hey people,

i hope i could draw on your previous experiences in buying a house. what mistakes should i avoid? and any tips you could give me to save the most money would be appreciated. i pretty much know that i'll be applying for the 30-year mortgage. also, is going through a realtor worth it?

TIA

 

Holy cow, a 30 year mortgage? You're effectively paying for your house three or four times in that amount of time. I'd say avoid that at all costs. Ten years is nice or fifteen on the outside, but beyond that you're just tossing money to pay for interest.

 

Most people can't afford to go 15 without sacrificing house size. The interest rates are pretty low right now. Lock in a good rate. The way the market is now, you should not have to pay points. How long are you planning to live in the house. If it's temporary you could go with an ARM (adjustable rate mortgage) that is fixed for a certain amount time (at a lower rate than a 30 year) and then becomes variable. If your arm is longer than you will own the house you come out ahead.

 

Getting a realtor is great, just make sure that realtor isn't the same one that wants to sell you a house. They are in the business of putting you in one, and your best interests in mind.

Make sure you shop around for Mortgage Rates...

 

JonBoy make a great point about the 30 year fixed product, it's REALLY expensive over the long haul. Are you really going to be in the house for 30 years? If not, some of the ARM products are worth looking at. If you choose the 30 year fixed because it's all you can afford, consider a smaller (less expensive) house, or plan to pay extra payment to principal as often as you can (monthly).

Also, when buying a house going with a realtor IS a good deal because the seller's pay BOTH realtor's fees. You will have basically the same closing costs either way.

Good luck, and I'd recommend searching for info on this topic somewhere OTHER than a sports car forum

 

www.bankrate.com

 

Realtor is a great idea, it would be also awesome if you could find realtors that gives you kick-backs. Mine gave me 2% back from my final price. Example, $160,00 x 2% = 3200.

How??, pretty much he/she is only taking 1% out of the 3% they charge. But they do so many that they make up for it.

Final Inspection of the house is important too. Make sure they know every little crack, dent, imperfection there is.

Lat thing is insurance shop around for HOB plans.

later.

 

Agree with Ironwedge that there are some options on loans. Just refinanced and did a 10/1 ARM @ 5.5%. It is 10 years fixed and then goes to an ARM. I only expect to be in my house for another 10 years or less.
A realtor, who understands what you want/need, can help go through the MLS listings and only show you what you want to see and not spend time looking at junk.

 

Whatever you do, put at least 20% down. Otherwise you will pay mortage insurance premium (MIP) of a couple hundred a month TRUELY pissed down the drain.

Go for a smaller house if you need to.

 

keep the info coming.

the main reason i'm going with the thirty year is for the tax benefit. a couple of the books i have read on investments recommend that you never pay your house off.

i never gave the ARM much thought but i will consider it. i only plan on staying in the house for about 5-6 years for my surgical residency.