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Are you selling your current home first, then purchasing? Is the home for sale now? If it is, you need to wait for the sale to close to access the equity. If its not on the market, you may want to apply for a 25k home equity, and tap it for the down payment. Im not saying use it all, maybe 10-15k. There is tremendous risk here as you need to be able to sell the home quickly and not make 2 mortgage payments a month. I would not touch the IRA, that's a last ditch effort here. Another option here is why not go FHA. Your only required 3% down, yes your paying mip, but when you sell the home, you may be able to either put the funds into the townhome or put a lump sum down to bring the loan down enought to get out of mip. I completely agree with loan master here, don't get some cookie cutter mortgage, you have the resources to pay this off pretty quickly, keep your roth ira and most, if not all of your savings. Why pay all the finance charges. Look at 15 (no mip for 15 year) or 20 year terms. You've got a good start towards a solid retirement, don't backtrack now, good luck and feel free to ask questions

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mortgage broker

by Big daddy

4 months ago

Asker's Rating: 

20%

by Jason M- 4 months ago

Most of your real estate experts will tell you that you must come in with 20% down and you should wait until you get that amount. A lot of the so called real estate experts will tell you to only get a 30 year fixed rate mortgage. I am not one of those, You should get in with as little as possible and leave the rest of your money in an account that bears interest and have funds for emergency and other contingencies. You might also check with your tax advisor there are some that might be able to deduct the PMI from their federal income tax. See if you are qualified for this deduction. You should have enough intelligence to know what financial situation you are in and look down the road and see if it will change for the better or not. Keep in mind that adjustable mortgages mostly go up therefore you will have to have a salary that increase before your adjustment period arrive. How much you put down the loan programs you are qualified for depends on your credit score, income, and the amount of debts you have to pay each month that are on your credit report. You should contact a mortgage broker complete a mortgage application, allow this person to run your credit report. Once the mortgage broker has done all that is necessary and he knows the mortgage programs you are qualified for you should have him explain each and everyone that you are qualifed for. If you are not sure of an option, make sure that the mortgage broker explain it until you understand how it work. Understand the adjustable mortgages,how the work, the adjustment periods, how much they will adjust, what fund the note is tied to for the adjustment. Make sure you understand the cap and the maximum the loan can adjust over the life of the loan and any one adjustment period. Make sure your mortgage broker explain to you the advantages and disadvantages of getting a no fee no points mortgage as oppose to paying points and fees up front. This is something you might also want to discuss with your tax advisor. Your mortgage broker should be able to issue you a Good Faith Estimate (GFE) detailing the expenses involved in the mortgage you have decided to accept. Once he has explained your mortgage options then it is now time for you to make a decision based on you financial condition and your future financial condition. Between the mortgage broker and yourself you are now required to make an intelligent decision. Make the best one you possibly can. Remember that because your friend has a 30 year fixed this mortgage might not be for you. Because your friend has an adjustable rate morgtgage this might not be for you also. When borrowing from your roth Ira make sure that there is a provision for paying down on a home, therefore there might not be a penalty for withdrawing from this fund. Most will allow you to withdraw funds from your IRA with penalty as long as you are using the money as a down payment on a home. Check with you fund manager. You might also check with your tax advisor for any possible tax consequencies. I hope this has been of some use to you, good luck. "FIGHT ON"

by loanmasterone- 4 months ago

Do not buy anything till you have sold your house. You do not want to get caught carrying two mortgages for a year or more. Once your house is sold you then would have enough money to put 20% down Accessing your IRA is not a smart move, no one ever seems to replace the money.

by tkahrs12122- 4 months ago