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Buying my first house **update** offer accepted, I got a house.

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shardian:
And to be clear on my loan, I went with WVHDF - that is a state level home buyers assistance group instead of Federal. I'm not sure what state you live in, but it might be to your benefit to see if your state has a first time home buyers plan. I would have never known about mine if I wasn't told by a family friend.

lordtodd75:
Yes, I am being charged interest on the PMI fee, it is added into the mortgage. I know about 80/15/5 loans(well it is actually 3 loans) and the variations. The problem with those loans is that the smaller loans have a much higher interest rate and I am actually saving money with FHA. I am not locked in yet but I was given a 5.325 apr (that was the rate at the time of my good faith estimate), that is ridiculously low. Ofcourse I had to pay 1 1/2 points to get it that low, but again, I am saving money in the long run.

Thank you for the info on the state level assistance, that I do not know about, but I will have to check it out. I have 10 days from today to get a mortgage  ;D

EDIT: Chad, if your advice comes with name calling then I am not sure I want it in the first place.

Sprucemoose:
lordtodd75,

I know this is a stressful time, but I can't help thinking that you are getting taken by your mortgage guy.  The $2600 sounds way to strange.  If that is the 1.5 points that you bought up Front then I understand, but if it is not then I would talk to another mortgage guy.  Don't break your current deal, but just go talk to someone else.  Layout your mortgage for them and see if they can beat the offer that you have on the table.  My guess is that they will be able to in a heartbeat.  I went through my bestman for my first mortgage years ago and he ran me through the ringer.  I paid him way to much.  Instead of looking around I counted on our friendship and trusted that he would give me a good deal.  Never hurts to talk to someone.  Especially when it could save you thousands of dollars for 30 min of your time. 

I know FHA are usually pretty good, but if you have good/excellent credit then there are loans that sound better that you current one including the 80/15/5 or 80/20 or even 0% down, but buying out PMI up front.  PMI up front is what I did on my last house and I highly recommend it.  This option will pay itself off in 3.5 years as opposed to the 80/20.

Anyway, good luck.

lordtodd75:
I thought the same thing you did spruce, my lawyer didn't even know why they were charging that amount up front for PMI. Then I talked to a lawyer that has more experience with FHA loans and he said that payment was normal. I also talked to a real estate agent that I am friends with and she also said it was normal. So I am confident that the 2600.00 up front for PMI is normal. Thank you for your help, I do appreciate everyone trying to make sure I am not screwed. Can anyone with FHA experience chime in on this?

Jdurg:

--- Quote from: shardian on February 14, 2008, 04:03:41 pm ---This will get you out of paying PMI, and of course the interest on both loans is tax deductible - PMI is NOT tax deductible.

--- End quote ---

Actually, yes it is.  New tax laws which went into effect stated that on your 2007 taxes, if you closed on a mortgage during the calendar year you can claim ALL of your PMI if you make less than $150,000 (I believe) as a single person.  This tax "break" has been in effect for a few years actually and I believe was recently renewed for the 2008 calendar year.  So what it means is that your PMI will be a nice tax deduction.   :applaud:

One other thing regarding buying a house that you should be prepared for are the unexpected "surprises".  When I had my house inspected, the inspector let the water run out back for hours on end and there was no water problem in the basement.  We had TORRENTIAL rains in our area during October and November, and yet the basement drainage system worked perfectly and everything was nice and dry.  Recently, we've had some really cold days and the ground froze solid.  On Wednesday, we had a massive snow and ice storm hit the area followed by a few inches of rain on the same day.  The ground, however, was still frozen underneath and all around my neighborhood there were HUGE lakes forming in the low lying areas as the water wasn't draining.

Well, the water has drained and it drained right into the middle of my basement.  It's seeping up through the concrete and into the low lying part of the basement.  Wherever there is a crack or chip in the floor, water is seeping up and there is about 1/2 to 1 inch of water in the center.  The drainage system is still working and the amount of water being pumped out is remarkable, but the insane amount of water in the ground is just overpowering it.  I just need to pray that the moisture problem will be covered in the Lifetime Guarantee of a completely dry basement that this drainage system has, and that the water won't rust the boiler which is right where the puddle is. 

The ONLY way this could have been detected during an inspection would be if they took a few thousand gallons of water and poured it all around the foundation.  I guess the water table has just risen slightly above the floor level of my basement and it's now forming puddles.   :'(

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