First time Home Buyer

angelajock · ‎06-05-2007

Hey Guys, I need your help

I just got an approved FHA Loan. My interest rate is 6.75 and my monthtly payments will be 1,023 a month. This is my first home and I think that mortgage payment is steep. My scores arent perfect but they arent that bad either. Using a VA loan is also an option for me. Should I use my VA loan or search around for another loan? I just dont want my mortgage to be that much, I think its a little high. I was approved for 130,000. So should I go VA or search around for something better or just stop whining and go with FHA?

Equifax- 645

TU- 657

EXP- 675

Anonymous · ‎06-05-2007

I think with VA the only added benefit you'd get would be $0 down. With FHA, how much do they want down? I'm guessing 3%. Paying more down will drive down your payments, some.

If you want, PM me and I'll put you in touch with a broker. He's very willing to help, and will not hesitate to direct you to someone else if he can't help you.

angelajock · ‎06-05-2007

They want 3% down. I havent found the house yet, I am just Pre Approved. The place I find may only be 100,000. But I just think 1,023 sounds Steep. But if I put more down for the down payment, it will make my payments lower right? I believe 3% of 130,000 is 3,900, so instead of putting 3,900 down, I put 10,000 down will that lower my payments a significant amount?

Anonymous · ‎06-06-2007

It sounds like your mortgage is including all associated cost with your payment ie your taxes and pmi. While FHA loans have great rates and are good for people who dont have 20% to put down on a mortgage, they get you buy making you get pmi insurance which will up your monthly payment. If all you can afford to put down now is 10,000 on a 100,000 -130,000 house, then your better off just giving the fha loan what they require for a down payment and keep the 6500. If you calculate what your mortgage would be with 3500 compared to 10000 you'll see over a 30 yr mortgage that you'll end up saving about 10.00 a month or 3600 over a 30 yr mortgage that you just paid 6500 for. While any savings is good that money could be better spent in putting new furniture or appliances in your house or just saving it in case hard times come and you need backup to make your mortgage payment

MM1234 · ‎06-06-2007

Yep. Putting $$ down is good IMO if you can lower your monthly like $100-200. OR if you have it saved - PLUS - have 6 months worth of expenses saved. Smaller amounts and I feel its better to have the funds liquid or use it for furntiure.

Your payments do seem that it DOES include all your PMI, Taxes, etc. Tho so that should be good.

Im looking for a place and All these online calculators show your monthly payment only Based on the LOAN. Suze O. says to add on 40% to get a real idea of what you may be paying monthly ( mortage, PMI if not giving 25%, HOA fees, Taxes, Insurance, etc.) Just to see if you are comfortable with that amount.

Of course if its less than that in the end - GREAT!. More gravy for you.

Anonymous · ‎06-06-2007

@MM1234 wrote:
Yep. Putting $$ down is good IMO if you can lower your monthly like $100-200. OR if you have it saved - PLUS - have 6 months worth of expenses saved. Smaller amounts and I feel its better to have the funds liquid or use it for furntiure.

Your payments do seem that it DOES include all your PMI, Taxes, etc. Tho so that should be good.

Im looking for a place and All these online calculators show your monthly payment only Based on the LOAN. Suze O. says to add on 40% to get a real idea of what you may be paying monthly ( mortage, PMI if not giving 25%, HOA fees, Taxes, Insurance, etc.) Just to see if you are comfortable with that amount.

Of course if its less than that in the end - GREAT!. More gravy for you.

YES- My payment is $1540, $300 of that is impounds for taxes and insurance.

Anonymous · ‎06-06-2007

I don't think that's a bad deal at all and as mentioned it probably includes property taxes and PMI. I'll trade you house payments....I just got into the Fannie Mae 30-fixed at 6.375% and 3% down and I'm looking at about $2100 a month.

I'm not sure that you will beat at or near prime with hardly any money down and mediocre credit scores. Be weary of loan brokers that will try to shoehorn you into something you will regret later. I actually had a few lending options that would have lowered my payment a bit, like an ARM or some crazy % interest loan, but I steared clear of those. FHA, Fannie Mae, etc. I think are really good programs. IMO it's a better deal to bite the bullet a little and jump on that 30/fixed.

Message Edited by devhip on 06-06-2007 08:17 AM

Anonymous · ‎06-06-2007

I checked your numbers based on the home affordability calculator available through realtor.com. They come our exactly the same as you were quoted. 3% down, $10k available to buy home, $130,000 house price, $1,050 for the mortgage (includes P&I, PMI, taxes and insurance). So they appear to be straight with you.

At 6.25% interest it drops the monthly payment just a little (~$50/month). You might want to check it out for yourself. Look for affordability calculator, because you have the most flexibility and visibility as to what goes into your payment. Good luck and congrats on your upcoming purchase.

Anonymous · ‎06-08-2007

Hey there,

Bank of America has a Community Commitment Program where you can finance 100% with no PMI. Obviously, everyones rates are going up right now, but these are still around the 6.75 area. If you want more information just get back to me.

Good Luck!

jandj · ‎06-08-2007

Obee- my husband and I are in the market for a house in the next 3-5 months. We're first-time homebuyers and that deal sounds great!