[Dutch]

Just curious to if I'm getting ripped on my loan...

I don't mind paying a little more, as it is through Fifth Third bank, and having it closer is worth a few more fractions of an interest point.

They are giving me an 80-15-5 which basically means I get an 80% loan (30 year fixed) for the total amount, a 15% loan (interest only loan) for the total amount, and I put 5% down.

This works best as I don't want to drain the account, and instead will work hard to pay the 15% off ASAP to avoid interest, and then work on the house (maybe making double payments, etc).

They offered me 6% loan rate on the 30 year fixed, I have good credit I think (the credit inquiry showed my credit number to be 768 - is this good???).

An ex-roommate of mine is working selling loans, etc now, and she says she can beat my rate they offered but I am not sure whether it is worth it, as I'm sure she won't go through a local bank, and not sure about the 80-15-5 thing...

I really know very little about mortgages (except the math behind them) and don't want to be taken as a fool.

Total closing costs (tax, fees, costs, inspection, etc) is around $1500 which I was told is normal. A coworker tells me you really can't negotiate rates or closing either, although I am not sure this is true...

ANY input would be greatful!
TIA

[grapegrl]

This sounds like a job for missnic!

[Dutch]

Originally Posted by grapegrl

This sounds like a job for missnic!

<does the missnic call>

[starpilot]

credit number of 768 is a very good number rating.

[amszyh]

I'd hit up the finance forum...maybe not post, but some searching will do you some good. I usually just skim over the mortgage stuff because it doesn't apply to me, but I know there's tons of it there.

[Dutch]

Originally Posted by starpilot

credit number of 768 is a very good number rating.

sweet.

I am sort of surprised cause don't they factor in total number of credit cards you have and the total amount of credit debt you could come up with?

If I maxed all my cards out... well, I'd be about $15k in debt :(

[Dutch]

Originally Posted by amszyh

I'd hit up the finance forum...maybe not post, but some searching will do you some good. I usually just skim over the mortgage stuff because it doesn't apply to me, but I know there's tons of it there.

well, I know so little that it manages to only confuse me more. I realize the vast wealth of knowledge there, but I'd have to spend 6 months learning to get to the level where I understand the basics...

[PeanutButterandJelly]

First thing you gotta do is find out how much you will pay total
and how much you will pay if you pay it off early.

[missnic]

6% on a 30 yr fixed isn't bad.. but you could probably get around 5.25%, especially with only an 80% LTV. For the second mortgage, you're probably looking at 9-11%
$1500 in closing costs sounds about right. Ask for a Good Faith Estimate to get a breakdown of the fees.

Why do you say that having the bank closer is worth the extra points? They're just going to sell it in 6 months to someone else.
Going through a broker and a traditional lender rather than a bank can work in your favor sometimes.. there's more leeway in negotiating rates and fees. Especially with a 768 score. Which score was that? EquiFax?

Call up a local broker that offers free prequals. Get a quote and a good faith from them and compare it to the bank.

[Infinity]

5/3 Bank is running a special on the 15% loans where it's 3.99% for a few months, then it can become variable. Or, it was recommended to me to lock it in at that point. I just moved last week, so this is fresh in my mind, and we're in the same state, so all the rules should apply. Even if you don't pay off the -15- mortgage quickly, it's still cheaper than having to pay PMI.