Lakewood: Awesome Mortgage program for 1st time buyers

[dk]

TD Is the lowest most of the other ones are 1/4 percent lower than the reg rate

[bingit]

My question is that this other program that TD offers with a rate of 3.425  with no income restrictions is that considered great that I should go crazy for ( taking first time homeowners seminar etc....) or is it considered just good and not  awesome?

[MarkS]

The bank is practically eliminating the program while still being able to sell themselves on how they have great community development, help the poor, minorities etc. 

It's not just about 'selling themselves'. They wouldn't be in compliance with CRA ( http://www.federalreserve.gov/communitydev/cra_about.htm)  unless they actually issue a certain amount of loans. That being said - there are many houses in NJ that cost less than $250K.

[MarkS]

My question is that this other program that TD offers with a rate of 3.425  with no income restrictions is that considered great that I should go crazy for ( taking first time homeowners seminar etc....) or is it considered just good and not  awesome?

Regular rates are around 4.15.
On a $400,000 loan:

@ 4.15 loan you'll pay $300K interest.
Assuming Santander and other 1st time are 1/4 lower
@3.9 you'll pay $279K interest.

With TD
@ 3.425 you'll pay $241K interest.

Decide if it's worth $38,000 in savings....

I have no skin in this and don't get anything from TD for promoting them - I just think people don't realize the huge savings we're dealing with here.

[bubble347]

Regular rates are around 4.15.
On a $400,000 loan:

@ 4.15 loan you'll pay $300K interest.
Assuming Santander and other 1st time are 1/4 lower
@3.9 you'll pay $279K interest.

With TD
@ 3.425 you'll pay $241K interest.

Decide if it's worth $38,000 in savings....

I have no skin in this and don't get anything from TD for promoting them - I just think people don't realize the huge savings we're dealing with here.

It is not that huge IMHO when you spread it out over the life of the loan.

[smiley face]

This is really frustrating that they lowered the income as I was counting on it (the house isn't ready).
Does anyone think they will change it back to 77k?

[bubble347]

This is really frustrating that they lowered the income as I was counting on it (the house isn't ready).
Does anyone think they will change it back to 77k?

The bank is practically eliminating the program while still being able to sell themselves on how they have great community development, help the poor, minorities etc. 

[bingit]

This is really frustrating that they lowered the income as I was counting on it (the house isn't ready).
Does anyone think they will change it back to 77k?

the LRRC told me they are still researching why all of the sudden they lowered the income requirements

[MarkS]

Officially the limit should be 80% of the median family income (MFI).

If you look it up here, the 2014 MFI for Ocean County is $86,100 and 80% of that is $68,880

In  2013 the MFI was $91,800 and 80% of that is $73,440

That would explain somewhat why it went down the other week from $77k to $62K. Not sure why they would go even lower to $55K.

[MarkS]

With a max of 55K income,
55,000/12  = $4,583 a month  /3 = $1,527 max monthly payment.
With insurance of $70 a month and property tax of $5,000 (416 a month) the amount left toward mortgage is $1,527 - 70 - 416 = 1,041.

At a rate of 2.65 a house that  costs $271,500 with a down payment of $13,575 and a loan of  approx $258,000 would have monthly payments of $1,040.

Alternatively you could put down more than $13,575 to buy a more expensive house but the max you could borrow is approx. $258,000

[bingit]

With a max of 55K income,
55,000/12  = $4,583 a month  /3 = $1,527 max monthly payment.
With insurance of $70 a month and property tax of $5,000 (416 a month) the amount left toward mortgage is $1,527 - 70 - 416 = 1,041.

At a rate of 3.425, a house that  costs $246K with a down payment of $12,300 and a loan of $233,700 would have monthly payments of $1,040.

Alternatively you could put down more than $12,300 to buy a more expensive house but the max you could borrow is approx. $233,700.

if you are using a case of having income lower than 55k than the intrest rate would be 2.65.... not 3.425 .

[MarkS]

if you are using a case of having income lower than 55k than the intrest rate would be 2.65.... not 3.425 .

Fixed above.

[bingit]

Im going tomorrow to the LRRC first time homeowners seminar  maybe they will explain why TD keeps on lowering the income cap.

[Hamavin]

Anyone know when this offer is expiring?

[bubble347]

Anyone know when this offer is expiring?

wiki

[ybeeds]

could someone update the wiki with the 55k numbers... Thank in advance!

[Deal Guy]

Im going tomorrow to the LRRC first time homeowners seminar  maybe they will explain why TD keeps on lowering the income cap.

Unless you and others ask them privately, I don't like to discuss TD or any of the other banks by the public seminar. They don't want it to appear that they are pushing one bank over the other. But if you do get an explanation, please share here.

[robi]

Unless you and others ask them privately, I don't like to discuss TD or any of the other banks by the public seminar. They don't want it to appear that they are pushing one bank over the other. But if you do get an explanation, please share here.

-1. they did it jointly with TD in the past, and when I called a while ago to ask regarding other banks they kept pushing TD on me like a used car salesman

[bingit]

the seminar this morning was given by a loan officer from investors bank..but.he did not push his banks program at all.

[Rivky]

-1. they did it jointly with TD in the past, and when I called a while ago to ask regarding other banks they kept pushing TD on me like a used car salesman

Not the 1st seminar. Only the second one.