Just got pre-approved for financing to buy our house!

[SVT Lurch]

Be open to different options. I don't know what 15 year rates are at, but I re-fied, and went from a 30 year note to a 15 year note @ 3.75. My payment went up some, but I shaved off 12 1/2 years off of my note.

15 year rates were 4.250% when the markets closed. (for the typical 20% down, good credit, etc. loan)

[OrangeChevyII]

I love my house, we bought it two and a half years ago. Major pain the ass at the time, well worth it.

[Vertnut]

15 year rates were 4.250% when the markets closed. (for the typical 20% down, good credit, etc. loan)

Damn! Looks like we hit it just right!

[SVT Lurch]

Damn! Looks like we hit it just right!

Definitely. The 15 year was at 3.750%, 30 year at 4.250%, and the 5/1 ARM at 3.500% for a couple of months, but 4 weeks ago they started climbing and this last week they finally leveled off (0.500 - 0.750 higher). We're hoping for a quick bounce (back down) this next week, but then we expect them to go up some more. Still very low by historical standards, but with the "lifetime lows" gone everyone thinks 5.000% is high now.

[Counterfiend]

Got the numbers back today of what our house payment would be with a certain house we wanted and with the property tax's of Dallas and the mortgage insurance since we arent putting 20% down we weren't exactly happy with the payments and didnt want to be house poor.
So we are going to price out another house a little smaller with 1 main compromise and same options to see where that puts us. Its like 300sq less and 1 less garage space so a typical 2 car and one less 1/2 bath. But starts 20k less and there is less space to carpet, crown molding ect, so with my basic math on property tax and payment it will lower our payment easily 350-400 dollars a month.

[Cooter]

yeah man, when you calculate out that actual payment, it hits home! LOL

[AdamLX]

Don't forget when figuring your payment that your taxes and insurance are almost sure to start creeping up year to year.

[SVT Lurch]

Its like 300sq less and 1 less garage space so a typical 2 car and one less 1/2 bath. But starts 20k less and there is less space to carpet, crown molding ect, so with my basic math on property tax and payment it will lower our payment easily 350-400 dollars a month.

I don't know how you're figuring those numbers, but unless you're going from one of the areas with the highest taxes to an area with the lowest taxes (and assuming insurance follows) a $20,000 difference in price will only net $150 - $250 difference in payment. Even if you're doing a rehab loan (and including carpeting, etc.) if that costs another $5,000, or even $10,000 you're not going to make up that $350 or $400 in payment. I'm not trying to argue since there's large piece of the puzzle missing on my end, just trying to save you from another headache.

[Vertnut]

Definitely. The 15 year was at 3.750%, 30 year at 4.250%, and the 5/1 ARM at 3.500% for a couple of months, but 4 weeks ago they started climbing and this last week they finally leveled off (0.500 - 0.750 higher). We're hoping for a quick bounce (back down) this next week, but then we expect them to go up some more. Still very low by historical standards, but with the "lifetime lows" gone everyone thinks 5.000% is high now.

I don't mind telling you that our first mortgage was @ 13.75! Thanks, Jimmy Carter! Younger folks have no idea how cheap these rates are. It could very well be another 40 years before we see this again. I'm in the housing business, and when you couple the price of homes with this interest rate, it is truly the "perfect storm" for buyers. I'm already seeing inflation hit on the material-side of new homes, and now the rates are creeping up.

[dblack1]

I don't mind telling you that our first mortgage was @ 13.75! Thanks, Jimmy Carter! Younger folks have no idea how cheap these rates are. It could very well be another 40 years before we see this again. I'm in the housing business, and when you couple the price of homes with this interest rate, it is truly the "perfect storm" for buyers. I'm already seeing inflation hit on the material-side of new homes, and now the rates are creeping up.

I've got 6 month cd statements from my grandfather during that same period. Highest one is 11%. I was talking with a man about investments once and he told me he had a two year that was over 12% in the early 80's.

[Vertnut]

I've got 6 month cd statements from my grandfather during that same period. Highest one is 11%. I was talking with a man about investments once and he told me he had a two year that was over 12% in the early 80's.

My G-ma had a few "jumbo" CD's ($100k), at 14%. She cried like a baby (seriously) after Reagan took office and they came up for renewal. Damn near cut that rate in half.

[Counterfiend]

I said that much because it not only lowers what we pay principle and interest wise, but it also lowers our property tax's on 20k less, also need less PMI insurance. all in all it adds up pretty damn close to 300 less a month.

Brent

[TonyZ06]

Best feeling ever man, congratulations!!

[dville_gt's girl]

So excited, just got pre-approved on financing for our house!

Congrats, my advice as a recent first time home buyer - Dont even think about getting a house at a price you were pre-approved for. If I had bought a house based on our pre-approval I would be selling right about now too. Dville_gt and myself bought a house about considerably less like close to 75k or more than our approval and I still feel it was a great decision.

Also, look at as many houses as possible and what ever you do, don't settle. We bid on 4-5 houses before we finally purchased one and probably saw about 100 (no joke, ask RealEstateNate). Everything happens for a reason and thanks to losing deals we thought we wanted, we now have the perfect house.

Best of Luck!

[94StangFiveO]

I just bought in March of '10. Got an FHA 30 year @ 5.25% with way less than 20% down.I didn't think it was bad since all I had on my credit was basically a car loan. The preapproval was easy but after we found a house in our range it was a pain in the ass to get it all finished.