Is this a good mortgage rate/deal or can I do better.?
I’m trying to buy a 107,900 condo conversion in Madison WI, property tax is roughly 2000. I make 30,000 a year, am single, and have enough in savings pay the 5% down and closing fees. My credit score is a 768 but my debt ratio with the home will be 44%. I have been denied both WHEDA and a VA loan because of this debt ratio. My only debt is my car payment, which is up in 2010. I have been offered a plan with no PMI and 6.75 interest though a local bank. Is this a good deal or can I do better. I’m somewhat wary of this loan officer since he pre-approved me for up to 105,000 in loan amount to get a WHEDA or VA loan, when I was in that mortgage range, he then told me my debt radio was still to high. I had disclosed my debt, saving, income and credit score before I began my house search. My offer has been accepted for the place and I have until Wednesday to get financing, I do have the option written into the contract to extended my financing search up to another week if I choose though. Also I would prefer a fix rate for 30 years verses a 5 year ARM which I know is often a option.
My condo association fee covers my exterior home insurance, water and sewer plus a reserve fund. My condo insurance for the interior will be around 100 per year. The seller of the condo is covering those fees until 2010, my car is paid off with two month after I have to start paying the fee. They have counted both my condo fees and tax payments into the ratio.
If people still think this is too much for be to take, be honesty, I am willing to reconsider my decision and keep renting. My mortage including property taxes would be 80 dollars more then I pay in rent right now (I’ve been renting at this amount for two years). I think I can make it and this condo is a steal for the price plus I can get into the market before interest rates get to high. But honest opinion are greatly welcomed, I don’t want to end up in financial trouble at the same time.
I would like to buy a foreclosure home in the Madison, WI area. The home is on the foreclosure market for 75,000 but the appraisal is around 130,000. The home needs quite a bit of work and I’m wondering if I may be able to take out a mortgage for around 105,000 so that I can purchase the home and make the necessary improvments? any help or sources would be greatly appreciated. Thanks!