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Adebisi
Participant[quote=HLS]Adebisi
Only a fool compares a 5/1 ARM to a 30YR fixed.
FHA doesn’t blow anything away.
I have 5YR ARMS at 3.25% but wouldn’t recommend them.[/quote]What’s the minimum down payment on those ARMs? Why wouldn’t you recommend them?
Participant[quote=HLS]Adebisi
Only a fool compares a 5/1 ARM to a 30YR fixed.
FHA doesn’t blow anything away.
I have 5YR ARMS at 3.25% but wouldn’t recommend them.[/quote]What’s the minimum down payment on those ARMs? Why wouldn’t you recommend them?
Participant[quote=HLS]Adebisi
Only a fool compares a 5/1 ARM to a 30YR fixed.
FHA doesn’t blow anything away.
I have 5YR ARMS at 3.25% but wouldn’t recommend them.[/quote]What’s the minimum down payment on those ARMs? Why wouldn’t you recommend them?
Participant[quote=HLS]Adebisi
Only a fool compares a 5/1 ARM to a 30YR fixed.
FHA doesn’t blow anything away.
I have 5YR ARMS at 3.25% but wouldn’t recommend them.[/quote]What’s the minimum down payment on those ARMs? Why wouldn’t you recommend them?
Participant[quote=HLS]
With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS[/quote]
FHA blows those rates away. According to this site, you can get a 5/1 Year ARM on a $500,000 at 4.023% APR and the fees are only $1,371:
http://www.fha.com/rate-table.cfm?from=purch&ppcid=101
The monthly payment is $2,387. That site doesn’t show the down payment, but presumably you could do the 3% and use DPA and have the seller pay it.
The payment for your conventional loan on a $450,000 amount with $50,000 down at 4.75% is $2,347.
With the FHA loan, you would have that $50,000 down to invest in something. If you wanted to play it really safe, you could put that $50,000 into a 1-year CD paying 1.88%. That would give you an extra $78 guaranteed. Subtracting that amount from the FHA payment leaves you with a net payment of $2309.
So with FHA you have a cheaper monthly payment and don’t have to put anything down. Then, just stop paying before the reset, and (1) negotiate a principal/monthly payment reduction with the government, (2) Hire an attorney to try and keep you in your house as long as possible payment-free, or (3) just save the monthly payment until you get evicted.
What’s the benefit of conventional over FHA again?
Participant[quote=HLS]
With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS[/quote]
FHA blows those rates away. According to this site, you can get a 5/1 Year ARM on a $500,000 at 4.023% APR and the fees are only $1,371:
http://www.fha.com/rate-table.cfm?from=purch&ppcid=101
The monthly payment is $2,387. That site doesn’t show the down payment, but presumably you could do the 3% and use DPA and have the seller pay it.
The payment for your conventional loan on a $450,000 amount with $50,000 down at 4.75% is $2,347.
With the FHA loan, you would have that $50,000 down to invest in something. If you wanted to play it really safe, you could put that $50,000 into a 1-year CD paying 1.88%. That would give you an extra $78 guaranteed. Subtracting that amount from the FHA payment leaves you with a net payment of $2309.
So with FHA you have a cheaper monthly payment and don’t have to put anything down. Then, just stop paying before the reset, and (1) negotiate a principal/monthly payment reduction with the government, (2) Hire an attorney to try and keep you in your house as long as possible payment-free, or (3) just save the monthly payment until you get evicted.
What’s the benefit of conventional over FHA again?
Participant[quote=HLS]
With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS[/quote]
FHA blows those rates away. According to this site, you can get a 5/1 Year ARM on a $500,000 at 4.023% APR and the fees are only $1,371:
http://www.fha.com/rate-table.cfm?from=purch&ppcid=101
The monthly payment is $2,387. That site doesn’t show the down payment, but presumably you could do the 3% and use DPA and have the seller pay it.
The payment for your conventional loan on a $450,000 amount with $50,000 down at 4.75% is $2,347.
With the FHA loan, you would have that $50,000 down to invest in something. If you wanted to play it really safe, you could put that $50,000 into a 1-year CD paying 1.88%. That would give you an extra $78 guaranteed. Subtracting that amount from the FHA payment leaves you with a net payment of $2309.
So with FHA you have a cheaper monthly payment and don’t have to put anything down. Then, just stop paying before the reset, and (1) negotiate a principal/monthly payment reduction with the government, (2) Hire an attorney to try and keep you in your house as long as possible payment-free, or (3) just save the monthly payment until you get evicted.
What’s the benefit of conventional over FHA again?
Participant[quote=HLS]
With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS[/quote]
FHA blows those rates away. According to this site, you can get a 5/1 Year ARM on a $500,000 at 4.023% APR and the fees are only $1,371:
http://www.fha.com/rate-table.cfm?from=purch&ppcid=101
The monthly payment is $2,387. That site doesn’t show the down payment, but presumably you could do the 3% and use DPA and have the seller pay it.
The payment for your conventional loan on a $450,000 amount with $50,000 down at 4.75% is $2,347.
With the FHA loan, you would have that $50,000 down to invest in something. If you wanted to play it really safe, you could put that $50,000 into a 1-year CD paying 1.88%. That would give you an extra $78 guaranteed. Subtracting that amount from the FHA payment leaves you with a net payment of $2309.
So with FHA you have a cheaper monthly payment and don’t have to put anything down. Then, just stop paying before the reset, and (1) negotiate a principal/monthly payment reduction with the government, (2) Hire an attorney to try and keep you in your house as long as possible payment-free, or (3) just save the monthly payment until you get evicted.
What’s the benefit of conventional over FHA again?
Participant[quote=HLS]
With a decent credit score and 10%-20% down, I don’t think there is any reason to use FHA.30 YR fixed rates closed yesterday at 4.75% with no points or as low as 4.375% with one point, about the lowest ever. 5YR-7YR ARMS are below 4% Qualifying is tougher than it has even been. With an additional cost the same rates are available on rental properties as well…HLS[/quote]
FHA blows those rates away. According to this site, you can get a 5/1 Year ARM on a $500,000 at 4.023% APR and the fees are only $1,371:
http://www.fha.com/rate-table.cfm?from=purch&ppcid=101
The monthly payment is $2,387. That site doesn’t show the down payment, but presumably you could do the 3% and use DPA and have the seller pay it.
The payment for your conventional loan on a $450,000 amount with $50,000 down at 4.75% is $2,347.
With the FHA loan, you would have that $50,000 down to invest in something. If you wanted to play it really safe, you could put that $50,000 into a 1-year CD paying 1.88%. That would give you an extra $78 guaranteed. Subtracting that amount from the FHA payment leaves you with a net payment of $2309.
So with FHA you have a cheaper monthly payment and don’t have to put anything down. Then, just stop paying before the reset, and (1) negotiate a principal/monthly payment reduction with the government, (2) Hire an attorney to try and keep you in your house as long as possible payment-free, or (3) just save the monthly payment until you get evicted.
What’s the benefit of conventional over FHA again?
Participant[quote=patb]
Gold has zero dividends, it’s just a commodity like
cement, steel or wood.Gold has a certain amount of convenience, but that’s it[/quote]
Gold has absolutely no convenience. Holding dollars is way more convenient. If I could convert the dollars in my bank account into gold by clicking a button then your convenience argument might hold some water.
Have you tried to buy physical gold? If you try to convert your dollars into gold coins, you will end up paying some premium for getting the gold in coin form. How should you value that ‘coin’ premium?
Have you ever tried to buy something using gold? Can you go into a bank in the U.S. and buy gold like you can in China? How can you be sure that your gold isn’t fake? Have you asked your employer to pay you in gold? If so, what did they say?
Any way you look at it, the U.S. dollar is way more convenient than gold. The U.S. government wants it that way.
Participant[quote=patb]
Gold has zero dividends, it’s just a commodity like
cement, steel or wood.Gold has a certain amount of convenience, but that’s it[/quote]
Gold has absolutely no convenience. Holding dollars is way more convenient. If I could convert the dollars in my bank account into gold by clicking a button then your convenience argument might hold some water.
Have you tried to buy physical gold? If you try to convert your dollars into gold coins, you will end up paying some premium for getting the gold in coin form. How should you value that ‘coin’ premium?
Have you ever tried to buy something using gold? Can you go into a bank in the U.S. and buy gold like you can in China? How can you be sure that your gold isn’t fake? Have you asked your employer to pay you in gold? If so, what did they say?
Any way you look at it, the U.S. dollar is way more convenient than gold. The U.S. government wants it that way.
Participant[quote=patb]
Gold has zero dividends, it’s just a commodity like
cement, steel or wood.Gold has a certain amount of convenience, but that’s it[/quote]
Gold has absolutely no convenience. Holding dollars is way more convenient. If I could convert the dollars in my bank account into gold by clicking a button then your convenience argument might hold some water.
Have you tried to buy physical gold? If you try to convert your dollars into gold coins, you will end up paying some premium for getting the gold in coin form. How should you value that ‘coin’ premium?
Have you ever tried to buy something using gold? Can you go into a bank in the U.S. and buy gold like you can in China? How can you be sure that your gold isn’t fake? Have you asked your employer to pay you in gold? If so, what did they say?
Any way you look at it, the U.S. dollar is way more convenient than gold. The U.S. government wants it that way.
Participant[quote=patb]
Gold has zero dividends, it’s just a commodity like
cement, steel or wood.Gold has a certain amount of convenience, but that’s it[/quote]
Gold has absolutely no convenience. Holding dollars is way more convenient. If I could convert the dollars in my bank account into gold by clicking a button then your convenience argument might hold some water.
Have you tried to buy physical gold? If you try to convert your dollars into gold coins, you will end up paying some premium for getting the gold in coin form. How should you value that ‘coin’ premium?
Have you ever tried to buy something using gold? Can you go into a bank in the U.S. and buy gold like you can in China? How can you be sure that your gold isn’t fake? Have you asked your employer to pay you in gold? If so, what did they say?
Any way you look at it, the U.S. dollar is way more convenient than gold. The U.S. government wants it that way.
Participant[quote=patb]
Gold has zero dividends, it’s just a commodity like
cement, steel or wood.Gold has a certain amount of convenience, but that’s it[/quote]
Gold has absolutely no convenience. Holding dollars is way more convenient. If I could convert the dollars in my bank account into gold by clicking a button then your convenience argument might hold some water.
Have you tried to buy physical gold? If you try to convert your dollars into gold coins, you will end up paying some premium for getting the gold in coin form. How should you value that ‘coin’ premium?
Have you ever tried to buy something using gold? Can you go into a bank in the U.S. and buy gold like you can in China? How can you be sure that your gold isn’t fake? Have you asked your employer to pay you in gold? If so, what did they say?
Any way you look at it, the U.S. dollar is way more convenient than gold. The U.S. government wants it that way.
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