Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
violet
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Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
Okay, so me, my husband, my sister and brother-in-law are looking into getting a 2-family together because neither of us can afford a one-family house since most are over 450k in Queens. And we don't want to rent anymore since that's just throwing money away.
Anyway, we talked to someone from Prudential today. They estimated that our closing costs would come out around 23k. This was if we were getting a house for 750k with 10% down. I thought closing costs were a little less than that, or is it really that expensive? Also, what is this NYS tax business which is about 1% of the closing cost?
I'm also curious if we should be going through a mortgage broker or if we should just apply through a bank because I honestly thought as first-time buyers, you get maybe a better interest rate or something? The mortgage broker said we could get a 6 or 6.15% interest rate. I was hoping I could still get 5.75% interest. Should we just apply through a bank, and does anyone have any recommendations?
Also, any way to get out of this pmi business?
TracyInQueens
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
To get out of PMI, you can get a small second loan of the difference between what you put down and 20%. They are called 80/10/10 loans (you borrow 80%, put down 10% and get a second mortagage for 10%). It is a better deal because the second mortgage is tax deductible but PMI is not.
Our closing costs were estimated at about $11k for a $340k house, so $23k sounds about right for a $750k purchase, unfortunately.
dm24angel
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
I'm thinking as first time buyers that interest rate or not so bad. Are all your names going to be on the house? You may drop someone who has a worse FICO score to get a better rate, but thats not so bad.
Your better off trying to get the 20% up for no PMI with that high of a prices house, or do the 80/10/10 like someone said, dont pay the PMI.
violet
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
I'm just pissed off because the realtor recommended me this broker, and when I said that my BIL had gotten an estimate that closing costs would be around 5%, around 30k, she was like oh that doesn't sound right, they're between 13 and 18k. So it's like according to the broker's estimate, it's not too far off from 30k!
There's NO way we can put down 20%, so maybe we'll get the 80/10/10. My BIL said the broker mentioned that to him. Is there any disadvantages to that though?
Thanks for that advice. Any ideas on whether we should apply through a bank or through a broker? 6% seems like an increase now, my friend is closing on her house at 5.5%. I guess because she did it a few months ago. I would like to not go over 6% for interest.
Also my husband's name won't be going on mortgage because he has awful credit. It'll be me, my sister and BIL on it.
dm24angel
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
Well where me and DH are, we couldn;t get a mortgage at under 9 % , maybe evern 9 And !/2 , so to me, thats VERY low. I have friends who got 6% and they have amazing credit with credit scores over 800 each, maybe they got a bad deal, but I cant imagine in todays market getting less the 6% unless you had A1 credit. Try another broker and see before you settle of course.
dengal
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
If you are a member, I would also check out a credit union.
violet
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My husband is a member of a credit union because he works for Con Ed. Any reason that's a good place to go through? He's the one who has the bad credit though.
TracyInQueens
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
Posted by violet
My husband is a member of a credit union because he works for Con Ed. Any reason that's a good place to go through? He's the one who has the bad credit though.
Which credit union? If it's MCU I would not recommend them. They are very disorganized.
violet
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
No it's not that one. I believe it's Q-Side.
dengal
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
We got our loan through Teacher's Federal Credit Union - there rates (at least at the time) were slightly lower and their closing fee's were less. Is your name on his account?
princess99
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
We used Washington Mutual. be very careful when going for a mortgage, a lot of these places can be 'shady'. We dealt with one creep thru another place who did not know what he was doing, until we got to Washington Mutual. FM mail me for his name, he is in Queens.We live in Nassau, but he did great work and had our mortgage for us in no time. HTH.
violet
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
Posted by dengal
We got our loan through Teacher's Federal Credit Union - there rates (at least at the time) were slightly lower and their closing fee's were less. Is your name on his account?
I don't think it is right now, but I'm sure he can put me on it.
violet
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
OH...what does points mean? When I look at what banks' current interest rates are for 30-year mortgages, it has another column that says 'Points' that either says 0 or 1.5. Does anyone know what that means?
skew
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
Posted by violet
OH...what does points mean? When I look at what banks' current interest rates are for 30-year mortgages, it has another column that says 'Points' that either says 0 or 1.5. Does anyone know what that means?
that's the catch - points. points are a way to 'buy down' the rate. for every $100,000 borrowed a point is $1,000. meaning in your case for a loan of 675k 1 pt will cost you $6,750. IMO, points are NOT worth the money. the difference b/t a 6% rate and 5.9% on a 675k loan is only about 60 a month. you would need to live in the house for almost 10 yrs, just to break even. a few less if loan is amortized.
after much shopping, we decided to go w/ a broker. she is paid by the lender. she has been extremely helpful and did all the legwork for us. if you would like her info, FM me.
ETA: DO NOT go by ANY rates quoted on a website. many have hidden pts or orgination fees. make sure you get EVERYTHING in writing prior to commiting.
skew
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
Posted by dm24angel
Well where me and DH are, we couldn;t get a mortgage at under 9 % , maybe evern 9 And !/2 , so to me, thats VERY low. I have friends who got 6% and they have amazing credit with credit scores over 800 each, maybe they got a bad deal, but I cant imagine in todays market getting less the 6% unless you had A1 credit. Try another broker and see before you settle of course.
where do you live?
skew
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
Posted by violet
Anyway, we talked to someone from Prudential today. They estimated that our closing costs would come out around 23k. This was if we were getting a house for 750k with 10% down. I thought closing costs were a little less than that, or is it really that expensive? Also, what is this NYS tax business which is about 1% of the closing cost?
the closing costs seem really high (about 3.4% of loan amount). the average is 2-3% is it new construction?
violet
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
No, it's not new construction. My BIL said what really made the closing costs high was the NYS tax you have to pay on it. Like that came out to $7000 or something. I am just so confused by this.
My friend just bought her parents' house but I don't know if it was more of a refinancing, but she got it for 600k with no money down and her closing costs came out to 11k. But I read that for refinancings, you can avoid paying the NYS tax on it, so I don't know if that is why hers is so low.
I have an account with HSBC. Maybe I should look into doing mortgage with them? Their site said for NY the rate now is 6% with 0 points.
skew
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
i don't have the paperwork w/ me, but i know that there is NY state tangible tax fee of $1875. there is also a state mortgage transfer tax and maybe one other. regardless, they DO NOT equal 7,000.
skew
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
another thing that you need to consider is your credit score. scores do have a bearing on rate %. for a jumbo mortgage (over 359,650) i 'think' the required median score for both applicants is 650.
violet
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Re: Questions Regarding Buying Such as Closing Costs and Who To Apply Through for Mortgage
Oh yeah, we're fine with credit except for my husband, and we're not putting his name on loan. My sister and BIL have credit score of 8, and I have over 7 I know for sure.
