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njbound07
LIF Adolescent
Member since 4/07 799 total posts
Name:
pimpette
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Closing Costs
hey everyone!
My hubby & I are looking into buying a home soon.. but I have a question..
Can someone help me out by telling what the closing costs consistent of?
And is it true if you take a 80/20 loan.. do you have to pay a second closing cost for the 20%?
TIA
christina
Message edited 7/11/2007 8:36:51 PM.
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Posted 7/11/07 8:36 PM  |
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angnick
Life is So Wonderful!
Member since 8/06 6663 total posts
Name:
Angela
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Re: Closing Costs
yes u have to pay a small closing cost for the 20% loan but it is very insignificant.
for example if your closing costs are 12k then the remaining closing cost on the 20% portion is under a grand, or at least that is the way it was for us.
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| Posted 7/11/07 10:48 PM |
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njbound07
LIF Adolescent
Member since 4/07 799 total posts
Name:
pimpette
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Re: Closing Costs
Posted by angnick
yes u have to pay a small closing cost for the 20% loan but it is very insignificant.
for example if your closing costs are 12k then the remaining closing cost on the 20% portion is under a grand, or at least that is the way it was for us.
thanks for responding! we have a substantial down payment.. we're close to 20% but not quite. so the mortgage guy at Citibank said that we can do a 80/20 loan and it would be better for us.
Can I ask, how are you managing with 2 loans? are you finding it a PITA every month? If we do go ahead with this type of loan.. I truly hope that it's a good decision and a smart move for us.
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| Posted 7/12/07 8:06 AM |
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LIgrlatheart
LIF Adolescent
Member since 7/06 638 total posts
Name:
christi
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Re: Closing Costs
we were lookinginto the 80/20 as well but the problem with that is the equity builds alot slower from what we have been told and read..
we s*cked it up and did just a 100 % and mortgage insurance... but we get the equity quicker and the mort. insurance will dissappear after a few years... where as the 20% loan will be there alot longer...
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| Posted 7/12/07 8:17 AM |
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njbound07
LIF Adolescent
Member since 4/07 799 total posts
Name:
pimpette
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Re: Closing Costs
Posted by LIgrlatheart
we were lookinginto the 80/20 as well but the problem with that is the equity builds alot slower from what we have been told and read..
we s*cked it up and did just a 100 % and mortgage insurance... but we get the equity quicker and the mort. insurance will dissappear after a few years... where as the 20% loan will be there alot longer...
hey there,
we thought about the 100% financing loan.. but we know/heard that our monthly mortgage payments will be a lot higher... and that's something that we want to avoid. We're thinking of going ahead with the 80/20% and in less than a year after buying the house.. we'll pay off the second loan.
what do you think about that?
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| Posted 7/12/07 8:25 AM |
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LIgrlatheart
LIF Adolescent
Member since 7/06 638 total posts
Name:
christi
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Re: Closing Costs
we didnt do 100% financing, i just meant 1 loan sorry
but if you can pay off the 20 part of the 80.20 within one year its a great option for you... we don't have that ability b/c im not going to be working..
def. go for that option if you can pay it off in a year.. then you have a ton of equity and no mortgage insurance
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| Posted 7/12/07 8:34 AM |
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njbound07
LIF Adolescent
Member since 4/07 799 total posts
Name:
pimpette
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Re: Closing Costs
Posted by LIgrlatheart
we didnt do 100% financing, i just meant 1 loan sorry
but if you can pay off the 20 part of the 80.20 within one year its a great option for you... we don't have that ability b/c im not going to be working..
def. go for that option if you can pay it off in a year.. then you have a ton of equity and no mortgage insurance
we def. will be paying it off in less than a year. so I guess it's 80/20 loan for us!
good luck with you house!
oh and lucky you for being able to stay home!
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| Posted 7/12/07 8:42 AM |
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JandJ1224
Member since 6/06 5911 total posts
Name:
Jannette
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Re: Closing Costs
Bank of America offers a loan where you don't have to put 20% down and you don't pay PMI. Maybe you can look into that as an option.
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| Posted 7/12/07 9:19 AM |
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njbound07
LIF Adolescent
Member since 4/07 799 total posts
Name:
pimpette
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Re: Closing Costs
Posted by JandJ1224
Bank of America offers a loan where you don't have to put 20% down and you don't pay PMI. Maybe you can look into that as an option.
hey,
We have BOA in our 3 picks for applying for a mortgage. We have picked Citibank, Chase (our bank) and BOA... and if we need to we have WAMU as an option.
but thanks for the heads up.. any and all advice is well accepted and greatly appreciated!
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| Posted 7/12/07 9:22 AM |
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luckyinlove
I love my baby girls!
Member since 12/06 2441 total posts
Name:
Lauren
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Re: Closing Costs
I f you have close to 20% you may be better off doing a traditional loan, not a piggyback loan. The whole thing with PMI is that as soon as you have reached the 20% in equity, it disappears. If you have close to that already, you may even build the rest of it in equity within six months and your payment will go down. We are unsure what we are doing, but this is a consideration. The main prob with the piggyback is that while the larger loan is financed at like 6.5% while the smaller loan is at like 8%! 
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| Posted 7/12/07 9:35 AM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Closing Costs
Posted by LIgrlatheart
we were lookinginto the 80/20 as well but the problem with that is the equity builds alot slower from what we have been told and read..
we s*cked it up and did just a 100 % and mortgage insurance... but we get the equity quicker and the mort. insurance will dissappear after a few years... where as the 20% loan will be there alot longer...
why would equity build any slower with an 80/20 loan?
As soon as you start paying off a loan you get equity.
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| Posted 7/12/07 11:11 AM |
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