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Old 05-05-2015, 01:16 PM
 
2,242 posts, read 2,203,709 times
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Quote:
Originally Posted by pdocstr View Post
Not really. NC allows non-recourse mortgages but does not require them. Check your specific mortgage document fine print to see if your lender gave you the option to walk away.

Besides anyone that considers foreclosure to be a "fall back" strategy of any sort is a moron. That should be the last possible thought that enters a homeowners mind, not something to provide a feel-good cushion for buying a home that's more than they need.
I wasn't recommending it as a fallback strategy. Whenever anyone enters into a contract, they should know what is expected of them (terms and conditions) and what the cost is too get out of the contract, even the worst case, "nuclear option" of trashing one's credit and walking away.
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Old 05-05-2015, 01:40 PM
 
Location: Raleigh, NC
1,141 posts, read 975,789 times
Reputation: 1190
The problem with interest rates is you never know what they'll do. Have you been following the market? The last week and a half have not been good, and interest rates will increase again today (10 year treasury yields increased today due to many things). It's better to lock in a fixed rate as they are cheap but not sure how long this will remain. Of course, people have been saying that last sentence for the last 3 years.
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Old 05-05-2015, 01:51 PM
 
12,407 posts, read 9,251,495 times
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Quote:
Originally Posted by math_p View Post
Hi,

I wanted to make sure that I have my bases covered before purchasing a home. I was considering buying a 8 yr old 420K home in Cary with 8k/month gross salary. My thp is 4500/month. I have enough money to make 20% down payment and enough savings after downpayment to cover for 2 years of mortgage. My monthly debt is a car loan of 500$. My question is will I be able to afford this home with just my income, assuming we have my wife's savings/monthly earnings to fall back on?

I am planning to take a 7/1 ARM or a 5/5 ARM to lower my monthly mortgage payments considering I do not wish to stay in this house for more than 10 years.

Any recommendations on mortgage lenders ?

Thanks
Do not take out an ARM unless you can afford the highest payment it could reset to!!!
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Old 05-05-2015, 03:41 PM
 
2,242 posts, read 2,203,709 times
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Originally Posted by pdocstr View Post
Interesting that the thread was moved to a geographically neutral area right around the time the discussion became more NC focused.
I was about to say the same thing.
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Old 05-06-2015, 08:24 PM
 
Location: Durham NC
1,126 posts, read 1,185,923 times
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Quote:
Originally Posted by HouseBuilder328 View Post
The problem with interest rates is you never know what they'll do. Have you been following the market? The last week and a half have not been good, and interest rates will increase again today (10 year treasury yields increased today due to many things). It's better to lock in a fixed rate as they are cheap but not sure how long this will remain. Of course, people have been saying that last sentence for the last 3 years.
If I was on the fence now I would lock in. The 30 year has been locked in a trading range 3.50-4.50 or so the past few years. If we take out 4.50 next time up it could get real ugly real fast. Rates won't stay down forever.
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