Hey guys, we are going to be in the market later this year for our first house, and we are trying to educate ourselves on the loan process. We are cross shopping NJ and NY, if that makes a difference for financing..?
Just want to open up the discussion on the positives and negatives of a 5/1 ARM vs a 10 yr fixed, HELOCs, as well as go-to banks (many tell me Wells).
Starter houses in neighborhoods with good/great schools (<40 min from NYC) are roughly $700-900k, with $17-23k in tax (taxes are inverse to home value, as we are cross shopping NJ/NY). NJ is better house value, more tax; NY is worse house value, less tax; it all seems to net out to ~$5k/mo (mortgage and tax) which brokers are saying is the "sweet spot" for starters. Although some NJ options could be closer to full size houses...We would put 20% down...I am disclosing this as it may factor into HELOC minimum mortgage requirements, and the importance of how certain banks go about escrowing taxes. So i figured it is worth talking about.
We have not spoken to a bank yet, as I dont want to reveal my lack of knowledge, and burn through a bank that I wouldnt go back to after said reveal. So this is step one...
Thanks, everyone.
Just want to open up the discussion on the positives and negatives of a 5/1 ARM vs a 10 yr fixed, HELOCs, as well as go-to banks (many tell me Wells).
Starter houses in neighborhoods with good/great schools (<40 min from NYC) are roughly $700-900k, with $17-23k in tax (taxes are inverse to home value, as we are cross shopping NJ/NY). NJ is better house value, more tax; NY is worse house value, less tax; it all seems to net out to ~$5k/mo (mortgage and tax) which brokers are saying is the "sweet spot" for starters. Although some NJ options could be closer to full size houses...We would put 20% down...I am disclosing this as it may factor into HELOC minimum mortgage requirements, and the importance of how certain banks go about escrowing taxes. So i figured it is worth talking about.
We have not spoken to a bank yet, as I dont want to reveal my lack of knowledge, and burn through a bank that I wouldnt go back to after said reveal. So this is step one...
- Do all banks escrow taxes on a monthly basis, or is there any flexibility in escrow requirements?
- What are the requirements to qualify for a HELOC with a 5/1 ARM...if is it possible?
- What are the requirements to qualify for a HELOC with a fixed?
- How are upfront taxes typically addressed?
- What should I expect in bank fees, and overall closing costs? I have heard anywhere from $10k to $50k, which is a huge range.
- And of course, what are people's thoughts on the 5/1 ARMs? People i have spoken to have very polarizing opinions.
Thanks, everyone.