I GOT THE LOAN!!!

[Nullifidian]

Background info:
I've been planning on moving to PA, the Lehigh Valley area. A few weeks ago, I found a house that my girlfriend and I absolutely loved. It's a 3 bedroom, 2 full bathroom brick and stone ranch. It is in the Dorneyville subsection of Allentown. For those familiar with this area of PA, it is just south of South Whitehall, on the western edge of Allentown. It's in the Parkland School District. It is about 0.3 miles from Dorney Park and Wildwater Kingdom. The neighborhood is extremely quiet, and the street it is on deadends into a cul-de-sac. The only traffic is from folks who live in the neighborhood.

The house was made in 1957, but owned by only 1 family the entire time. The woman is over 90 years old and kept the house in pristine condition. It has a brand new boiler as well as a brand new Carrier, Central Air/Heat Pump unit. The basement is gigantic and very dry. The ground floor as an eat-in kitchen, a dining room, a living room, and as mentioned 3 bedrooms. There is a main bathroom and a master bathroom. The master bedroom is a nice, large, 17x17 with a walk-in closet. The living room is 14x21 with a HUGE bay window. There is also a 2 car oversized heated attached garage. Yep, a heated garage. When we got it inspected, the inspector (who is also does appraisals) said the house was worth a good $300,000. He also said, that $10,000 invested in finishing the basement would immediately get you a return of $50,000. We are buying the house for $240,000.


So here is the news that got me jumping:
I just got off the phone with the mortgage dude at Wells Fargo.

I got the loan!
:dance: :dance: :dance:

He's sending the confirmation letter out now. I'm so stoked. 5.875% on a 30 year fixed

:head: :head: :head: :head: :head: :head:

 

[Rostam]

:cheers: Congratulations!

What are you going to do with the basement? Gym I guess.lol

 

[w00kie]

Hell yeah! Congrats bro.

 

[Nullifidian]

:cheers: Congratulations!

What are you going to do with the basement? Gym I guess.lol

The basement is about 1500 square feet. It's HUGE.

First I'll wall off the utilities to make a utility room. Then I'll wall off the area at the end with the walk-out and put in some glass block to let in a lot of light. I'll turn that section into a Family Room/Game Room. I'll probably have a pool table in that room, among other things. The entire left side of the basement will become a Home Gym. The last section, I will turn into a home theatre. I'll call it "The Allentown Halfplex".

 

[tattoopierced1]

congrats Null. Sounds like you got a deal. That is nucking futs though, a $300k house for your first....congrats!

 

[Nullifidian]

congrats Null. Sounds like you got a deal. That is nucking futs though, a $300k house for your first....congrats!

Hehe, in NJ $300,000 is a 1 bedroom, 800 square foot condo.

 

[houseman]

30 year? Holy interest.

 

[Nullifidian]

30 year? Holy interest.

Interest is tax deductable.

 

[houseman]

Interest is tax deductable.

In the US... I'm coming to the conclusion of "what isn't tax deductable"? lol

Good for you bud. Congrats.

 

[Nullifidian]

In the US... I'm coming to the conclusion of "what isn't tax deductable"? lol

Good for you bud. Congrats.

Principle isn't tax deductible. Car payments aren't tax deductible. Student loans aren't tax deductible (in my tax bracket). Utility bills aren't tax deductible. Car insurance isn't tax deductible. Home owner's insurance isn't tax deductible.

Pretty much the only thing for me that IS tax deductible is the interest on this mortgage.

 

[Dwight Schrute]

See what kind of deal they will come up with on your closing costs. I took a slightly higher % since its tax deductible and chopped off about 5k in closing costs which I pocketed and put back into furniture.

 

[Dwight Schrute]

Also take a less amount for your primary loan and get a 15 yr. bubble so you don't have to pay PMI.

 

[Nullifidian]

Also take a less amount for your primary loan and get a 15 yr. bubble so you don't have to pay PMI.

I'm getting 2 loans. 80/20 split.

Primary (80%) is 30 year fixed at 5.875%

Secondary (20%) is a 10 year HELOC (Home Equity Line of Credit). Wells Fargo doesn't have good rates for HELOCs and Home Equity Loans, but the mortgage guy is a friend of my realtor. He said he's able to lock in 6.25% on the secondary Home Equity Loan with PNC Bank on a re-finance.

The end result is 5.875% on the Primary, 6.25% on the secondary. Taxes on this house are high for the area, $3400 a year (hehe, that number makes everyone I know in NJ cry; I don't know anyone who pays less than 5K, and most pay more than 10K). Insurance on the house is about $700.


The total monthly payment of Principle + Interest + Taxes + Insurance = $1805 per month IIRC.

There is no PMI on the loan. There is a point on the loan that amounts to $1900 in origination fees. The amount of money I'll save though is well worth the extra in closing costs. I'm saving $130 a month. In the first year alone I will have saved $1.5K. $47K over the life of the loan.

Besides, I have enough furniture to hold me for quite a while; I have a 2 piece sectional sofa, a recliner, a queen sized bed, a dining room table, some dining room chairs, a TV stand, glass shelved electronics stand, a chest, an armoir, 2 night stands with large shelved cabinets, etc.

That's enough for the livingroom, master bedroom, and dining room. At some point in the next year or so, we'll go down to North Carolina and pick up a full house worth of furniture. New bedroom set, new livingroom set, new diningroom set, etc.
I'm going to try to have the secondary paid off in 5 years.

 

[Dwight Schrute]

Hmmm....sounds pretty good overall. You could tinker with it a bit but wouldn't make much of a diff.

Whats your closing costs estimate?

 

[Magickk]

Background info:
I've been planning on moving to PA, the Lehigh Valley area. A few weeks ago, I found a house that my girlfriend and I absolutely loved. It's a 3 bedroom, 2 full bathroom brick and stone ranch. It is in the Dorneyville subsection of Allentown. For those familiar with this area of PA, it is just south of South Whitehall, on the western edge of Allentown. It's in the Parkland School District. It is about 0.3 miles from Dorney Park and Wildwater Kingdom. The neighborhood is extremely quiet, and the street it is on deadends into a cul-de-sac. The only traffic is from folks who live in the neighborhood.

The house was made in 1957, but owned by only 1 family the entire time. The woman is over 90 years old and kept the house in pristine condition. It has a brand new boiler as well as a brand new Carrier, Central Air/Heat Pump unit. The basement is gigantic and very dry. The ground floor as an eat-in kitchen, a dining room, a living room, and as mentioned 3 bedrooms. There is a main bathroom and a master bathroom. The master bedroom is a nice, large, 17x17 with a walk-in closet. The living room is 14x21 with a HUGE bay window. There is also a 2 car oversized heated attached garage. Yep, a heated garage. When we got it inspected, the inspector (who is also does appraisals) said the house was worth a good $300,000. He also said, that $10,000 invested in finishing the basement would immediately get you a return of $50,000. We are buying the house for $240,000.


So here is the news that got me jumping:
I just got off the phone with the mortgage dude at Wells Fargo.

I got the loan!
:dance: :dance: :dance:

He's sending the confirmation letter out now. I'm so stoked. 5.875% on a 30 year fixed

:head: :head: :head: :head: :head: :head:

Congrats, bro... My wife and I just bought a house, and our rate was 5.875% on a 30 year fixed, but it was a VA Loan The house sounds nice!

 

[wranglergirl]

congrads

 

[Nullifidian]

What is a VA loan?

 

[BMW]

What is a VA loan?

veterans administration loan, only applies if you are or were in the military.

 

[Magickk]

What is a VA loan?

Veterans Affairs I think... It's for people who are serving / have served in the military...

 

[BMW]

i work for wells fargo home mortgage, so if your loan gets screwed youll know who did it j/k congrats!

 

[BMW]

I'm getting 2 loans. 80/20 split.

Primary (80%) is 30 year fixed at 5.875%

Secondary (20%) is a 10 year HELOC (Home Equity Line of Credit). Wells Fargo doesn't have good rates for HELOCs and Home Equity Loans, but the mortgage guy is a friend of my realtor. He said he's able to lock in 6.25% on the secondary Home Equity Loan with PNC Bank on a re-finance.

The end result is 5.875% on the Primary, 6.25% on the secondary. Taxes on this house are high for the area, $3400 a year (hehe, that number makes everyone I know in NJ cry; I don't know anyone who pays less than 5K, and most pay more than 10K). Insurance on the house is about $700.


The total monthly payment of Principle + Interest + Taxes + Insurance = $1805 per month IIRC.

There is no PMI on the loan. There is a point on the loan that amounts to $1900 in origination fees. The amount of money I'll save though is well worth the extra in closing costs. I'm saving $130 a month. In the first year alone I will have saved $1.5K. $47K over the life of the loan.

Besides, I have enough furniture to hold me for quite a while; I have a 2 piece sectional sofa, a recliner, a queen sized bed, a dining room table, some dining room chairs, a TV stand, glass shelved electronics stand, a chest, an armoir, 2 night stands with large shelved cabinets, etc.

That's enough for the livingroom, master bedroom, and dining room. At some point in the next year or so, we'll go down to North Carolina and pick up a full house worth of furniture. New bedroom set, new livingroom set, new diningroom set, etc.
I'm going to try to have the secondary paid off in 5 years.

so it sounds like you got a home asset management account? well just a word of advice dont alway look into a low interest rate as a sign of a good loan, sure it may be a little higher than other companies but those helocs are a lot more flexible than just about anyone else. 1 in 4 home loans is owned by wfhm. also i noticed you have an escrow account those can be real hell if you dont understand them let me know if you ever need any help deciphering those things because its gonna suck when you payment goes up, and yes your payment will increase even though you have a fixed rate and especially since you have a new home so you might want to start saving for a shortgage in escrow.

 

[Nullifidian]

Why would the payment go up? The payment would only ever change if:

1) The price of insurance changes
2) Taxes change

The interest rate is fixed.

As for home asset management account, I'm not sure what that is. The WFHM guy didn't say anything about that. However I do have to escrow a year of taxes and 3 months of insurance as part of closing. Then every month I pay a month of taxes and a month of insurance in addition to the principle and interest.

 

[w00kie]

got any pics of the place?

 

[BMW]

Why would the payment go up? The payment would only ever change if:

1) The price of insurance changes
2) Taxes change

The interest rate is fixed.

As for home asset management account, I'm not sure what that is. The WFHM guy didn't say anything about that. However I do have to escrow a year of taxes and 3 months of insurance as part of closing. Then every month I pay a month of taxes and a month of insurance in addition to the principle and interest.

thats what im saying. im more than sure the only reason why your taxes are so low is because of the previous owner who happened to be a 90 yr old single woman which screams a homestead exemption from your taxing authority.what i would do is call you t/a and ask them whos name the taxes are currently in, which im sure it will have the old lady, she had a tax discount which mean since you may not qualify for any discount your taxes should increase to near what you fellow neighbors are paying.

 

[Nullifidian]

http://www.digistash.com/data/7750ca3559e5b8e1f44210283368fc16/6529_p91749.jpg

 

[Nullifidian]

thats what im saying. im more than sure the only reason why your taxes are so low is because of the previous owner who happened to be a 90 yr old single woman which screams a homestead exemption from your taxing authority.what i would do is call you t/a and ask them whos name the taxes are currently in, which im sure it will have the old lady, she had a tax discount which mean since you may not qualify for any discount your taxes should increase to near what you fellow neighbors are paying.

LOW?!

The taxes are high for the area. The neighbors are all paying around the same.


The folks paying a lot more are my COWORKERS who live in NJ.

 

[Apowerz6]

BMW you are scaring me, we just got a condo, and its tax time, and they hit us with an increase through insurance, but we straightened that out, with providing them with building ins. We bought from an old lady, so possibly our taxes could go up? Sorry to Hijack your thread Null... ANd congrats for your purchase!!!

 

[BMW]

LOW?!

The taxes are high for the area. The neighbors are all paying around the same.


The folks paying a lot more are my COWORKERS who live in NJ.

o sorry i thought you said everyone else was paying around 5-10k.

 

[Nullifidian]

It's ok, I can see how it would be confusing.

Yeah, in PA the taxes are pretty low. In NJ they are RIDICULOUSLY HIGH. My girlfriend's parents pay over $10,000 a year on their $500K townhouse in NJ. 3 years ago the taxes were $5000. That's a 100% increase in 3 years. At this point their property taxes are over $800 a month for a townhouse worth only 500K. That's just disgusting. Absolutely disgusting.

 

[dsl]

this thread makes me like living in the midwest...it's cheap :lol:

 

[tattoopierced1]

this thread makes me like living in the midwest...it's cheap :lol:

same here...a $300,000 house here is virtually a mansion.....

 

[BMW]

wow for 3k id be lucky to get a condo big enough to fit my bed in...

 

[Apowerz6]

you said it, I got a 1500sq foot condo for 100k, which is bigger than most of the townhouses in Chicago. not to mention taxes are 1k. But congrats again, nothing like getting a slice of the pie

 

[Mrs. Gimpy!]

my material goal in life:

1.) buy a house without my dads help in 6 years
2.) buy a nice car

yes i am aiming for about a $300,000 -$400,000 condo or townhouse because thats all i can afford in cali. but hey its a starter home and yeah i could get a house in california for that price but i would rather live in a safe area....

isnt that sad all that money will only buy a small living space....

 

[Mrs. Gimpy!]

ps congrats!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! id be freakin peeing in my pants!!!!!!

 

[BMW]

my material goal in life:

1.) buy a house without my dads help in 6 years
2.) buy a nice car

yes i am aiming for about a $300,000 -$400,000 condo or townhouse because thats all i can afford in cali. but hey its a starter home and yeah i could get a house in california for that price but i would rather live in a safe area....

isnt that sad all that money will only buy a small living space....

i live in s.cali a nice area to check is rancho cucomounga (sp?) or upland, the only cheap place left in cali if you call it cheap is the high desert area thats were i live and i belive its the fastest growig area in cali, its freakin insane! my parents bought a brand new custom built home up here in hesperia in oct of 2000 for around 145k, now with all the stuff weve done to it its valued around 600-700k should sell for near million if this keeps up. my neighbors house is valued at mil or so its been crazy these last few years, if you need a job look into the mortgage industry good money in big cities my boy is a processor in pasadena and is making around 6-7k a month.

 

[Mrs. Gimpy!]

a nice area to check is rancho cucomounga (sp?) or upland,

i was thinking around that area or maybe wildomar. i live in temecula now and its freakin expensive here.... i was thinking of just settling for a small thing here or maybe looking around your area.

if you need a job look into the mortgage industry good money in big cities my boy is a processor in pasadena and is making around 6-7k a month.

i should be making about that much a month. i should make about $350/day...im so excited!!im going to graduate and get an job in three years. live with the parents rent free and save like a stingy whore for two years and buy a house with my lump of cash. i get to be the breadwinner for a few years..lol