where are the first time home buyers at?

[driftingrx5.7]

ok my wife and i are starting to look for a house now that she has her job and is getting paid MUCH BETTER. we have saved but its not a whole lot we figured have something like 5-10% for a downpayment. i went today to just get a quote for a 250k morgage. the dude gave me some crazy ass number asking for 20% down with taxes insurance something he called pre-insurance he said my morgage was going to be 2200 a month. that is half of our monthly income! well almost. i have not spoken to my friend yet but he just got a house for 200k no money down he just paid the closing cost. what did you guys do when you got your first home. we don't want to get something to small because we are in a 2 bedroom house now and we already out grew it, and its just me the wife and a cat! all i want is at least a big 1 car, 3 bedrooms, a living room, family room, dining room, kitchen, and basement. the house we are looking at is just over 2000 sq ft. with 2acr. of land. over where we live that is cheap for 250k. hit me with some insight

[andru1313]

Well whoever you went to see about a mortgage seems to be retarded. I have been in the Mortgage business for over 7 years.. You have a ton of options. if you have 10% to put down you can do an 80/10/10 80% first mort 10% second and 10% down. That way you can avoid PMI. 2200 a month may or may not be correct. It depends on your taxes and such. PI is not going to be that much but with Taxes and Ins.

If you want help let me know. I can hook you up with one of my best friends who is a lender and is trustworthy. Also if you need someone to bounce numbers off of hit me up I can help.

[WhiteXFire]

Every 100K borrowed at 6% is roughly $600/month for a 30/yr fixed mortgage. So, a 200K mortgage at that rate is $1200/month. I usually estimate adding at least $350-400 a month for taxes and insurance, unless the taxes by you are relatively low. That number is estimating ~4K/year taxes.

[wrx_snobordr]

Here is a great thread from before.

http://www.tristatetuners.com/forum/...ad.php?t=27488

[tjf]

Originally Posted by WhiteXFire

Every 100K borrowed at 6% is roughly $600/month for a 30/yr fixed mortgage. So, a 200K mortgage at that rate is $1200/month. I usually estimate adding at least $350-400 a month for taxes and insurance, unless the taxes by you are relatively low. That number is estimating ~4K/year taxes.

so then what would i be paying if i put down 100-125k on a house that is roughly 300k

[SexyDSM95]

Bought my house for $190k, it's a twin. Originally was a 5BR, 1 Full bath, Driveway. I paid nothing down, went with an 80/20 mortgage so I don't get hit for PMI. I pay just around $1400/month and that's a lot (I had okay credit at the time). I also went with seller's assist meaning they help pay for the closing cost.

The house is now a 4BR, 1 Full bath (working on a 2nd). You should be able to find something decent because the housing market is very slow and people want to sell since it's the summer and they are able to move while their kids are out of school.

[andru1313]

Originally Posted by tjf

so then what would i be paying if i put down 100-125k on a house that is roughly 300k

200,000 loan amount, 30 year term, 6.25% int rate
Principal and Intrest payment = 1231.43

FYI the market is Sh!t right now. Mortgage companies are going out of business left and right due to the subprime market. Houses are sitting a bit longer and the market has come down a bit. Don't rush into anythingl.

[noclutch]

Originally Posted by SexyDSM95

Bought my house for $190k, it's a twin. Originally was a 5BR, 1 Full bath, Driveway. I paid nothing down, went with an 80/20 mortgage so I don't get hit for PMI. I pay just around $1400/month and that's a lot (I had okay credit at the time). I also went with seller's assist meaning they help pay for the closing cost.

Thats almost exactly what I did. Bought for $165k, Got 105% financing ($172k maybe?), paid about $1000 at settlement. Went 80/20 also. I think my total minimum payment is about $1200 at 6.25% on the first and 10% on the second, both interest only. I pay about $1600 though to keep the interest gods happy.

Its a 2 unit, I live in one and am renovating the other. I paid under market value so when Im done renovating Ill be able to refi for 80% of the new value and end up with one low apr mortgage.

[su_maverick]

We are planning on buying next year. We expect to be looking at around $300k because of the market we are in (Bergen Co.) with about 10% down. I expect we are going to try to do a 80/10/10 30 year loan but the risk is always with our credit score since companies seem to be tightening up their requirements lately (namely WaMu which accounts for an ungodly percentage of mortage loans in the US). Unfortunatly, the way the market is going, I expect the rates to be between 7-8% by time we actually start looking for a place which sucks.

[driftingrx5.7]

wow i never thought about that 80/10/10 nor the 80/20 with nothing down i like that. i am goign to search around to see what i can find!

[dolphinS4]

What happened last week in the mortgage market is not the case this week.
So basically, what your friend or your neighbor did doesn't necessarily mean the same for you today.

As for the 80/10/10 loans, best of luck. Most of the largest lenders like Citi Bank and Wells Fargo are not even writing secondary mortgages right now.
100% financing is something that is going to be very hard to come by today.
I closed a 100% financing loan in June that would not stand a chance today.

Without the 20%, your choices are going to be very slim. Even then, the lenders are looking at credit scores and verifiable assets closer than ever before. Your gonna need at minimum a 750 middle score and enough assets to cover 6 months of mortgage, after your down payment and closing cost.

rates right now are around 6.5/6.75, depending on your docs and credit score. Any loan greater than 80%ltv is gonna be in the 7's and anything greater than 90% ltv probably won't happen.

Cliffs: save for the 20% + closing cost.

[driftingrx5.7]

saving 20% for a house will take us a while to do. 20% of the what the house we are looking at is $50,000 at the rate we are going with saving it would take 25 months to do. no way am i staying in a garageless small leaning house that we rent. i will take a lose somewhere i don't want to be in this house anymore. i can't complain to much we pay 650 a month for a two bedroom house. but there is so much wrong with it. we rent so there is no way we are going to put money into this house. and working on my cars with a gravel driveway is not cutting it!

[dolphinS4]

Originally Posted by driftingrx5.7

saving 20% for a house will take us a while to do. 20% of the what the house we are looking at is $50,000 at the rate we are going with saving it would take 25 months to do. no way am i staying in a garageless small leaning house that we rent. i will take a lose somewhere i don't want to be in this house anymore. i can't complain to much we pay 650 a month for a two bedroom house. but there is so much wrong with it. we rent so there is no way we are going to put money into this house. and working on my cars with a gravel driveway is not cutting it!

While it may be tough and take a while to save the 20% for the down payment, it will be well worth it for you.
The time will give the mortgage market to settle itself out and you'll be in a MUCH better position to shop for a loan. Probably get a better rate than you can today, too.

Here's another thing to think about. If you're only banking $2k a month with rent of $650, you are shopping for a $250k house you probably can't afford. Taking a mortgage with your scenario of 5-10% down is gonna leave you with a monthly mortgage/tax/PMI/insurance bill of +/- $2k. That's gonna leave $650/month to pay the additional bills that come along with a home that you don't get as a renter. That's gonna be cutting it real close.

There's no shame in buying a cheaper home, because being mortgage poor is not a way you want to live your life. The important thing is to start building equity in a property you like and can afford.

Trust what I say, I was in these shoes at one point in my life.

[driftingrx5.7]

hahaha trust me my friend my salary alone i can afford a 2k morgage. we just started the process. my wife and i bring home close to 6k a month. just don't want to pay rent anymore. we will be fine thank you just wanted to get different options thank you for your input tho