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Financing in 97055 : Real Estate Advice

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Activity 2
Wed Oct 31, 2012
Douglas Bragg answered:
Thanks for the opportunity to reply !

At present the USDA i believe is at 3.5% on a 30 yr mortgage loan.

Thus ... $145,000.00 mortgage loan @ 3.5% for 30 yrs. = $651.11 per month. P. & I.

30% of your monthly income to qualify would be approx $2,170.00 per month ...

Thus the annual income would be about $26,040 to obtain that loan. Note .. other factors

might also apply and the 30 % est. might be 28% or so.

Hope this helps. Best Regards .. Doug Bragg, Broker; Coldwell Banker Seal. 503-826-9207
... more
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Thu Dec 3, 2009
William Polack answered:
Freddie Mac is the one that had a $2500 maximum amount of closing costs that could be rolled into the loan. That amounts has since been increased to $5000. What that means is that if the closing costs exceed $5000, you have to pay the remainder out of pocket. Fannie Mae doesn't have a limit. If your closing costs are $10,000 and there is room in the appraisal to cover the costs, so be it. The HARP program allows a person that is over 80% of the loan to value (LTV) to refinance without having to incur mortgage insurance (MI) if they didn't have it before. If the person had MI before and refinance to a higher LTV, then they have to get MI again and if the LTV is higher, they will pay the higher MI rate. Kind of confusing..sorry. Example: I bought a house for 100,000 and the value at that time was 130,000. I had an 80% LTV. Now I refinance. I owe 98,000 and the value dropped to $100,000. I'm at 98% LTV. I didn't have MI before, and I don't have to have it now (that's HARP). Now let's say that in the beginning I had MI and I had 10% equity when I bought the house. My MI rate would have been at .50% (.0050 X loan amount). Now I refinance and I have no equity. The MI rate will increase to 1.03% (.0103X loan amount). My MI payment has almost doubled (yikes). If you go over 100%, the lenders will charge on average 1.5% in discount points in addition to closing costs. Up to 125% is 3 discount points. ... more
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