Pre-Qualification

Okay I have a pre-qual from GMAC mortgage. We're prequalified for $170,000 at 9% and 5% down. How does that sound? I know things will change once credit is pulled and all that good stuff, but initially what do you guys think about a 9% interest rate?

Not horrible, not great either. Have you tried FHA?

With FHA you have to be discharged 2 years. We plan to refinance with FHA after our 2 years is up though.

We are at 10.5 for a fixed rate at 100%

Is 9% on an ARM or fixed?

Okay I have a pre-qual from GMAC mortgage. We're prequalified for $170,000 at 9% and 5% down. How does that sound? I know things will change once credit is pulled and all that good stuff, but initially what do you guys think about a 9% interest rate?


It all depends on what your scores are. You may be able to do better. Let us know what your scores are and we can let you know where you stand.

My scores right now are Experian: 521, Equifax: 494, Transunion: 498. We're expecting our discharge around September 8th. I know my husband's experian score is 541, not sure about the other ones. But that rate is a 30 yr. fixed with 5% down which is what we have already saved up. I'm hoping that since we are prepared to put 5% down that we will get a better rate once our scores go up some after discharge and rebuilding. Would we be able to get better rates since we are prepared to put 5% down? I'm hoping so.

9%? 10.5%??
You guys are nuts. You'll be bankrupt again in less than 5 years. With those rates and nearly no down payment, you'll have nothing to show for it. You might as well rent. The only difference is that you can't rip down the walls.

JeepMom, you really floor me. You have absolutely nothing in the bank to put down. I guess that means you have a few grand tucked in the mattress to cover the costs that come with owning a home. If not, congrats ahead of time on your NEXT bankruptcy.

Fedler you are quite negative and let me guess, you probably haven't even filed bankruptcy. What gives you the right to come here and put others down. Crawl back under the rock you came out from under.

9%? 10.5%??
You guys are nuts. You'll be bankrupt again in less than 5 years. With those rates and nearly no down payment, you'll have nothing to show for it. You might as well rent. The only difference is that you can't rip down the walls.

JeepMom, you really floor me. You have absolutely nothing in the bank to put down. I guess that means you have a few grand tucked in the mattress to cover the costs that come with owning a home. If not, congrats ahead of time on your NEXT bankruptcy.


I completely agree, as pointed as this is, sadly it is true. 10.5% is the kiss of death. Jeepmommy seems like a really nice lady, but I feel sorry for her SHE WILL HAVE NOTHING TO SHOW FOR IN EQUITY. His post is harsh, but very, very factual.

Young people are spoiled by all the low rates of the recent past. I remember the early '80's where mortgage interest rates were in the teens.

Bought a house in 1988 for $65K. We had a 3% down, FHA ARM that started right at 9-10%. Adjusted annually. We got lucky that the whole time we owned the house, the interest rate went down every year.

Sold in 1992 for $82K after less than a month on the market. Paid all our costs to sell and made a tidy little profit to boot in only 4 years of owning the house.

That was our 2nd house. 1st house, we had 20% down, nice low, fixed rate. And we lost our butts. Invested over $10K of our own money and walked away with about $1500 total. Hence the 3% FHA deal.

There's no rhyme or reason to Real Estate. Sometimes you get lucky. Sometimes you don't.

Buy a house where values are on the way up and get out before the bell curve starts sloping down the other side, you'll see appreciation in your house value. Buy on the down side of the bell curve, or in a high Foreclosure Market, and you may loose your butt.

I'm 6 months out of BK. We are refinancing in 18 months. Yes, we have money in savings, that's why we're putting nothing down!

Young people are spoiled by all the low rates of the recent past. I remember the early '80's where mortgage interest rates were in the teens.

Bought a house in 1988 for $65K. We had a 3% down, FHA ARM that started right at 9-10%. Adjusted annually. We got lucky that the whole time we owned the house, the interest rate went down every year.

Sold in 1992 for $82K after less than a month on the market. Paid all our costs to sell and made a tidy little profit to boot in only 4 years of owning the house.

That was our 2nd house. 1st house, we had 20% down, nice low, fixed rate. And we lost our butts. Invested over $10K of our own money and walked away with about $1500 total. Hence the 3% FHA deal.

There's no rhyme or reason to Real Estate. Sometimes you get lucky. Sometimes you don't.

Buy a house where values are on the way up and get out before the bell curve starts sloping down the other side, you'll see appreciation in your house value. Buy on the down side of the bell curve, or in a high Foreclosure Market, and you may loose your butt.

ditto, pretty right on, and people were do you think we are on the bell curve?

I'm 6 months out of BK. We are refinancing in 18 months. Yes, we have money in savings, that's why we're putting nothing down!


So you have money in savings, and are going to pay PMI insurance? My guess is your PMI on a $100,000 property is at least $1,000+ a year. Coupled with 10% mortgage count on paying that till you go bankrupt again, pay the place off in 40-50 years or die. I love reading your posts, there is no way, ZERO, that you will survive with those costs.

Sinkingfast there is "reason" to real estate, it is inverse to interest rates. Rates going up, RE going down. You just can't go in there leveraged to the HILT, money/profit is made in RE when you buy, not when you sell. Buying no money down, has foolish written all over a buyers offer. Sellers know this? Paying the right price, comes only when you are in a position of strength.

I don't have PMI. It's a 30 yr mortgage.

You have NO idea what my husband makes. You have no idea how high of a mortgage we quialified for.

Don't go spouting lies and inaccuracies like they are the truth.

I'm starting to think you are just jealous of my still young and perky breasts.

I don't have PMI. It's a 30 yr mortgage.

You have NO idea what my husband makes. You have no idea how high of a mortgage we quialified for.

Don't go spouting lies and inaccuracies like they are the truth.

I'm starting to think you are just jealous of my still young and perky breasts.

PMI is mandatory above 80%

wrong again perky. your husbands income has nothing to do with it, and by the way it can't be much. Look at the shacks your putting up pictures on. I try to take the high road, and you keep taking the low.

"You have no idea how high of a mortgage we quialified for"

I just couldn't resist reposting this comment. You act like an offer of 10.50% is a honor. So are you saying with that "high income" of your hubby's that you qualified for 20% rates also, you must be proud.

OH MY GOSH---this is getting out of control.........

OH MY GOSH---this is getting out of control.........

13, all it takes to stop it is for one of them to stop replying to the other. Until then, the insult salvos back and forth will continue. Hopefully they will take this offline to PM.

I'm done. I can't read her posts anymore. Sorry everyone!

Thats good, because this forum was turning into the BrokeMommy and JeepMom show! : )

Thats good, because this forum was turning into the BrokeMommy and JeepMom show! : )


Like you said, someone just has to quit replying. I did my part.