Posted on: 28th Apr, 2009 08:17 pm
see subject. Working with First Jersey Financial Corp.
I find it odd that the broker states this is a vanilla loan fixed a 5% with no buy down options
I find it odd that the broker states this is a vanilla loan fixed a 5% with no buy down options
Plain Vanilla
You borrow money, you pay it back, the same payment every month for 30 years (or 15 years, or 40 years) until it's paid off. The rate never changes.
Advantage: You will always know what your payment is.
Disadvantage: This is typically the most expensive loan.
When it is a good idea:
When you know you will stay in the house for a long time.
When level payments are important to you for financial planning.
If you are insecure about your job future.
If you might want to rent the home in the near future but live in the home now.
Most Importantly: When interest rates are at a low cycle!
There are two major variations on the fixed-rate loan: Balloon and Buydown.
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You borrow money, you pay it back, the same payment every month for 30 years (or 15 years, or 40 years) until it's paid off. The rate never changes.
Advantage: You will always know what your payment is.
Disadvantage: This is typically the most expensive loan.
When it is a good idea:
When you know you will stay in the house for a long time.
When level payments are important to you for financial planning.
If you are insecure about your job future.
If you might want to rent the home in the near future but live in the home now.
Most Importantly: When interest rates are at a low cycle!
There are two major variations on the fixed-rate loan: Balloon and Buydown.
[System detected duplicate content, converted into image. Thanks.]
Hi frodiggs!
Welcome to forums!
As far as I know, you'll be able to buy down your fixed loan. Is it mentioned in your loan doc that you won't be able to buy down the loan?
Sussane
Welcome to forums!
As far as I know, you'll be able to buy down your fixed loan. Is it mentioned in your loan doc that you won't be able to buy down the loan?
Sussane