Timeline for Was this a good deal on a mortgage?
Current License: CC BY-SA 3.0
27 events
| when toggle format | what | by | license | comment | |
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| Jul 7, 2016 at 15:37 | answer | added | Jacksonkr | timeline score: 2 | |
| Jul 7, 2016 at 13:42 | comment | added | Fattie | PMI is the elephant in the room with mortgaging. It needs to be clear what part that is. | |
| Jul 7, 2016 at 5:53 | comment | added | Lilienthal | Wouldn't 740 be considered a near-excellent credit score instead of merely okay? | |
| Jul 6, 2016 at 22:46 | comment | added | David Schwartz | That might actually be reasonable if you are unable to make any significant downpayment and the loan includes PMI and taxes. But that's assuming everything you haven't told us is about the worst it could be. | |
| Jul 6, 2016 at 22:03 | comment | added | Max Jacob | Thank you everyone for the comments! I didn't get any other details from the consultant, so I don't know exactly how the $2,000 is calculated (I'll talk to him later). Based on what everyone is saying, I think I'll back out of it for now. I'll come back to it in the future when something better comes up. Thanks again, everyone! | |
| Jul 6, 2016 at 20:08 | comment | added | Ryan | @NotMe, holy crap that would explain it, property taxes on the home we're buying are only $1800 and it's on a .25 acre lot. | |
| Jul 6, 2016 at 20:07 | comment | added | ChrisLively | @ryan: hmm. I think I actually calculated off of 15% down. Also, taxes and insurance are fairly expensive in my area - about 10k/year for that. Which likely accounts for the difference. | |
| Jul 6, 2016 at 19:43 | comment | added | Ryan | That being said, I still don't think he should buy a $300k home on $55k a year. I think a much better investment would be a $130 - $150k condo/townhome. As is it's only going to get harder to own a home in the US as time goes on not easier. | |
| Jul 6, 2016 at 19:21 | comment | added | ChrisLively | I'm just going to point out that a loan on a $300k house when making only $55k/year is not a good idea. After taxes, and insurance (and a 20% down payment) your monthly payment should be a bit over $2000/month. Which is about half of what your take home pay will be. That doesn't leave a whole lot of wiggle room for other things like phone, health insurance, internet/cable, eating, etc. I think you'd be better served getting used to your paycheck for a bit so you know what you can actually afford. | |
| Jul 6, 2016 at 17:30 | comment | added | TsSkTo | I would also urge you to not buy a house this early on. I am in a very similar position and was of a similar mind about a year ago. Considering the commitment of a mortgage and assuming you're still paying off student loans, you will be better off, in the short run, just renting. There are much better investments than property out there. | |
| Jul 6, 2016 at 17:18 | comment | added | MonkeyZeus | Aside from $2,000/month mortgage sounding like a terrible deal I think you should re-evaluate your needs more modestly. Not sure where you live but in my neck of the woods (Central NY), a house like that would easily cost $1,000-$2000 per month in taxes in addition to the mortgage. You better get way more details from your broker or else you WILL be facing foreclosure within the next 3-10 years. | |
| Jul 6, 2016 at 16:06 | comment | added | R.. GitHub STOP HELPING ICE | FWIW that quote is more than twice what I pay on a 15-year loan of approximately half that amount (counting everything, PITI). From that standpoint alone it sounds like a very bad deal. | |
| Jul 6, 2016 at 15:22 | comment | added | Paulb | I avoid mortgage brokers and use major banks. Major banks are less prone to rip you off. Also, major banks are good loan servicers, which is more important than most people realize. Check with the bank where you have your checking/savings accounts--there are often breaks for existing customers. Additionally, be prepared: your realtor is going to try to swing to his mortgage broker because the realtor gets a kickback, don't fall for that. | |
| Jul 6, 2016 at 14:52 | answer | added | Dmitry Grigoryev | timeline score: 3 | |
| Jul 6, 2016 at 14:13 | answer | added | Jay | timeline score: 11 | |
| Jul 6, 2016 at 12:41 | comment | added | casey | Agreed with above. At your debt to income ratio on the house alone, you are probably seen as a higher risk (moreso if you are also servicing debts on student loans, a car, large revolving credit balances) and won't get the best rates. What are you putting down? How much other debt are you servicing ($/month)? Does $2000 include PMI, property taxes and insurance? | |
| Jul 6, 2016 at 12:34 | comment | added | BrownRedHawk | If we have to include PMI, no/little money down, etc it could come out closer to $2000/month after escrow. I know also that some "First Time Homebuyer" programs make it 'easier' to get the loan, but will also make it more expensive. Also, as an aside, this seems like a LARGE purchase on this sized salary. It's probably over 50% of annual take-home pay, which most "budget counselors" would probably frown on. Not impossible, just leaves less wiggle room for savings, unexpected expenses, etc. | |
| Jul 6, 2016 at 8:04 | history | tweeted | twitter.com/StackFinance/status/750601178996768768 | ||
| Jul 6, 2016 at 5:03 | answer | added | keshlam | timeline score: 12 | |
| Jul 6, 2016 at 3:39 | history | edited | JTP - Apologise to Monica♦ |
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| Jul 6, 2016 at 3:16 | comment | added | keshlam | Spot check of a single bank in the US quotes 3.415% APR on a 30-year fixed rate loan, no points or other complications. | |
| Jul 6, 2016 at 3:00 | comment | added | Joe | Does that per-month include property taxes or similar? Or solely for the loan itself. (Most of the time, in the US, you pay one payment per month which includes the mortgage itself plus your property taxes, home insurance, and any other required payments such as mortgage insurance.) | |
| Jul 6, 2016 at 2:45 | comment | added | JTP - Apologise to Monica♦ | Did the scammer tell you the rate? | |
| Jul 6, 2016 at 2:18 | answer | added | Aganju | timeline score: 23 | |
| Jul 6, 2016 at 1:13 | answer | added | quid | timeline score: 18 | |
| Jul 6, 2016 at 1:10 | review | First posts | |||
| Jul 6, 2016 at 1:24 | |||||
| Jul 6, 2016 at 1:08 | history | asked | Max Jacob | CC BY-SA 3.0 |