What is the best type of mortgage loan for the lowest monthly payment?

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30 year fixed? 2/1 ARM? I need a loan with no PMI and low points and the lowest possible mortgage payment a month. What Im working with:

Credit score 600
Annual assets (Salary) 34500
Monthly Debt: 70
House loan amount: 106000
Available to put towards closing costs (Including down payment) 12000

Any ideas?

I am 21 and I recently started looking into some real estate listings just for the heck of it. I came across a couple of houses that are at or below $ 25,000, I went to take a look at them and they are in very nice condition as well as being in good neighborhoods, mostly because we are in a serious real estate slump here in Michigan. I feel like it is the right time to buy something especially so I can take advantage of the first time home buyer credit. What would be an ideal situation for me would be to purchase the home with a very low down payment and I do not know much about loans, but with a 10 year fixed APR mortgage, the loan would be extremely affordable. The plan would be that I could pay it off in ten years and either still live in it or sell/rent the property. My question is does this sound at all reasonable for me to be doing and are there even lending companies out there willing to work with low down payment mortgages that are that short of a term?

4 Comments
  1. Reply
    zyberianwarrior
    January 20, 2011 at 4:08 pm

    obviously you haven’t been watching or reading about the mortgage meltdown. 30 year fixed and certain lenders will ignore the rip off PMI crap. Shop around but insist on 30 year fixed.

  2. Reply
    sti
    January 20, 2011 at 5:00 pm

    I think you have a lot of options but need to look into a few different lenders to see who will give you the best rate. I would think that most lenders will work with you. This site also offers some good information, but it’s more centered on investment properties: http://www.investmentpropertiesinfo.com/investment_property_financing.html

  3. Reply
    Pacificstarmortgage.com
    January 20, 2011 at 5:08 pm

    I have programs for individual with midscore of more than 600 which will allow you to go without PMI and of course a low payment.
    If you think that all of your scores are more than 600, please get in touch with me for 24 hour approval.

  4. Reply
    catty
    January 20, 2011 at 5:36 pm

    Just be sure and get a fixed rate or you will get screwed in the long run. Try your bank for a loan.

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