Posted on: 25th Jan, 2008 03:47 pm
I'm planning to upgrade to a 1700+ sq ft home w/5 acres from my current ~1400 sq ft home on a .5 acre lot. Property taxes here in Alabama are relatively low, so I'm thinking I don't necessarily need to go the escrow route (pay taxes and insurance out of pocket).
I'm estimating a $30k return on the sale of my house. My projected home sale price is $170k (my neighbor's home).
I want to know my options of what type of loan that will get me the best rate. I probably won't opt for points because I may not own/reside for more than 5 years in the new home.
Any suggestions?
I'm estimating a $30k return on the sale of my house. My projected home sale price is $170k (my neighbor's home).
I want to know my options of what type of loan that will get me the best rate. I probably won't opt for points because I may not own/reside for more than 5 years in the new home.
Any suggestions?
What is the purchase price of the new home? A 5/1 ARM may be the best route to go........what are your redit scores? In order to avoid escrows on a conforming loan......you need to have a 80% or better loan to value.
As stated above, the purchase price is ~$170k. I will NOT go ARM.
My current mortgage is VA, but from what I understand, I may save some costs with my $30k down payment with a conventional type loan.
BTW, this is FSBO on the new purchase
My current mortgage is VA, but from what I understand, I may save some costs with my $30k down payment with a conventional type loan.
BTW, this is FSBO on the new purchase
Hi Cheappower82,
The 30 year fixed rate mortgage is right around the same as the 5/1 arm so I would definately suggest the fixed rate mortgage. You can put as little as 5% down with good credit and should qualify for a 30 year fixed rate at 5.50% with no points.
The 30 year fixed rate mortgage is right around the same as the 5/1 arm so I would definately suggest the fixed rate mortgage. You can put as little as 5% down with good credit and should qualify for a 30 year fixed rate at 5.50% with no points.
Good Afternoon Cheappower82,
From what I see with the rates today the 30 yr is at 5.50% but the 5/1 ARM is under 5 at 4.875%. You could go conservative on a 7 yr arm at 5.125%. . There are many options so try to check them all out because rates are on the rise right now.
Maybe they will come back down next week but who knows!
From what I see with the rates today the 30 yr is at 5.50% but the 5/1 ARM is under 5 at 4.875%. You could go conservative on a 7 yr arm at 5.125%. . There are many options so try to check them all out because rates are on the rise right now.
Maybe they will come back down next week but who knows!