> Sam wrote: > One of the issues I had was even though my ratings are all over 650, > when they tried the 80/20 the 20 part failed because of a late > payment. With closing cost I can probably only out down 5% >
I'm sure you already had, or are having, your meeting but since I'm here I'll add a bit. One option to free up cash for a down payment is to roll closing costs into the loan. This is the best option and is very common. Rolling closing costs into the loan should only affect your monthly payment, not cost you extra fees, points, or interest rate increases. If that's not possible for some reason, many lenders will credit a certain $ amount towards your closing costs in exchange for a slightly higher interest rate (usually 1/4-1/2%). This may not be the best long-term deal if you plan to stay put in the house for, say, 15-20 years, but it might make sense if it helps you get a loan structure that eliminates the need for PMI. It's pretty straightforward to calculate the breakeven point. I know for sure you can do the piggyback deal with 10% down (80/10/10). Definitely talk to your lender, though - in fact, talk to several. Mortgage rates and closing costs are negotiable, I've found. Just make sure to get it all in writing - rate, term, closing costs (with breakdown), lock period (when it starts, when it ends). One other random piece of mortgage advice: When you're signing the stack of papers for the mortgage, pay close attention to any numbers you see. I've caught fairly significant errors several times - for example, signed up for a 5/2/5 ARM, and the lender put together paperwork for a 2/2/6 ARM. I ended up OK'ing the switch but demanded $500 in compensation for the error. My wife is very good with this stuff (top 5 MBA, grad #1, Fortune 100 exec advisor) If you'd like her opinion just ask. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Discover CFTicket - The leading ColdFusion Help Desk and Trouble Ticket application http://www.houseoffusion.com/banners/view.cfm?bannerid=48 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:143893 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
