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Hello CV and everyone, Wanted your brutal opinion because I am in the process of refinancing my FHA loan and just received the loan closing disclosure (CD) today but wanted to know if I'm doing the right thing and/or its worth it or Not.
My current FHA loan as follows:
Appraised Property Value $400K
Current Loan interest rate is 3.25% (closed this loan 13 months ago)
Original Loan Amount $393K
Current Principal Balance $383K (30yrs loan and nearly 29 yrs left).
Loan Maturity date 08/2049
Current Monthly payment $2400 (Principal $671+ Interest $1,038 + Escrow $690)
My FHA refinance loan will be as follows:
Appraised Property Value $400K
New Loan interest rate is 2.75%
Original Loan Amount $387K
Principal Balance $387K (30yrs loan).
Loan Maturity date 11/2050
New Monthly payment $2391 (Principal + Interest = $1,582 + Escrow $542 + PMI 267)
Cash to close from borrower (me) $2089
Thank you all for your feed back.
Hi Folks - I'm scheduled to close on a new construction home 8/30. The kids start school here in MD on 9/3. They enroll in new schools and I want to get them settled as much as possible. That background might come in handy for the scenario that I'm seeking advice on.
Here's the scenario: purchase price is $439,540. I'm currently doing an FHA loan with 3.5% down. My mortgage credit score is 726. The loan estimate has me paying $300 month in PMI. The issue is that in October I get my yearly sales bonus; at that time I can put down the ~$90K needed to cover the 20% down payment to remove PMI. Questions for those experienced in the industry:
1. Should / can I delay closing for two months? If so should I go conventional?
2. Should I move forward with the FHA loan and refinance quickly? How soon can one refinance?
3. Should I move forward with the FHA loan and simply pay $90K on the principal of the loan and reduce the amount to have PMI removed?
Thanks for your help in advance.
Well, I've been trying to buy a house, I was shooting for a conventional loan but just found out that since I had a short sale I don't qualify for a conventional per new rules (funny, earlier in the year I was able to do conventional, who's making these rules? lol), lender said FHA will work. Is there any loophole that allows me to do conventional? If not I still want to see what you guys think about the numbers under my situation.
This is my situation:
- short sale in november 2011
- 680 credit score (thanks for advice was able to take out some disputes)
- 130K price
These are the numbers my mortgage person is offering under FHA:
- APR: 5.472%
- Finance charge 122,382
- Amount Financed: 123,982
- Total of Payments: 246,364
- Interest Rate: 3.875%
- Principal and Interest: $600
- Estimated Taxes and Insurance: 534
Not happy about the upfront 1.75 MIP Fee, but next november I will qualify for a conventional so I might look to refinance if the rates look appealing. Any advice will be greatly appreciated. I could wait and get another house maybe next november but with this house I could have roommates that will basically pay for all my expenses and the street has the space with just the right layout to accommodate all the cars, sweet!
Thanks and Happy New Year!
I want to buy a second home in NY area (would love to hear from those who can lend in NY) and here is my situation- hopefully it's all you need to offer opinions.
1. Own a home in Fl. with approx. 180k left on mort. Worth 280 but dont want to get second mort. since family member co owns. Total payments with prin, int, insur, taxes is $1400 monthy that I pay by myself- co owner doesn't live here. Plus I have $225 community dues monthly, no other regular monthly payments- no car loan or credit card balance- use debit card.
2. Net worth approx. 2 Mil but 500k is weird stuff...private RE partnerships, 1/3 of an insurance trust, etc- that I doubt banks would consider. Plus IRA of 70k. I don't want to pay all cash for second home because mostly in family partnership with siblings, but that I can get document full access and continuing payments from it
3. No earned income- retired. Excellent credit- 775 on Myfico which I think is the "real" Fico score.
4. I know there are "Asset Depletion" programs from having posted previously- I found a bank document online explaining how to underwrite these I estimate they would credit me about 1.1 mil. for my assets after applying 70% factor to stocks, and -if I recall- 70% to my IRA since Im under 59- Im 56. I figure at 1.1 Mil at 4% on 30 years I would get credit for approx. 6k for month as income under the banks standards(?)
5. I have read that FHA has looser standards for front end and back end ratios, including up to 50% or more on back end ratio and perhaps 45% on front end. I believe the mortgage payments on my primary residence would be consider part of the back end ratio when calculating for new mortgage on 2nd home.
So by my calculations based on around $70k annual "asset depletion" income, approx. 1650 annual expenses- which is all due to existing home costs- and before new second home mortgage, and these higher ratios- 45% front end and 55% back end (if really available????) and a down payment of 50k plus on 250 second home, can I hopefully get close to the requred 200k mortgage??
I realize I am asking for something unusual between the higher ratios and the asset-depletion, but hoping someone on here can give some advice or is experienced enough to know how this would go. Thanks!
My husband and I have been patiently waiting to buy a home for years. We had a lot of obsticles that kept us from being where we needed to be that we have now overcome. We have been in a lease purchase for the past couple of years for a home that we will be purchasing for $250K and we have accured about 10K for the downpayment though we may be able to come up with a few grand more if needed to close.
Here are our current issues: I am self employed & my spouse is on SS Disability. His income is non-taxable. Majority of my income is through a contractor position that I have held with the same employer for over 6 years now. After our accountant completed our income taxes this past year, I was concerned it might not appear that we make enough income to qualify. I currently bring in 60K per year for this contract posiiton plus another 5-10K in additional contract work. I have roughly 5-7K in expenses however, the way my home office is setup it is a large portion of our home and after they completed the home office exemption and household related expenses, my taxable income appeared to only be about 20K.
Since the majority of the reasons my income looks so low is due to our home expenses which would be similar if we were to purchase the house, how would they look at my income for qualifying for a mortgage? Would they look at it before the home office exemption was used or after? Also, I have heard that SSD income is sometimes counted as more due to being non-taxable. Is that true? My spouses income from SSD is roughly $30K.
I also wondered if being self-employed ended up causing too much problems if my employer ended up hiring me a a fulltime employee instead of a contractor if that would change the situation. We had discussed doing that as well anyways.
I appreciate all of your input. I have been dreaming of being a homeowner for so long and we finally found our dream home that couldn't be more perfect for our children.