r/Mortgages

We bought our house from my wife’s grandmother last year for 161k at 6.625 rate. We now owe 158k. The house appraised for 350k

We make 80k combined but we have a ton of debt from before the mortgage and we’ve taken on more since just getting the house on better shape.

We’re looking to do a 225k cashout refinance that would pay off all of our debts and allow us to also put 20k into savings/cds etc. The new rate goes up to 6.75%. And our payment(p&i, escrow, and pmi) $1320 would go to $1694(p&i, escrow, no longer have pmi).

Our debts are
$694. Personal loan($22k)
5 credit cards totaling $8k
1 balance transfer ($8500) good for 16 more months.
Student loan(10k) $100 a month
1 car. (20,700)$698 payment.
1 car (1500) $229 payment.

We’ve stopped using the cards but the damage is already there.

What should we do?

My fiancé (F28) and I (M30) are closing on a home in NJ and I want to make sure A. we won’t feel “house poor” and B. sanity check my numbers because everything we see online is no more than 25% of net income should be housing costs but know in this market that’s not super realistic. Between my fiancé and I we make ~$242k a year in our base salaries then up to ~$82k bonus between both jobs. With base, bonus, and stock (assuming everything goes as planned) we should make about $350k.

The one thing I’m firm on is not counting bonus or stock into the equation at all so it forces us to live off much less than we make. Based on our salaries we take home about $12.5k/month and our mortgage + taxes + insurance nets out to $4,275/month which has us at ~34% of our salaried take home pay. (526k loan at a 6.125% interest rate).

We currently pay $3k in rent and have no problem saving, maxing IRA, vacationing, etc but I’m nervous that the increase in monthly expenses plus unforeseen home maintenance costs puts us closer to 40% when all is said and done. We put 10% down to save a good chunk of money to renovate as it was an older house but wanted to see how anyone feels at a similar % of net going (30-35%) to housing.

My spouse and I are first-time homebuyers and applied for pre-approval with a reputable local bank last month. We were pre-approved for a rural development loan, immediately signed a contract with a buyer agent, and started house-hunting.

This probably goes without saying, but we had a very difficult time finding property within our budget. Things move extremely fast and the market is insanely competitive. Luckily for us, we have a very experienced realtor with excellent connections and finally had our offer accepted on a house that we love. Our agent promptly notified the MLO. The loan officer took several days to even acknowledge us, but we quickly completed the mortgage application. This happened AFTER we had already paid for inspections and put up earnest money. Inspections cost us almost $1000 and earnest money was $2000.

A few days later, the MLO called my husband and told him that we actually do NOT qualify for an RD loan because we are over the income limit by about $25k. We started this process believing that we qualified for 0% down payment with the RD loan and would only have to cover closing costs. We did not initially ask the seller to cover any closing costs because that would make our offer more competitive.

So now we are getting an FHA loan, which requires a 3.5% down payment. We just barely have enough cash to cover this plus closing, and are going to have to completely drain our savings. My husband is emptying out his 401k. We decided to do this because our current living situation is abysmal, we really want the house, and we don't want to lose all the money we have already put into this.

This whole situation could have been avoided if the MLO had taken the time to look more closely at our finances during the pre-approval process. It seems incredibly sloppy and unprofessional on his part. I'm struggling to understand how he was unaware that we were over the income limit on the RD loan. My question is, do I report this to his supervisor? Would that do more harm than good? Should I report this now or after closing? I really doubt they will be able to do anything to mitigate the situation.

Husband purchased home before we ever met and it ended up having major issues he could not afford to fix so he was able to get an assumption. It’s been working out great the last 4 years however it is still on his credit report (purchaser has been waiting for interest rates to go down to refinance loan). We were trying to buy a house this summer and we have all the paperwork for the assumption clearly stating the other guy is responsible for the payments, taxes, etc. and we gave them 4 years of bank records showing he pays it. My loan finance officer said this proof should be what they need to remove the debt from our monthly expenses in underwriting. The VP of underwriting threw her a curveball and said if it’s on his credit report then they have to count it against us (even though we have all the supporting documentation to say we don’t make the payments). She was shocked they would not accept it and therefore the debt to income from that assumption was added to our loan and lead to a denial. Has anyone experienced this? Is our lender just being an asshole? Anyone with a current assumption on their credit report able to buy a house and have it removed from their debt to income calculation?

I live in a HCOL area, we signed a Contract of Sale end of March, and then started working with a bank a couple of days after to get a mortgage approved. Here's a timeline,

-3/23 Signed contract
-3/27 Started working with bank and locked in a rate for 60 days
-4/17 Appraisal
-5/18 Commitment letter after nearly 2 months..

We are now finally able to put in our application after the bank dragged their feet. The issue is that the condo board takes 2-3 weeks to review, and our rate expires on 5/27. The bank is now trying to say that I need to pay 0.5% of the loan as a fee to extend 30 days. Is this normal? We didn't delay anything, and were very prompt with all of our information. I know our building was also very quick to reply.

Hello.

My husband and I are buying a home soon.

Our money is split between our accounts.

The loan is going into my name only. He will not be on the financing.

He will need to give me around 80k. I assume this counts as a "gift" for downpayment.

My question is, do they check his bank account also when he has to give the gift for down payment?

I only ask cause he is about to make a large purchase of over 14K for vacation property ( in his name only from his own bank account )

Wondering if that will be a problem

Thanks!

I am a greencard holder and my spouse is a US citizen. A local bank is offering 5.74% interest which includes a 0.25% discount for FTHBs. Unfortunately they are unwilling to put my name on the loan because of my immigration status. My spouse makes enough to qualify independently.

We went with another bank that's giving us 6.75% but is willing to put both of us on the loan.

Now we're having second thoughts - did we make an emotional decision that would end up costing us nearly $500 a month?

Spiraling here and looking for advice!

EDIT: whoops. Thank you for the reality check. Needed it!! I should've worded it better. We still haven't gotten the loan yet and have time to go with the initial bank. Hopefully it can still happen.

​

My fiance and I have been trying to buy in Pennsylvania and it honestly feels like the goalposts moved overnight. We had everything planned out based on the payment we were originally quoted a few weeks ago. Then rates shot up again and suddenly the monthly payment is hundreds more than we expected.

The worst part is we need to move soon because of work, so just waiting it out doesn’t really solve anything for us.

What surprised me though is one broker came back with a noticeably lower payment than the first lender we talked to. Didn’t realize shopping around could actually make that much difference monthly.

Good afternoon all,

I need some advice please!

Has anyone’s mortgage been rejected because the property is near the river? I’m buying a flat and I have been told that there is a flood risk so my mortgage application has been rejected. However, the property is a considerable distance from the river and there’s a retail park between the property and the river.

I also checked the flood risk in the area on the gov website and it says it’s low. Should I find a new lender or let the property go?

thanks in advance!

Socal Property 2450sqft

Built and bought 2019 for $590,000

Zillow estimate says 850,000 now

Purchased using a VA loan

Let's say the owners have good credit and the property was purchased during 2018/2019 mortgage rate

How much do you think the monthly mortgage is?

PS, im only asking because im currently renting the house. We're heavily considering buying in the area, but in the meantime I can't help but wonder how much of the mortgage we're paying off 😂

I am shopping for a non-qm mortgage loan and wanted to see if my broker fees are reasonable.

Loan amount: 584,000
Broker fee: 2.25%
Locations: Massachusetts

The broker says this is a Non-qm loan, which I understand has higher fees / rates, but I am
Trying to figure out whether 2.25 point is normal or considered expensive in today’s market.

Have people recently gotten lower fees in similar loan ?
Should I ask for a no point options instead?
Are there any lenders /brokers you would recommend comparing?

I haven’t lock the loan yet and I am still shopping around. Any advice will be appraised.

Forgot to mentioned, I will be paying it additionally to the closing cost on the closing date.

I know nobody is able to say for sure what rates will do in the coming days or weeks. We are in the process of refinancing, and our credit union is currently offering 1% off market rates. The current loan estimate is showing 5.625% (based on my credit score of 723), and they calculate rates daily.

Do we lock in at 5.625% today, or wait to see what the rates do for the rest of this week? They are not offering float-downs, so once we lock it, it's set.

Hi, I was wondering if anyone knows why loan officers are sort of incapable of answering basic questions. I live in an area where off grid / solar properties are normal and various banks, even credit unions will tell me I can refinance and purchase a solar powered home. They check guidelines and give the OK.

Yet, the minute an underwriter looks at it they say we don't do that ever, no exceptions.

Local realtors waste a lot of time with buyers who are told one thing by the agents and then the underwriter shoots it down over basic facts.

What gives?

I got a cash offer for my house from a investor company, they were more interested in doing something else, they said we would buy the house from you buy putting our name on the title but your name would be on the mortgage still, and we will pay you per month your mortgage when we rent it out to a renter and also on top of that give 25K down now and also a couple hundred per month. So this is a red flag? He kept saying if we sold we would give you all equity remaining after we sell the house say 5yrs? I said no, and he said why wouldn't you want us paying you per month, plus a couple hundred, and you keep the equity if we sell after 5 hrs, and also 25k down right away?

At $2,000/month budget:

• 2020 at 3% → $474,000 home
• 2026 at 6.8% → $303,000 home

That's $171,000 less house. Same person. Same budget. Just different timing.

What year did you buy and what did your buying power look like?

I have put down $1000 earnest money to build a small house. I know the builder, but he's not like a lifetime friend. When I contracted the build, I was looking at a 6.0% and rates were going down. Today, for a long lock that brings me up to the closing date of Aug 3 I am looking at 6.625. the builder has offered, open ended, a 6.0 and I could probably get him down to 5.8. Closing isn't till Aug 3 so I said let's wait and see. It's nice to have the peace of mind to be able to wait and see what rates do. The only downside of going with the builder is they can't/won't escrow tax and ins. To me that makes no difference, I'll just save a little each month to pay it outright.

What questions should I be asking the builder? So far, I can gather that it would be just like any other mortgage except for the no escrow thing. He also said "closing costs would be almost nothing" but I have yet to get specifics on that.

Has anyone ever pursued a class action lawsuit against a mortgage company? I'm interested in starting or joining one against >!Shellpoint Mortgage Servicing!<.

Looking to buy now, but the rates creeped up on us again! Can you recommend a good, best lowest rate lending company?

Hi all currently in the process of purchasing a home, me and my husband but have low 800 credit scores and are using the VA loan. We got quoted 6.375% in our loan estimate should we lock in or risk it? We are also trying to close in less then 3 weeks ..

Hi everyone! My husband and I (32M/30F) are first time home buyers. We just put an offer in on a house and later on the panic set in on if we can afford it.

We’re in Northern NJ so HCOL. I have an income of about 103k before overtime and my husband about 100k with overtime but he’s a first responder so gets yearly bumps in base salary. Gross take home is about 14k; my husband’s OT can add about 1-2k on top of that (net). No student loans but we both have about 1k combined each month for car loans. Minimal CC debt. About 175k combined in 401ks. My credit is 800+, his is about 750.

Our parents are super generous and have offered to give us the money for our down payment which is 40k. We offered 550k for the house. On a conventional loan with an average of 6.5% our total monthly payment with property taxes would be about $4300.
My husband is eligible for a first responders loan which gives us a 5.25% rate. It only allows an 85% LTV- so we would have to take out another mortgage to cover the remaining 7% down payment since we’re only putting down 40k. With all of that, the total with property taxes would be about $3900.
We also would have a remaining of about 30k in savings since our parents are covering the down payment.

Any insight is appreciated!