How do I get a super-cheap mortgage?
How do I get a super-cheap mortgage?
Put a lot of money down, get a super cheap house, make very little money.
What state are you in?
I had pretty good luck with Lending Tree. I live in Tennessee, but they pointed me to a company in Texas. With 20% down, I was able to get a 30-year fixed rate mortgage at 5.75% (back in December), which was .25% to .50% better than a few bids from local mortgage brokers. There were no points or any unusual closing fees. Plus I got a $300 Costco rebate check in the mail.
Remember, there's no such thing as a free lunch. If a deal sounds too good to be true, it probably is.
establish a record of good credit
put 20% or more down
shop around - go to bankrate.com for some ideas of what to expect.
If you are a first time buyer, check to see if your state has a program that will subsidize some of the costs.
I just sold a house and the buyer had locked in a rate that was a half point lower than the rates had gone to. I paid the closing costs. Her total cash needed at closing was about $300 to purchase a $62,000 house. Her 100% loan mortgage payment was $380/month. With taxes, insurance, and pmi, her total payment was under 500/month.
Sub-Prime man, that's the way to go...
Inherit some money
I got a family member who recently bought a house for under $200k in the South, 4,000 sq ft for no money downpayment. She had expected to go into piggy bank to put some down by mortgage person said no need--100% financing. The person is normally saavy enough to know about subprime and too-good-to-be true situations.
Is this person being set-up to be screwed? I guess a lot depends on income ,right? Because technically, anyone can have a subprime mortgage and have no ill effect--granted they have enough $$$ to pay? Household income is about $100k per year.
How many glasses of wine have you had tonight?
Other factors would include the terms of the mortgage such as the length, adjustable or fixed and the interest rate.
100% financing and interest only are not bad if they are used correctly. These terms get thrown in to poor loans and people think all loans with these terms are bad.