February 27, 2017 at 10:25 am #36299
Hello, my husband and I just went to the workshop Saturday and I have a few questions.
They meantioned if a person has been divorced they need to show a copy of the divorce decree, is that still needed if I have already been remarried for 4 years?
Also although I would love to take advantage of the 15 year mortgage it makes me a bit nervous to commit to a larger amount than we now pay in rent just in case something happens in the future(also doing payment shock seems a bit confusing). Are there any penalties for paying extra on the 30 year mortgage or a maximum amount you can pay? I was hoping to add extra to every payment in order to pay the mortgage off much earlier than 30 years if possible.
Thanks in advance for your help.February 27, 2017 at 11:24 am #36301carlito78Member
My divorce was over 15 years ago and I still provided the information. Always better to over prepare than leave something out.
No penalties for paying additional amounts each month on 30 year mortgage (ensure they are directed specifically as principal payments).
The benefits of 15 year mortgage are incredible, especially considering the buy-down rate is .50 interest reduction verse .25 for 30 year for the same 1% of purchase price of home.
I was in the same boat in regards to deciding on a 15yr v 30yr and decided to stick with 30yr. Have some other debts to knock out and then plan on throwing additional amounts towards principal.
Have patience, prepare, and good luck. The benefits of this NACA process is truly incredible.February 27, 2017 at 11:56 am #36303TTrumbleMember
Carlito78 explained things very well. Yes, you will need a copy of the divorce decree. There’s a very good chance that when your credit report is pulled, there will be some discrepancy that will need to be cleared up that is somehow related to the previous marriage. That divorce decree will prevent many of those things from becoming a problem.
Always better 20 pages too many than one too few!
Don’t count out that 15-year mortgage before you get all the details! The way the Freedom Loan is designed, is gives you the opportunity to build equity much faster than a 30 year loan while making the difference in payment as small as possible.
Yes, you can always pay extra on the 30 year (or the 15 year too) to pay it off sooner. Make sure you are fully aware of the differences though before you make a decision!February 27, 2017 at 12:41 pm #36307
Thanks carlito78! And yes I really wanted to do the 15 year because of the amazing buy down interest possibilities with the type of home I’m wanting 4bedroom and property taxes being about $4000-$5000 a year here in Texas it just makes me nervous. But who knows maybe we’ll find a nice home at a low price. Do you have to set in stone whether you want a 30 or 15 year before you pick a home?February 27, 2017 at 1:26 pm #36311carlito78Member
Sorry for double post!
Do you have to set in stone whether you want a 30 or 15 year before you pick a home?
Your qualification amount will be set before you can sign a P&S agreement on a home, so technically yes you will know whether or not you can do a 30 or 15 yr on a particular home.
approved monthly payment of $1600 (No payment shock since thats what I pay for rent)
Max purchase price = $281k which would put my monthly payment at $1575 for a 30yr (no buydown at all). Now to do a 15yr same amount of house would be a payment of $2300.
To get that 15yr loan now because I am already qualified at $1600 month I would either have to reduce the purchase price to $199k or buydown rate and put down a hefty down payment to make math workout to a $1600 payment (which I am qualified for)…OR I’d have to start all over and get re-qualified for $2300 payment and show payment shock of $700 month and MRF would go up as well.
Given all the work to get qualified by MC and Underwriter…It absolutely makes sense to know whether you plan on doing 15 or 30 prior to intake.February 27, 2017 at 4:09 pm #36319
Thanks TTrumble, also thanks Carlito78 I’ll be sure to know what I want to do before my meeting because I don’t want to have to redo anything if I’m able to get approved. I’m pretty sure it’ll be the 30.
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