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Jorath posted:I bet you'd pay 2-3 times more. And you'd have to make sure that your lender approved every one of them. My lender wouldn't have cared if I had an inspection at all. They set up the appraisal.
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May 6, 2011 16:51
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zelah posted:That's why I'm renting in a condo building that barely sold any units and had to convert to rentals. I can put whatever holes in walls I want and I got brand new appliances all over and a balcony and don't have to live out in the suburbs to afford these things. I'm excited because almost all new development downtown is rental, because rental construction is apparently easier to finance in this economy. That being said, I really feel like I should start some kind of rental thread. As for "pride of ownership" I'm really proud of what I've done to my apartment. Paint on the walls and a new shower head and I'm in heaven.
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May 6, 2011 21:22
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We're currently renting a house that the landlord bought in 2007 for $260k. It's now worth ~$190k. Our monthly payment is only $1000.
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May 6, 2011 21:58
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zantar posted:We're currently renting a house that the landlord bought in 2007 for $260k. It's now worth ~$190k. Along those lines, we're renting a house in the Seattle area for $2100 a month, and the owner purchased it for over $500k in 2006, likely putting the mortgage payment above $3000. In some cities, it just makes a lot more sense to rent.
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May 6, 2011 23:19
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Bob Sacamano posted:Along those lines, we're renting a house in the Seattle area for $2100 a month, and the owner purchased it for over $500k in 2006, likely putting the mortgage payment above $3000. In some cities, it just makes a lot more sense to rent. Conversely, I rented a townhouse in Anchorage, AK for the same price. The owner bought both units for probably $200k in 1996, and it's appraised at $550k, and he's making money hand over fist there. Deservedly so since he bought them almost 15 years ago. All home rents cover at least the mortgage plus a little extra for upkeep. In this city it's smarter to buy rather than rent if you can afford the down payment and will stay put for the foreseeable future. We have a very transient population (two military bases in town) which drive the rents through the roof on even the most basic of apartments.
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May 6, 2011 23:39
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Anti-Hero posted:Conversely, I rented a townhouse in Anchorage, AK for the same price. The owner bought both units for probably $200k in 1996, and it's appraised at $550k, and he's making money hand over fist there. Deservedly so since he bought them almost 15 years ago. All home rents cover at least the mortgage plus a little extra for upkeep. In this city it's smarter to buy rather than rent if you can afford the down payment and will stay put for the foreseeable future.
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May 6, 2011 23:44
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Anti-Hero posted:Conversely, I rented a townhouse in Anchorage, AK for the same price. The owner bought both units for probably $200k in 1996, and it's appraised at $550k, and he's making money hand over fist there. Deservedly so since he bought them almost 15 years ago. All home rents cover at least the mortgage plus a little extra for upkeep. In this city it's smarter to buy rather than rent if you can afford the down payment and will stay put for the foreseeable future. Anchorage is its own beast because there is an extremely finite amount of area available to the the Municipality. Bases on two sides, ocean on two others. That's why they're trying to put that bridge in across the inlet, so there's more physical area accessible to residents. You can rent a mansion in the Valley for what you (and I) pay to for an apartment in Anchorage. That's the reason we didn't get bubbled so badly. With such a ridiculously tiny area in the municipality, property values are steadily increasing. This has been another episode of Random Tangents About Alaska. Edit: \/\/ congratulations on your new house 
BigHead fucked around with this message at 05:54 on May 7, 2011 |
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May 7, 2011 00:26
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BigHead posted:You can rent a mansion in the Valley for what you (and I) pay to for an apartment in Anchorage. Correction, I used to rent. I just closed on my house last week and moved in last weekend. I saved the 20% down, and my mortgage and utilities comes out to $500 more a month then renting would have cost me, without having 3 other single male roommates. Otherwise, spot on post. We never bubbled, and the market will never crash here unless the oil patch dries up or the military pulls out, forcing a mass exodus of the Municipality's population.
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May 7, 2011 00:56
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Here is the thing about leverage. When you borrow a whole bunch of money to invest in something, the market doesn't have to *crash* for you to lose money. If you want to renovate your rental accommodation there is no reason for your landlord to refuse if he ensures that his financial interests are taken care of. If you want to put in a new roof or new water boiler, your landlord is better off, so he should be paying you to do that. Your landlord doesn't want a jacuzzi in the living room or mauve walls because those things generally detract from the value of his property, so he would at least want some certainty that you would return those to there original condition if you leave. You can have mauve walls on a house you own but when you sell the house, your crazy walls that no one else wants will detract from your selling price the amount it would cost to rectify, so there is no advantage to owning the house versus renting. At best, if you want to do poo poo in a rental there might be some marginal transaction costs to setting up an arrangement where the landlord's interests are protected. As an aside I find it sort of curious that so many people are apparently ready to sink time and money into renovating their living quarters. To me living quarters are a consumable like everything else. I beat the gently caress out of my place and high-tail it out with the least amount of cost - Houses are meant to be lived in, cars are meant to be driven. You could actually put murals and poo poo on your walls? That's like people I see in AI threads who paint the interior panels on their cars. Not making a value judgment, just an observation. EDIT: TL;DR: I am a despicable person with no "pride of ownership". 
Throatwarbler fucked around with this message at 04:55 on May 7, 2011 |
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May 7, 2011 04:43
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Here's another reason to DO NEVER BUY. What's the point of owning property if people who have way too much time on their hands can impose restrictions as draconian as the worst landlords?
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May 7, 2011 08:20
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Konstantin posted:Here's another reason to DO NEVER BUY. What's the point of owning property if people who have way too much time on their hands can impose restrictions as draconian as the worst landlords? It's way easier than you think to get nominated to an HOA board. Impose your own draconian restrictions!
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May 7, 2011 08:55
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Konstantin posted:Here's another reason to DO NEVER BUY. What's the point of owning property if people who have way too much time on their hands can impose restrictions as draconian as the worst landlords? Don't move into a neighborhood with a dumb loving hoa.
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May 7, 2011 09:11
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HOAs are loving ridiculous, I hope that lovely gazebo are pool at the front gate is worth it.
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May 7, 2011 15:01
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Throatwarbler posted:If you want to renovate your rental accommodation there is no reason for your landlord to refuse if he ensures that his financial interests are taken care of. This is all premised on the assumption that your landlord is a "rational actor". In real life, many landlords are not so accommodating, even if it would be in their financial interest to be so. Also, many "landlords" are property management companies with slow-moving, stupid, intransigent bureaucracies, petty small-minded dictators, and inflexible rules. It is possible to find an awesome landlord who lets you do what you want to your rental unit, but I would say it's the unusual case, rather than the norm. Additionally, you have a lease, and when the lease runs out, you may be forced to move. This is of course the fundamental difference between renting and owning; absent an Eminent Domain claim by the government, as long as you pay your mortgage, nobody can kick you out of the house you've poured years of work and care into. For many people, being able to grow attached to their "Home" and be confident they'll get to stay there is priceless. Pride of ownership is an intangible thing. You're not going to be able to rationally argue against it with points about modifying your rented apartment. It's just not the same.
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May 7, 2011 19:37
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On the argument of a house being an "investment" I don't count an investment as something you are almost guaranteed to lose money on. You are normally in the hole before you even turn the lock for the first time. Points to look at: - Closing costs: There goes $5,000 - $10,000 that you will never see again - Property tax: If you think renting is throwing away money this about this depending on where you live this could range from 2,000 to 6,000 or more a year! That could mean an extra 500 bucks a month that you will never get back. - Private Mortgage Insurance: Don't have 20% to put down? Then you might have to pay this monthly fee just on your loan that will not go way until 20% of equity. This will range around $20 - $70 a month for normal housing. - Commission: The agent buying and selling the house take their share as well this raises the selling price around 6% (not that is means the house cost 6% more but it might limit your negotiations). Your 20% down isn’t look that good now. - Cost of Services: While renting some costs are normally covered in your rent, when you own a house you now have to pay all the cost; Heating (this also costs more since you don’t have another house connected to you), water, cooling, trash pickup, cable, internet, HOA, School tax, power, and gas. - Cost of moving: Figure about $1,000 for this. - Interest: Yes some of this might be a tax deduction but if you make too much or the law changes you will lose out. The only way around this would be to pay cash for the house. * This is a quick figure without property tax: For a $120,000 house with no PMI at 5% over 30 years the interest will be $111,907. That $120,000 house over 30 years now cost you $231,907. Those are all the normal costs now think of some of the others. - Maintenance: While renting a lot of the big problems are taken care of now you have to be ready to fix/replace; Roof, Leaky pipes, malfunctioning appliances, replace windows, siding. - Your Time: This is the least cost depending on the person, it is up to you to now; mow, shovel, rake, and other chores. - Selling your house: Yup this cost money as well, here is also where you could lose big money; think the value of your house could increase or decrease, the inspector finds something big that the next owner will want you to pay for (either fix or lower the price of the house), Agent commission, and if your house doesn’t sell right away you may have to carry two mortgages until it does. Now does renting really seem that bad? While I am currently saving up money to own a home, I am in NO rush to do so. Unless I can find a place where a $120,000 house will sell for $300,000 after 30 years.
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May 7, 2011 20:39
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Dbhjed posted:On the argument of a house being an "investment" 30 year mortgages are for people who like to buy too much house, not people that know how to at least break even on a house and have a place to live for ~free.
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May 7, 2011 21:35
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greasyhands posted:30 year mortgages are for people who like to buy too much house, not people that know how to at least break even on a house and have a place to live for free. Free? Maybe mortgage free yes, what about insurance, property tax, HOA (if applicable), maintenance cost, lawn care, shoveling, trash removal, and renovations? I know in where I live property tax alone is around 450 a month. I am not knocking owning a house, I as well one day would like to own. I just trying to give information of why I house is not a good investment. Owning a house is a great achievement for the people that are able to do such and do it successfully. Dbhjed fucked around with this message at 21:47 on May 7, 2011 |
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May 7, 2011 21:39
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Dbhjed posted:Free? Near free compared to renting over 20 years with a 15 year mortgage (this is obviously including your equity in the equation) with all of those things included, yes. And, this is assuming rent remains the same over 20 years, which it won't- your mortgage payment, however, will. If you want to switch houses often, yes of course renting makes more sense. I absolutely love how people seem to think all these side costs (taxes, maintenance, etc.) aren't included in the price of rent. Yes, there are lovely awful markets where retarded speculators (or just dumb home buyers) have run the cost to own well past the cost of rent, I don't live in one of those places though. edit: everyone always ignores the flip side of appreciation/inflation on renting- rents go up around 2% per year (or more, significantly more in a lot of cases), your mortgage payment goes up 0% per year, your house *potentially* increases in value 1-2% every year. Do the math, it's not that hard. greasyhands fucked around with this message at 22:01 on May 7, 2011 |
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May 7, 2011 21:52
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greasyhands posted:Near free compared to renting over 20 years with a 15 year mortgage (this is obviously including your equity in the equation) with all of those things included, yes. And, this is assuming rent remains the same over 20 years, which it won't- your mortgage payment, however, will. If you want to switch houses often, yes of course renting makes more sense. My plan is to put 20% down, with a 30 year mortgage and pay it off in 15 or 20 years, I don't think I would ever suggest a 15 year mortgage just in case something happens. But I do agree with living "mortgage payment free" but your still not going to make as much money on a house to what you put in. For housing the equation: Almost always; cost > house Rarely; cost = house Will almost bet never; cost < house. greasyhands posted:edit: everyone always ignores the flip side of appreciation/inflation on renting- rents go up around 2% per year (or more, significantly more in a lot of cases), your mortgage payment goes up 0% per year, your house *potentially* increases in value 1-2% every year. Do the math, it's not that hard. But the roof, stove, hot water heater, ac unit, electrical box, siding, windows, carpet, walls, counters, pipes, tub, toilet, ect. Also get older and will have to be replaced. My mom just had her roof replaced and it cost $8,000. She also had to get some plumming work done at the tune of $2,000. Did that add $10,000 to the value of the house? Not really Dbhjed fucked around with this message at 22:07 on May 7, 2011 |
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May 7, 2011 21:59
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Dbhjed posted:My plan is to put 20% down, with a 30 year mortgage and pay it off in 15 or 20 years, I don't think I would ever suggest a 15 year mortgage just in case something happens. But I do agree with living "mortgage payment free" but your still not going to make as much money on a house to what you put in. You probably aren't going to make as much as what you put in, I agree, but you can get pretty close- and you aren't paying rent all that time so you come out ahead in the end when you include "required life cost to have a roof over your head" It's up to you on the 30yr vs 15, but you can save quite a bit on interest costs just on the rate reduction you get with a 15 year- and(this is just my opinion), if you can't plan for the 15 year rate, you are buying too much house *if* you want to look at it as a money saver vs. renting. If you just want a big nice house and don't mind paying more, I have 0 problem with that, you just can't take the numbers from that and say "housing is a bad investment" because it isn't if you do it right. Dbhjed posted:But the roof, stove, hot water heater, ac unit, electrical box, siding, windows, carpet, walls, counters, pipes, tub, toilet, ect. Also get older and will have to be replaced. My mom just had her roof replaced and it cost $8,000. She also had to get some plumming work done at the tune of $2,000. Did that add $10,000 to the value of the house? Not really These kinds of costs are all included in the average rent of any competent landlord's property. The ones who don't include them are the ones you can never get to fix poo poo and are a nightmare to live under. greasyhands fucked around with this message at 22:12 on May 7, 2011 |
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May 7, 2011 22:10
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Dbhjed posted:My plan is to put 20% down, with a 30 year mortgage and pay it off in 15 or 20 years, I don't think I would ever suggest a 15 year mortgage just in case something happens. But I do agree with living "mortgage payment free" but your still not going to make as much money on a house to what you put in. Your examples and math seem to be comparing the costs of homeownership with the costs of [nothing], instead of the more relevant comparison of renting. Above, you made a big pseudo-math list of the costs of ownership without considering the savings on the other end. I'm sure the financially optimal route is to live with your parents for 40 years and invest everything you earn, but this is not very shocking or interesting.
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May 7, 2011 22:10
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Just to revise your numbers on PMI as I am in the middle of a transaction now. Over the course of a month I've seen PMI rates jump from .90% to 1.15%. On top of that they add 1% of your loan amount to the balance at closing. For me, that equates to an additional $230/mo to my payment. It's going to be a race to pay that bitch to 78% ltv.
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May 7, 2011 22:13
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lapse posted:Your examples and math seem to be comparing the costs of homeownership with the costs of [nothing], instead of the more relevant comparison of renting. Above, you made a big pseudo-math list of the costs of ownership without considering the savings on the other end. I can't really compare rent to home ownership in my area since I only pay 780 a month for a two bed room apartment that is 950 sq ft, and the only bill I have is power and that was 30 bucks last month. Where most houses would cost around 1,100 a month(with PMI and property tax). My argument was against the home = investment. Also right now I am putting more in my bank than I would be paying on the principle part of a mortgage. But I still would like to own, but I am not going to do it as an investment. Dbhjed fucked around with this message at 22:21 on May 7, 2011 |
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May 7, 2011 22:15
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greasyhands posted:You probably aren't going to make as much as what you put in, I agree, but you can get pretty close- No, you can't. A 15 year loan with 20% down and you are still going to pay about 50% of the total cost of the home in interest only. A 30 year mortgage and not putting 20% down makes it even worse. Most people are looking at paying roughly twice the cost of the home in mortgage payments, if not more. Home ownership is not an investment; at best, it is speculation.
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May 7, 2011 22:46
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TraderStav posted:Just to revise your numbers on PMI as I am in the middle of a transaction now. Over the course of a month I've seen PMI rates jump from .90% to 1.15%. On top of that they add 1% of your loan amount to the balance at closing. Have you looked into single payment PMI? I did 5% down conventional, paid 1 point at closing as a "single payment PMI charge," and so pay $0 in monthly PMI. Basically you are paying the PMI on the loan up front. If you're paying 1% AND another 1.15% yearly what kind of lender are you going with? Is your credit iffy or something? Seems like an awful lot for PMI.
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May 7, 2011 23:01
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archangelwar posted:No, you can't. A 15 year loan with 20% down and you are still going to pay about 50% of the total cost of the home in interest only. A 30 year mortgage and not putting 20% down makes it even worse. Most people are looking at paying roughly twice the cost of the home in mortgage payments, if not more. Home ownership is not an investment; at best, it is speculation. All investing is speculation. Buying a house for an American generally makes sense because residential real estate with 10% down is one of the few ways (really the only way) for an average schmoe to take on too-big-to-fail amounts of leverage. If house prices track inflation, with 10x leverage your return is 10x inflation. As an individual your downside risk is largely limited to what you put in, so essentially it's free money. Taking on leverage is how everyone from Donald Trump to Warren Buffet made their money. So actually, you should DO ALWAYS BUY, and always take out the biggest mortgage you can afford and buy the most house you can because what the gently caress else are you going to do - work for the rest of your life? Retire on your pension or social security that I'm sure will still be their after President Palin completes her two terms? Short of making it as a movie star or pro athlete, it's your only way out bro. Throatwarbler fucked around with this message at 23:38 on May 7, 2011 |
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May 7, 2011 23:35
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archangelwar posted:No, you can't. A 15 year loan with 20% down and you are still going to pay about 50% of the total cost of the home in interest only. A 30 year mortgage and not putting 20% down makes it even worse. Most people are looking at paying roughly twice the cost of the home in mortgage payments, if not more. Home ownership is not an investment; at best, it is speculation. I don't honestly care about the semantics- everyone seems to be getting hung up on the word "investment". If I have two choices, and I must take one of them, I'm going to take the one that costs me less money over the long run- that means buying a house within my means on a 15yr mortgage with a 20-30% down payment. I've run the math 5 different ways in this thread before (giving huge non-real world advantages to rent), and I'm not going to redo it now. Considering we all must have a place to live, I'd call buying the right house and coming out significantly ahead of renting over time a good "investment" even if there isn't a huge paper profit to show (everyone ignores the fact that the money MUST BE SPENT one way or the other because you have to have somewhere to live, so you can't invest it all in gold or the hottest new tech stock or whatever- it has to be spent on a roof over your head). Sure it's different if you want to move in 3 years, but who in their right mind thinks its financially a good idea to buy a house with all the fees involved if you're going to turn around a move a few years later? It's not the fact that there are many situations in which renting does, in fact, make more sense than buying that I'm questioning- it's the way the people in this thread talk in absurd absolutes about DO NEVER BUY when reality makes it pretty obvious there are plenty of ways in which buying is advantageous both from a financial perspective and a lifestyle perspective.
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May 8, 2011 00:04
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A large number of people who get it into their heads that they want to buy a house, have not considered the drawbacks. Most haven't even done all the math (or have only accounted for the mortgage and none of the other expenses). DO NEVER BUY is an attempt to convince people to think carefully, take into account all the factors, and not be convinced to buy a house just because their friends and family are telling them that it's the only/right thing to do, it's a great investment, a surefire thing, or they're throwing their money away if they don't. As a lot of the people in the thread have actually bought a house - and I daresay most of us are reasonably happy having done so - you should understand that we are not actually telling people, in earnest, that they should not buy a house. Given that, you don't need to crusade for house buying. It's a whole thread full of advice on buying a house. In particular, how to do it smartly and without ruining yourself financially. DO NEVER BUY is not intended to be taken literally by everyone who reads the thread.
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May 8, 2011 00:43
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greasyhands posted:I don't think you get it. The DO NEVER BUY meme is just a playful expression of the feelings people have when they encounter the (un)expected difficulties of home ownership. The reason many of these people are so frustrated is because they are first time home owners who got more than they bargained for, precisely because home ownership is horribly portrayed to the prospective buyer (especially in America). Incorrectly using the term "investment" DOES give the wrong impression to those who do not understand the process. People should be educated and well prepared when making such a dramatic decision, and things like that do not help. With that said, with a few exceptions, no one here is trying to say that renting is better than owning in every situation. However, my personal experience of both renting and owning shows that for a lot of people, owning a home was actually a negative experience. And it is a pretty big loving deal when a decision of this magnitude starts weighing negatively on your life. archangelwar fucked around with this message at 01:59 on May 8, 2011 |
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May 8, 2011 01:43
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Leperflesh posted:This is all premised on the assumption that your landlord is a "rational actor". In my experience, landlords view a good tenant as someone who: A) Pays rent on time and B) Doesn't burn down the house. They love people who are willing to make minor improvements such as painting because a tenant who takes a vested interest in the property is the best possible tenant. Worst case scenario for any landlord I've met is that they want you to undo your changes when you leave. On the flipside of your pride of ownership claim, is the the piece of mind of being able to walk away if you rent. If the neighborhood goes to poo poo, you can simply walk away. If you get your dream job the next state over, you can just walk away. If you want to move closer to your grandkids, you can simply walk away. Just finish out your lease and find a new place. (USER WAS PUT ON PROBATION FOR THIS POST)
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May 8, 2011 02:08
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Realjones posted:Have you looked into single payment PMI? I did 5% down conventional, paid 1 point at closing as a "single payment PMI charge," and so pay $0 in monthly PMI. Basically you are paying the PMI on the loan up front. My mistake, it's for MIP as I am doing an FHA. After digging around I found out that the rate jumped from .85 to 1.15 (for 3.5%, 1.10% for 5%) on April 18. They do take on the upfront premium of 1% on FHA and that's why it stinks. Since I own another home, I cannot qualify for a conventional, so the FHA is the only way to go. Pre-empting the DO NEVER BUY crowd: I received a promotion at my company which takes me 65 miles away from my home and we need to move closer to make sure I can still spend time the family. We will either be shorting or renting the home so the financials are all set. My career is in Risk Management so there are dozens of models that I have created that lay it all out.  I just simply cannot effect the transaction with the conventional unfortunately. =/
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May 8, 2011 02:32
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Oh god I'm considering buying SOMEONE HOLD ME! Been renting for 7 years, job situation has settled down from 90% travel to almost no travel, allowing me to consider settling down a little bit and buying a house. Apologies in advance if this is the wrong place, but here is a quick monthly budget: code:House payment is from 2 different mortgage calculators assuming $130,000 house, loan amount of $120,000 at 6.5% for 30 years and annual property taxes of $1600 (gotten from county trustee). Insurance is kind of a stab in the dark, State Farm wouldn't give me a good number. Same with utilities, although I hope it would be lower than that. I don't use much electricity, but I don't know what water, sewer and trash will run me. Home maintenance assumes 3% of home value yearly, but hopefully will be less as well. Student loans are only 8 months from being paid off, so that will be another $100 back in my pocket, and I could probably trim back the eating out and groceries by being a little smarter. Other than that though, how crazy am I?
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May 8, 2011 03:15
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Dik Hz posted:Please stop posting dumb opinions in this thread as if they're fact. Is this sort of abuse really necessary? Your dumb opinions aren't facts either. It should not be necessary to constantly hedge every post I make by saying "by the way this post is opinion, I am not citing evidence and statistics here". Have you ever lived in an apartment complex? Lots of them are run by big corporations who have lots of rules and yes, sure you can paint the walls, but you sure as hell can't replace the windows or remodel the kitchen. (And I still don't see why anyone would spend that much money to do something like that to a place they could be kicked out of as soon as the lease is up...) quote:On the flipside of your pride of ownership claim, is the the piece of mind of being able to walk away if you rent. If the neighborhood goes to poo poo, you can simply walk away. If you get your dream job the next state over, you can just walk away. If you want to move closer to your grandkids, you can simply walk away. Just finish out your lease and find a new place. I've made all of these specific points more than once in this thread. Are you confusing me with someone else? I was trying to explain the concept of "pride of ownership" as expressed by someone else, to that one guy who cannot seem to grasp the idea (because he'd rather rent). But much more often, I've typed out and posted all manner of reasons why you shouldn't buy, and those particular ones are among the best. Seriously if you don't agree with me that's fine, but don't be an rear end about it. Leperflesh fucked around with this message at 03:30 on May 8, 2011 |
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May 8, 2011 03:27
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nm
Dik Hz fucked around with this message at 06:36 on May 8, 2011 |
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May 8, 2011 05:44
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DJCobol posted:Oh god I'm considering buying SOMEONE HOLD ME! I would say your utilities should be a lot higher. I'm in a MUD for my water and it's 110 every month alone. I doubt your electric would be less than 50, and thats if you have gas for heating/cooking.
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May 8, 2011 06:54
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On the other hand, if your credit is decent you should be able to get closer to 5% right now (or even below). If you're making plans for many months or perhaps a few years from now, then I agree it's best to be conservative and use 6% - 6.5% or whatever.
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May 8, 2011 07:57
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I went for a 30 year mortgage over a 15, mainly because I want liquidity. At the rates I'm at now, I've been doing way better investing and saving instead of pre-paying the mortgage. Surprises of life like maintenance surprises or car crashes or children make liquidity pretty important. Investment wise I could probably do better than buying a place, but hey, I can't sleep in a mutual fund. Do the research! DO NEVER BUY!
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May 8, 2011 10:27
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Bovine Delight posted:I would say your utilities should be a lot higher. I'm in a MUD for my water and it's 110 every month alone. I doubt your electric would be less than 50, and thats if you have gas for heating/cooking. I kind of based utilities off of my apartment. Everything here is electric, and its all old inefficient crap, and my worst month here has only been $55. I'm expecting an increase when I get into a house. Water was based off of a co-worker that lives about 10 miles away and said they pay $40 a month for water and sewer for a family of 5. That only leaves trash, and I honestly have no idea how much trash costs. Leperflesh posted:On the other hand, if your credit is decent you should be able to get closer to 5% right now (or even below). If you're making plans for many months or perhaps a few years from now, then I agree it's best to be conservative and use 6% - 6.5% or whatever. My credit is getting better. I made some stupid mistakes when I was in college, but I have either cleaned up most of the items, or they have fallen off of my report. Last credit score I ran back at the beginning of the year was around 720 I believe. Until I get my final approval, I'm gonna stick with 6.5% as a worst case scenario, so that way if it comes in lower I can move that difference in price into savings or principal. Question about mortgage terms: my original numbers are based on a 30 year fixed mortgage. I ran the numbers for a 15 year mortgage, and could probably swing it, but its a little tighter than I want. However, if I do go with the 30, I would like to be able to throw extra money at the principal whenever I can (tax refund, extra income, bonuses, etc). Do most mortgages allow that, or is that something you have to request or make sure is included? Edit: my student loans are the only bit of debt I have, and its not much. Would I be in better shape for a loan if I were to just pay them off now and go into this process with exactly zero debt of any kind? DJCobol fucked around with this message at 15:38 on May 8, 2011 |
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May 8, 2011 14:20
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DJCobol posted:I kind of based utilities off of my apartment. Everything here is electric, and its all old inefficient crap, and my worst month here has only been $55. I'm expecting an increase when I get into a house. Water was based off of a co-worker that lives about 10 miles away and said they pay $40 a month for water and sewer for a family of 5. That only leaves trash, and I honestly have no idea how much trash costs. For trash, check the town website. Where I am, the trash is just part of your property taxes, the next town over you have to buy special bags that they sell for $10 for 5 for trash pickup. Also, my water bill is <$20/mo for 2.5 people, so there you go.
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May 8, 2011 17:33
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| # ? May 22, 2024 00:33 |
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I have a question about buying, hopefully someone here can help me out. A friend of a friend is going into foreclosure on their house (being auctioned next month). They have told us they will sell me the house for what is left on the mortgage. She says that they owe $100k on the loan, but the bank has added $12k because they didn't complete the Obama mortgage assist program, and lawyers for the bank are saying there is another $13k that I am not sure what it is for. I have seen that you can negotiate with the banks to get a lower price when buying a house like this and wanted to see if anyone had advise on the best way to approach the lawyers to get the lowest price out of them. Also any other information on how sales like this work would be appreciated. The property is appraised at $165K so if I can get a deal I will have quite a bit of built in equity from the start.
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May 9, 2011 03:12
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