Quote:
Originally Posted by SmartMoney
Call a different lender. Have you looked into doing a split loan, an 80/10/10? There are more options that what this lender has presented.
Keep shopping.
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Yeah, I went to Bank of America yesterday where I'm a premier Banking customer. Best rates they can give me with 30 year fix with 20% downpayment (on a 600K home with 120K cash downpayment) for a total mortgage of of 480K was still 6.5% zero points. They were willing to give a 480K mortgage 5 year conventional ARM for 5.625% zero points (also assuming 120K downpayment).
I have pristine credit plus I am in the 35% tax bracket and have very little debt. The mortgage along with estimated taxes/insurance etc would only be less than 10-14% of my monthly income.
They said they can 10% downpayment with 80% first mortgage of 7.6% second 10% mortgage of 9.8%. I said I didn't need that, I can put down 20%. I just do not want to put down 30% cash.
For me, because I want to buy in a "declining market" Central Florida (even though I am buying in a very nice area of Seminole County, FL), the mortgage underwriters all group Central Florida areas together and for what they consider Jumbo loans (417K and above) they want you to put down 30% in order to qualify for the best interest rates. So with simple math on a 600K loan, if I'm being forced to put down 30%, I'm basically down to the conforming loan limit anyways.
But I'd rather have the extra 30K sitting around in a rainy day fund.
It sucks because if I were back in suburban Washington DC, I could still get a pretty good rate on a home costing 750K and putting down 20% (160K) because temporary conforming loans limits there are around 610-650K whereas in Central FL, they conforming loans are still 417K.