Help me pick a mortgage… Yep, I’m taking the plunge in SD of all places

[Doooh]

After bitching an moaning on Piggington about spending $300k-$500k on a place in SD or moving out of state (Austin was our first choice as seen in my past posts), and saving $100’s of thousands on a home purchase, we landed in a house in San Diego County, and are in the midst of closing escrow.

$550K 4000 square foot monster, with 2 rentals attached, and property that I thought only existed in Colorado. It has a year around stream, a small pond, a 100′ wide 30′ tall Dam, (and a small lake when I get around dredging out the dam), 1 large water fall off the Dam, one small water fall into the pond that a couple Coy fish call home, world class bouldering and mountain bike trails galore. This is the type of land were a kid could easily poke and eye out. The schools consist of a Nationally recognized Elementary and Middle.

Frankly the property is why me and the Mrs took the bait, the custom house was a bonus.

55.75% off the peak, right at 2000-2001 pricing the best I could tell(it’s kinda hard comping this area back then, as the house is a new 2007 custom), and it comes with a per square foot pricing that will make my new neighbors cry and then hate me when they find out. We’ll be baking a couple fresh home made Apple Pies to ease the pain as we walk over to introduce ourselves in a couple weeks. 1 neighbor is 2 acres away and the other is 1/4 mile down the private drive.

Ok enough bragging, and on to the part that I need some pig help with.

[Doooh]

Here’s the Mortgage options that I’m debating.

I’ve narrowed it down to 2 different loans. The REO bank is giving me $16k for closing/loan cost so it was relatively easy to narrow the loan down to these two below. I have to use the $16k or loose it, the other loan options leave $ on the table.

$2800to$3000 in rent + $2500to3000 payment = $5500to6k Monthly payment

So I’ll be paying it off in $6k monthly chunks if there isn’t anything unforeseeable happening. The minimum payment is $1600 on the ARM or $2100 for the fixed, but those figures don’t matter because I’ll be paying 3 to 4x the minimum payment. The payment on the ARM caps out at $2800 if all hell breaks loose in 5 yrs and all the caps are maxed out.

SO
2.5% apr on a 5yr ARM caped at 7.5% max for 30 yrs
OR
4.5% apr on a 30yr fixed

I’m even debating on paying the minimum on the 5yr ARM, saving the $4600 a month I’d otherwise be paying monthly. I’d be hoping for a interest rate increase and invest the $4600 in CD’s or a Savings account (Read super save insured) until year 5, and paying a couple hundred thousand $ lump payment before the interest adjusts on year 5. Here’s crossing my fingers for the EmigrantDirect savings to jump above 2.5% in a year again… How I loved my 5% intrest rates on my savings years ago.

$417 is the mortgage amount.

[Doooh]

Here’s the Mortgage options that I’m debating.

I’ve narrowed it down to 2 different loans. The REO bank is giving me $16k for closing/loan cost so it was relatively easy to narrow the loan down to these two below. I have to use the $16k or loose it, the other loan options leave $ on the table.

$2800to$3000 in rent + $2500to3000 payment = $5500to6k Monthly payment

So I’ll be paying it off in $6k monthly chunks if there isn’t anything unforeseeable happening. The minimum payment is $1600 on the ARM or $2100 for the fixed, but those figures don’t matter because I’ll be paying 3 to 4x the minimum payment. The payment on the ARM caps out at $2800 if all hell breaks loose in 5 yrs and all the caps are maxed out.

SO
2.5% apr on a 5yr ARM caped at 7.5% max for 30 yrs
OR
4.5% apr on a 30yr fixed

I’m even debating on paying the minimum on the 5yr ARM, saving the $4600 a month I’d otherwise be paying monthly. I’d be hoping for a interest rate increase and invest the $4600 in CD’s or a Savings account (Read super save insured) until year 5, and paying a couple hundred thousand $ lump payment before the interest adjusts on year 5. Here’s crossing my fingers for the EmigrantDirect savings to jump above 2.5% in a year again… How I loved my 5% intrest rates on my savings years ago.

$417 is the mortgage amount.

[Doooh]

Here’s the Mortgage options that I’m debating.

I’ve narrowed it down to 2 different loans. The REO bank is giving me $16k for closing/loan cost so it was relatively easy to narrow the loan down to these two below. I have to use the $16k or loose it, the other loan options leave $ on the table.

$2800to$3000 in rent + $2500to3000 payment = $5500to6k Monthly payment

So I’ll be paying it off in $6k monthly chunks if there isn’t anything unforeseeable happening. The minimum payment is $1600 on the ARM or $2100 for the fixed, but those figures don’t matter because I’ll be paying 3 to 4x the minimum payment. The payment on the ARM caps out at $2800 if all hell breaks loose in 5 yrs and all the caps are maxed out.

SO
2.5% apr on a 5yr ARM caped at 7.5% max for 30 yrs
OR
4.5% apr on a 30yr fixed

I’m even debating on paying the minimum on the 5yr ARM, saving the $4600 a month I’d otherwise be paying monthly. I’d be hoping for a interest rate increase and invest the $4600 in CD’s or a Savings account (Read super save insured) until year 5, and paying a couple hundred thousand $ lump payment before the interest adjusts on year 5. Here’s crossing my fingers for the EmigrantDirect savings to jump above 2.5% in a year again… How I loved my 5% intrest rates on my savings years ago.

$417 is the mortgage amount.

[Doooh]

Here’s the Mortgage options that I’m debating.

I’ve narrowed it down to 2 different loans. The REO bank is giving me $16k for closing/loan cost so it was relatively easy to narrow the loan down to these two below. I have to use the $16k or loose it, the other loan options leave $ on the table.

$2800to$3000 in rent + $2500to3000 payment = $5500to6k Monthly payment

So I’ll be paying it off in $6k monthly chunks if there isn’t anything unforeseeable happening. The minimum payment is $1600 on the ARM or $2100 for the fixed, but those figures don’t matter because I’ll be paying 3 to 4x the minimum payment. The payment on the ARM caps out at $2800 if all hell breaks loose in 5 yrs and all the caps are maxed out.

SO
2.5% apr on a 5yr ARM caped at 7.5% max for 30 yrs
OR
4.5% apr on a 30yr fixed

I’m even debating on paying the minimum on the 5yr ARM, saving the $4600 a month I’d otherwise be paying monthly. I’d be hoping for a interest rate increase and invest the $4600 in CD’s or a Savings account (Read super save insured) until year 5, and paying a couple hundred thousand $ lump payment before the interest adjusts on year 5. Here’s crossing my fingers for the EmigrantDirect savings to jump above 2.5% in a year again… How I loved my 5% intrest rates on my savings years ago.

$417 is the mortgage amount.

[Doooh]

Here’s the Mortgage options that I’m debating.

I’ve narrowed it down to 2 different loans. The REO bank is giving me $16k for closing/loan cost so it was relatively easy to narrow the loan down to these two below. I have to use the $16k or loose it, the other loan options leave $ on the table.

$2800to$3000 in rent + $2500to3000 payment = $5500to6k Monthly payment

So I’ll be paying it off in $6k monthly chunks if there isn’t anything unforeseeable happening. The minimum payment is $1600 on the ARM or $2100 for the fixed, but those figures don’t matter because I’ll be paying 3 to 4x the minimum payment. The payment on the ARM caps out at $2800 if all hell breaks loose in 5 yrs and all the caps are maxed out.

SO
2.5% apr on a 5yr ARM caped at 7.5% max for 30 yrs
OR
4.5% apr on a 30yr fixed

I’m even debating on paying the minimum on the 5yr ARM, saving the $4600 a month I’d otherwise be paying monthly. I’d be hoping for a interest rate increase and invest the $4600 in CD’s or a Savings account (Read super save insured) until year 5, and paying a couple hundred thousand $ lump payment before the interest adjusts on year 5. Here’s crossing my fingers for the EmigrantDirect savings to jump above 2.5% in a year again… How I loved my 5% intrest rates on my savings years ago.

$417 is the mortgage amount.

[bearishgurl]

I’ll make my suggestion later, but first, I need the terms of the ARM offered to you by the REO lender (index, annual cap, life cap, margin). Is it an option ARM? And if I understood you correctly, its first recast is at the 5-yr mark??

That’s awesome, Doooh! Congratulations on obtaining your custom spread in SD County (with newer construction to boot)! Spec builder/previous owner’s loss is your GAIN! Obviously less than build-price (even w/o the land). I don’t think you will ever regret your purchase!!

[bearishgurl]

I’ll make my suggestion later, but first, I need the terms of the ARM offered to you by the REO lender (index, annual cap, life cap, margin). Is it an option ARM? And if I understood you correctly, its first recast is at the 5-yr mark??

That’s awesome, Doooh! Congratulations on obtaining your custom spread in SD County (with newer construction to boot)! Spec builder/previous owner’s loss is your GAIN! Obviously less than build-price (even w/o the land). I don’t think you will ever regret your purchase!!

[bearishgurl]

I’ll make my suggestion later, but first, I need the terms of the ARM offered to you by the REO lender (index, annual cap, life cap, margin). Is it an option ARM? And if I understood you correctly, its first recast is at the 5-yr mark??

That’s awesome, Doooh! Congratulations on obtaining your custom spread in SD County (with newer construction to boot)! Spec builder/previous owner’s loss is your GAIN! Obviously less than build-price (even w/o the land). I don’t think you will ever regret your purchase!!

[bearishgurl]

I’ll make my suggestion later, but first, I need the terms of the ARM offered to you by the REO lender (index, annual cap, life cap, margin). Is it an option ARM? And if I understood you correctly, its first recast is at the 5-yr mark??

That’s awesome, Doooh! Congratulations on obtaining your custom spread in SD County (with newer construction to boot)! Spec builder/previous owner’s loss is your GAIN! Obviously less than build-price (even w/o the land). I don’t think you will ever regret your purchase!!

[bearishgurl]

I’ll make my suggestion later, but first, I need the terms of the ARM offered to you by the REO lender (index, annual cap, life cap, margin). Is it an option ARM? And if I understood you correctly, its first recast is at the 5-yr mark??

That’s awesome, Doooh! Congratulations on obtaining your custom spread in SD County (with newer construction to boot)! Spec builder/previous owner’s loss is your GAIN! Obviously less than build-price (even w/o the land). I don’t think you will ever regret your purchase!!

[eavesdropper]

[quote=Doooh] $550K 4000 square foot monster, with 2 rentals attached, and property that I thought only existed in Colorado. It has a year around stream, a small pond, a 100′ wide 30′ tall Dam, (and a small lake when I get around dredging out the dam), 1 large water fall off the Dam, one small water fall into the pond that a couple Coy fish call home, world class bouldering and mountain bike trails galore. This is the type of land were a kid could easily poke and eye out. The schools consist of a Nationally recognized Elementary and Middle…..comes with a per square foot pricing that will make my new neighbors cry and then hate me when they find out. We’ll be baking a couple fresh home made Apple Pies to ease the pain as we walk over to introduce ourselves in a couple weeks. [/quote]

Fuhgeddabout the neighbors….I hate you now. Why don’t I ever stumble across deals like this??

Fedex me one of those pies, and I’ll get therapy to help me with my envy issues.

Only kidding……sounds absolutely wonderful. When do you open the resort?

Congratulations! Best wishes for many happy years in your new “piece of heaven”.

[eavesdropper]

[quote=Doooh] $550K 4000 square foot monster, with 2 rentals attached, and property that I thought only existed in Colorado. It has a year around stream, a small pond, a 100′ wide 30′ tall Dam, (and a small lake when I get around dredging out the dam), 1 large water fall off the Dam, one small water fall into the pond that a couple Coy fish call home, world class bouldering and mountain bike trails galore. This is the type of land were a kid could easily poke and eye out. The schools consist of a Nationally recognized Elementary and Middle…..comes with a per square foot pricing that will make my new neighbors cry and then hate me when they find out. We’ll be baking a couple fresh home made Apple Pies to ease the pain as we walk over to introduce ourselves in a couple weeks. [/quote]

Fuhgeddabout the neighbors….I hate you now. Why don’t I ever stumble across deals like this??

Fedex me one of those pies, and I’ll get therapy to help me with my envy issues.

Only kidding……sounds absolutely wonderful. When do you open the resort?

Congratulations! Best wishes for many happy years in your new “piece of heaven”.

[eavesdropper]

[quote=Doooh] $550K 4000 square foot monster, with 2 rentals attached, and property that I thought only existed in Colorado. It has a year around stream, a small pond, a 100′ wide 30′ tall Dam, (and a small lake when I get around dredging out the dam), 1 large water fall off the Dam, one small water fall into the pond that a couple Coy fish call home, world class bouldering and mountain bike trails galore. This is the type of land were a kid could easily poke and eye out. The schools consist of a Nationally recognized Elementary and Middle…..comes with a per square foot pricing that will make my new neighbors cry and then hate me when they find out. We’ll be baking a couple fresh home made Apple Pies to ease the pain as we walk over to introduce ourselves in a couple weeks. [/quote]

Fuhgeddabout the neighbors….I hate you now. Why don’t I ever stumble across deals like this??

Fedex me one of those pies, and I’ll get therapy to help me with my envy issues.

Only kidding……sounds absolutely wonderful. When do you open the resort?

Congratulations! Best wishes for many happy years in your new “piece of heaven”.

[eavesdropper]

[quote=Doooh] $550K 4000 square foot monster, with 2 rentals attached, and property that I thought only existed in Colorado. It has a year around stream, a small pond, a 100′ wide 30′ tall Dam, (and a small lake when I get around dredging out the dam), 1 large water fall off the Dam, one small water fall into the pond that a couple Coy fish call home, world class bouldering and mountain bike trails galore. This is the type of land were a kid could easily poke and eye out. The schools consist of a Nationally recognized Elementary and Middle…..comes with a per square foot pricing that will make my new neighbors cry and then hate me when they find out. We’ll be baking a couple fresh home made Apple Pies to ease the pain as we walk over to introduce ourselves in a couple weeks. [/quote]

Fuhgeddabout the neighbors….I hate you now. Why don’t I ever stumble across deals like this??

Fedex me one of those pies, and I’ll get therapy to help me with my envy issues.

Only kidding……sounds absolutely wonderful. When do you open the resort?

Congratulations! Best wishes for many happy years in your new “piece of heaven”.

[Author]

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