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Meeting With Mortgage Consultant

February 2nd, 2012 at 04:27 am

So I continue to go back and forth on the whole 20 yr vs. 30 yr decision. Today I was thinking, "definately the 20 yr". Tonight I had my long awaited meeting with the Wells Fargo mortgage consultant.

First of all, the rate break for a 30 is a mere 1/8th of a point right now. So that is not worth taking on the bigger minimum monthly obligation. The 20 yr is out.

I had to supply basic info on income, assets, and liabilities. They will do a credit check. They will pull my income tax returns. They will do a market appraisal, meaning it is based on sales in my neighborhood not on an actual onsite appraisal.

So she opened my file and now we have to wait for Feb 6th to be ready to roll. Today the rate for a 30 year fixed is 3.875. On Feb 6th, who knows? I cannot lock before the program is officially active.

She said everything else we can do by email until it is time for me to sign final docs.

Posted in Mortgage | 2 Comments »

2 Responses to “Meeting With Mortgage Consultant”

  1. snafu Says:
    February 2nd, 2012 at 10:49 am 1328179748
    1328179748

    When the time comes,take all the time you need to read the contract carefully. Make sure you can make extra payments that will immediately apply to the principal. You can shave years off the contract with this process. Will you be allowed sums through the year or merely a 'balloon' payment on anniversary. Can payments be made weekly, bi weekly or only monthly? Paying bi weekly means 26 payments per year, rather than 12 x 2 as you'd expect.

    The 1st 15 years are crucial, such a high percentage goes to interest, such a small amount goes to principal. Ask the broker for a print out.

  2. patientsaver Says:
    February 2nd, 2012 at 02:20 pm 1328192449
    1328192449

    Well, if you are disciplined enough to make prepayments each month on your own, you can achieve the same savings of thousands of dollars in interest as you would with a 20-year loan, but without having to worry about the additional hardship of making ends meet should you experience an unexpected change of income. (In other words, if you lost income unexpectedly, you could simply stop the prepayments, but you couldn't simply stop making the higher payments of a 20-year loan given the same scenario.)

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