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NFCU 100% financing mortgage opinions wanted

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
New Contributor

NFCU 100% financing mortgage opinions wanted

So, as we close in on a property that may well be the one, someting occurred to me, that I may change my original plan:

 

- My intent was to pay the total 1.75% point/fees to buy down the rate from 5.5% to 4.5%. This is/was going to cost around $5k, give or take. The difference on a $275k house, was about $168, just for P&I.

 

However, the more I've thought about this, it's occurred to me that I may be better off not paying the $5k to buy down the rate, leaving it initially at the 5.5%. Then, at some point in the near future, refinance the loan to a "normal" conventional rate in the 3.5% range, or whatever the normal rates are these days.

 

I will have about $15k in cash by the time any loan would close for purchase. I was going to use the cash for appliances that we need, and for paying off/down other monthly expenses. However, I caould also hold on to a large portion of that cash if it's going to cost something to refinance.


Thoughts/feedback?

Starting scores: EQ 580 TU 575 EX 580 (9-13-2014) (not FICO official)
EQ 670 TU659 EX 707 (03-31-2016) per myFICO

Goal: 720+ on all
11 REPLIES 11
Contributor

Re: NFCU 100% financing mortgage opinions wanted

What will your mortgage payment be using 100% financing?

Message 2 of 12
New Contributor

Re: NFCU 100% financing mortgage opinions wanted

Loan will be around $273k, and P&I will be around $1550. So, counting T&I, will be a little over $1700.

Starting scores: EQ 580 TU 575 EX 580 (9-13-2014) (not FICO official)
EQ 670 TU659 EX 707 (03-31-2016) per myFICO

Goal: 720+ on all
Message 3 of 12
Frequent Contributor

Re: NFCU 100% financing mortgage opinions wanted


@phoenixchuck wrote:

Loan will be around $273k, and P&I will be around $1550. So, counting T&I, will be a little over $1700.


So what did you end up doing?

Message 4 of 12
Established Contributor

Re: NFCU 100% financing mortgage opinions wanted

don't buy down now, refi later like you thought.

What did you wind up doing?

All 3 790's
All Chp7, Judgements , CO's now legally clean from scores low 600's just using this forum
Chase Amzn 8.5k , Citi BB 5k, Citi Gdyr 5K, Amzn Store 12k, SallieMae 12k Amex BCE 36k , PenFed Promise 50k +15k PLOC, NFCU Visa Plat 25k, Rewards 25k, CareCredit 25k
Message 5 of 12
New Contributor

Re: NFCU 100% financing mortgage opinions wanted

I ended up not buying down the rate. Although when I locked it in, the rate went down slightly to 5.375%. The process with NFCU was overall fairly easy, though they really pushed the closing down to the stinking wire. I ended up getting over $1900 back after closing they mailed me a check.

So I bought a house with no down payment, and after paying for earnest of $1000, home inspection for $475, and appraisal for $475, I got all that back about a week after closing.

So the rate is high compared to current rates. But it suited my strategy. I didn't have to put 5% down for conventional loan, which would have been almost $14k, so even with an extra $170/month approximately higher payment with the rate, I feel like I'm somewhat ahead. Redfin estimate is a little over $294k as of today, so when I do refinance, that should help as well, as sale price was $269,900.
Starting scores: EQ 580 TU 575 EX 580 (9-13-2014) (not FICO official)
EQ 670 TU659 EX 707 (03-31-2016) per myFICO

Goal: 720+ on all
Message 6 of 12
Established Contributor

Re: NFCU 100% financing mortgage opinions wanted

Had I know about how to be a member of NFCU I would have gone for this loan.

The only other better one seems to be NACA but my landlord wont wait for that one.

 

I"m going to refi with NFCU /15 because none of their loans have PMI.

I have to work out the math for the lower interest rate on the 15 , drapping PMI
versus the closings costs...

 

I wonder if there is a calculator for this.

 

Of course.. since rates are headed back up .. I will have to wait until they go back down.

 

 

2 more things?

  • Can you tell me what your closing costs were?
  • How was the paperwork process with them?
All 3 790's
All Chp7, Judgements , CO's now legally clean from scores low 600's just using this forum
Chase Amzn 8.5k , Citi BB 5k, Citi Gdyr 5K, Amzn Store 12k, SallieMae 12k Amex BCE 36k , PenFed Promise 50k +15k PLOC, NFCU Visa Plat 25k, Rewards 25k, CareCredit 25k
Message 7 of 12
Valued Member

Re: NFCU 100% financing mortgage opinions wanted

Sorry I did not see your post earlier. I plugged your numbers into a mortgage calculator I coded, and you will need to refinance in the next 1 year and 11 months before you start losing each month thereafter on this deal. Hope that helps and congrats on closing with NFCU! I am planning on getting a mortgage through them as well in the near future.

 

Message 8 of 12
New Contributor

Re: NFCU 100% financing mortgage opinions wanted

Rebecca closing costs ended up being around $4,000, plus they added a loan funding fee onto the loan. I had $6,000 in seller credits, so once I got my money back from title, it was literally zero out of pocket for me.

The breakeven point should be a lot longer than 1 year 11 months, right? $170/month into otherwise $14k? And factoring in the $4000 funding fee, still gives me a a $10k buffer. Unless I'm missing something, $10k/ $170 would be about 58 months. How are you figuring 1 year 11 months?

The paperwork was pretty easy, I thought. Application, standard docs, credit explanation for some older and random things. I think the whole process was a lot easier than I expected it to be. I'm sure a lot less hassle than a big box bank.
Starting scores: EQ 580 TU 575 EX 580 (9-13-2014) (not FICO official)
EQ 670 TU659 EX 707 (03-31-2016) per myFICO

Goal: 720+ on all
Message 9 of 12

Re: NFCU 100% financing mortgage opinions wanted

Would you please share what your mortgage payment is on a home $269K? This is around the price range we are wanting to stay around so we are trying to estimate what our payment would end up being. Also please share what your (and joint if you used a joint applicant) were at the time you applied. 

 

Thanks in advance! 😊😊


Message 10 of 12