Q&A: Mortgage loan question. Advice needed!

Question by MissyLPN: Mortgage loan question. Advice needed!
$ 70,000 loan at 6percent w/ down = mortgage of 631/mo, any way to get a lower monthly payment?Question:I live in Muskingum County (Zanesville, Ohio) and I recently fell in love w/ a home that I would love to purchase, although the monthly payments are a bit more than I can afford. The house is bank owned and when I check recent sales on the address it says it sold recently for about 66k, I’m assuming that is what the bank that owns it now (in California,) paid for it, but I don’t know how all of that works. I have no idea what to propose as a first offer and I have not yet completely been pre-approved (my pre-approval is pending some refernces of pay history from my utility companies). Once I provide these to my POTENTIAL lender, the lady I have talked to thinks I can get a FHA loan with .00 downward at 6 percent interest rate (6.25 then .25 percent away for the heroes program doing it 6 percent). The taxes are annualy about 1300 and w/ that being said, she estimates my monthly payments on this house to be about 631/mo. I can’t expend this much so I enquired her if there was any way to lower that payment and she said either purchase a cheaper house or emanate up with ATLEAST 5 percent downwardly, which is too not an option because by the time I do that, the house I desire will be travelled….perchance. She said yet with 5percent downwards, the payments may but go downwards to approximately 560/mo. I’m looking at a 500/mo range. ANy suggestions as to how to get a lower monthly payment. In my mind, I am believing if I could only get this house for 60k alternatively of 70k that might aid alot, but I besides have to seek to get folding costs payed for by the bank that owns the home. Does this sound hopeless??? ANY ADVICE would be appreciated!! Thanks alot!In response to the first poster: What I can spend ONLY has to do with the price of this house, not weather or not I can expend a house. If you detected that I get a 6% rate, that helps in itself. What is your basis for ascertaining I can not spend to purchase ANY house? Thanks for posting but I’ll be watching for advice that is a bit more on topic.

Best answer:

Answer by RanaBanana
Paying bi-weekly will save a little because you’ll have less interest.But truth be told, it really doesn’t sound like you can afford a house right now.I know that’s not what you desire to hear, I’m in the same boat. I can afford $ 600 month but there is nothing in my price range. I have to wait. Plain and simple. Once my car is paid off next spring, I’ll be able to afford $ 900/month so we should be able to get a house then…but we’re working hard on saving up a good down payment.A lot of banks will not even approve a mortgage with down anymore. They’re being very careful because of all of the foreclosures.Add: You can’t afford a house right now because a) you don’t have a down payment and you won’t get a down loan (your potential lender has ALREADY told you that). And b) you don’t even have closing costs (around $ 3000). You’re not going to get the bank to knock $ 10,000 off the asking price PLUS get them to pay the closing costing. Closing costs are virtually always the buyers responsibility. That alone, makes you unable to afford a house flop now. You asked for any advice. Save for the closing costs, a down payment and find a cheaper house. If you won’t accept that as an answer, then you should have asked for “what you want to hear”.Don’t shoot the messenger, m’kay?

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