expert advise on mortgage

I wasn't even aware that they checked GC for mortgage. Depends on company/state I guess.

5/1 ARM means fixed rate for 5 years and variable afterwards (changes yearly). I would recommend this to roran to look into since studies show it is unlikely you stay in your first home for more than 5 years (family grows, situation improves, relocate for jobs etc). Avg American family moves after 4 years of buying first house.

I refinanced with 5/1 (30 year) at 5% (no points, 2 k closing) from Wells Fargo in MA. If you want no closing costs, they typically add another 0.25%. At first I had a 30 year fixed but then I realized that with this market either I will move in 5 years or refinance anyway, so might as well get the lowest rate.:D
 
abhi
My loan is with Washington Mutual. They are not mortgage brokers, but a bank, so the rate may not be the cheapest.
Try them if you are a first timer, my experience with them was pleasant. As long as you've good credit history you should be ok with them, they dont do a GC checking. I always wondered how they check it anyway. They know nothing about I-485 application or EAD. Just tell them you've GC. Things may be different now, but give it a try.

Be aware of some Indian mortgage brokers who may rise the rates saying you dont have GC, its crap. Shop around. Some useful web sites
http://www.monstermoving.com/Mortgage_and_Finance/Quotes/index.asp
www.interest.com

485sub
1 point is 1% of loan amount (for a loan amount of $200,000 1 point is 2,000) and closing cost is usually all the other expenses , which may be around $1500. So total amount you may have to bring for closing will be 2000 + 1500 + prepaid interest ~$4500. No point no closing means I dont pay anything. However that option will increase the interest rate. Some times it may be better to accept points with lower interest rates than no point with higher rate. It all depends on you, you really have to sit and calculate what option you want. With some lenders you can bargain closing cost too.

If you are buying a condo and sure to move out within 5 years, then go for 5/1 ARM, but if you are buying a house or planning to stay for more than 5 years, a fixed mortgage is always the best option.

Most important tip: ASK QUESTIONS, even if you think its silly. Ask as much as questions you want to the loan officer, remember they want you as a client more than you want them.

Another way to save lots of money: When you lock in the rate ask the officer you want to pay semimonthly instead of monthly. This option will split one month mortgage by two and you pay every 15 days. From your pocket you pay the same amount but the total interest you pay for the loan will be drastically reduced. Sometimes you may have to pay a one time fee for it, but its just an option. Remember, for first few years most of the money you put in goes to the interest, not the premium.

Good luck all
 
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I was surprised

to see this thread grow 2 pages long.
We have got a rate of 5.875 for 20yr fixed. Our monthly payment has gone up by $30. There is no closing cost, but we have to put some 4/5 months escrow money beforehand. There will be some prepaid interest depending on the date of closing.
For people suggesting ARM, it is worth if you are prepared to take a risk. Even though I think I may not stay in this house for another 4/5 years, but time just flies. You never know. I do not want to land up in a higer market rate after 4/5 years.
Regarding the 485/EAD, the broker is a chinese and she knows all these different stages.:)
I know the lender's name and I hope I will not have problem later. If somehing happens, I will be continuing with my current lender.
 
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