Need advise for mortgage offer (insurance, interest rate, pre-approved, credit score) - Mortgages -Lenders, loans, financing, rates, foreclosures, short-sales, brokers, credit score, deed, lien, refinancing, borrowers - City-Data Forum

sullah · 09-12-2011, 10:50 AM

Guys

I need an advise for an mortgage offer i got. I have been pre-approved 268,000 for 80/17/3 conventional loan. I will be putting 3% down.

The interest rate on 80% will be 4.5 and 17% at 8.99.

My situation is

Already have a house
Mortgage :1,167.20
Salary around 100K
credit score is 860

second house will be around 268K and the closing cost will be piad buy builder around 8000. I have attached the good faith estimate from the lender .
can you guys advise me if this is a good deal

Thanks in advance
sullah

Jkgourmet · 09-12-2011, 10:59 AM

The SMARTEST approach would be to dump the second mortgage and put 20% down. Or wait until you can.

Sheesh. I was really hoping the banks had stopped doing these kinds of dumb deals - though I commend you on that credit score.

sullah · 09-12-2011, 11:04 AM

Ya, 20% will down will be good but given the current economic situation i want to hold on to my cash.

jtr8178 · 09-12-2011, 11:08 AM

I would also vote on saving up for the down payment... Won't that be REALLY tight with 2 mortgages?

Buying a house with only 3% down is a very bad idea.

sullah · 09-12-2011, 02:15 PM

i have money saved up ... it shouldn't be a problem

Jkgourmet · 09-12-2011, 03:21 PM

Quote:

Originally Posted by sullah

Ya, 20% will down will be good but given the current economic situation i want to hold on to my cash.

If you're THAT worried, you shouldn't be buying a 2nd house.

Just sayin'

sullah · 09-12-2011, 03:43 PM

okay, can any lender give me an advise on this?

Jkgourmet · 09-12-2011, 10:59 PM

Quote:

Originally Posted by sullah

okay, can any lender give me an advise on this?

I used to be a mortgage broker. Wanna know why I got out of the business? Because I wouldn't tell people what they wanted to hear. Because I was honest. Because I wasn't out to just generate a commission for myself by placing a loan. Because I told people that they shouldn't be mortgaged up the ying-yang.

If I were still selling mortgages, based on the very limited Information you presented, I'd be strongly suggesting you NOT accept either one of these offers.

Bette · 09-12-2011, 11:12 PM

Quote:

Originally Posted by sullah

Ya, 20% will down will be good but given the current economic situation i want to hold on to my cash.

If this is a true 2nd home, you can get mortgage insurance - up to 95% in some states, 90% in my state (Florida).

Check into that.

Is the builder paying some of your closing costs? That rate of 4.50% seems high.

sullah · 09-13-2011, 09:15 AM

I'm in texas. Builder will be paying closing cost