How can you tell if you are a good deal on your mortgage?

How can you tell if you are a good deal on your mortgage?How can you tell if you are a good deal on your mortgage?
asked 7 years ago

My husband and I are probably on our first house 28th March, close to five days. It is an apartment of 1941 square feet in Fort Worth, Texas. We were approved for a FHA loan of 15 years at a fixed interest rate of 5.5%. The owner had listed the house for $ 143,990 and said they were discounting it $ 137,990 because they are trying their quotas are met and their year end is March 31. Our broker and his wife are both in the real estate sector. He is a broker and is a broker, so they always have a great committee of this agreement with the manufacturer. The broker will pay a flat rent ($ 710 per month and we have 3 months left), and two mortgage payments with us for $ 1,511 and some change. We both have very low credit scores (mine and my husband 534 575), but we have 100% financing. You roll the closing of our costs, exam fees, etc in the Kredit.Klingt like a good deal? Is there anything that looks suspicious?
In the face of dismissal, we can not have no choice but to file for Chapter 7. We have a mortgage and second mortgage. If you file Chapter 7, such as mortgage debt relief? Then, you give up your home, or keep, or what?

guy2598us replied 8 years ago

Looks like a fairly good deal. With scores in mid 500’s in this market if you are getting that rate and terms, I think you are lucky. the mortgage industry has been upsicde down in the past 3 weeks Pray that the lenders dont back out

For questions call 813-992-5999

DJ B replied 8 years ago

Sounds like your Realtor took good care of you. You mention they are getting a big commission? Well think about this, all those things they are paying off for you, they have to pay federal, state and Social Security taxes on. You are getting that money for free! And that doesn’t cover all the other business expense Realtors have that no one thinks about. So when you think they make big money, think of the cost of doing business as an independent contractor. Paid employees don’t have a clue as to what the employer pays for them to work there. Be grateful!

tum_kbr replied 8 years ago

Ok, the deal looks amazing. I, myself work at a mortgage company. Most likely all the expenses of 3 months rent and 2 months mortgage payment is being reflected in the loan amount. The rate you are getting with the FICO scores is nearly impossible. Also make sure the mortgage payment includes property taxes, Mortgage Insurance, and Home Owners Insurance.

11111 replied 8 years ago

Your best defense is research. There is no easy way around it. You should have been given several upfront disclosures in conjunction with your loan, one of them is a Good Faith Estimate. Check this disclosure, it has all the costs associated with your loan as well as any credits. It’s likely that he is going to use some of his commision to pay these things for you and that is a standard industry practice. Because you have 100% financing and your loan is a purchase you will not be able to walk away from the table with any cash, like in a cash-out re-fi for example. So none of your paperwork will reflect these credits. So one of two things will happen depending on the state you live in-a demand will be put in escrow for the cost of the lease and mortgage payments and those items will be paid on the spot or the realtor will cut you a check after closing.

ecollado2000 replied 8 years ago

My honest opinion is…

The realtor may be getting a kickback or “bonus” from the seller that you don’t know about. It’s likely, but who knows. I’m a realtor and to be honest w/ you, the commission on a $ 137K sales is very very small. Not so much that they can pay for all those things out of it.

More importantly, with your credit scores its hard to find rates that low. Be careful w/ hidden fees and things that are being dropped into your closing costs. At the end of the day you can find yourself owing a mortgage of a lot more than the 137,990 you think you are paying. In my opinion, you may be paying points to get that lower rate.

Sorry for the bleek outlook. For all I know, the area you are in could have all types of incentives for homebuyers and all could be just fine.

Shoot me an email if you have other questions or want clarification on what I’m saying.

Good luck!

Skip replied 8 years ago

You are getting a very good deal on the interest rate with the credit scores you have.

All FHA and VA loans include Taxes and Insurance payment so you need not worry about that.

With them paying off your apartment lease and the reduction in the asking price that is money in the bank for you or money you will or did not have to pay.

The only thing that you are being charged for really is the two months of mortgage that could have been rolled into your loan.

In order to find out you would have to look at and understand your HUD-1 closing document that was given to you by the escrow closing agent. If you do not understand it call your mortgage broker or go to the closing agent for an explanation.

Nothing sounds fishy, apparently you were treated really good.

I hope this has been of some use to you, good luck.

“FIGHT ON”

ed@myfinancialmentor.com replied 8 years ago

If you are getting a home with 100% financing that is generally good. If you are truly getting a 5.5% mortgage that is also good. The big question is what is the home worth? I would not be concerned about overpaying by a bit or the brokers commission. Generally if you have no upfront money and mediocre credit you cannot dictate price.

I would make sure that you can pay the monthly payments however. $ 150,000 over 15 yrs at 5.5% is about $ 1225 per month, vs. $ 850 for a 30 yr mortgage. In addition you will also have taxes & utilities.

IF you can make these payments, you are much better off with a 15 yr loan as you will save roughly $ 80,000 in interest over the life of the loan.

Good Luck

Ed

rpg replied 8 years ago

Well, technically your mortgage is discharged, but then the mortgage holder is free to repossess the collateral (foreclose). Usually this is not the route taken in Ch 7.

If you want to surrender the home back to the mortgage holder, you can elect “surrender” on your Statement of Intentions. The mortgage holder gets the house back, and any deficiency that remains after they sell it (the difference between what you owe and what they can sell it for) is discharged in bankruptcy.

If you do NOT want to surrender your home, you can reaffirm the mortgage – IF your payments are current on the day that you file and you are able to keep making the payments. Then you continue to make the payments and continue to live there as before.

If you do NOT want to surrender your home but you ARE behind on payments, usually Ch 13 is the only option. In Ch 13 you must keep making your regular mortgage payments and you have 3-5 years to catch up on any arrears you currently have.

There is no way that you can have your mortgage discharged and still keep living in the house. If you want to continue to buy it, you need – one way or another – to keep making the payments on it.

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