Condo in Chicago area
Nov 25th 2013, 2:11 pm
#61
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Re: Condo in Chicago area
Have a look at some Evanston pics.
https://www.google.com/search?q=evan...w=1241&bih=605
Has anyone mentioned the weather yet? Hope you like winter.
https://www.google.com/search?q=evan...w=1241&bih=605
Has anyone mentioned the weather yet? Hope you like winter.
Nov 25th 2013, 2:17 pm
#62
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Re: Condo in Chicago area
The weather? It's pretty damn cold in winter, and the winters are long. But if you don't mind that, it's fine. Evanston isn't a bad place to live - it isn't exactly a major city, if city living is what you like, but it's easy to get into Chicago. And being on the edge of Lake Michigan helps a lot - it's more open, you can swim in summer, and the tornadoes don't come that close to the lake as a rule.
Nov 25th 2013, 2:32 pm
#63
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Re: Condo in Chicago area
The weather? It's pretty damn cold in winter, and the winters are long. But if you don't mind that, it's fine. Evanston isn't a bad place to live - it isn't exactly a major city, if city living is what you like, but it's easy to get into Chicago. And being on the edge of Lake Michigan helps a lot - it's more open, you can swim in summer, and the tornadoes don't come that close to the lake as a rule.
Nov 25th 2013, 2:55 pm
#64
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Re: Condo in Chicago area
Evanston will be a tiny bit milder due to being by the water, but it's all cold.
Nov 26th 2013, 3:00 pm
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Re: Condo in Chicago area
Not sure what you mean? In the US people don't talk about "getting an LoC" (letter of credit, right?)Most people get "a mortgage", meaning a standardized off-the-shelf loan to the standards laid down by the government owned mortgage finance companies the Federal National Mortgage Association (FNMA) aka "Fannie Mae", and the Federal Home Loan Mortage Corporation (FHLMC) aka " Freddie Mac". Most mortgages are for 30 year duration and fixed for the entire period. At the moment the only common alternative period is for 15 years, again fixed for the duration. Mortages that are fixed for 3 or 5 years are also available, that float after the initial fixed period, but these are considered undesirable because the floating rate tends to be ridiculously high, for a secured loan.
The most common alternative to "a mortgage" is a secured bank loan, which is commonly used by investors in rental houses, or by people otherwise unable to use Fannie Mae or Freddie Mac mortgages. They are at best fixed for five years, and then have to be refinanced.
Nov 26th 2013, 10:38 pm
#66
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Re: Condo in Chicago area
Nov 26th 2013, 10:46 pm
#67
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Re: Condo in Chicago area
OK, so what I meant was buying a condo with cash and then getting a LoC against the condo. I believe the rate of interest on this LoC will be the same as mortgage.
Nov 26th 2013, 10:52 pm
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Re: Condo in Chicago area
It might be, or close, but it will be a floating rate, whereas a mortgage is typically a fixed rate for thirty years.
Nov 26th 2013, 10:52 pm
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Re: Condo in Chicago area
Nah, it'll be much higher, with a draw period, then locked for paydown. Probably a variable rate based on a higher index. Useful to have if you don't intend to use much though as an emergency fund. Perhaps you'd be better getting a mortgage with a very large down which tends to cure limited US credit scores a bit, then stash the remainder for use if needed?
Nov 26th 2013, 10:58 pm
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Re: Condo in Chicago area
Nah, it'll be much higher, with a draw period, then locked for paydown. Probably a variable rate based on a higher index. Useful to have if you don't intend to use much though as an emergency fund. Perhaps you'd be better getting a mortgage with a very large down which tends to cure limited US credit scores a bit, then stash the remainder for use if needed?
Last edited by e3geek; Nov 26th 2013 at 11:06 pm.
Nov 26th 2013, 11:07 pm
#71
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Re: Condo in Chicago area
Nah, it'll be much higher, with a draw period, then locked for paydown. Probably a variable rate based on a higher index. Useful to have if you don't intend to use much though as an emergency fund. Perhaps you'd be better getting a mortgage with a very large down which tends to cure limited US credit scores a bit, then stash the remainder for use if needed?
Nov 26th 2013, 11:16 pm
#72
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Re: Condo in Chicago area
Disagree. Unless you have stellar credit you could not get that on a LOC and this is a limited credit situation. Then the rate will vary, given where it is, that means up over the next few years. Then there is a 10/15 year draw period, after which no more may be accessed and the remaining term is spent on paying back the loan at whatever rate.
Surely a better idea to put down 30-50% on a fixed rate mortgage, then bank the remaining cash for a rainy day if that's the concern. No, a LOC will not allow you to access your downpayment in all likelihood. You might be able to get one for 25-30% of the value but likely less.
LOC underwriting is every bit as thorough as obtaining a mortgage nowaday too.
You seem to want to work things so you effectively have a zero down if needed? That won't fly. What are you wanting to do? Let us know and someone may have some ideas.
Surely a better idea to put down 30-50% on a fixed rate mortgage, then bank the remaining cash for a rainy day if that's the concern. No, a LOC will not allow you to access your downpayment in all likelihood. You might be able to get one for 25-30% of the value but likely less.
LOC underwriting is every bit as thorough as obtaining a mortgage nowaday too.
You seem to want to work things so you effectively have a zero down if needed? That won't fly. What are you wanting to do? Let us know and someone may have some ideas.
Last edited by ClosedAcc 7654; Nov 26th 2013 at 11:29 pm.
Nov 26th 2013, 11:32 pm
#73
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Re: Condo in Chicago area
Disagree. Unless you have stellar credit you could not get that on a LOC and this is a limited credit situation. Then the rate will vary, given where it is, that means up over the next few years. Then there is a 10/15 year draw period, after which no more may be accessed and the remaining term is spent on paying back the loan at whatever rate.
Surely a better idea to put down 30-50% on a fixed rate mortgage, then bank the remaining cash for a rainy day if that's the concern. No, a LOC will not allow you to access your downpayment in all likelihood. You might be able to get one for 25-30% of the value but likely less.
LOC underwriting is every bit as thorough as obtaining a mortgage nowaday too.
Surely a better idea to put down 30-50% on a fixed rate mortgage, then bank the remaining cash for a rainy day if that's the concern. No, a LOC will not allow you to access your downpayment in all likelihood. You might be able to get one for 25-30% of the value but likely less.
LOC underwriting is every bit as thorough as obtaining a mortgage nowaday too.
Nov 26th 2013, 11:46 pm
#74
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Re: Condo in Chicago area
True. My comments are based on very recently opening a LOC on a house mostly paid off, with excellent credit etc. I have little intention to use it but it's there 'just in case'. The present rate, I would agree, is actually much the same as a mortgage, but that is based on the house and personal circumstances. My situation, and I would guess yours, is about as good as it gets but our original poster will not be able to be in that situation for a few years.
The rate will rise considerably as the Fed raises interest rates - this is a stated plan as bond purchases are reduced and quantatative easing stops over the next few years. Realistically we will see 5-6% in a year or so with more to come depending on the economy I think.
But, OP, please let us know what you're wanting to achieve so folks can give you a realistic idea of what might work here.
The rate will rise considerably as the Fed raises interest rates - this is a stated plan as bond purchases are reduced and quantatative easing stops over the next few years. Realistically we will see 5-6% in a year or so with more to come depending on the economy I think.
But, OP, please let us know what you're wanting to achieve so folks can give you a realistic idea of what might work here.
Last edited by ClosedAcc 7654; Nov 26th 2013 at 11:55 pm.
Nov 27th 2013, 12:08 am
#75
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Re: Condo in Chicago area
..... The rate will rise considerably as the Fed raises interest rates - this is a stated plan as bond purchases are reduced and quantatative easing stops over the next few years. Realistically we will see 5-6% in a year or so with more to come depending on the economy I think. ....
The US economy is currently on life support, and threatens to deteriorate whenever the idea of removing the support is even mentioned. I think that the prospects for significant rate rises are extremely premature, and that there is little prospect of mortgage rates reaching 6% within 5 years, and no prospect of mortgage rates reaching 7% even in the next decade.
