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Joined: Mar 2010
Posts: 2,178 Likes: 2
Campfire Regular
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Campfire Regular
Joined: Mar 2010
Posts: 2,178 Likes: 2 |
If you're a vet, get a VA loan. Some sellers have issues with VA loans, though, due to the scrutiny on the purchased property.
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Joined: Jan 2006
Posts: 69,487 Likes: 18
Campfire Kahuna
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Campfire Kahuna
Joined: Jan 2006
Posts: 69,487 Likes: 18 |
It's more than just the scrutiny. The VA is good for the buyer but is terrible for the seller. The buyer gets a good deal because the seller is forced to pay for it. I wouldn't sell one that way. We were selling our house and the buyer was going VA (although they pulled out before it was done). They force the seller to pay for a good part of the closing costs. Screw that. Nobody paid for my closing costs and I won't pay for anyone else's. Then there was the inspection. It was absurd what all they wanted 'corrected' that didn't need correcting. I wouldn't sell under VA unless I jacked up the price to cover the screw job.
“In a time of deceit telling the truth is a revolutionary act.” ― George Orwell
It's not over when you lose. It's over when you quit.
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Joined: Nov 2002
Posts: 33,790 Likes: 11
Campfire 'Bwana
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Campfire 'Bwana
Joined: Nov 2002
Posts: 33,790 Likes: 11 |
I've had various mortgages over the years, FHA type loans, loans with PMI, etc.,
the best deal I received was a bundled deal with my bank I'd been with for several years. With checking, savings, a credit card and mortgage all bundled together, with them pulling the mortgage payment from my checking account - I'm getting a very good rate plus a bunch of peripheral benefits like no fees, etc for my other stuff
I went to lending tree and filled out the pre-requisite stuff, and I guess they did their job because people wouldn't leave me alone. I was getting 10-12 calls a day from lenders local and in other states. I finally had to start blocking them to leave me alone.
I wish I had taken out a 15 year loan on my first house, but I also know how tough it is when you're starting out. Seems like I bought a whole house farting around moving from place to place buying a house in each town. I didn't get serious about paying one off until I settled down. This was my experience when I refi'ed last year. My bank, Chase, was the best deal I found.
Conduct is the best proof of character.
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Joined: Aug 2008
Posts: 3,720
Campfire Tracker
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Campfire Tracker
Joined: Aug 2008
Posts: 3,720 |
Another vote for Quicken.....great experience.
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Joined: Jan 2002
Posts: 12,889 Likes: 5
Campfire Outfitter
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Campfire Outfitter
Joined: Jan 2002
Posts: 12,889 Likes: 5 |
A big enough down payment to avoid PMI.
VA loans are typically not competitive on rates, either.
Sic Semper Tyrannis
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Joined: Jan 2006
Posts: 69,487 Likes: 18
Campfire Kahuna
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Campfire Kahuna
Joined: Jan 2006
Posts: 69,487 Likes: 18 |
A big enough down payment to avoid PMI.
VA loans are typically not competitive on rates, either. VA's are exempt from PMI, probably because they vet the applicants so thoroughly. On most loans, I think you need 20% down to avoid it.
“In a time of deceit telling the truth is a revolutionary act.” ― George Orwell
It's not over when you lose. It's over when you quit.
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Joined: Mar 2012
Posts: 6,519
Campfire Tracker
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Campfire Tracker
Joined: Mar 2012
Posts: 6,519 |
Credit unions are good and don't ever take a mortgage longer than 15 years. My wife and I paid 10 years on our 30-year mortgage and only got 10-15% of it paid off in principle. We refinanced to a 15 year and will save $100,000 in interest and gain equity very quickly. I wish I would have done that in the first place and I would be free and clear already.
"And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor."
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Joined: Jan 2001
Posts: 21,317
Campfire Ranger
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Campfire Ranger
Joined: Jan 2001
Posts: 21,317 |
I've used federal credit unions so far. My next mortgage will probably be with USAA.
Common ground is that they are membership cooperative type organizations, not banks. They are supposedly member service driven instead of profit driven. I've been a USAA member for over 30 years and used them for the mortgage on our first house and a re-fi. That said I've heard countless horror stories of how their mortgage group has taken a crap and is notorious for not getting out all the paperwork that is needed or being late and holding up closing on a house for weeks or longer. When we had our house built two years ago our builder pretty much said he didn't want to build a house for us if we used USAA for financing as they'd had nothing but grief when dealing with them. Don't know if their mortgage group has improved, but you might want to look at member comments before proceeding. There were plenty of negative comments on the USAA website from members.
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Joined: Jan 2010
Posts: 23,578 Likes: 2
Campfire Ranger
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Campfire Ranger
Joined: Jan 2010
Posts: 23,578 Likes: 2 |
don't know about now but used to be you could get an 80/15 to avoid PMI.
Essentially you took a second mortgage out for 15% that was either a higher fixed or variable with the intent at least to pay that off in a relatively short period of time.
I guess if you let it drag out you weren't any better than having PMI
Last edited by KFWA; 03/21/17.
have you paid your dues, can you moan the blues, can you bend them guitar strings
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Joined: Feb 2001
Posts: 50,657 Likes: 2
Campfire Kahuna
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Campfire Kahuna
Joined: Feb 2001
Posts: 50,657 Likes: 2 |
Credit unions are good and don't ever take a mortgage longer than 15 years. My wife and I paid 10 years on our 30-year mortgage and only got 10-15% of it paid off in principle. We refinanced to a 15 year and will save $100,000 in interest and gain equity very quickly. I wish I would have done that in the first place and I would be free and clear already. Very rare that a lender will not let you pay down a note faster than scheduled. Doing so reduces the interest paid on the balance while not reducing the payments, effectively doubling the speed of principal pay-down.
Mark Begich, Joaquin Jackson, and Heller resistance... Three huge reasons to worry about the NRA.
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Joined: Mar 2012
Posts: 6,519
Campfire Tracker
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Campfire Tracker
Joined: Mar 2012
Posts: 6,519 |
That requires the ability pay more than your payment. 15-year gets you a much lower interest rate. Due to rate drops, we were able to drop our payment by $200, lower the rate and knock 5 years off the remaining term.
Last edited by WyColoCowboy; 03/21/17.
"And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor."
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Joined: Feb 2001
Posts: 50,657 Likes: 2
Campfire Kahuna
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Campfire Kahuna
Joined: Feb 2001
Posts: 50,657 Likes: 2 |
That requires the ability pay more than your payment. 15-year gets you a much lower interest rate. Due to rate drops, we were able to drop our payment by $200, lower the rate and knock 5 years off the remaining term. In looking around with my son who is looking to buy a house I have not seen big differences in interest rates based on term. Could be different in your situation, obviously. And lots of other things have changed in the mortgage world fairly recently. The beauty of paying even a little extra each month is how fast you start seeing a difference in the remaining balance.
Mark Begich, Joaquin Jackson, and Heller resistance... Three huge reasons to worry about the NRA.
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Joined: Feb 2006
Posts: 2,466
Campfire Regular
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OP
Campfire Regular
Joined: Feb 2006
Posts: 2,466 |
don't know about now but used to be you could get an 80/15 to avoid PMI.
Essentially you took a second mortgage out for 15% that was either a higher fixed or variable with the intent at least to pay that off in a relatively short period of time.
I guess if you let it drag out you weren't any better than having PMI Thanks for all of the replies and suggestions1 Mortgage company suggested this today. He suggested we stay as liquid as possible. I told him we refuse to pay PMI! I'd like to have the whole thing paid off in 10-12 years. We'll see.
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