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bert
2011 Aug 13, 2:43am
Use the Microsoft Loan amortization and Loan analysis template (for Excel) to find total cost of loan
http://office.microsoft.com/en-us/excel-help/using-the-loan-amortization-and-loan-analysis-templates-HA001034640.aspx
Points -- For tax purposes, you only get to deduct 1/30th of the points each year for the next 30 years (unless you refi in which case you can fully deduct the remaining points). I don't think it's really worth it because either you don't refi and lose the real value of the deduction because your points deduction will be in 2011 dollars for the next 30 years, or you refi and wasted two thirds of the value of those points (the other third you get back on taxes that year). At first you don't think you'll refi, but there can be a lot of financial benefits to a refi later. And of course most people move after 7 years
You'll get better rates going to a more efficient loan originator. You'll end up at a bank anyway when they resell your loan. I use to worry about that (not being in control of the final destination of your loan) because i might end up at a bank i don't like ... but they all have the same basic functionality and if it's just a loan and you keep it simple it doesn't matter which bank it is. Go to google and type "interest rates" and it's the first entry
Compare loans using the APR value. This factors in the fees/points to equally compare the loans.
Could someone explain the different options and explain what's best out there at the moment.
It really wont kill you to buy "Mortgages for Dummies" from Amazon instead asking people on the Internet. A real book from a creditable source is a heck of alot better.
Might try visiting Barnes and Noble and grab a couple of books on mortgages, sit down, drink a cup of coffee and read for an hour. Does a mind wonders.
Hello there,
My wife and I are trying to make some sense out of the lending options (fixed, adjustable, points, credit for closing cost, jumbo, etc.). It is pretty clear that we will have to be in the jumbo category to buy in the bay area. Our bank is Wells Fargo but they do not seem to great deal for 30 year fixed loan. There are so many options on the web, companies willing to give us the needed money for a home, but I am sure there are some deals that may look good at first but are far from great when the economy improves. Could someone explain the different options and explain what's best out there at the moment. Do we always have to pay points??? Also, how do you calculate the total price of a loan??? I would like to make life-time cost comparisons for the loans. Thanks in advance.