the thread on not having 20% down to purchase a home caught my attention and i thought maybe there are many members and guest here who have questions about refinancing and purchasing a home............rates are still very low but there are also many other options than going with a conventional fixed 15 or 30............here's an example.............................first off let me touch on what a LIBOR is...it gives you an interest only payment each month, everything above that goes straight towards principle...lets face it, on a fixed 30yr your first years of payments have about 10% of your payment going to principle and the rest gets eatin up by interest......now if you make the same payments on the libor loan as the fixed 30 yr you will pay off the libor loan about 10yrs earlier than the fixed loan.............but think about this.....you only want to live in the home for 2-5 yrs (est).......you have a $200k home....your interest only payment is $667.....you live in the home for 3 yrs never putting anything towards principle....but you lived in a $200k home for $667 a month...then you sell it.....home appreciate anywhere from 3-5%......let's just go with 5% since of course you bought it in an up and coming neighborhood.....then the home sells for $230k........it cost $24,021 in payments to live there for 3yrs ....so you came out about $6000 ahead and lived in a beautiful home for free..............now if you where staying in the house.......your payment on a fixed 30yr @ 6% would be $1199/mo......with the libor you just put $532 towards principle in your very first payment instead of the $150 that went towards principle with the 30yr fixed.................................hope this little hint helps.....if you have any questions pm me or email me at teliopoulos@firstohiobanc.com

ps..i'm licensed in these states: Ohio,Indiana, PA, Colorado, and Florida (we will be getting licensed through out the USA within the next 1-2yrs)

Sincerely,

Timothy J Eliopoulos
Senior Loan Officer
First Ohio Banc & Lending, INC

 

you can find info on the LIBOR (along with much other usefull info) at www.marketvector.com ..............if anyone needs anything please contact me no matter what state you live in.....i can get a loan done anywhere...........Tim.

 

Isn't it better to just stick with the fixed 15/30 year loans when the interest rates are low?

 

3 months ago when rates reached an all time low of about 4.75% fixed for 30yrs then the answer is YES......but those rates are no longer available and probably won't be for the next 20-30yrs.........now rates are more like 5.75-6.5% and mathematically the libor will set you much further ahead.....and if you plan on moving in the near future then the libor or an arm should be your only choices.......talk to your financial planner.....don't just take the banks word or some jo-shmo mortgage company tell you that a fixed rate is the way to go....they say that because they can make more money on those types of loans and the are MUCH easier for them to get done....i've gotten a conv fixed 30yr closed is 4days before............being educated on your options is the key.....hope this helps some what.

 

any been house shopping lately?

 

not here.
I don't want to plunk down $800K for a condo.
waiting (hoping) for a price decrease

 

I just bought a home in Utah. Looked at the interest only options, but settled for an 80/15 when we realized that Utah has the worst appreciation of any state over the past five years.

Utah Has Nation's Worst Home Appreciation
Jun. 4, 2004
(Denver-AP) -- Colorado's housing market ranks among the worst in the country when it comes to appreciation values. That's according to a government report.

The first-quarter survey from the Office of Federal Housing Enterprise Oversight shows Colorado homes appreciated an average of two-point-85 percent.

That compares with a nationwide weighted average increase of seven-point-seven percent.

The report covers the 12 months that ended March 31st.

Only Utah, Texas and Indiana showed lower housing appreciation than Colorado. Hawaii was number one, rising more than 15 percent. Utah was the worst at one-point-95 percent.

The report tracks only conventional mortgages, which cannot exceed 333-thousand-700 dollars under Fannie Mae loan guidelines.

 

as of Jan 1st they were changed to this:


First mortgages

One-family loans: $359,650
Two-family loans: $460,400
Three-family loans: $556,500
Four-family loans: $691,600

 

Don't hold your breath.

 

Tim.

Have you ever heard of paying the closing costs for a borrower when they refinance....ahhahaha..... that is the way to go!!!!!!

what ever happened to Joe King?