complicated question on mortgages/planning

[shdw01]

6 years employed in just about every possible position within a mortgage broker shop. I would not pay points.

really? why so?

my guy said I can sell points too (get some credits on closing costs)

 

[Ross]

What state are you buying in if you don't mind me asking?

 

[Ross]

this is true. You can take a higher rate and your banker/broker will credit the lender premium towards closing costs.

 

[shdw01]

What state are you buying in if you don't mind me asking?

hawaii....pretty expensive housing market here

 

[shdw01]

why no buying points...i anticipate staying here at least 10 years and possibly keeping the home rather than sell if we ever move.

and if buying points is a bad idea, is selling points a good idea?

 

[Ross]

really? why so?

my guy said I can sell points too (get some credits on closing costs)

I'm a firm believer in staying as liquid as possible. Why invest $8,000 into a house, where the money has no opportunity to grow? Its a dollar-for-dollar investment. If you are fiscally responsible, which you sound like you are, i'm thinking you can find a better place for it. Your payment will be $100 or so higher at 4.375%, but it will take 100 months to accumulate to that $8k you invested, and perhaps over that 100 months the money could have been better utilized.

 

[Ross]

I'll be on for another 20 mins or so. If you PM me your email i'd be happy send you a ratesheet from today and give you some guidance on points.

 

[CowboyT]

great analysis on the HELOC vs. the HE Loan

with that being said which method makes more sense to you? $160-$200 a month for 4-6 months is a lot of money to me for what I consider very minimal risk.....

If I had good confidence in my contractor, loan officer, etc....for $100K borrowed, I'd probably risk it. You're just working with a lot of money here. And I'm also not certain that the rates you're quoting are correct.

 

[daboyzinblue]

Yo shdw where did you end up buying? Got any pics?

 

[shdw01]

Cowboy...rates are as of Friday ....(20th I think)

Boyzinblue...in escrow on a place in hawaii kai....I don't have pics yet but when I close I will share....not sure about the area bit only way to find out is to live there

 

[CowboyT]

One last thing I hadn't mentioned...

Congratulations!

It sounds like you've worked hard to get where you're at with the down payment, qualifications,etc.

 

[daboyzinblue]

Wowzas Moanalua valley----> Hawaii Kai now thats a nice upgrade.