My wife and I have great credit (730), we are looking for a loan for a primary residence, $409,000. We want to come to the table with 0 down, no money out of pocket. What type of loan is best for us? We can afford about $2500/monthly. Any assistance would be great. Online mortgage calculators suck!
Do you or your wife have any prior military experience? If so then I would go for the VA loan. It’s made for first time buyers with no money down. That way you won’t be hit with PMI. 
Buying a home for the first time…what type of mortgage is the best for us?
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If you come in wth zero $ down they are going to stick it to you in interest costs. Why don’t you instead save up six months, and then come to the table with at least 10% down? It will also decrease your monthly mortgage. Otherwise, you are just waiting for bad news to happen if your house depreciates or you miss a payment.
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wait 2 months, put $5000 down and go to your bank……dont do no money down…that’s so lame
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put at least 10% down or save for it.
a 30 yr fixed is a safe bet.
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The only advise I have for you, is make sure you choose to have a fixed interest rate, Everything else will work out fine.
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Fixed rate, simple interest loan.Try an FHA loan for first time buyers. Good luck!
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Your looking a 2+1 condo that is probably worth 300-325k with what you can afford per month.
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Holy crap…. your statement reads "I want it all and I want it Now"
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Do you or your wife have any prior military experience? If so then I would go for the VA loan. It’s made for first time buyers with no money down. That way you won’t be hit with PMI.
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Are you crazy? save your money. Buy a house, not one for you and one for your lender. The answer to your question is….none. It’s like asking yourself which rope is best to hang yourself with….come on.
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It really is not possible to buy one no money out of pocket. You folks have and IRA? You can use it for a first home.
You want to put at least 10% down on a first home. That would be $40K for the one you are thinking about. You get a much better rate if you put down 20%
-Dio
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conventional with a fixed interest rate. There should be to higher interest rate due to your excellent credit score
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This is going to be tough if you want the least risky mortgage product…a 30 year fixed-rate, fully amortizing mortgage. .
If you get a mortgage for the full amount with a 30 year amortizing fixed rate at 6.375%, then your monthly payment is $2551.62. BUT….then you are going to have to pay mortgage insurance, plus taxes plus property insurance….. Mortgage insurance (look it up on the internet is required by a lender when you put less than 20% down) and will cost .4% a year… kicking your payment up to $2659. Then you have to add in your property tax and property insurance.
If you want to start introducing elements of risk into your mortgage you can get an interest only mortgage, in which you pay interest for the first few years and then it converts to a repayment mortgage. You can do this with an adjustable rate or fixed rate mortgage.
If you select one of these products, you can drive the monthly expense down by a few hundred $ a month. BUT…you have the pay the piper eventually….usually with higher payments down the road. Also, some of these mortgages carry prepayment fees.
If you intend to stay in a house for a limited period of time, then you can taylor the mortgage to match the length of time you expect to own it. You could select a mortgage that is fixed rate for 5 years, and then it begins to adjust…but if you move in year 4 you wont have to face this adjustment.
Selecting the right mortgage is complex and you need to find a mortgage lender who you can trust. Ask your realtor for a recommendation.
As a general rule, the lower your initial payments are, the more risk you are taking at the back end that your payments will go up materially.
Hope this helps.
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10% down and go for 5 year fixed rate closed mortgage, you can shop around to get the lowest rate available.
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Thank you for your question. We have a mortgage product you are looking for. Based on the information you provided we can obtain a 1st and 2nd mortgage for you which will allow you to have 100% financing without getting PMI (Property Mortgage Insurance). The reason you want to get 80% first and 20% second mortgage is because second mortgage interest is tax deductible and PMI payments are not. As to your payment it would be about $2500 per month plus we can help you with paying no closing cost on it. We at American Mortgage and Real Estate Group have various other products for no down payment programs such as 5, 7 and 10 year amortization fixed mortgage. You would have to make a choice which mortgage to pick based on the number of years you are planning to live at that property. Also, right now we have a great product called Option ARM with rate of 1.25% and 7% ARM and mortgage payment for that product would be about $1400 per month. This products is great because every month you pick an option of your payment. You can make a full payment or a minimum payment depending what you think is the best for you at that time. I hope I addressed all your question. If you have any other questions please feel free to email me at info@amregroup.com or call me at 323-428-5944 and ask for Vladimir Rozumniy.
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Depends on how long you intend to live in the house.
1-3 years…Go with a 3/1 ARM, 1yr ARM or 6 mo. ARM
3-5 years… 5/1 ARM
5-7 years… 7/1 ARM
7 years + … Go with a 15 year or 30 year fixed
Being that you are looking to go with a no money down loan, you may have to pay PMI (Private Mortgage Insurance). Check with a loan officer to see if you can avoid this. Good Luck
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REALTOR
As of Friday, there was no reason to choose anything other than a thirty year fixed rate loan. The rates for that were essentially the same as for all the shorter term adjustable loans. The only reason not to do this is if you cannot really afford the property, in which case you should walk away before you close. Now to avoid PMI, you should only put 80% on the first, and the remaining 20% of your loan on the second. Believe it or not, as of Friday a 30 due in 15 was the cheapest thing there was there, also.
So you have a first at 6.125% for eighty percent, or $327,200. Payment $1988.11. This is if you got some credit for closing costs from your seller, because that loan takes one discount point to get at the last rates I saw. Otherwise, you’re looking around 6.375 at par with closing costs, 6.625 for zero cost.
A second for the difference, $81,800, at 8.75% gives a payment of $644.99.
Not counting property taxes and homeowner’s insurance, you look overextended by what you told me, as $1988.11plus $644.99 works out to $2633.10. A decent insurance policy will add at least $100 per month to that, and property taxes around here about $425 or more.
So assuming that $2500 is really all you can afford, get out while you can.
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Loan Officer and Realtor in San Diego. Website http://www.danmelson.com/