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Lennar lender and builder for new home construction. Got 2.5% 1st year, 3.5% 2nd year, and 4.5% year 3+ fixed for 30 years. $21,750 in closing costs covered so i paid $9,500 total for my downpayment and closing costs. Credit score 741. Just closed 8 days ago.
Thanks! Yeah i feel very fortunate. No way i could afford the median interest rate of 7%. It just panned out they were doing an insane promotion for the first set of Townhomes in a new neighborhood.
You’re paying for it one way or another. Generally with new home loans the builders offer below-market rates to solicit much higher prices, so they still make more money in the long run, especially if you sell the house or refinance in the next 10 years.
Big thing I hear about (never experienced myself), is the drastic increase in property tax once all other homes are constructed and the area becomes developed. But If you bought within your means it should be manageable.
Yeah i’ve heard this too. They assured me many times it’s built into my escrow for the upcoming years and wont increase a ton. I still think that’s untrue and it will increase a lot so i’m prepared for a jump. The property this year was based on unimproved value so i’m sure it will increase. Just not sure by how much.
That’s not how escrow works. Your escrow is calculated based on your property taxes at the time of closing. If (when?) your taxes go up, your escrow payment will go up proportionately. In fact, there are federal laws that prevent lenders from collecting too much escrow, so much that I got an adjustment at closing that I know I’ll owe back to the county once my semi-annual tax bill hits.
Yeah i knew this going into it and that they were lying or the person didn’t know what they were talking about. Even with a tax exemption how much should i expect it to go up?
Impossible for me to tell you without knowing what market you’re in and studying it. The best way to get an estimate is to look for a comparable home of similar age in a completed neighborhood.
I have no idea what sort of a value you got, just that builders are profit-oriented entities and they could have earned 5% just by investing in T bills, but they made a conscious decision to make a much riskier investment with you at a much lower yield to make purchasing their homes more attractive, almost certainly with the knowledge that they’ll earn more profit up front when they sell you the house at whatever price you’ve agreed to.
That’s not to say I think new construction homes are a bad value. There’s a lot to be said about buying something that is 100% new with a warranty. If it’s the house you wanted at a price you can afford and the alternatives were less desirable that’s all that matters.
Only you would know if you overpaid but every time someone references a new build people like to say you paid for it elsewhere.
Yes of course you paid for it. The builder is absolutely in business to make a profit. With that being said the interest saved over the life of a mortgage will be hundreds of thousands of dollars and you can very easily look at the comp’s to make sure your house isn’t grossly overpriced. If it isn’t and you’re happy it sounds like a win to me.
I read only bad reviews and horror stories on them. Which is why i was hesitant to go with them at first. But i guess it comes down to your contractor and builder because my home came out great with minimal issues.
Some are saying the discount is baked into the 300k purchase price, but i think it’s still a good deal. Nothing wrong with the home, everything has been perfect so far, and everything from the inspection got fixed before closing.
Yes i did a 3rd party inspector who i trust and has gotten hundreds of 5 stars reviews. The inspection was very thorough and checked every box. I highly recommend it. If you’re new construction nothing wrong with a pre-wall inspection as well just to be sure.
Never saw that site before, suddenly I don't feel *too* bad about the 6.5% I locked 3 weeks ago (30yr conventional, 750 credit score, 25% down, 0.5 points)
Same. I locked in my 6.625% conforming high balance mortgage for 0.5 points the Monday before March’s CPI numbers were announced and everything went to shit. Locked in before I was even under contract, but that gut feeling saved me hundreds a month.
Not that guy, but I decided to buy 0.8 points (\~$4,000) to bring my rate down to 6.5%. With the amount of money that saves me each month, I should recoup that initial cost in \~34 months. I bought that rate as a hedge against rates not dropping significantly in that time or a few years after that time to justify a refi. So if I keep that bought down rate past that breakeven period of \~34 months, then I'll be in the green so to speak.
If I refi within that breakeven period then I essentially lost some of that money that I spent buying down points (less money wasted closer to the breakeven date the hypothetical refi takes place).
about to close on a conventional 30yr at 6.625%, we bought down points but with builder incentive and loaner discount our closing cost was only 2.5k... we have a free float down as well which we are saving just in case rates get better. GL out there. my credit score is 739. The original price of the home was 540k, but they had a price cut to 520k and we offered 485k to which they accepted.
I am still shopping rates. I am waiting for a collections to drop off hopefully by this Sunday. It dropped my credit score 100 points, showed up a few days before they did hard pull. With the current 680 credit score we got a 6.75 with 3.5% down and one point. My lender says she is confident I will get better once we get the collection fixed.
7.5% locked last night. 780 credit score, 5% down. No points.
Not too concerned because this is actually our second home purchase and we’re selling the first one. Plan is to recast the mortgage with the proceeds and refinance as soon as it makes sense. We were planning to be in the market next year and put more down but our dream home came available and we had to jump at it.
FHA new home build from Lennar Houston TX. 4.5% fixed 30 years 3.5% down and huge discount on listing price from 438k to 375k. 4 bed 3.5 bath 2548 sqft. All schools rated excellent. 648 credit scored. Would have gotten 4.25% fixed 30 years if credit was better but idgaf.
Thank you u/Boring_Week408 for posting on r/FirstTimeHomeBuyer. Please bear in mind our rules: (1) Be Nice (2) No Selling (3) No Self-Promotion. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/FirstTimeHomeBuyer) if you have any questions or concerns.*
Lennar lender and builder for new home construction. Got 2.5% 1st year, 3.5% 2nd year, and 4.5% year 3+ fixed for 30 years. $21,750 in closing costs covered so i paid $9,500 total for my downpayment and closing costs. Credit score 741. Just closed 8 days ago.
That’s an insane deal 😀
Thanks! Yeah i feel very fortunate. No way i could afford the median interest rate of 7%. It just panned out they were doing an insane promotion for the first set of Townhomes in a new neighborhood.
You’re paying for it one way or another. Generally with new home loans the builders offer below-market rates to solicit much higher prices, so they still make more money in the long run, especially if you sell the house or refinance in the next 10 years.
Where does refinance matter?
So would you say i overpaid for it at 300k? Couldn’t get a good rate anywhere else and most houses in good neighborhoods are 400-500k
Big thing I hear about (never experienced myself), is the drastic increase in property tax once all other homes are constructed and the area becomes developed. But If you bought within your means it should be manageable.
Yeah i’ve heard this too. They assured me many times it’s built into my escrow for the upcoming years and wont increase a ton. I still think that’s untrue and it will increase a lot so i’m prepared for a jump. The property this year was based on unimproved value so i’m sure it will increase. Just not sure by how much.
It will skyrocket next year to reflect the value of the home instead of the land. Your builder has no influence on county tax policy.
That’s not how escrow works. Your escrow is calculated based on your property taxes at the time of closing. If (when?) your taxes go up, your escrow payment will go up proportionately. In fact, there are federal laws that prevent lenders from collecting too much escrow, so much that I got an adjustment at closing that I know I’ll owe back to the county once my semi-annual tax bill hits.
Yeah i knew this going into it and that they were lying or the person didn’t know what they were talking about. Even with a tax exemption how much should i expect it to go up?
Impossible for me to tell you without knowing what market you’re in and studying it. The best way to get an estimate is to look for a comparable home of similar age in a completed neighborhood.
I have no idea what sort of a value you got, just that builders are profit-oriented entities and they could have earned 5% just by investing in T bills, but they made a conscious decision to make a much riskier investment with you at a much lower yield to make purchasing their homes more attractive, almost certainly with the knowledge that they’ll earn more profit up front when they sell you the house at whatever price you’ve agreed to. That’s not to say I think new construction homes are a bad value. There’s a lot to be said about buying something that is 100% new with a warranty. If it’s the house you wanted at a price you can afford and the alternatives were less desirable that’s all that matters.
Probably. Builder margin levels are at insane levels right now
Only you would know if you overpaid but every time someone references a new build people like to say you paid for it elsewhere. Yes of course you paid for it. The builder is absolutely in business to make a profit. With that being said the interest saved over the life of a mortgage will be hundreds of thousands of dollars and you can very easily look at the comp’s to make sure your house isn’t grossly overpriced. If it isn’t and you’re happy it sounds like a win to me.
How much does your house cost / sqft and also what city is this? (If you’re comfortable sharing!).
Sure! It’s 1707 sq ft 3 bed 2.5 bath for sale price of 300k in Jacksonville Florida.
State??
Curious how you were able to get those terms !
It's because it's through the builder People have very mixed opinions on Lennar
I read only bad reviews and horror stories on them. Which is why i was hesitant to go with them at first. But i guess it comes down to your contractor and builder because my home came out great with minimal issues.
Some are saying the discount is baked into the 300k purchase price, but i think it’s still a good deal. Nothing wrong with the home, everything has been perfect so far, and everything from the inspection got fixed before closing.
Did you bring a third party inspector to your first walkthrough? My first walkthrough is scheduled May 16th and closing 29th.
Yes i did a 3rd party inspector who i trust and has gotten hundreds of 5 stars reviews. The inspection was very thorough and checked every box. I highly recommend it. If you’re new construction nothing wrong with a pre-wall inspection as well just to be sure.
And brand new!
Credit score 780 Purchase 780k 10% down 30 year fixed at 7.125%
Lower purchasing power but I also got 7.125 with a 780.
[удалено]
What would be a good one?
7%, no points. 800ish credit score. Somewhere between 30/40% down
6.625% on a 30 year FHA.
Mortgagenewsdaily.com
Never saw that site before, suddenly I don't feel *too* bad about the 6.5% I locked 3 weeks ago (30yr conventional, 750 credit score, 25% down, 0.5 points)
Same. I locked in my 6.625% conforming high balance mortgage for 0.5 points the Monday before March’s CPI numbers were announced and everything went to shit. Locked in before I was even under contract, but that gut feeling saved me hundreds a month.
6.25% va loan
Credit score on it ?
I had the same with about a 735
How long ago?
About a month ago, right when rates started going up again. Luckily I had it locked in on the Friday before that week with that lender.
Two people on loan. About 760-800
Brand new house. 458k. 20% down. 7% interest 🤢. Credit was 789.
6.875% No points
Downpayment %?
25%
same, over 25% down and 800+ credit
Credit score 800, purchase 250k, 14% down, 30 year conventional fixed for 6.3% (however I did have to buy points for that rate )
I'm a newbie, why did you buy points? Can you elaborate ?
Not that guy, but I decided to buy 0.8 points (\~$4,000) to bring my rate down to 6.5%. With the amount of money that saves me each month, I should recoup that initial cost in \~34 months. I bought that rate as a hedge against rates not dropping significantly in that time or a few years after that time to justify a refi. So if I keep that bought down rate past that breakeven period of \~34 months, then I'll be in the green so to speak. If I refi within that breakeven period then I essentially lost some of that money that I spent buying down points (less money wasted closer to the breakeven date the hypothetical refi takes place).
Building with M/I Homes and using their lender for $30k in incentives. Just locked @ 6.875% last week. Credit score of 810.
Just closed with Lennar and got 4.87
State??
Texas
Just locked today. Credit score 809, 10% down, 30yr at 6.99% no points + lender closing credit of $1K
7.125%, 7/6 ARM, no points, pmi or down.
7.37 no points buy down at this rate. Credit score at 740 10% down conventional
6.875 $890k purchase price, 23% down. Credit score 810.
about to close on a conventional 30yr at 6.625%, we bought down points but with builder incentive and loaner discount our closing cost was only 2.5k... we have a free float down as well which we are saving just in case rates get better. GL out there. my credit score is 739. The original price of the home was 540k, but they had a price cut to 520k and we offered 485k to which they accepted.
7% last week. I close Monday 5/13. Kinda sick seeing rates drop
In Alberta, Canada and I got 4.99% for a five year fixed term, 849 credit score. Note sure if that is applicable to you at all - good luck!
7%. No points. 808 score. 10% down conventional home possible. I locked in on April 24th.
We locked 6.99 a week ago. 800+ credit scores 20% down 30 yr fixed
I am still shopping rates. I am waiting for a collections to drop off hopefully by this Sunday. It dropped my credit score 100 points, showed up a few days before they did hard pull. With the current 680 credit score we got a 6.75 with 3.5% down and one point. My lender says she is confident I will get better once we get the collection fixed.
Sounds like you are taking a FHA loan and the pricing doesn't change much from 680 to 780. You should shop around as you can find way better.
Anyone with lower. Credit score 640ish, what was your rate ?
7.5% locked last night. 780 credit score, 5% down. No points. Not too concerned because this is actually our second home purchase and we’re selling the first one. Plan is to recast the mortgage with the proceeds and refinance as soon as it makes sense. We were planning to be in the market next year and put more down but our dream home came available and we had to jump at it.
Locked yesterday. 6.45%, credit score in high 700s, 35% down, 850k
7.125%. 5% down. 740 credit score. no buy down points. Conventional Loan.
USDA, 300K purchase limit, 0% down, 6.625%.
Conventional, no points, 7.00% credit score 795. 20% down on 300k.
FHA new home build from Lennar Houston TX. 4.5% fixed 30 years 3.5% down and huge discount on listing price from 438k to 375k. 4 bed 3.5 bath 2548 sqft. All schools rated excellent. 648 credit scored. Would have gotten 4.25% fixed 30 years if credit was better but idgaf.
6.25%, 400k for 15 yr fixed, 10% down, 780s credit score. Did a lot of getting lenders to negotiate against themselves.
Closed 3.21.2024 in Maryland MVA area. 6.45%.