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Irvine CA said:
I am planning to buy a house ($700,000 value), zip code 92618. how much should I expect to pay for down payment, in the current economy, and other fees?
The monthly amount (debt) will direct reduce the amount of monthly mortgage payments you can afford.
* To avoid PMI – put 20% down.
* Private Mortgage Insurance can cost thousands a year.
* It is not tax deductible, and does not go towards principal or interest.
* It's like throwing money away, year after year
Franklin Advantage:
A student loan monthly payment does affect your ability to qualify. It does not affect you any more or less than any other monthly payment (think car payment or minimum credit card payment). A student loan in default will preclude you from getting a FHA loan. A student loan in default will also negatively impact your credit and may hurt your ability to get any mortgage loan.
The lowering of maximum loan amounts on October 1st will directly affect your purchase of a home for $700,000 in Orange County, California. You best hurry!
FHA and Fannie/Freddie maximum loan amounts in LA and Orange Counties are dropping as of October 1st ot $625,500. If you choose to buy a home using FHA and can close before October 1st, 2011; you can buy your home with only $24,500 (3.5% down payment). But after, (because of the maximum loan amount) the minimum down payment for a $700,000 home will be $74,500.Conventional Fannie/Freddie loans are available to the best qualified borrowers at 90% of the sales price.
If you choose conventional financing and can close before October 1st, 2011; you can buy your home with $70,000. After October 1st you will need $74,500 again, because of the maximum loan amount change.What you can expect to pay for the loan depends on what loan program you choose and at what rate you choose. Talk to a Loan Officer about this.If you choose an FHA loan, taxes and insurance will be required to be part of your payment. The impound account will need to be set up and will probably cost you between $6,500 to $8,000 (depending on the first payment date of your new FHA loan). Again, talk to a Loan Officer about this.
In California, impound accounts are not required on conventional loans at and under 90% of the sales price/value.What you pay in escrow and title fees will depend on which escrow and title company are used. I estimate you will pay $2,250 in escrow fees and a $1,000 in title fees on a $700,000 sales price.There will be other fees. Recording, HOA transfer fees, etc. Again, please call a Loan Officer. A good Loan Officer can present you several options with an estimate of your costs.
http://www.thefranklinadvantage.com/Purchases.php
Azusa California Said:
After filing ch.7 I married 1 1/2 years later. My wife bought our current house
in her name only, I did have to sign some paperwork that basically said that I
am aware of the purchase. They were not able to include my income for approval,
everything strictly in her name. My question is once I reach my two year mark
from discharge I plan to buy a home. My wife will have our current mortgage as
debt $975 monthly and probably 3k of consumer debt. I don't want her debt and
deferred student loans to count against me being approved for 75k hopefully.
Any thoughts or loan advisor input? Any help is greatly appreciated.
Franklin Advantage:
You should be fine as long and you are not living in or buying in a community
property state.
If you are living in or buying in a community property state (Arizona,
California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington or
Wisconsin); there will be a problem.
In a community property state, FHA will count the debts of a spouse even if the
spouse is not on the loan. (Only FHA, not Fannie Mae nor Freddie Mac will
approve you for a new loan 2 years after a bankruptcy)
Again, this only applies if you're in a community property state.
http://www.thefranklinadvantage.com/Purchases.php
San Bernardino CA said:
I
own an 3 family rental property that’s i purchased 6yrs ago. I have always had
steady rents coming in and have never been late. I have an interest rate of 7%
and as with every-ones home i ended up upside down. Recently i spoke to a
mortgage broker that said i have option and that it would be in my best
interest to refinance even it being upside down. Because i have excellent
credit that will work to my advantage. Now i have 24 yrs left. If i go to a
lower interest rate back to 30yrs then i could have a positive income after all
expenses of almost 650.00. Now if i did 20yrs at a lower rate my positive
income is roughly 225.00. I’m torn because i would love to see that extra money
but to go back to 30 kills me. What do you guys think? Just some quick info on
me i’m 32yrs old married. I also own a single family residence. My future for
the mutli unit was for income once it was paid off.
Franklin Advantage:
First of all, being upside down will not prevent you from refinancing (even if the loan is on a non-owner occupied triplex) if the current loan is owned by Fannie Mae or Freddie Mac. Fannie and Freddie both offer borrowers the ability to refinance their current Fannie or Freddie loans into new Fannie or Freddie loans with little, no or even negative equity. Also, since the new loan will be a Fannie or Freddie loan; there is no pre payment penalty.
Please check the links below in the sources to verify your loan is a Fannie or Freddie loan otherwise you could end up paying for an appraisal that serves no purpose.
Secondly, there are additional options you should ask your loan broker about.
Fannie and Freddie both offer 25 year fixed rate loans. The rate is the same as a 30 year fixed rate loan so there is little benefit other than forcing you to a shorter amortization schedule.
The other option is to take the 30 year fixed rate loan and make larger payments, in essence; self-amortize the loan for 25 or even 24 years. Check the link to Franklin Advantages Tools page in the source section for an amortization tool.
Self-amortization will give you flexibility. Flexibility to pay less when you depend on tenants for income is always a good idea.
http://f-advantage.com/Refinance.php
