This mortgage stuff is absolutely killing me. We have foudn a house and are goignt rhought the motions of getting the contract together, process is taking a while since it is a new house being built and wont be ready until end of July, therefore I kno wI cant lock rates in now.
What is confusing me is this mortgage shoping. WE know we want a 30 yeard fixed and I knwo I should choose according to interest rates being offered but what else shoudl I look at, all the closing fee information is overwhelming me. Can someone spread some ligth and help me understand in simple words.
princess99
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Re: I have never been so stressed out in my life
The best place to start is to get' The Home Buying for dummies ' book, it explains a lot. hugs to you , it is a stressful time.
Calla
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Re: I have never been so stressed out in my life
Do you know about 'points' yet? That makes a huge difference in costs. In basic terms, each extra point means an extra 1% of the loan amount in fees, but you usually get a lower interest rate as a result. In you refinance, that money is gone. So, if you think rates will go down again, points don't make sense. If you'd never refinance, then points can be worthwhile.
agrech
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Re: I have never been so stressed out in my life
We are aiming for no points which is wht all the offers that have been given to us have been.
agrech
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Re: I have never been so stressed out in my life
Okay SO I got the mortgage for dummies book and wow That helped out allot. I started when I got home and finished it by the end of the night and it answered allot of questions I have. I guess since its such a scary process I got overwhelmed. Thanks so much ladies. As soon as were in contract I will let you all know
skew
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Re: I have never been so stressed out in my life
i understand what you are going through. it wasn't until yesterday when our broker told me to write everything down that i REALLY understood. i was SO hung up on the interest rate that i wasn't understanding the most simplistic details. we FINALLY decided on a 10/1 interest only ARM. we plan to lock today.
if you are shopping for a 30 yr fixed, you need to decide if you want to buy pts (this lowers your interest rate, but may not be the best choice if you do not plan on staying in your house for more than 10 or so yrs), find out is tax escrow is required, are there orgination fees?, pre-payment penalty?, and the closing cost fees. make sure that the closing cost fees (even though it is a good faith estimate) is itmeized.
our broker is AMAZING. i HIGHLY recommend her. she is paid by the lender and the charge IS NOT passed on to us. FM if you want her info.
lullabella
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Re: I have never been so stressed out in my life
Hang in there, pretty soon you will be in your new house and it will all be worth it!
princess99
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Re: I have never been so stressed out in my life
Posted by agrech
Okay SO I got the mortgage for dummies book and wow That helped out allot. I started when I got home and finished it by the end of the night and it answered allot of questions I have. I guess since its such a scary process I got overwhelmed. Thanks so much ladies. As soon as were in contract I will let you all know
