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Kali11324 posted:I wish I had taken this advice more seriously. A real estate agent actually told us, "No one does that anymore!" But you had the 20% down, right? So you just didnt put it down for some reason. And you didnt slap some cash at the principal before the refi to get below the 20%. I must be missing something. Edit: Unless you bought a $550,000 house where the 90k is 16% down...
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Jul 24, 2012 19:25
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Christ what piece of poo poo realtor says "no one does that anymore". All the ones I've ever dealt with give generally really good and fairly conservative advise and actually seem to give a poo poo about you not only getting a good deal but something in your financial interests.
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Jul 24, 2012 19:30
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Baronjutter posted:Christ what piece of poo poo realtor says "no one does that anymore". All the ones I've ever dealt with give generally really good and fairly conservative advise and actually seem to give a poo poo about you not only getting a good deal but something in your financial interests. We did use some of the money for other things. We paid off some debt and stuff. The house was $500k even and we put down 80.
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Jul 24, 2012 19:48
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Dammit. Was supposed to close yesterday but undewriting decided they needed a home inspection, which I have since Im not stupid. Sent it over on Friday OH poo poo also these 2 pages signed in front of a notary... did that on Saturday and hand delivered them to my broker. Also we need ANOTHER appraisal... okay whatever. That should be happening today. Oh this is a house someone bought to rennovate and flip? House rules say it needs to have at least 12 months before we will finance it. NO! gently caress you lender, I qualify all the way around for everything except your stupid house rule? You better fix that poo poo, or you should have loving mentioned that 3 months ago when we initaited the relationship. Closing pushed off to Friday as they get waivers for their in house policy.
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Jul 24, 2012 19:58
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Wow, a 15 year loan with no points is 2.5% at my bank right now. Time to refinance for the second time.
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Jul 24, 2012 20:43
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Inept posted:Wow, a 15 year loan with no points is 2.5% at my bank right now. Time to refinance for the second time. What bank? I'm getting fed up with my credit union jerking me around on this refinance.
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Jul 24, 2012 20:46
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Revision: roofer came out and said he wouldn't do that roof if it were his house and we probably have some years left, and the sellers agreed outright to put a radon mitigation system in (with our input if we want an upgraded system). P&S to be signed Thursday, can't wait to sink all my money into this mother.
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Jul 24, 2012 23:43
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a shameful boehner posted:I'm making about $45,000 a year and paying about $957 a month in rent. I'm in the NW Denver area and looking to buy; average home prices in the area I'm looking are about 155,000. I have about $10,000 saved ($5-6k would be the max I could put towards a down payment). I have small student loan debt ($~100 month), no credit debt, own my car. I would wait and save up more down payment, or limit the purchase price to $135k - 140k max. Property taxes seem to be very low in the Denver area, like 0.7% - 1%, so you have that working in your favor, but still, here's what I quickly calculated in the default Excel mortgage template. With 5000 down and assuming you have good credit and can get a 3.65% loan, that would still be something like a $1000 PITI payment ($999.77 in the template below) That's 27% of your income if 45k is take-home, or 33% if the 45k is gross. These numbers are OK for a 20% down scenario, but they're pretty aggressive for only 3.5% down. 
lapse fucked around with this message at 00:36 on Jul 25, 2012 |
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Jul 25, 2012 00:29
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Inept posted:Wow, a 15 year loan with no points is 2.5% at my bank right now. Time to refinance for the second time.
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Jul 25, 2012 01:19
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lapse posted:I would wait and save up more down payment, or limit the purchase price to $135k - 140k max. Thank you very much for that. 45k is gross. I think I should probably continue to save up more, perhaps another year or two in an apartment, which I'm okay with. What is the "PITI" payment? Property, Interest, Tax, Insurance? Last I checked my credit was about 830, which I think is pretty good. I've never missed a bill or had an outstanding credit card balance. I'd rather have a larger "egg" than get myself into an untenable housing situation. I'm not too worried about mortgage rates spiking in the next 24-36 months, either, as all indicators seem to point towards home prices continuing to be flat or decline even further in the next few years. ex post facho fucked around with this message at 16:39 on Jul 25, 2012 |
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Jul 25, 2012 16:36
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I'd be more worried about paying for random house expenses than the actual payment in your case, absorbing 1-2k here and there is going to be difficult. Roommates would be worth looking into if you can deal with them.
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Jul 25, 2012 16:39
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a shameful boehner posted:Thank you very much for that. 45k is gross. I think I should probably continue to save up more, perhaps another year or two in an apartment, which I'm okay with. What is the "PITI" payment? Principle, income, taxes and insurance...essentially your real payment each month.
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Jul 25, 2012 16:54
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If I have locked in a rate with a lender, does that mean I am committed to going with them? I found a new lender with a better rate and more helpful people. I haven't signed anything with 'old' lender other than an authorization for them to access my credit (and provided them with W2's, paychecks, etc needed to lock the rate).
sheri fucked around with this message at 22:30 on Jul 25, 2012 |
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Jul 25, 2012 22:28
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Occasional lurker to this thread, first time poster to this thread. Been in the market for a while. Made an offer on a house last week, got accepted Monday (among five offers). Today, bought myself a birthday present and spent bucks on a master inspector. Quite detailed, quite informative and will have lots of info to sift through. Tomorrow, lending time, then negotiation time... lots of various emotions to go with this. First home buying process.
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Jul 25, 2012 22:57
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How much should local rent costs influence the rent vs. buy decision? The estimated monthly payment on my pre-approval letter (including estimated property taxes) is less than the rent I currently pay. Add in typical local condo fees and it will be just about $100/month more than what I currently pay in rent. For context, I just got a $225k mortgage pre-approval letter and I'm about to start working with realtors to check out the local condos. I take home about $55k a year and I'm looking at $200k condominiums. The pre-approval is through a small local bank that offers a first-time homebuyer's rate - 3.625% on a 30 year fixed, no PMI with 11% down (I have this deposit currently). Also note that I'm renting a studio apartment in a lovely area, while I'm finding some sweet townhouses within my budget. I'm concerned that the dream of living somewhere that doesn't have junkies squatting in the basement and a moldy bathroom ceiling is clouding my judgement!
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Jul 25, 2012 23:01
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A $225k house on a $55k salary is going to be tough.
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Jul 25, 2012 23:18
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demozthenes posted:How much should local rent costs influence the rent vs. buy decision? This isn't that easy to answer. Probably it can be anywhere between "not at all" and "quite a lot". Here are some of the factors: -Renting is mostly a fixed, well-understood cost. Your landlord can raise your rent, of course, but you usually have the right to reject that cost (by moving out). In most cases your rent doesn't go up while you're tied to a longer-than-month-to-month lease. -Renting has few long-term financial risks. You can (in theory) move out and find cheaper rent if your income goes down, your rent (in theory) doesn't respond that much to short-term rises and falls in the local, national, or global economy, and so forth. -Renting allows you more flexibility in terms of living space and location. If your neighborhood deteriorates, you can (in theory) easily leave. If you want your kids in a particular school district (or to get out of the one they're in), you can (in theory) move. If you have a change in employment, you can move to be closer to your new job. -Renting is often cheaper than buying an equivalent home, for various complicated reasons. Conversely, for buying: -Much larger transaction costs than renting. That is, a lot of cash is spent (not invested) on various costs when you buy, and (especially) when you sell. "Cash now" can be a lot more valuable to you than "cash later", so up-front/transactional costs can outweigh long-term costs even if the dollar amount is the same. -There are several "hidden" costs that prospective home-buyers often miss or fail to fully take into account. The estimated price on a pre-approval letter does not include a number of these. In addition to "PITI", which should be estimated, there's (for example) one-time assessments, HOA fees, utilities, additional optional insurance (such as flood or earthquake), maintenance, and repairs. -A home can decline in value and if it does, you could become trapped "underwater", unable to sell, and face foreclosure or bankruptcy (or both) on your credit. This risk basically doesn't exist as a renter. So, when comparing the dollar amounts, keep all of these things in mind. For many people it's worth paying a bit more in rent (compared to ownership), in order to "purchase" flexibility and lower (personal and financial) risk. On the other hand, home ownership isn't a purely financial consideration. Many of us buy a home for various quality-of-life, intangible reasons. As an "investment", single-family homes are (historically) pretty bad compared to other investing options. But as a place to live, grow your family, engage in your hobbies, and take pride of ownership in, a home beats a balanced portfolio of mutual funds every time. demozthenes posted:I'm concerned that the dream of living somewhere that doesn't have junkies squatting in the basement and a moldy bathroom ceiling is clouding my judgement! You have created, at least in this post, a fallacy of false choice (that is, the fallacy that you have to pick between these two options only). You could also try renting a place in a better neighborhood! That is a third option you should explore, before taking the huge step of buying a home. Leperflesh fucked around with this message at 23:26 on Jul 25, 2012 |
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Jul 25, 2012 23:24
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demozthenes posted:How much should local rent costs influence the rent vs. buy decision? The estimated monthly payment on my pre-approval letter (including estimated property taxes) is less than the rent I currently pay. Add in typical local condo fees and it will be just about $100/month more than what I currently pay in rent. I hate condos with a passion. I think they're terrible things to buy. All the downsides of homeownership and If I were you I would look at renting a condo in an area you like. All the benefits of living in a nicer area, but loss of value, HOA fee increases etc are all the landlords problem not yours.
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Jul 25, 2012 23:53
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BoA deigned to accept the payment, even though it was $0.02 over their hud1. ...Oh god, i'm a home owner.
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Jul 26, 2012 00:28
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sheri posted:If I have locked in a rate with a lender, does that mean I am committed to going with them? I found a new lender with a better rate and more helpful people. I haven't signed anything with 'old' lender other than an authorization for them to access my credit (and provided them with W2's, paychecks, etc needed to lock the rate). They may be able to keep some advanced fees (if you gave them a deposit on the loan) but you are always able to withdraw an application and go with someone else. For us, if the loan required a deposit, it pays for appraisals and credit reports (third party fees on your behalf). If someone backs out, we generally are going to keep what already has been paid for (ie the 9 bucks for the credit report). If you have already done an appraisal, you are not getting that money back.
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Jul 26, 2012 01:43
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demozthenes posted:How much should local rent costs influence the rent vs. buy decision? The estimated monthly payment on my pre-approval letter (including estimated property taxes) is less than the rent I currently pay. Add in typical local condo fees and it will be just about $100/month more than what I currently pay in rent. What I'd be asking is why condos are so comparatively cheap in your area. A lot of condos got built during the boom and there are a lot of owners desperate to unload, could be you're in one of those areas and if you buy, you're stuck in a half-empty building with a bunch of absentee owners who don't give a gently caress (or a bunch of renters who don't give a gently caress) in something that's going to have little-to-no increase in value. What if you move into your new condo and find the owners rented to those kinda junkies? Oops, now you're stuck.
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Jul 26, 2012 02:43
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Ozmiander posted:...Oh god, i'm a home owner. Long fuckin' ride. Congratulations, finally.
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Jul 26, 2012 14:20
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Ozmiander posted:BoA deigned to accept the payment, even though it was $0.02 over their hud1. Congrats! I hope to join your club tomorrow.
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Jul 26, 2012 15:29
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Errant Gin Monks posted:Congrats! I hope to join your club tomorrow. It's a good club, but the dues are a bitch.
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Jul 26, 2012 15:50
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Thanks guys! It was a horrible process, but for a 350 principle and 600 total (flood ins is a bitch.) payment, i've almost halved my regular housing costs!
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Jul 26, 2012 17:04
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gvibes posted:Yeah, I agree with this. A 150k mortgage on 45k a year gross is pretty brutal. What about a $350k mortgage on $125k?
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Jul 26, 2012 17:52
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SlightlyMadman posted:What bank? I'm getting fed up with my credit union jerking me around on this refinance. Sorry for the delayed response, but it's a smaller bank. I think they handle mortgages in Illinois, Iowa, and Missouri. https://www.bankwithbos.com/index.php
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Jul 26, 2012 18:57
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Qaz Kwaz posted:What about a $350k mortgage on $125k? I have seen 3 x gross as a rule of thumb before, but of course it all depends on the situation and other debt. 3x gross for me is more than I would want to spend, we've always been closer to 2x gross. There are tons of other guidelines though, 28% for housing debt, 25% of take home pay (on a 15 year mortgage if you're Dave Ramsey), etc...
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Jul 26, 2012 20:45
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ntd posted:I have seen 3 x gross as a rule of thumb before, but of course it all depends on the situation and other debt. 3x gross for me is more than I would want to spend, we've always been closer to 2x gross. There are tons of other guidelines though, 28% for housing debt, 25% of take home pay (on a 15 year mortgage if you're Dave Ramsey), etc... Yeah, these rules of thumb are in the right ballpark, but ultimately the "real number" is just going to depend on a lot of factors. In particular the cost of living in your area (if you make $125k a year in Kansas you can probably spend more than if you make it in New York City, because aside from your housing costs, most other costs are much much lower), the size of your family (a couple with no kids who won't have kids can afford to pay more for housing than a family of 8), and of course your other debts and expenses, which you should calculate and anticipate. As a nearly-irrelevant data point, my wife and I have no kids (and don't plan to have kids), live in a fairly expensive region (SF Bay Area), have some student loan debt at low interest, around seven or eight thousand in moderate-interest credit card debt, own our cars outright, eat and live frugally, and spent about 2.4x our annual income on our house. We live in a state with both income taxes and significant sales taxes, itemize our deductions (which saves around $3-6k more money for us than the standard deduction per year), rarely go on expensive trips, live comfortably, and are saving a reasonable amount for retirement. I also have earthquake insurance, do my own lawn maintenance, and have plenty of work to do on the house (probably $5k/year at least for the forseeable future), as we bought a foreclosure with "good bones" (good foundation, no termites, 10 years left on the roof) but with some condition problems (needs a new patio roof, garage door, exterior paint in the next two or three years, some landscaping, some rewiring work, a tree removed, and lots of smaller things). Without basically all of the details I just posted, nobody could possibly tell me exactly what the right threshold should be for the maximum I should have spent on a house. If I'd spent 3x my income that would have caused us to have to make a lot more sacrifices in terms of standard of living: if I could have found a house we'd like at 2x income that would have been better, but it was worth the extra amount to get a reasonably good neighborhood and house. We bought in december '09 and if we'd waited a year, I could have got a similar house in the same area for perhaps $50k less, or in other words, under 2x our income. Oh well DO NEVER BUY
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Jul 26, 2012 20:57
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ntd posted:I have seen 3 x gross as a rule of thumb before, but of course it all depends on the situation and other debt. 3x gross for me is more than I would want to spend, we've always been closer to 2x gross. There are tons of other guidelines though, 28% for housing debt, 25% of take home pay (on a 15 year mortgage if you're Dave Ramsey), etc... Thanks, that helps. This is my situation. The house we're biting on is basically our ideal place. It will be our first--and hopefully last--house, so we are shooting a little high now and would like to grow into it. Bad idea?
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Jul 27, 2012 04:02
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I think one thing to keep in mind is that for a lot of people, the ideal just does not stay as such for all that long. It seems like a lot of people live life in 5-7 year increments, not just in terms of a home, but work, family, etc. Overshooting something because you think you are always going to be there is going to pose a little bit of a risk, but you could certainly do worse.
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Jul 27, 2012 05:09
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Signed the P&S last night, need to select a lender today. Problem is I can't get either of them to give me a GFE without paying their application fee. Is this for real? One of them said they'd send me the worksheet they generate the GFE from, the other hasn't gotten back to me yet. How am I supposed to compare lenders without dropping the non-refundable application fee?
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Jul 27, 2012 14:10
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uwaeve posted:Signed the P&S last night, need to select a lender today. Problem is I can't get either of them to give me a GFE without paying their application fee. Is this for real? One of them said they'd send me the worksheet they generate the GFE from, the other hasn't gotten back to me yet. How am I supposed to compare lenders without dropping the non-refundable application fee? Thats bullshit. I checked 4 lenders before I went with mine and not a single one asked for a fee for that. Also... I didnt pay an application fee either.
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Jul 27, 2012 15:26
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Errant Gin Monks posted:Thats bullshit. I checked 4 lenders before I went with mine and not a single one asked for a fee for that. Also... I didnt pay an application fee either. That's what I thought. The credit union agreed to give me a GFE prior to the formal application but the lady blew a gasket on the phone because I asked for it. "Are you thinking of going with another lender? WELL I HOPE THEY'VE PUT AS MUCH WORK IN ON THIS LOAN AS I HAVE AHHHHHHHHHHHHHBZZZZZZZZZZZZZZZZZZ..." I mean yeah, I called you a bunch of times with questions about the process but poo poo lady, that's business. If someone else is going to offer me a better deal than you, you expect me to go with you because you did your job? That being said, the deals aren't that much different that I think I'll just go with the CU, the big thing now is the other place would have locked my rate yesterday whereas I need to float a while with the CU (closing is way out at Halloween). I can tolerate an eighth or three but I guess I'm just crossing my fingers that I'm not gonna get stuck with a 6% interest rate come September. Everyone tells me this won't happen...
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Jul 27, 2012 16:18
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gtkor posted:I think one thing to keep in mind is that for a lot of people, the ideal just does not stay as such for all that long. Good point... I just hate moving. We have no kids now and it's a large house, but we would like to raise a nice sized family in it. Of course now it's way way too big for the two of us. We're both late thirties. Hoping to have kids within a few years. Monthly debt obligation is $700.
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Jul 27, 2012 16:22
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Edit: forget it.
Kali11324 fucked around with this message at 18:36 on Jul 27, 2012 |
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Jul 27, 2012 17:32
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I just bought my house in December. It's a jumbo with some PMI (mainly just because I want to keep reserves) and my current rate is 4.375%. All my friends keep insisting that it's easy to re-fi for 30 years and 3.75% right now but I'm not seeing those rates when I shop. My credit is above 750 and my debt:income ratio is fine even with the mortgage. Is the discrepancy because I'm a jumbo and my friends are hobos living in yurts with tiny mortgages?
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Jul 27, 2012 18:41
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Qaz Kwaz posted:Good point... I just hate moving. We have no kids now and it's a large house, but we would like to raise a nice sized family in it. Of course now it's way way too big for the two of us. We're both late thirties. Hoping to have kids within a few years. Monthly debt obligation is $700. Moving does indeed suck. What sucks a whole lot worse, though, is losing your house because you can't quite afford it, especially after a minor setback like a change in jobs that cuts your income a little bit or increases your living costs a little bit. My recommendation is to buy a house you can comfortably afford to live in now. In eight or ten years if you've got an couple of growing kids, and it's starting to feel like you need more bedrooms (you don't), you can sell and move up. A big hassle but well worth the financial comfort especially given your significant debt load. (Literally billions of people worldwide live very comfortably in houses where the kids have to share a bedroom, we Americans are addicted to cavernous mansions that we don't need.)
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Jul 27, 2012 18:57
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Ozmiander posted:BoA deigned to accept the payment, even though it was $0.02 over their hud1. Looks like you finally got to give them your two cents. 
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Jul 27, 2012 19:06
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Spamtron7000 posted:I just bought my house in December. It's a jumbo with some PMI (mainly just because I want to keep reserves) and my current rate is 4.375%. All my friends keep insisting that it's easy to re-fi for 30 years and 3.75% right now but I'm not seeing those rates when I shop. My credit is above 750 and my debt:income ratio is fine even with the mortgage. Is the discrepancy because I'm a jumbo and my friends are hobos living in yurts with tiny mortgages? You can get an FHA at 3.75 on a jumbo, in fact it would be really easy to streamline that. As far as the application fees, i know our company will ask for a good faith deposit when we send out documents, but legally we will never require it before giving a gfe to anyone. I think one thing a lot of people dont understand about any application fees or anything like that is that it is not actually a separate fee. It is basically what is going to the appraiser once we get your supporting docs back.
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Jul 27, 2012 21:39
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