda** · 06-23-2007, 10:55 PM

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