Who can help with this?
by Mortgage Rates on Wednesday, October 13th, 2010 | 4 Comments
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First of all, NO VARIABLE RATE MORTGAGES!!! Thats why there are so many forclosures! Your best bet on a mortgage is a 30 yr fixed, bi-weekly payment and amortization, which is only done by ONE company because they have a copyright on it. It cuts YEARS off of the loan and saves THOUSANDS of dollars over the long run. They need to focus on: 1. Total cost paid. and 2. How long will they be in debt. Asking about payments and interest rates is what got Americans so far in debt in the first place. These are things they need to think about. Want more? Contact me.
Not me.
first, something’s little odd about this. 1) they earned $5840 on money market fund with only $60000? That’s over 9% on money market. doesn’t seem right. 2) why such a high interest rate? if they have good credit, interest should be much lower than 8%.
in general, 30yr fixed is better if they plan to live in the place for long time. variable might be okay if they KNOW they have to move in few years. but if that is the case, buying may not be a good idea.
if they do indeed plan to stay for at least ten years, and do go with the house, I would shop around for better rates. if they have good credit, they should be able ot get rates closer to 6%
Always get a fixed rate mortgage with an open end which means you can pay down the mortgage anytime. As suggested, get an amortization so you’ll know exactly how much you’re paying every month. Even if you live in the home for 2 years, you want a fixed rate.