No Money Down Home Loans

[mandiees]

I do no think I completely understand how these loans work... So someone, with qualifying credit, is able to get into a house without paying any money? Just pays their mortgage every month? What kind of APR is applied to these sorts of mortgages??

[elvenrunelord]

Sounds perfectly reasonable to me in a rational economy. See almost all of that money you pay down goes to support these brokers and their parasitic methods of buying and selling homes. Sometimes this is called opening and closing fees. Never pay money down unless your getting a significant cut in payments over the term of the loan.

[Offplanpropertyexchange]

Good advice there, thanks

[mandiees]

Thanks so much for the feedback. I was actually under the opposite impression, that these no money down mortgages are a way for realtors/brokers to try to get you into a house prematurely so they could make profits.

[matthewristel]

I don't think this is good way to know about if you are using internet.You can get all updates and news there.

[EugenS]

The APR is probably bigger than normal. However, in the long term, it's helpful to you.

[mandiees]

I guess I am just trying to figure out if its better to go with a higher interest rate over the long term or spend all of my savings to get a lower rate. Sounds like the second option might be better?

[mmk123]

To be honest, I had no idea these types of loans even exist. Wow, they really do think of everything, don't they?

[mandiees]

Originally Posted by mmk123

To be honest, I had no idea these types of loans even exist. Wow, they really do think of everything, don't they?

LOL, yeah... Seems that way! Just one more thing to throw into the mix to confuse already confused home buyers. Good plan, right?

[elvenrunelord]

Despite what you think Mandiees, you control the interest rate of your loan. If you do your research before going in to talk to them you will be prepared to offer them what is fair. That offer will be much lower than what they are asking for. Let them know right up front that if they don't offer you what you consider is fair you will walk.

The housing industry is soft and will remain that way for probably another decade. In the end the consumer dictates the terms. Walk if they won't agree with you. Someone will be in business there a year from now who will work with you if everyone adopts this way of shopping.

This is not saying to go in there with some crazy idea of fair. This is say set a limit to what you think is acceptable after looking at the current and future economy and stick with that.