I am done throwing money away on rent for a townhome, and they want to raise it! I know I can get a house for cheaper than I pay now. I went through a trusted realtor and he gave me a mortgage guy who ran my application. I don't have any money to put down. I am also a USAA member if that matters. I have heard that their mortgage rates are beatable, but there homowners insurance is pretty good.
I just got off the phone with him, and he said I could qualify for the range I am looking at. Basically a house that is in the $120,000-$145,000 range is what I need to get my monthly payment where I need it. I have never done anything like this before so I thought I would throw out everything I heard in the phone conversation to you guys and see what is what, or get direction on where to head to learn more about it.
He talked about 3 scenarios:
1) an 80/20 loan so there is no PMI (private mortgage insurance).
2) a 100% finance loan. I would have to self insure and all the interest is deductible. (is this more expensive per month)
3) a 100% loan w/ PMI - only a portion of the interest is deductible.
I could have messed some of that up, but I tried to write it down as he said it. Feel free to say "There's no way that's right" or "you're an idiot".
Again, any advice, knowledge, or directions on where to go to find more info would be great. I am a house noob. Be gentle.