November 23, 2015 at 6:40 pm #30418rashad3000Participant
Hey everyone. I don’t get here often, but I do check these boards periodically.
My wife and I closed on our home in May. Here are the stats:
15 year mortgage
The base price of our home when we bought was $203,990. We added about $25,000 in upgrades for $10,860. The base price of the home we bought without upgrades is currently $216,990. So not even taking upgrades into consideration, our home has increased $13,000 in value. When you do look at the upgrades, such as wood floors, etc, our home would probably cost $235,000 to build right now. Our current balance is $207,751. So due to our insane rate and getting in at the right time, we’ve gotten about $25-30,000 in equity already. We are paying off $1200 a month in principal, to go along with the rise in pricing.
Of course, this stuff doesn’t matter until you sell, but it still feels great to know that you did it the right way!
GO NACA!!!!!November 24, 2015 at 6:38 pm #30445Kristopher FraleyParticipant
We also have 35k~ equity in our house as well. It has not even been a year yet! Its still feels so unreal. Why more people do not aim for this insanely low interest rate is beyond me. I couldn’t imagine buying a house any other way. Id feel miserable paying so much in interest.November 24, 2015 at 6:56 pm #30446msjnayMember
Was there an income restriction meaning you couldn’t gross above a certain amount of income to buy your rate all the way down because I had an mc and office manager tell me you can’t gross above a certain amount if so the buyer can only buy 4 points 😔😤November 25, 2015 at 8:35 am #30447Kristopher FraleyParticipant
Yes there is an income restriction which makes the buydown close to 0% alot harder on the 30 year loan if you are above the limit. However, regardless you can buy your rate down up to 7 points, 4 is incorrect. If you make below 100% median income of your area taking full advantage of the buydown will get you to .0625% through citi or .125% through BOA, however if you make above the income it pretty much makes getting the rate that low near impossible. If I was in this situation, instead of getting a home say at 400k 30 year loan only reducing my interest rate 7 points(at .25% each point through the 30 year loan), I would rather get a 200k home and reduce the rate still 7 points(but each point on the 15 year loan is .5%) therefore you would be able to buydown the interest rate all the way(or very very close) all on your own. You would be getting “less home” depending on what area your living in etc…. but you would be paying much less interest as well and gaining instant equity on every mortgage payment.
I hope this makes some sense.November 25, 2015 at 12:52 pm #30453TTrumbleMember
Remember that to qualify for the buy-down matching program you must make less than the median income for your area. However, in addition to your buy-down funds, the seller may contribute up to ten points toward buy-down. So even if you had a four point cap for personal funds, ten points from the seller would total 14 points or three and a half percent on a 30 year loan, bringing it down to 0.25% based on today’s rate.
The means are out there. You just have to take advantage of them!
Online Operations, NACA
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