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Home Mortgage Advice

AnonymousDeac

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Monday was a big day as I reached an agreement with the sellers to purchase my first house. Pending an inspection, I'll be closing/moving in next month.

Does anyone have advice for getting a home mortgage? I'll be putting down 20% and looking at either a 10 year ARM or 30-year Fixed.
 
Is a 15-yr not possible? Rates are rising but still great. With 20% down, you might be in the realm of possibility there. I know people benefited from ARMs when they bought low/sold high and originally planned on having a short-stay but I just don't like them.
 
If you're putting 20 percent down, you should be able to avoid having to pay mortgage insurance that way, so that's great. Like 94, I've heard of people benefiting from ARMs if they're planning on selling within that timeframe. Otherwise, you'll want to refinance eventually and by that time rates will likely (definitely) be higher and you'll likely have to pay closing costs again, so if you're looking to stay there in the mid-to-long term, I'd suggest going 30 or 15 (preferably 15 if you can afford it).
 
Yeah. Why get an ARM when rates are likely to rise over the next few years. They can't go down.
 
Seriously. Why didn't you try to get a lock on a rate when you got pre-approved and then move fast as you saw the writing on the wall with rates moving up?
 
Rates have really jumped the past month, it's a shame.

I admit it's totally bragging but I re-fi'd for a 15 at 3.25 and feel like a fucking porn star. 15's went even lower after I did. I just don't see those numbers ever returning in my lifetime.
 
I just picked up a 7/1 ARM, but seven years would be long time for me to live in one place. If you feel the house is somewhere you plan on being for a long time, then avoid the ARM. For me it has always been the best option.
 
I admit it's totally bragging but I re-fi'd for a 15 at 3.25 and feel like a fucking porn star. 15's went even lower after I did. I just don't see those numbers ever returning in my lifetime.

Rates went up a quarter of a point in just one weekend a few weeks ago.
 
I just picked up a 7/1 ARM, but seven years would be long time for me to live in one place. If you feel the house is somewhere you plan on being for a long time, then avoid the ARM. For me it has always been the best option.

Never would've guessed...
 
Not sure what you do for work or how volatile it might be. You can maintain your financial flexibility by taking a 30 year fixed and making more payments. If things worsened for you financially you can just make the 30 year payment. If you are doing well then pay more. If you take the 15 then you're stuck with that payment.
 
are you planning on selling in a few years or holding long term? what rate can you get for each?

Don't want to do a 5 or 7 year, however doubt I would stay in this house for 10+ years. It's definitely large enough to have family but not in the great school locations. Not that I'd ever have children or get married. Ew.

Yeah. Why get an ARM when rates are likely to rise over the next few years. They can't go down.

Would only do 10 year ARM b/c think it's unlikely I'd still be planning on living in this house.

Seriously. Why didn't you try to get a lock on a rate when you got pre-approved and then move fast as you saw the writing on the wall with rates moving up?

Been looking at houses for the past 6 months but never had a time crunch to move. Was more looking for a great opportunity and found it. And just not something I planned for or considered prior.
 
One additional thing is I'll be doing a decent amount of improvements to the place, with the most significant most likely being taking the 3 living rooms downstairs and taking out a couple of the walls to make it far more open.

What are the Pros/Cons of trying to include those in an increased mortgage amount?
 
One additional thing is I'll be doing a decent amount of improvements to the place, with the most significant most likely being taking the 3 living rooms downstairs and taking out a couple of the walls to make it far more open.

What are the Pros/Cons of trying to include those in an increased mortgage amount?

Creating orgy rooms make the place harder to sell.
 
Not sure what you do for work or how volatile it might be. You can maintain your financial flexibility by taking a 30 year fixed and making more payments. If things worsened for you financially you can just make the 30 year payment. If you are doing well then pay more. If you take the 15 then you're stuck with that payment.

This. The benefit of a 15 comes out to making around 1.5-2 extra payments a year. Don't lock yourself in unless your salary and job are stable.

Locked in 3.75 on a 30 year two months ago. Locked up a refi at less than that about a year ago. Great timing all around.
 
Creating orgy rooms make the place harder to sell.

Make sure you get Skins to give you a quote. He did the tile for RG3's orgy room.
 
This. The benefit of a 15 comes out to making around 1.5-2 extra payments a year. Don't lock yourself in unless your salary and job are stable.

Locked in 3.75 on a 30 year two months ago. Locked up a refi at less than that about a year ago. Great timing all around.

are you saying if you make 1.5-2 extra payments a year on a 30 yr, it is roughly equivalent to a 15 yr?
 
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