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El Mero Mero posted:maybe try the legal questions thread? will give it a shot. thanks!
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Feb 10, 2023 07:01
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DaveSauce posted:thread title.txt drat banks and capitalism suck Ty for the effort post
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Feb 10, 2023 07:29
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I know the conventional wisdom is “no, you idiot”… …But would it be worthwhile to withdraw my Roth IRA if it meant I could get to a 20% downpayment and thus avoid that extra bullshit?
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Feb 10, 2023 08:19
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Ornery and Hornery posted:I know the conventional wisdom is “no, you idiot”… How much are you short to get to 20% (i.e. how much are you withdrawing)? Is that money you are taking out tax free (is less than you've contributed, along with other conditions around age of account and rollovers) or will it be an early disbursement and subject to tax penalties?
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Feb 10, 2023 08:33
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Ornery and Hornery posted:I know the conventional wisdom is “no, you idiot”… No, you idiot. Seriously though just figure out if single premium or ongoing PMI is better for your situation and deal with that extra cost rather than gently caress up your retirement. Only do that if you are going to sta there a long time though. Otherwise don’t buy.
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Feb 10, 2023 08:33
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Ornery and Hornery posted:I know the conventional wisdom is “no, you idiot”… Do you know how much the PMI would even cost? It may not be as bad as you think, people itt over the last few years have talked about it being pretty low atm so you should figure that out first before decide to tank your retirement savings. It's probably less overall than what you'd lose by withdrawing that money from your Roth IRA, even if it's without penalty I would not withdraw from a Roth IRA just to get a 80% LTV ratio
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Feb 10, 2023 08:39
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Depends on rates and asset balance. But if you’re at the point of asking us bad posters whether to do or not, don’t do it you idiot.
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Feb 10, 2023 15:10
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Is it worth to buy points if I plan to aggressively pay off the loan? Based on calculators (michalbluejay) I can’t get a good read since it’s assuming I plan on paying the life of the loan instead of throwing an extra X a month. Are there any calculators that allows you to add that?
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Feb 10, 2023 15:17
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Mr Interweb posted:do we have a thread that deals specifically about the issues of rental agreements/leases? No, because the brain damaged doomscrollers from a couple other subforums that I'm sure you can easily guess brigade threads like that.
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Feb 10, 2023 15:18
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Ornery and Hornery posted:I know the conventional wisdom is “no, you idiot”… Don’t do it Im not a fan of touching protected retirement assets if you can avoid it.
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Feb 10, 2023 15:32
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Now that Im messaging 1 million Mortgage lenders, a few have asked "so what have you been quoted so far." V funny to make banks undercut eachother.
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Feb 10, 2023 15:37
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Bread Set Jettison posted:Now that Im messaging 1 million Mortgage lenders, a few have asked "so what have you been quoted so far." V funny to make banks undercut eachother. "You need to earn my business by starting out with your best deal." (i.e. "gently caress off with this bullshit, it's insulting you'd even ask")
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Feb 10, 2023 15:39
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Bread Set Jettison posted:Now that Im messaging 1 million Mortgage lenders, a few have asked "so what have you been quoted so far." V funny to make banks undercut eachother. while I appreciate motronic's sentiment above (which he posted as I was googling cfpb links), my experience in 2020 with a refi was that as soon as I had an official Loan Estimate in hand from one lender, I was able to get them to continuously undercut each other until I ended up with a 2.5% 30-yr. It just took one lender to give me a good quote on an official form in order to have others fight to beat it. the mortgage bond market is certainly nowhere near as strong as it was in late 2020, but, you might find that having an official LE in hand helps push negotiations to a final point after their opening (supposedly "best") offer. I also had some lenders drop out because they could not match the official LE another lender provided. read these links: https://www.consumerfinance.gov/ask-cfpb/what-is-a-loan-estimate-en-1995/ https://www.consumerfinance.gov/owning-a-home/loan-estimate/ Hawk is quoted in the OP referring to these, but yeah, those links would be good to have in the OP somewhere too.
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Feb 10, 2023 15:49
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Bread Set Jettison posted:Now that Im messaging 1 million Mortgage lenders, a few have asked "so what have you been quoted so far." Telling them what your best offer is so far is them trying to get away with their 2nd best offer. They're going to beat the other quotes by just enough to make you stay, but it's not the best they can do. Remember, they want your money. They're like car sales: they're not going to go any lower than you ask them to. Bread Set Jettison posted:V funny to make banks undercut eachother. It really is. I had one bank lender chasing down his regional VP to try to undercut a correspondence lender, but wasn't able to come down low enough. It's a shame, he seemed like a nice guy, but I got the same rate for $700 cheaper in closing costs, so it'd have been crazy to use him. Something to note: they will sell your loan eventually. Every single one of them, and it'll probably happen several times over. Don't get sold on "well we're easier to work with and we have branches in your area!" or anything like that. None of that matters. The only thing that matters here is getting the best deal. edit: pmchem posted:as soon as I had an official Loan Estimate in hand from one lender, I was able to get them to continuously undercut each other This is the way to do it. It's kind of a hassle, but this is really what you're after. Don't take "no" for an answer with a Loan Estimate. They really don't like giving them out because they're pretty well binding and take some effort to make, but they technically owe it to you. Once you get it, it's worth its weight in gold, and you can use it to get other lenders to beat it. You'll have to go back and forth a bit, but eventually you should end up with a rock bottom offer from someone. DaveSauce fucked around with this message at 15:52 on Feb 10, 2023 |
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Feb 10, 2023 15:49
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Literally the rates have just been dropping its incredibly funny. I went from 6.4, to 6.0, to 5.75, to 5.5 over the course of four banks. Fight for my love you rich fucks
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Feb 10, 2023 15:55
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Bread Set Jettison posted:Fight for my love you rich fucks If the current thread title wasn't eternally the best, this would be a good contender.
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Feb 10, 2023 15:56
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If it is something that matters to you there are in fact banks that retain servicing so you are making your payment to the same place for the life of the loan.
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Feb 10, 2023 16:00
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therobit posted:If it is something that matters to you there are in fact banks that retain servicing so you are making your payment to the same place for the life of the loan. This usually comes at a disadvantage in rates, points, or other BS. I’ve been happy simply taking the best deal from a bank that doesn’t look like it will dissolve into thin air on the internet the day of closing. (Some internet only lenders have been established and reputable for years, others pop up every week)
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Feb 10, 2023 16:18
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Like all financial advice "no, you idiot" comes with a very important disclaimer about how it very much depends on what the rest of your retirement savings looks like now and what your long term goals are. Remember that contributions are always a penalty free withdrawal, as is an additional $10k of returns for a first house purchase. The biggest drawback of pulling either of those out is the yearly contribution limits prevent you from easily replacing them and you lose out on compounding returns in the meantime, but there is the backdoor conversion to get around that if you make enough money to be able to backfill in the Roth in the next few years. As a personal example when I first started working I opened a Roth because the plan was 401k plus Roth plus social security, but then I switched over to a public sector job. A pension came into play and my healthcare will carry over into retirement to pay anything Medicare does not. So suddenly I am looking as well over 100% income replacement from pension+TSP and a drastic reduction in potential healthcare costs, making the original Roth superfluous. Additionally I gained access to the TSP which has a Roth option with no income limits and a much larger allowed contribution (~$15k for me) so I could fairly quickly rebuild a replacement Roth account if I wanted to. Life circumstances changed as well. Met Mrs Pony and had kid. She was forced to move a lot as a kid she very much wanted to not put our did through that which made securing a house where we could stay long term very important. The market we were looking at in was also very competitive (still is) and you really need a sizable down payment to play. So we made the decision to scrap the Roth account and use the proceeds as part of a down payment. That let us bid on and win a house which checks all our boxes and is not a bullshit "starter home". It gave us a payment which can be comfortably handled on just my salary so Mrs Pony finding a job before the move wasn't a precondition and there will be less stress overall. It gives us a loan which will be paid off at or before retirement making the other income streams go further. Was it "the right decision"? Perhaps not, but it was our right decision.
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Feb 10, 2023 16:19
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Thanks thread. Pulling the Roth would basically get me enough to afford a homes monthly payment. I’d live there for basically the rest of my life. I want to buy a home to lock in a portion of my monthly housing costs. Rents go up fast here. I don’t wanna have to move away from my community 
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Feb 10, 2023 16:33
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Ornery and Hornery posted:Thanks thread. How much would you be pulling from your Roth IRA? It sounds like being able to afford the housing you want is very perilous if that money is the difference between being able to afford a house payment (which, as everyone knows, is your minimum housing cost) and not, buying a house sounds pretty risky.
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Feb 10, 2023 16:52
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KYOON GRIFFEY JR posted:How much would you be pulling from your Roth IRA? It sounds like being able to afford the housing you want is very perilous if that money is the difference between being able to afford a house payment (which, as everyone knows, is your minimum housing cost) and not, buying a house sounds pretty risky. Around $40k If I had the downpayment then the ownership housing costs (excluding, as you noted, the other housing cost stuff like repairs) would only be a couple hundred more than I’m paying in rent. Even though i only have an above average salary in a high COL area, I’ve been pretty good at saving. I’ve also been pretty good at getting promotions and raises. The issue is that rents keep going up (along with everything else), so even though I’ve seen significant income increases, the net annual savings haven’t seen a proportional rate increase (instead, just a modest increase). Idk, I recognize that it’s obviously not optimal to take the IRA out. That’s why I’m coming to the thread, I want to make sure that I’m not just asking for reassurance on something I’ve already made my mind up about - a classic issue with internet posts asking for advice. I’m not sure if there’s another pathway to homeownership though, and I need the ownership if I want to stay in my community. I’m proactive because in ~3 years rents will outpace what I’d be paying for ownership *now* anyway. And rents will continue to go up.
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Feb 10, 2023 17:23
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Inner Light posted:This usually comes at a disadvantage in rates, points, or other BS. I’ve been happy simply taking the best deal from a bank that doesn’t look like it will dissolve into thin air on the internet the day of closing. (Some internet only lenders have been established and reputable for years, others pop up every week) That could be - but if it's the same rate then I'd say go with the bank that retains servicing. 1. Closing cost estimates are fantasies, the estimate will never match your actual costs. Assume they're good for a rough order of magnitude but if they're within $500 then they're the same. 2. There's no way to explain the frustration in dealing with a flubbed servicer transition, I'm on my 3rd servicer now and they seem adequate but the 2nd one assigned me to the wrong account somehow and was asking me to pay way more than what I actually owed, and they also failed to pay my property taxes on time (gently caress you Select Portfolio Servicing you pieces of poo poo)
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Feb 10, 2023 17:30
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Ornery and Hornery posted:Around $40k It sounds like you're better off renting if you can rent for a couple hundred less than the PITI on a similar home. When you throw in maintenance costs you'd be draining your retirement account for the privilege of paying substantially more for housing than you currently pay. I'd only think it would be worth it to tap your Roth IRA to buy a home if owning would be substantially cheaper than renting so you could devote those housing cost savings towards retirement thereby minimizing the hit to tapping your retirement account while still getting the lifestyle benefit of owning.
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Feb 10, 2023 17:31
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laxbro posted:It sounds like you're better off renting if you can rent for a couple hundred less than the PITI on a similar home. When you throw in maintenance costs you'd be draining your retirement account for the privilege of paying substantially more for housing than you currently pay. I'd only think it would be worth it to tap your Roth IRA to buy a home if owning would be substantially cheaper than renting so you could devote those housing cost savings towards retirement thereby minimizing the hit to tapping your retirement account while still getting the lifestyle benefit of owning. Your analysis is solid. Yeah the main thrust of my consideration is that I’d be paying less for ownership housing in ~3 years than I will be renting. And that delta between constantish ownership cost and dynamic renting cost will only continue to grow as time continues.
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Feb 10, 2023 19:00
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Alternatively; you software engineer nerds should give me $50k please and thank you 
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Feb 10, 2023 19:01
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The ones that didn’t get laid off, you mean? 
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Feb 10, 2023 19:04
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Ornery and Hornery posted:Your analysis is solid. This feels a little bit like timing the market but I think you should buy a house if you're 100% sure your future is where you live now. Locking in your housing costs (somewhat) seems like it'll relieve some stress for you. I would see what the costs are without the full 20% down payment and then weigh the pros and cons of taking out the 40K from the retirement account. I personally would rather pay a little PMI for a few years than take 40K out of my retirement funds right now. There's a lot of different mortgage programs out there, depending on your credit and other factors you might avoid PMI with 10% down or so.
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Feb 10, 2023 19:18
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Ornery and Hornery posted:Around $40k Also see if a local credit union has a 1st time homebuyer program. Mine did, it was 0 down AND no PMI. i did pull 5k from my 401k for closing costs, but paid back within the calendar year with the reduced housing costs vs renting. YMMV
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Feb 10, 2023 19:22
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George H.W. oval office posted:Is it worth to buy points if I plan to aggressively pay off the loan? There are a bunch of mortgage payoff calculators around that can do this (first result I saw https://www.calculator.net/mortgage-payoff-calculator.html )
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Feb 10, 2023 20:51
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Ornery and Hornery posted:Your analysis is solid. Just gonna elaborate a bit: In addition to your PITA, if you are accustomed to renting an apartment and are contemplating buying a house, you should presume you'll have higher utility costs, will own and need to maintain more furniture and furnishings etc.. Will your commute, if you have one, be longer? Will you do all of your landscape maintenance or pay for it? You are projecting rents to keep rising into the future. That may or may not be a "safe" assumption. Are you single? Any chance you might stop being single in the future? Kids? You are talking about buying a forever home, but if your life circumstances change, you may find you need to compromise to suit more people, including caring about things like school districts. Buying a house is a major lifestyle change for most people. You should consider the potential costs of these lifestyle changes and factor them into your analysis.
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Feb 10, 2023 21:00
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Leperflesh posted:In addition to your PITA What’s a normal rate for HUMMUS these days? And how much FALAFEL is safe without overextending myself?
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Feb 10, 2023 21:11
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it's PITI, isn't it. Principle, Interest, Tax, and... Insurance? yeah
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Feb 10, 2023 21:27
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An important thing to consider when you're looking at a house is how old the appliances look. Since moving in to our house, we've had to replace both the refrigerator and stove. (Note that we live in an area where there are no appliance repair people; however, both were both very old and low-end.) Leading in to say, you will have large unexpected expenses in the first year. You will find out that the paint job is peeling, or the roof needs patching, or that an amateur plumbing job broke the toilet, or that you just can't live another day without a dishwasher. You shouldn't be cashless after buying a house.
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Feb 10, 2023 21:27
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you will also find these things 12 years after you move in, too
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Feb 10, 2023 21:36
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toplitzin posted:Also see if a local credit union has a 1st time homebuyer program. Can I ask when and what rate you got for 0 down from your credit union? Navy Federal seems to have (non-VA) zero down mortgages with no PMI but the rate seems much higher than their 3-5% down mortgages. None of their mortgages seem to qualify for my state's first time buyer programs. The other mortgage company I've been chatting with does qualify for first time buyer programs in the form of forgivable rider loans for 3% of the purchase price, but seems to have higher rates and requires PMI. I'm saving about $2k/mo for a down payment now so I think the Navy Federal 3-5% down mortgage might be the best option for me. I'm just worried I'm gonna be ready when rates or home prices are the worst in a decade+. Prices are normalizing in my area though, I feel like.
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Feb 10, 2023 21:36
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Leperflesh posted:it's PITI, isn't it. Principle, Interest, Tax, and... Insurance? yeah
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Feb 10, 2023 21:50
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House Buying Thread: Principle, Interest, Tax, and rear end.
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Feb 10, 2023 22:05
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Leperflesh posted:you will also find these things 12 years after you move in, too
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Feb 10, 2023 22:38
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Leperflesh posted:you will also find these things 12 years after you move in, too
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Feb 10, 2023 22:52
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