Quote:
Originally Posted by frau kaleun
So I sent the banker dude some info and asked for a ballpark figure on what my monthly payment would be at the price I am going to offer and the current rates - the number he quoted me (mortgage + taxes) is less than my current monthly rent. 
Granted I doubt I will get it at that price, but even at the full listed price it's not much more a month. The best part is he misread my email and based his math on a 20 % downpayment, not a flat $20 K downpayment... so he underestimated my downpayment (and over estimated the amount of the loan) by several thousand dollars. 
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This is the first indication to check and recheck all the numbers. Do not trust what the finance guy has written up. Have your agent look as well. They make mistakes that usually cause you to write yet another check at closing. Also, these folks are not your friends. You are simply a paycheck. They are the cheeriest people and after the closing is complete, disappear like a fart in the wind. Start looking to lock in your rate now. Inquire about buying points if needed. I purchased 1/2 a point for $400.00. I make that back after the first 18 months of payments. After that the money is saved over the term of the loan. 1/2 a percentage off the interest equates to $1000's plus saved. I was able to lock a 3.50% thirty year fixed. Look ahead and start analyzing the interest rates on 30 year fixed. Please, please, please...no ARM loans. These killed the housing industry and the banks still peddle this crap.
PS. I went 30 year fixed as I have no intentions of being in the home 30 years from now. Plus, 30 years from now I will be 78 and will not really care as I drool on myself and wear Depends. More than likely, I will sell the home in 15 and purchase a small rancher outright, enjoying the golden years with my wife. It is also the only tax writeoff we have.