Knee Deep in Water Chloe
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Post by Knee Deep in Water Chloe on Apr 5, 2022 20:13:49 GMT -5
From the loan officer:
Below are a few options for today’s interest rates. For every .125% change in the rate, your monthly principal and interest changes by approximately $49. Your monthly principal and interest payment is $3385 for Option 1.
1) 4.875% (APR 4.921%).
2) 4.75% (APR 4.839%). This has a one-time cost of .50% (approx. $3198). This will be added to your closing costs.
3) 4.625% (APR 4.756%). This has a one-time cost of 1.00% (approx. $6396). This will be added to your closing costs.
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Knee Deep in Water Chloe
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Post by Knee Deep in Water Chloe on Apr 5, 2022 20:17:43 GMT -5
So, if I have the $7,000, then I would want to do Option 3, right?
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CCL
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Post by CCL on Apr 5, 2022 20:37:37 GMT -5
I would.
What about PMI? Are you putting down 20%?
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saveinla
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Post by saveinla on Apr 5, 2022 20:55:45 GMT -5
Are these rates for a jumbo mortgage?
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steph08
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Post by steph08 on Apr 5, 2022 21:05:39 GMT -5
Are you going to stay in this house for at least six years?
You'd save $100/month by going with option 3; however, it would take almost six years to break even by shelling out an additional $7k upfront.
Just something to think about.
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giramomma
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Post by giramomma on Apr 6, 2022 14:22:09 GMT -5
Along the break even point vein, what else could you be doing with the 7K? If you plan to do some extensive work and/or need to buy different furniture for the house, then I would be tempted to just go with A or B. When we moved, we discovered we couldn't get our queen box spring up the stairs. We bought a 70s style house, which meant the bedrooms didn't have light fixtures. So, we went to Menards on a lamp run on move in day as well.
It was nice to have a good chunk of money set aside for move in purposes...
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Knee Deep in Water Chloe
Senior Associate
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Post by Knee Deep in Water Chloe on Apr 6, 2022 14:37:43 GMT -5
I would. What about PMI? Are you putting down 20%? Yes, we are putting down 20%, so there will not be any PMI.
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Knee Deep in Water Chloe
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Post by Knee Deep in Water Chloe on Apr 6, 2022 14:39:20 GMT -5
Are these rates for a jumbo mortgage? Yes, they are.
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Knee Deep in Water Chloe
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Post by Knee Deep in Water Chloe on Apr 6, 2022 14:39:52 GMT -5
Are you going to stay in this house for at least six years? You'd save $100/month by going with option 3; however, it would take almost six years to break even by shelling out an additional $7k upfront. Just something to think about. I was figuring on seven years to break even, so I'm glad I was close!
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saveinla
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Post by saveinla on Apr 6, 2022 15:40:29 GMT -5
Are these rates for a jumbo mortgage? Yes, they are. Any reason why you cannot do 2 loans and get a smaller interest rate on the first instead of locking in a higher rate for the whole amount? You may have to be careful on the second loan as they usually jack up the rates there. Not sure if they are still being offered, but something you may have to check.
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