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Mentor
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How are you getting the 4% interest rate?!
Conventional loan programs have 3% down options for first time home buyers … if they have a certain credit profile
First of all congratulations! 2 questions. 1) Even with a 750 credit score, how is it possible to get a 4% interest in the current market? 2) $3000 mortgage payment is only the principal + interest and the escrow is extra , correct ?
4% is unheard of these days. Where did you find that?
Not at $3k a month
Mentor
I just put $350k down on a $655k purchase with a 750 credit score and got a 5.5% rate. PITI is $2900/m. Taxes are $1k/m.
A2, to my understanding once they provide a loan estimate they can only go cheaper. Any bit above that is a cost that they are obligated to eat.
It may be worth your time and money to contact a lawyer (or source input from one here in FB)
Mentor
What has you anticipating that rate? It just seems unrealistic. I also don’t see how you’d get a $3k payment even just PI. Are you sure you’ve done your research here?
Subject Expert
This isn’t realistic. You can’t get a 4% loan with 3% down no mater how good your credit score is unless maybe there is a builder subsidizing the loan but this sounds too good to be true.
No one believes this lie
$15k or $150k?
That’s why I thought it was a typo
Sounds amazing. Go for it!
Who’s the lender?
4%, go for it. The avg rate for 30 yrs is 7% now.
If you can get 4% and have the HHI to pay off in 15yrs, then it sounds great. Just run the numbers and don’t end up house poor.
Getting that rate with 3% down is ridiculous. Why would you want to pay it off early. Deploy your capital elsewhere. Stocks are at a discount right now
Yeah as another 🐠 said, builders are paying ridiculous points to get these low interest rates with their preferred lenders, and it’s a smart tactic as the alternative is to drop the prices like 50-100k and offer 4-6% commission to buyers agent Realtors. I’m a realtor so get these emails from random builders almost daily. Toll Brothers, Meritage, KHOV, Taylor Morrison, a bunch of regionals, all at varying times. See this screenshot below from some builder offering 3.875%. I wish I had buyers for these ridiculous commission homes lol
Before interest rates spiked (early 2021), I put 35k down on a $700k house. We had to spend another 6k on closing costs, even with a lender credit paying a chunk. Interest rate 2.9%. My mortgage which include a PMI since we put down less than 20% plus taxes rolled in is $3800/month.
There are a lot more expenses that go into the purchase than just the down payment, and there’s a lot more that goes into a mortgage aside from principal and interest when you’re putting down less than 20%.
I’d encourage you to sort out if 4% interest in actually possible right now because I’m 99% sure it’s not, and if 3k a month is what you would actually be spending on your mortgage.
I'm guessing he's not talked to a lender yet...I was uneducated and unrealistic to real estate initially, and boy, did I learn some lessons!!
Think of it as a 4%business loan where you can use that extra money to put it into an investment that will make more than 4%. If you just pay it back early, you're in some sense losing out on much greater earnings over the 30 years.
Interest rate 4% 😱 ?
Whinis your lender?
I’m 2 years into a similar mortgage without the 15 yr plan. I’m not sure the value is there as long as I leverage that money over the 15-30 years. Very doable with DINK
This sounds crazy
Sounds crazy. Idk who is throwing out that rate, unless you meet some sort of qualification im not aware of 🤔
But plz let us know details on this, im also in the process but getting quotes for 6-6.8% (>760 scores). Would love for that to dip a little