What kind of rate will we get on our loan (mortgage)?
This July we are closing on our condo. The condo is located in Chicago and we bought it for $ 370k. We make a little over $ 70k together a year. We pay our cc bills each month and in whole. We are putting more than 20% down to avoid PMI and to give us some equity if we choose in the future to buy more property once our salary increases. We will probably put down ~$ 90k. The only real debt we have is my $ 19k in student loans, which will go into deferment because I am back in school. We were preapproved for $ 250 or 280K (I am not able to locate the document at the moment) but had lower credit scores, a tab bit lower income and did not have as much saved up for a downpayment a year ago when it was done.
1 – What kind of interest rate could we expect?
2 – Do you think banks will offer better rates than a mortgage broker?
3 – When should we apply for a loan?
*Not bad for 2 – 25yr olds huh?
02/2006 Fico scores
EQ / EX / TU
Mine – 784 / 778/ 777
His – 771 / 780 / 781
Correction – Value of condo should be $ 360k. It should not be $ 370k. So we’re looking at a loan of ~$ 270k. Sorry about that!
I am buying a duplex and am trying to decide on financing. I have narrowed my choices down to two companies who are still accepting 10% on investment 2-unit properties. I would like to know which one to select and reasons for your opinions:
Option #1: 90/10 loan with 1.0 pts @ 6.875% on a 30 year fixed conventional; plus PMI monthly payments of ~$ 840.00
Option #2: 80/10/10 loan with 0 pts @ 7.0% on the 1st and 9.14% on the 2nd, both 30 year fixed rates; no PMI, monthly payments of ~$ 778.00.
With option #2 my cashflow will definitely be better and that is what I am trying to maximize. I know I am paying more in the long run but I know I can refinance in the future, as I am already buying this property at a 75-80% discount.
Cashflow has to be a big factor when looking at loans, however, with a good rate of 6.875% on the other, I just want to make sure I’m not overlooking anything, taking the 80/10/10 over the 90/10.
Please let me know your thoughts. Thanks!
The payment in Option #1 INCLUDES the monthly payment AND PMI ($ 755.00 + 85.00). Option #2 has not PMI and thus not factored in.