Posted by Ohioguy on December 8, 2009, 1:02 pm
We are in the midst of closing on our new home, a HUD owned, FHA 203k
rehab loan mortgage house that is 30 years old. Last week I heard that
30 year mortgages had dropped to record lows, and then I thought I
remembered that during the closing process, if we were within a couple
of weeks of closing, we could request to "lock in" the rates.
Since the FHA rehab loan allows us to have only $100 down, and also
includes the insurance, it is a bit higher than other loans. We had
been quoted numbers between 6.3%, 6.4%, 6% over the past couple of
months. 5.37% is fantastic! This will end up saving us about $11k over
the life of the loan.
I think I'm going to have to take my wife out to a nice restaurant to
celebrate - McDonald's here we come! (kidding, kidding)
Posted by sf on December 9, 2009, 10:48 am
> We are in the midst of closing on our new home, a HUD owned, FHA 203k
>rehab loan mortgage house that is 30 years old. Last week I heard that
>30 year mortgages had dropped to record lows, and then I thought I
>remembered that during the closing process, if we were within a couple
>of weeks of closing, we could request to "lock in" the rates.
> Since the FHA rehab loan allows us to have only $100 down, and also
>includes the insurance, it is a bit higher than other loans. We had
>been quoted numbers between 6.3%, 6.4%, 6% over the past couple of
>months. 5.37% is fantastic! This will end up saving us about $11k over
>the life of the loan.
> I think I'm going to have to take my wife out to a nice restaurant to
>celebrate - McDonald's here we come! (kidding, kidding)
You found one of the ups of a down market, congratulations!
--
I love cooking with wine.
Sometimes I even put it in the food.
Posted by James on December 9, 2009, 11:19 am
> > We are in the midst of closing on our new home, a HUD owned, FHA 203k
> >rehab loan mortgage house that is 30 years old. Last week I heard that
> >30 year mortgages had dropped to record lows, and then I thought I
> >remembered that during the closing process, if we were within a couple
> >of weeks of closing, we could request to "lock in" the rates.
> > Since the FHA rehab loan allows us to have only $100 down, and also
> >includes the insurance, it is a bit higher than other loans. We had
> >been quoted numbers between 6.3%, 6.4%, 6% over the past couple of
> >months. 5.37% is fantastic! This will end up saving us about $11k over
> >the life of the loan.
> > I think I'm going to have to take my wife out to a nice restaurant to
> >celebrate - McDonald's here we come! (kidding, kidding)
> You found one of the ups of a down market, congratulations!
I'm on a variable rate mortgage with generous pre-payment options, and
my current rate is around 2.25%. I have kept my payment the same as
when i signed, and the rate was 4.25. My mortgage is being paid down
rapidly. Sadly though, my 5 year term is coming to an end in a few
months. So I have to decide.
We have shorter terms here in Canada - your term and your amortization
period are not the same here. In general terms run 1- 5 years. (Some
offer 6 months, some as long as 7 years). It will be an interesting
calculation. Our central bank is trying to keep things low for the
next 6 months.
So I am personally benefiting from current interest rates.
James
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>rehab loan mortgage house that is 30 years old. Last week I heard that
>30 year mortgages had dropped to record lows, and then I thought I
>remembered that during the closing process, if we were within a couple
>of weeks of closing, we could request to "lock in" the rates.
> Since the FHA rehab loan allows us to have only $100 down, and also
>includes the insurance, it is a bit higher than other loans. We had
>been quoted numbers between 6.3%, 6.4%, 6% over the past couple of
>months. 5.37% is fantastic! This will end up saving us about $11k over
>the life of the loan.
> I think I'm going to have to take my wife out to a nice restaurant to
>celebrate - McDonald's here we come! (kidding, kidding)