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Old 02-20-2014, 08:42 AM
 
19 posts, read 47,260 times
Reputation: 18

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I'm an IT guy and I get scared when I have to do anything other than code...so forgive my ignorance when it comes to finances...
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Old 02-20-2014, 08:54 AM
 
367 posts, read 884,617 times
Reputation: 167
Sounds good but are you financing 100% off the loan?
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Old 02-20-2014, 09:29 AM
 
Location: Williamsburg VA
774 posts, read 1,048,677 times
Reputation: 1245
It really depends on your credit score and if you're putting anything down. Navy Federal is showing 30 Yr VA loans at 3.625% with 2 points. It doesn't say anything about a VA Jumbo. They do show a 30 Yr Jumbo at 4.125% an 1.125 points.
Pentagon Federal shows a 30 Yr fixed at 4.500% with no points and several ARM variants under 4%.
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Old 02-20-2014, 09:39 AM
 
19 posts, read 47,260 times
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ARM variants, points...yeah, does not compute.

We are putting zero down...we have no real savings, but no real debt either. I don't even have a car payment.
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Old 02-20-2014, 10:22 AM
 
367 posts, read 884,617 times
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Oh friend I'm sure your still do it anyways but PLEASE don't buy a house for 650K with 0% down and also have no savings. You need to have emerergency fund of at least 6 months of living expenses and also keep in mind maintainence and upkeep of the home which is generally 2% of the homes value per year.

Buy smaller. You will be glad you did.
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Old 02-20-2014, 10:45 AM
 
Location: Northern VA
24 posts, read 43,244 times
Reputation: 41
That's a nice rate - means your credit and debt-to-income ratio is good.

That being said, you can easily become house poor, or go into debt very easily with such an expensive home at 0% down with NO savings. I'd really take heed of dmv101010's post.

Don't set yourself up for failure. Do this when you can enjoy the home and not have it keep you awake at night.
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Old 02-20-2014, 11:01 AM
 
2,189 posts, read 3,316,250 times
Reputation: 1637
Who in their right mind would loan someone 650k with nothing down?
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Old 02-20-2014, 11:19 AM
 
Location: Alexandria, VA
214 posts, read 499,658 times
Reputation: 106
I got a va loan too a couple years back. I only put about 5% down but had considerable savings as a back up. Was 650 the top number given to you by your lender? If so go to some budgeting websites and figure out how much you can really afford as a monthly payment including taxes and insurance.
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Old 02-20-2014, 12:55 PM
 
Location: Silver Spring, MD
8 posts, read 15,259 times
Reputation: 16
It all depends on whether or not you are paying any points along with that rate. 1 point is 1% of the loan amount, paid by you at settlement. So for example, if your interest rate was 4.25% with 1 point, you would have to pay an additional $6,500 at closing. It should be very clear on the financing agreement whether or not there are any points.

Depending on your credit score, that is a fair market rate if you are not paying any points. If you have a really good credit score then 4.25% may be a tiny bit high, but you're not getting ripped off.
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Old 02-20-2014, 01:01 PM
 
19 posts, read 47,260 times
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Yeah, we had a lot of reservations about having no savings and going in and buying the house, but, (A) it's a great house in a great neighberhood just a few miles south of Old Town Alexandria along the GW Parkway. It's literally 100 yards away from the Mount Vernon Trail and I love to bike and run, (B) my wife and I both have very stable jobs, she is a govie (GS-13/step 3), and I'm a contractor in a high demand field; I also have my military retirement to fall back on.

We really want to settle down for good. I moved 11 times in 20 years in the military. I'm tired of paying rent and not getting the tax benefits that come with owning a home.
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