Author Topic: Help translating some mortgage offers.  (Read 340 times)

StashingAway

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Help translating some mortgage offers.
« on: December 20, 2018, 07:43:54 AM »
Hello all! My wife and I have an offer that's been accepted on our house! We have been two loan offers and I want to make sure I'm not missing anything:

30 year fixed conventional. 6% down. What numbers should I be looking at besides PMI and the rate? Homeowner's insurances is something that I source, right?

Loan 1:
 4.5% locked
 PMI $48/mo

Loan 2:
 4.75% locked
 PMI $41/mo

Thanks!

kendallf

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Re: Help translating some mortgage offers.
« Reply #1 on: December 20, 2018, 08:17:16 AM »
Get the closing costs estimate on both, and run down the numbers.  They will include assumptions for things like an inspection that you can source yourself, but you can compare fees in general.  If the closing costs are roughly comparable, pick the lower APR. 

Yes, you will have to get your own homeowner's insurance, although often your real estate agent may have a broker they recommend to get you started.  Don't stop there, call a few more and shop around.  You will probably get radical differences in homeowner's quotes between companies; I always have.

SwordGuy

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Re: Help translating some mortgage offers.
« Reply #2 on: December 20, 2018, 12:54:52 PM »
Oh, you made an offer on someone else's house and they accepted it.   At first I thought you were selling the way you phrased it.


https://www.drcalculator.com/mortgage/

Tools like this mortgage calculator can help you figure out what the true costs are.

Plus, of course, "closing costs and fees" vary by A WHOLE LOT.