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We are first time buyers. So totally confused with all the options and rates. Could anyone here help us with this please?
We liked a 315K home(new construction) in a Pulte neighborhood in South Charlotte. We are going for 5% down, 30yr fixed mortgage. For now we're going to keep the home for atleast 5 yrs.
Have got "estimates" from several lenders. If we stick with Pulte mortgage we'll get $3000 towards closing cost. Infact Pulte Mortgage has given 4 different programs.
wow those intereste rates are high considering for first time home buyer. I guess it depends on which states you live in. here in Boston, MA the lowest rate you can get today for 30yr fixed, no pmi, 5% down payment is only 3% for first time home buyer with income max at $68k. and if your income is between $68k and $82k interest rate is 3.5%, no pmi, 3% down payment. based on a $360k home, my monthly PITI payment is under $1,900 a month (include tax and home insurance).
wow! Only 3.5%? Why is the interest based on income? We are in North Carolina. We will be >82k income group, does that make any difference? The least we are getting with PMI is 4.375%. Is it something we are not asking for or something?
How in the world do you get 3.5%, 3% down and no PMI?
You don't...
OP - A bunch of this will depend on your scores. Have looked at FHA and or 80/15/5 to compare the numbers? Just as an aside, they may not call it "PMI", but it's in there (i.e. a higher rate).
wow those intereste rates are high considering for first time home buyer. I guess it depends on which states you live in. here in Boston, MA the lowest rate you can get today for 30yr fixed, no pmi, 5% down payment is only 3% for first time home buyer with income max at $68k. and if your income is between $68k and $82k interest rate is 3.5%, no pmi, 3% down payment. based on a $360k home, my monthly PITI payment is under $1,900 a month (include tax and home insurance).
How in the world do you get 3.5%, 3% down and no PMI?
Quote:
Originally Posted by MikeyKid
You don't...
OP - A bunch of this will depend on your scores. Have looked at FHA and or 80/15/5 to compare the numbers? Just as an aside, they may not call it "PMI", but it's in there (i.e. a higher rate).
that's the benefit of being a first time home buyer here in the state of Massachusetts.
Here are some of the eligibility/benefits:
Lower interested rate, average 1.5% to 2.5% lower than conventional bank.
No Points
No PMI
No MIP
3% down payment (2% can be from gift money)
credit score of above 680
Income limits of under $82k
up to 75% of rental income
Debt to Income Ratio up to 41%
with this program I'm getting 3.5% interest rate, 3.5% APR, and my monthly payment (based on $360k with 3% downpayment) is just under $1,900/month (tax+home insurance included) or possibly lower. I will know the exact number by next week when I close.
now before I found out this program I applied for FHA which gave me interest rate of 4.9% with 3.5% downpayment + MIP (mortgage insurance) and the monthly payment would over $2,400/month based on $360k home.. that's over $500 PER Month i have to pay if i went with FHA.
but like I said.. first time home buyer program is varies from states.. your state may not even have such a program.. you would have to check out your city/state website to see if they have any
OP - A bunch of this will depend on your scores. Have looked at FHA and or 80/15/5 to compare the numbers? Just as an aside, they may not call it "PMI", but it's in there (i.e. a higher rate).
We have an excellent score(780+). Even with a slightly high interest rate, the one with no PMI appears to be cheaper than low rate with PMI. I just wanted to know if there is any "catch" hidden in it
that's the benefit of being a first time home buyer here in the state of Massachusetts.
Here are some of the eligibility/benefits:
.....
.......
but like I said.. first time home buyer program is varies from states.. your state may not even have such a program.. you would have to check out your city/state website to see if they have any
Thanks for explaining this Looks like we won't be eligible for this program by the income limits.
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