patrick.net

better to use 100 percent cash actually IMHO.

Just today, there is an article there may be up to 10 million homes in the shadow inventory, that makes me feel better about renting.

Doesnt matter. Been renting from family for 4 yrs. I think its better to buy it off them since i'll be able to get a discount. The monthly payment will be lower than my already discounted rent.

If you could do all cash you can probably bargain a better deal.

I hear on the radio that interest rates are now down to 2.9% so if you must get a loan than shop around for the best deal you can get.

With rates this low you can never refinance in the future to save, but I don't know what you are buying or the deal you are trying to get.

Katy Perry says

better to use 100 percent cash actually IMHO.

And get the first American EAGLE title policy. For yourself!
Weather predictions are very cloudy.

drudometkin says

Doesnt matter. Been renting from family for 4 yrs. I think its better to buy it off them since i'll be able to get a discount. The monthly payment will be lower than my already discounted rent.

Really, look around first, be absolutely sure you want THEIR house, because there is a big groupon discount going around for some areas.

Maybe someone can correct me if I'm wrong. I get the impression all mortgage lenders are pretty much the same. The contract/terms are all pretty identical. The biggest discerning factors as far as I can tell are:
* The interest rate, however only to a small extent, as they're all pretty close to each other
* Closing costs. Cheaper the better.

Here is an independent broker I have used. Straight shooter and on the ball. Could call and see if they can help or have a local recommendation.

The other place to consider is a credit union. They tend to have good rates and a more neighborhood feel. They sometimes keep loans on the books and can be more flexible in special situations.

Jennifer Greene 805-797-6787
Tell them Walter Spurgiasz sent you.

Remington says

Maybe someone can correct me if I'm wrong. I get the impression all mortgage lenders are pretty much the same. The contract/terms are all pretty identical. The biggest discerning factors as far as I can tell are:

* The interest rate, however only to a small extent, as they're all pretty close to each other

* Closing costs. Cheaper the better.

True until you are doing something like a short sale and you get someone that does not have a lot of experience handling the complexity and time pressure. I have friends that lost deals because of this. Although if the market keeps going down, might work out for them in the end...

Wish I could buy with cash. I'm pretty young and only have 30k saved though.

I am sure I will be flamed for this, but for me, buying with cash is a poor idea. If rates were 8% or higher, I would agree. But while prices are still high, but rates are low, you are not getting a great deal on the property, but you are getting a great deal on the borrowed money.

At some point, 10 year CDs will pay more. Once they hit 5% +, you can take that cash and profit on the arbitrage.

Also, I like having the cash around just in case of job loss, etc.

And in the event you do have big inflation because of all the money printing going on, the best thing to have is lots of long term, low fixed rate debt to pay off with worthless $$$.

Walter says

I am sure I will be flamed for this, but for me, buying with cash is a poor idea. If rates were 8% or higher, I would agree. But while prices are still high, but rates are low, you are not getting a great deal on the property, but you are getting a great deal on the borrowed money.

At some point, 10 year CDs will pay more. Once they hit 5% +, you can take that cash and profit on the arbitrage.

Also, I like having the cash around just in case of job loss, etc.

And in the event you do have big inflation because of all the money printing going on, the best thing to have is lots of long term, low fixed rate debt to pay off with worthless $$$.

I'd agree with you if there weren't a substantial cash discount much of the time.

Get multiple quotes and compare. Ignore the points crap, it is just used to cloud your shopping. Ask them for a no points interest rate and then just go with the lowest. Everyone has different name for all the loan costs. Origination fee, documentation fee, loan fee, etc. etc. It is all bull. Just ask for the final fee to take the loan. Then compare. Then when you go to the closing meeting be prepared to have all your written quotes and push back on anything where the wording has changed or the values are increased. I spent the full day at my closing meeting in 2003 and in the end got exactly what I was quoted. Originally, the costs were almost 2000 above. The closing agent told me I was not normal a few times. Screw them, they are only interested in your money. A quote is a quote. Beware.

Walter says

And in the event you do have big inflation because of all the money printing going on, the best thing to have is lots of long term, low fixed rate debt to pay off with worthless $$$.

We will probably buy this year - and that is exactly what I am hoping will happen. Wish I had a crystal ball...inflation or deflation or total financial meltdown? It's anybody's guess.

Zillow has a great tool to compare lenders and rates.

http://www.zillow.com/mortgage-rates/

Gives you a good starting point at least, just be careful for extra fees they try to tack on.

dodgerfanjohn says

Walter says

I am sure I will be flamed for this, but for me, buying with cash is a poor idea. If rates were 8% or higher, I would agree. But while prices are still high, but rates are low, you are not getting a great deal on the property, but you are getting a great deal on the borrowed money.

At some point, 10 year CDs will pay more. Once they hit 5% +, you can take that cash and profit on the arbitrage.

Also, I like having the cash around just in case of job loss, etc.

And in the event you do have big inflation because of all the money printing going on, the best thing to have is lots of long term, low fixed rate debt to pay off with worthless $$$.

I'd agree with you if there weren't a substantial cash discount much of the time.

In that case you can get best of both and put a loan on after you own the place.

You said you are buying from family.

Consider getting them to do SELLER FINANCING.

You could pay them 3% and they might be thrilled to get that since banks are payin zero to 1.5% on money.

You coul use an escrow/title company to set up the deal/mortgage to make it 'real' so they have legal rights to foreclose. Or you could make it a more informal paperwork thing you do yourself or with an attorney or even a 'trust me/handshake deal' which is still legal BTW.

I've had many houses and many mortgage companies (unfortunately), by far my favorite was ING.

jag788 says

I've had many houses and many mortgage companies (unfortunately), by far my favorite was ING.

ING only offers 5/1 ARM's.

Beware of NDDP
national defense debtors prison

Okay let's say you buy a $175,000 house 30/year fixed 4%, you are actually paying roughly 285,000. Debtors prison unless you can rent it out for cost and profit.

Mortgages are expensive.

KILLERJANE says

Mortgages are expensive.

Yeah, but you gotta live somewhere. Renting 'aint free (nor cheap, depending on where you live).

avoid Pacific Union Financial if you don't want to waste hours going over every single non-issues on your credit report, faxing them documents in order for them to send you a pre-approved letter that only contains the loan amount (no interest rate, no fees, no closing cost). yep just the loan amount. how wonderful not to mention their rate for my credit score on Google's was 3.75% but when i called them it was 4%. it's difficult to imagine the daily rates fluctuate that much. can you say bait-and-switch?