My wife and I are looking for a mortage with the lowest APR and closing costs. We are buying a $50,000 home  and will live in this for about 3-5 years until we get things ready to build. Cash is tight now and we need the least cash outlay while still getting a good rate. I tried E-loan but they dont go below $60,000.

Thanks all!,
SorryOciffer

Posting so that I can check back here later.

[wave]

If you have decent credit you can do 100% financing.  For the loan, you can do a 3,5, or 7 year ARM, or other adjustable to get a low rate.  you could also do an interest only loan to get even lower payments, but, you don't make any equity that way other than appreciation of the local home values.  

Lower amount loans generally get a hit on the rate.  Having the closing costs paid for by the seller can help as well.  Ask if your broker will help with closing with rebate..this will also add to the rate, though, and there's a limit to what they can get.  

Good luck if you need help you can IM me with any questions you may have!  (i'm not licensed in NY, sorry [:(])

Prof-Evil

The property we are looking at is owned by a bank, the owner died and they took possesion somehow in a trust or estate??? I think that is what the realtor said. It is in a nice quiet neighborhood and has plenty of land, but the house itslf is small but cozy and well maintained, new roof, new vinyl siding, leak free foundation but some absolutely HORRIBLE GREEN SHAG carpet from the 70's. :)

How do the interest only loans work and are they common to most markets?

Thanks guys,
SorryOciffer