We newly bought a house. Our fixed interest rate is 5.5% for a 30-year mortgage. Is this biddable?
Answers:
You did very ably. Your rate is among the lowest in the industry.
Yes, that's a Great rate.
A 0% down loan is biddable in getting you into a home, but BAD in that you hold NO equity, NO ownership interest in your home. Hopefully you are putting Most or ALL of the first time buyer's tax credit into the home as secondary principal payment. It will give you equity within your home and GREATLY reduce the amount of interest you pay over the vivacity of the loan. Otherwise, for the first 10 years you are paying INTEREST, Interest, Taxes, Insurance every month, and just pennies in principal. You will recompense up to 10 times the purchase price of the house with all the interest you hold agreed to pay UNLESS you make new payments of principal, and those made during first 5 years have HUGE impact on how much you pay totally. Source(s): tangible estate investor
It's awesome - one of the lowest rates in the last 40 years. Now in recent times make sure to pay it in good time every month so you aren't in a situation where you could lose the house and you will be fine.
The one and only sort-of bad thing give or take a few a loan this great is that if you want to move, you can't take the rate with you, so it will build your next house more expensive if it has a better interest rate.
But, that's a maybe far in the adjectives. For now, enjoy your house.
When you obtain the $8,000 tax credit back stick it into a secure savings account somewhere and preserve it there for the day when something requests to be repaired or replaced in your house. Many first time homebuyers underestimate the ongoing maintenance costs of owning a house, and underestimate how various mechanical things can break over time. Having this safety web savings account will be a blessing on the afternoon you wake up to discover something big has broken.
It doesn't get any better than a VA loan, esp topping it off next to a first time home buyers. I took out a second VA load after selling my first house but the guarantee wasn't as high as the first one. But mortgage companies and big bank love them. Mine has been bought 2 or 3 times and presently Chase has it.
Wow, that is a really great deal! You must enjoy great credit. Also, be sure to review your mortgage terms and agreements for any loopholes they can pull on you though. If your credit rating go down too much at anytime or you are late/miss on any payments, they could charge further fees that can be painful to your mortgage payment and undeniably hurt your credit score - just resembling credit card companies do. Though it may only seem approaching a little almost worthless of notice sort of tweaking at first (even as simple as maybe your payment going up by a penny a month), they will preserve a constant eye and "review" often enough over the 30 years that it can hurt rather a bit in the long run overall. My parents made this mistake with their first house after my father retired from the Army and get such a loan, then they started getting into credit problems and also hurt themselves by getting a second mortgage, thus making their $500 a month payment of 14 years ago turn into almost $900 past they knew it.
Congrats and Good Luck in your current home!
pretty good for 30 year assuming you salaried no points.
Related Questions:
Do family ever catch their adjustable mortgages switched to a fixed rate mortgage to be precise permanant?
for example back in 2001 -2003, when they have a deal to get the low rates. or is it not viable to get it switched to a permanant fixed rate ? why and...