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Physician Lender at 6.25 on the 5/1 ARM today. DAMN the rates.
Members don't see this ad.
 
Comparing rates like this is pointless. The details of your situation---what state the property is, whether it's a condo, whether or not your credit is good, how much down payment you have, how much money your spouse makes---have a huge effect on the rate any place can give you. This makes newspaper ads or banner ads or whatever essentially useless as well.

So if someone here says something like "5.75% at ABC Mortgage" and you try, and they say 6.25%, it's because the situations are different. Conversely, don't be scared away if someone here says something like "6.75% at XYZ Loans", because for your situation they may be able to do much better.

Unfortunately, in shopping for mortgages, there's so substitute for actually doing the leg work.

(Actually, you can try a mortgage broker, but that opens up a whole new can of worms. Don't start with a mortgage broker without understanding the nature of the relationship you're entering into.)
 
I disagree. These niche loans tend to be the same across the board. We established early on that we were trying to compare apples to apples.

Please expand on your mortgage broker ideas.
 
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docuw said:
I disagree. These niche loans tend to be the same across the board. We established early on that we were trying to compare apples to apples.

Please expand on your mortgage broker ideas.
Click to expand...

Suntrust Physician Loan 5/1 Arm rates today 5.625 and 5.375 for the 3/1 with 1 point orgination fee. Rates are 6.0 and 5.625 with no points or origination fee. Email inquiries to [email protected]
 
Salem mortgage - got three quotes (found them through Lending tree, you can get United miles)
5/1 arm with an 80/20 5.75%/7%
5/1 arm interest only also 80/20 5.875/7
30year fixed 6.25%/7%

There is a 1% origination fee. No PMI

I didn't qualify for BOA because of 677 middle credit score, and they wouldn't use my SO because she hasn't found a job where I matched yet. They could use 33% of her income but would have to look at all of her student loan debt because she is in repayment
 
My BOA physician loan details (approved today!)

5/1 ARM 100% financing at 5.75% on 161000 loan
No origination fee (the way my broker structures it) but I'm paying about 1 point to keep the rate below 6%

Est closing costs: 4200 (kind of steep but that's b/c of the point I'm paying, thankfully I've got seller concessions to help out)
 
How did you get the origination fee waived? Physician lender is offering me basically the same options, pay down 1 point takes you to 5.75, 2 points, to 5.25. I would love to have the origination fee waived in exchange for being able to pay down a point. Very interesting. I doubt they will let me do it. Too bad BOA isnt offering this loan in Utah.
 
docuw said:
How did you get the origination fee waived? Physician lender is offering me basically the same options, pay down 1 point takes you to 5.75, 2 points, to 5.25. I would love to have the origination fee waived in exchange for being able to pay down a point. Very interesting. I doubt they will let me do it. Too bad BOA isnt offering this loan in Utah.
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They probably would let you do it. A discount point is the same as a point in origination fee in terms of cost. Both are 1% of the loan amount. To some degree it's a matter of semantics, although discount points are generally tax deductible whereas origination fees generally are not. There would be no problem at most lenders reclassifying the point. So, for example, the rate today from me was 5.625 on a 5/1 Dr. loan with no orgination fee and 1 discount point.
 
Just wanted to say that I got approved on a 7/1 arm interest only through an independant broker my real estate agent knew, but I locked the rate in a few weeks ago. Its 5.375, no points, ~3000 in closing costs. I'm pretty excited I locked in when I did, I think 3 days later, their rates went up almost .5%!
 
Fifth Third Bank
3/1 ARM
no down payment
no points
no PMI
170,000
5.25% interest rate
$1250 on closing costs
Got this on just a residents salary and a 718 credit score
 
We thought BOA was the only lender with no money down, no PMI, blah blah.

We have found Wachovia has these mortgages, at better interest rates, though closing costs are a little higher, but still less than if you pay the 1 point to keep your interest rate lower.....I think BOA for our 165 K loan was 6.125 without paying the point, Wachovia was5.875 today without any points and closing costs around 5k.

Other banks we know of that offer resident type of loans are wells fargo, RBC
(royal bank of canada) First union should since they own wachovia, and suntrust. Trust me. BOA does not have the best interest rates on these loans at this time. I don't work for any of these banks. Just a resident trying to buy a house.
 
with wachovia you need credit of 680 or better.....700 or better if you want the seller to pay some closing costs.
 
clc17 said:
We thought BOA was the only lender with no money down, no PMI, blah blah.

We have found Wachovia has these mortgages, at better interest rates, though closing costs are a little higher, but still less than if you pay the 1 point to keep your interest rate lower.....I think BOA for our 165 K loan was 6.125 without paying the point, Wachovia was5.875 today without any points and closing costs around 5k.

Other banks we know of that offer resident type of loans are wells fargo, RBC
(royal bank of canada) First union should since they own wachovia, and suntrust. Trust me. BOA does not have the best interest rates on these loans at this time. I don't work for any of these banks. Just a resident trying to buy a house.
Click to expand...

I guess it just varies from quote to quote, broker to broker. I posted my stuff above and it is a hair better than yours, but pretty comprable. I guess I'd say that no one bank is necessarily superior - people should continue to shop around! When I got a quote from Wachovia - they required paying monthly PMI, and I REFUSE to pay outright PMI (I know it's structured into others but so be it)
 
Members don't see this ad :)
Wells fargo told me that they dont offer anything even close to these physician loans. They told me that I would just be disappointed, and to stick with what I had found already - Smela.
 
Yeah, your rate with BOA is slightly better because you are paying the point to get it better. We aren't paying any points, but our closing costs come out similarly to those if we went with BOA. Wachovia does not require PMI. In the end its all better than paying more than 6% interest.

Also, Wells Fargo does have a mortgage according to what was sent to me in our residency packet. I haven't checked much into them, but they advertise here.

We aren't using a broker, so we saved that fee by doing the work ourselves.
 
docuw said:
If you wanted to Interest only, he said the rate was the same 5.75%. There was no increast. So, in the above summary, you are paying $218.75/month towards your principle. With Interest only, your monthly payment is 218.75 cheaper, or $1006/month.

QUOTE]

i too have thought about buying a condo in chicago, i think id have to take out about 200k, so the above rates would be applicable... but when i realized that id only be paying about 200 per month towards the pricinipal, i figured i could put away at least 250 per month in some low interest savings account and make more money for a downpayment after im done with residency. is there another benefit of homeowning that im missing other then equity? are there tax benefits or deductions that you can make if you own rather then if you rent?
Click to expand...
 
willlynilly said:
i is there another benefit of homeowning that im missing other then equity? are there tax benefits or deductions that you can make if you own rather then if you rent?
Click to expand...

Um. yes. you can deduct ALL your interest payments off of your federal and possibly state income taxes. Ie: for a 30 year loan at 6.5% for 200,000 dollars. you could deduct $12,000 off of your taxes every year.

Lets consider a hypothetical situation where you're making $45,000 a year.
If you dont have the loan i just mentioned, your federal income tax will be around $8000. If you have the mortgage, your yearly income tax is going to be $5000 . Sounds pretty advantageous to me (note: this benefit really comes into play more with more expensive houses and larger incomes.)
 
Yeah, if your yearly mortgage interest, plus any other itemizable tax deductions (including charitable donations, property taxes, points paid, education expenses, etc) are greater than what your personal standard deduction ($ 4850 for single individual) or joint standard deduction ($ 9700 if married), you can lower your taxable income by that much more. Lower taxable income = lower federal income tax. You have to itemize all that stuff out on Sched A.

Plus, dont forget that there are two ways to build equity. One is to actually pay down your principle loan. The other is to have the value of the property appreciate over the life of your ownership.
 
What is BOA? How do they treat student loans? Where can I find info on their program? Same for Wachovia and Wells Fargo? I have heard there are loans available where student loans aren't counted. Anyone have any info on these? New to this whole thing. TIA.
 
How does 5/3 handle student loan? How can I get info on this program?
 
Besides ING, anyone have a recommendation for where to look for better rates if I can down 10-15% on a 160-200K home?
 
Does anyone have any recommendations for a home loan with a credit score of 620? I'm working to get it raised but don't want to wait 30 days for everything to process and then wait again to get pre-qualified, etc and closing time. I would like to act quickly because I've found a home that I'm in love with. I'm looking at 150K but can't put any money down. Really any help would be so greatly aprreciated because I want to act fast. Thanks
 
willlynilly said:
i too have thought about buying a condo in chicago, i think id have to take out about 200k, so the above rates would be applicable... but when i realized that id only be paying about 200 per month towards the pricinipal, i figured i could put away at least 250 per month in some low interest savings account and make more money for a downpayment after im done with residency. is there another benefit of homeowning that im missing other then equity? are there tax benefits or deductions that you can make if you own rather then if you rent?
Click to expand...

I'm looking at buying in chicago. I was just there this weekend looking at lofts in the S. Loop but finances are going to be real tight since I am single and my only income is the $42,000 I make during internship.

Are there any single people out there who have or plan to buy a house/condo/loft for around 200k without putting anything down? Should I expect finances to be too tight to be worth it?
 
I am searching for up to 250k with 42000. Figure after taxes, you will bring home around 2800/month. Interest only on a 210,000 home is about $1050 + taxes/ins --> around 1300. So, in Chi-town, you rent an apartment for 1500/mo, or you buy something with tax breaks and possible appreciation in value and make an investment..
 
Don't forget to add in taxes and property insurance. with one of the banks on a 250K loan, it worked out to about 1900 with all three included. 200K loan was 1576 with mortgage payment, taxes, and property insurance divided over the 12 monthly payments
 
gas2008 said:
Hey guys,

Are any of you guys or gals going to buy a coop? I am a PGY-I and I am in the process of buying a 2 bdrm coop in NY. It's a lot cheaper than buying a condo, actually a $100,000 cheaper. What are the pros and cons of buying a coop vs actual real estate? I am still learning the process of purchasing real estate in NY.


thanks
Click to expand...

With a coop, the building is a corporation in which you are buying stock. The corporation owns the building and pays the mortgage, etc. Paying for this stock entitles you to occupy the building. The amount of money you pay is proportional to how nice your apartment is (floor level and square footage).

Since you don't own the real estate, you can't get a traditional mortgage. There is financing available, though.

On a practical level, the the coop board (voted by residents) essentially has more control over the things you do with your property and have to approve anyone who buys your apartment when you sell. They can restrict you from subletting, having pets, painting in loud colors, or showering at night.

It is cheaper, but it kind of makes my skin crawl.

Here are a couple of good websites:
http://www.wisc.edu/uwcc/info/condo.html
http://www.realtordan.net/condo_v_coop.cfm
http://www.mortgagecom.com/coopcondo.htm

'zilla
 
docuw said:
Interest only on a 210,000 home is about $1050 + taxes/ins --> around 1300.
Click to expand...

When I worked out the finances at BankOne they said taxes/ins. would be closer to $250, and then there's Assesments which run between ~200-300. This would bring the grand total to 1550 (1050 + 250 ins/tax + 250 Asses. = 1550) and you're not building up any equity b/c it's interest only. So... My parents see it as basically a wash, with the added risk that, if the home/condo doesn't appreciate by at least 25k over 3 years (price of real estate fees to sell + closing costs) than you've actually lost money in the end.

In other words... on these number's you'd have to sell the house in 3 yrs for $235,000 in order for it to be the same as renting... Any less and it's burning a big hole in your wallet.
 
Hey Waterski, I'm very interested to talk to you about housing in Chicago. I'm moving there early June, but for rads it's 5-6 yrs (if I do a fellowship), so I think buying for me is more advantageous. Did you find a good deal with BankOne? Another thing to think about is having your mom or dad be on a loan with you, but you just make all the payments. That way you can get lower rates, higher approval amount, etc. Anyway, mind if I pick your brain a bit?
 
As was mentioned previously - the only way to gain equity in a home is to 1) pay down the principal or 2) have the unit appreciate. The ONLY way to make a profit on a home is through appreciation (otherwise it's just holding the same money you paid). As residents, you will same more money each year through taxes when you own a home. If you choose an interest only loan (which is ok if you know how it works), be sure you buy in an area with a proven track record of appreciation to earn enough to sell your house in 3-5 years. If you are not moving to an area of decent appreciation, be sure to get an ARM so you will minimize your monthly payment and still put enough toward your prinicple to have equity when you sell - otherwise you will be paying for you closing costs and could lose money on your home. 80/20 loans are dangerous because they are two sparate loans tied to one property, which may distrubute principle payments in an unfavorable way (often times to the highest rate loan first) reducing the actual amount applied toward your principle.

Whatever you choose, and not to put too much pressure on an already difficult decision, I would secure pre-approval on a low rate loan ASAP. The government has already raised rates seven (SEVEN) times this year and rates will continue to rise in the near future. The arguement about a $100-200 per month difference will be moot if you continue to delay your decision because as rates rise, the lowest rate available will quickly become your current best choice. LOCK IN NOW or miss out (no pressure) :)
 
Taxes vary depending on location (2% where I am now, 0.8% where I am moving). So interest only is about 1050 (with a 6% interest rate) on 210,000, plus taxes and insurace of about 250 gives you about 1300/mo. Principle would be 209.00/month. Thus total on I/O (ITI): 1300. total on P&I (PITI): 1509.

250,000: 1250 for an interest only (at 6%) + 248 for principle. Taxes up slightly. So figure 1780 or so total for PITI. And around 1580 for Interest Only.

Insurance is usually around 50/mo.

Assesments is something that I have never heard of, and certainly dont pay for on my current home mortgage. Assessment is done once a year by the county assessor, and is not a monthly fee.
 
samsoccer7 said:
Hey Waterski, I'm very interested to talk to you about housing in Chicago. I'm moving there early June, but for rads it's 5-6 yrs (if I do a fellowship), so I think buying for me is more advantageous. Did you find a good deal with BankOne? Another thing to think about is having your mom or dad be on a loan with you, but you just make all the payments. That way you can get lower rates, higher approval amount, etc. Anyway, mind if I pick your brain a bit?
Click to expand...

I thought about that also.... I'm going to be moving to chicago in june also, and my father offered to put down the down payment. I would just be responsible for the rest (~190 k mortgage). I just don't know how feasible this is on a single resident income. Monthly mortgage/insur./tax/ass. will run me at least 1500/mo leaving me with 1100/mo for ALL costs of living and the unforseen mishap that could always strike.

What's your situation? Single, married.... spouse have a decent income? Where are you looking to buy? Are you able to put down a down payment? Lofts are more expensive than I though in the south loop. Let's brainstorm together....
 
DocUW & Soccersam..... I'm going to start a "Chicago Mortgage" thread. This way we can brainstorm together and we can be specific to our situation as it applies in chicago...
 
What is a FHA loan? I understand that it's a loan financed or backed by the government. Is there any advantage or disadvantage to getting this type of loan for an intern planning on purchasing a condo for the first time?
 
clc17 said:
Here are my questions.

1. It says the student loans have to be deferred for 12 months. BOA actually does not require this. Mine are deferred until Dec 1, then I have to re-apply (every year). Would this lead to disapproval?

2. My husband wants to apply with me. He is active Duty Navy, has to stay where we are one more year but then is moving where i am as his commitment with USN will be over. Would he be able to be on the application with me? BOA had some trouble with underwriting but is getting by that somehow by saying that where we are now is not his permanent residence (which I consider true since all of our stuff will be in NC he will only be here temporarily to fulfill his Navy commitment.)

Now, If he can't be on the application with me how much are residents getting pre-approved for with salary of 40K. The only other debt I pay is a carpayment of about 280, two undergrad student loans of 57 per month total. We both have excellent credit scores (above 720) and have been preapproved together for 200K from BOA (thank goodness we aren't moving to San Francisco, we wouldn't even be able to afford rent!). Just trying to get an idea if its even worth me contacting Suntrust if these issues can't be resolved.
Click to expand...



I've looked into deferring all my federal loans after I consolidate. But I have tried the deferment calculator/sheet and there's no way (not even close) that I can qualify...here's my stats: approx 160k fed loans, will make approx $42K/yr. My salary is way too high considering my loans.

I can only qualify for forbearance during my residency and fellowship years.
Can I still get a loan?
 
surg4me,

Seriously redo the math, you will easily qualify for Economic Hardship defferment. You use the 10 year repayment schedule. Trust me run the numbers, you qualify.
 
:laugh: Thanks...I qualify!
 
A while back people were asking others to post what they got for a mortgage, etc.

Here goes:

Through USAA, a military credit union, I qualified for 210k. I was able to lock in my rate at the time of my accepted offer.

The mortgage I got was 100% financing, 5 year ARM. 90% was at 5.75% and the other 10% was a home equity line at 6.875%. Closing costs were about $2600. However, I'm not sure exactly how much of the closing costs were "fees". Much of it was to pay for future property tax, mortgage payment and interest.

Good luck to you all.
 
Does anyone know if interest rates vary depending on where in the country one is trying to buy? I have seen rates both better and worse than I was offered. I know credit score plays a part, but was wondering what else.
 
turtle said:
Does anyone know if interest rates vary depending on where in the country one is trying to buy? I have seen rates both better and worse than I was offered. I know credit score plays a part, but was wondering what else.
Click to expand...

The prime interest rate is set by the federal govt but fluctuates daily. Mortgage rates shouldn't vary from one state to another, but will vary from one lender to another. The quotes they give you will also change from day to day until you lock it in with your application.

Credit score does play a part, including which agency the mortgage company uses for obtaining your score. Experian, Equifax, and Transunion give different weight to different parts of your credit history, lending more or less weight to delinquencies, number of revolving credit accounts, amount of debt, etc. Some delinquencies will be reported only to one credit bureau, adversely affecting only one score.

'zilla
 
surg4me said:
I've looked into deferring all my federal loans after I consolidate. But I have tried the deferment calculator/sheet and there's no way (not even close) that I can qualify...here's my stats: approx 160k fed loans, will make approx $42K/yr. My salary is way too high considering my loans.
Click to expand...


I'll have similar numbers next year... I think you should qualify with your salary - however you may not during as a PGY3 or 4. Someone else posted this SallieMae link with an hardship calculator (you must meet both criteria):

http://www.salliemae.com/aamc/
 
back to the thread topic conerning rates and mortgages. i am using boa even though people seem to have had some bad experiences seen in other threads. i am trying to close within the next 6 weeks and was quoted today on a 5/1 arm at 5.875% no points or origination fees. should i lock this rate in or wait and hope for a lower rate. anyone have any advice? thanks...
 
apparently, if you "lock" with BofA, the rate may not be the same at closing. Go ahead if you want to take a chance.

Linktones said:
back to the thread topic conerning rates and mortgages. i am using boa even though people seem to have had some bad experiences seen in other threads. i am trying to close within the next 6 weeks and was quoted today on a 5/1 arm at 5.875% no points or origination fees. should i lock this rate in or wait and hope for a lower rate. anyone have any advice? thanks...
Click to expand...
 
what are the disadvantages of an FHA loan?

So far, this is what I know...
1) there's a mortgage insurance premium that I would have to pay
2) there's an annual renewal premium

Some of the advantages I found are:
1) less risk to banks since the gov't assumes risk so someone with little money and lot of debt can qualify (like me)
2) FHA loans can be conventional or ARM
3) all of closing can come in the form of a gift (friends, relatives)...otherwise one has to report to the IRS and need signed gift forms at closing

Would an ARM loan or FHA loan be best (in terms of total monthly costs, equity, etc) for someone with a 6-figure debt and low 5-figure starting salary?
 
once you find a property, (we are already pre-approved), can I call a bunch of banks, especially the ones we have listed, and get rate stuff so that we can get the best rate?? Or is there not enough time. i believe we will have 30 days to secure the financing.
 
Does anyone have experience or advice regarding MTA loans? Pros, cons?
 
Can someone tell me how to contact someone at Wachovia they have used that is familiar with physician mortgages?
Website, e-mail, phone, ect. Thanks
 
Linktones said:
back to the thread topic conerning rates and mortgages. i am using boa even though people seem to have had some bad experiences seen in other threads. i am trying to close within the next 6 weeks and was quoted today on a 5/1 arm at 5.875% no points or origination fees. should i lock this rate in or wait and hope for a lower rate. anyone have any advice? thanks...
Click to expand...

I would negotiate two points if you can afford it, and have it worked into the closing. Ask for a rate of 4.5. That will save you over $150 per month on your mortgage and allow you to deduct your paid points each year for taxes, saving you money over the short term you will own the home. For three years it saves you $6500 based on the payments alone (based on a $200,000 home).
 
Linktones said:
back to the thread topic conerning rates and mortgages. i am using boa even though people seem to have had some bad experiences seen in other threads. i am trying to close within the next 6 weeks and was quoted today on a 5/1 arm at 5.875% no points or origination fees. should i lock this rate in or wait and hope for a lower rate. anyone have any advice? thanks...
Click to expand...

If you are paying no origination and no points then your loan officer is making money on your rate of 5.875. So if you pay 2-points you will probably just bring your rate back to par. You might as well just pay an origination fee. Just a thought.
 
In general, for ARMS it is better to get a no point/no origination loan.


Go to bankrate.com and they have a little calculator that will tell you when your savings will kick in when paying points upfront.
 
Paying points has been especially beneficial for me, despite using an ARM. Check out the calculator below to determine how long it will take to break even (ie recoup the costs of the points) and how much you will save over the time you are in the house. Generally, 1 discount point should lower the rate by approx 0.5% on a 5 year ARM and the break-even point will be somewhere around 2.25 years. Therefore, if residency is 3 years or more, it definitely pays to pay points. For example, on a $300,000 mortgage, paying 2 points to lower rate from 5.75% to 4.75% will save you over $6000 on a 5 year ARM. This calculator includes the money you spent on the points, the tax savings of the extra interest you would have paid with the higher interest rate, and even takes into account the fact that you could have invested the money you spent on points, so the savings are real.

http://www.decisionaide.com/mpcalculators/ARMBreakEvenCalculator/ARMBreakEven.asp

Note: On this calculator, the inputs for interest rate index, first rate adjustment, and subsequent rate adjustments are superfluous if you are doing a 5 year residency with a 5 year ARM (because the rate will not adjust before you sell).

If you are doing less than a 5 year ARM, it is probably not worth paying points (because the break-even point is 2.25 years, you would only save money for three quarters of a year on a 3 year ARM).
 
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