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Update: seller's second counter is higher by several thousand then their first. I told my agent to tell their agent that I'm not going to continue negotiating until they get their poo poo together. For reference: Asking: 84,900 My 1st offer: 74,900 and 6% back Their counter: 79,900 and 3% back My 2nd offer: 78,675 with 6% back Their 2nd counter: 84,900 with 6% back  Why didn't they just counter again at their first counter?
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Nov 3, 2016 02:52
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They have a number in mind they aren't going under. They want you to come back with a number that will let them get 6% at the amount the want (which isn't 84k obviously). It's your mom, you get to decide what is too much, since you aren't expecting to make money here.
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Nov 3, 2016 03:32
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They are giving you more cash, which some buyers might want instead of absolute purchase price. The difference on your end net of 20% down is only $1k though, so maybe they're just seeing if you are cash poor and desperate.
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Nov 3, 2016 03:35
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gtkor posted:They have a number in mind they aren't going under. They want you to come back with a number that will let them get 6% at the amount the want (which isn't 84k obviously). Their first counter would net them 77,500, their second counter would net them like 79,000. They loving countered higher than a previous counter. I don't think the house is worth more than 76k so I won't go more than some combination of sales price and concession that exceeds that. I think they are upside down and don't want to bring cash to closing.
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Nov 3, 2016 03:36
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Bozart posted:They are giving you more cash, which some buyers might want instead of absolute purchase price. The difference on your end net of 20% down is only $1k though, so maybe they're just seeing if you are cash poor and desperate. We're buying this for my mother in law and want to avoid putting any more cash into it than necessary, which is why we're using an FHA non occupant coborrower scheme. They are upside down and don't want to bring cash to the table, which is why they've been trying to sell for a year and we're initially asking 105k which is insanity. Jealous Cow fucked around with this message at 03:41 on Nov 3, 2016 |
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Nov 3, 2016 03:39
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Jealous Cow posted:We're buying this for my mother in law and want to avoid putting any more cash into it than necessary, which is why we're using an FHA non occupant coborrower scheme. They are upside down and don't want to bring cash to the table, which is why they've been trying to sell for a year and we're initially asking 105k which is insanity. I'm pretty sure this post is the high water mark for the insanity level of the upcoming apocalypse or something similarly horrible.
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Nov 3, 2016 04:20
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Jealous Cow posted:We're buying this for my mother in law and want to avoid putting any more cash into it than necessary, which is why we're using an FHA non occupant coborrower scheme. They are upside down and don't want to bring cash to the table, which is why they've been trying to sell for a year and we're initially asking 105k which is insanity. They bought in 2005 and are still underwater on a $100k house 11 years later? That's...impressive. Do you mind if I ask the 2005 sale price? I get it if you're in that situation and the house has been on the market for a few weeks and you want to stick to your guns then so be it, but if I was a buyer who saw a home that'd been for sale for a year in this market (assuming this isn't some weird market where a military base just closed or something else catastrophic) I'd smell blood in the water.
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Nov 3, 2016 04:43
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BeastOfExmoor posted:They bought in 2005 and are still underwater on a $100k house 11 years later? That's...impressive. 84,500, then they refied it in 2013 for 81,300. I don't know what the gently caress they've been doing, but after sleeping on it I think we're going keep looking. Btw the market is Cleveland, so a blend of "decimated rust belt shithole" and "trendy young cash paying couples". Good stuff sells within days of being listed, and there are hundreds and hundreds of falling apart foreclosures listed in the 50s, plus a bunch of stuff priced like it's still 2006 because the owners did cash outs during the bubble.
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Nov 3, 2016 12:06
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Jealous Cow posted:84,500, then they refied it in 2013 for 81,300. I don't know what the gently caress they've been doing, but after sleeping on it I think we're going keep looking. Prices should come up due to the impending housing shortage (I'm assuming the city is burning right now - haven't checked the news).
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Nov 3, 2016 13:54
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Slappy Pappy posted:Prices should come up due to the impending housing shortage (I'm assuming the city is burning right now - haven't checked the news). Well the river does catch on fire so I don't think burning is news.
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Nov 3, 2016 19:23
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Update on cheap house for mom: We're under contract. We came up about 1.5k more than we wanted to after finding out that the owner is super active in local LGBTQ rights and serves a bunch of non-profits I agree with. We weren't told this, I stumbled upon it while googling the owner's name from county records.
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Nov 4, 2016 20:52
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Jealous Cow posted:Update on cheap house for mom: Congratulations on the house purchase, hope it works out ok!
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Nov 4, 2016 23:13
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The OP seems a bit out of date and also (rightfully) opinionated on certain things so how loving dumb am I to be considering a 0-3% down mortgage? My fiance and I both got new jobs in a city one hour away so we're looking to move for commute reasons. Renting sucks because the monthly payments are equal to the monthly mortgage even at 0-3% down for the houses we're looking at with the house being 2-3x the size. We have two large dogs that really limit our available apartments to mostly "luxury" ones. We found a house we really like for 200k with the only issue being lack of savings for a decent down payment. If it matters, my only debt is about 12k left on student loans at 4.5% interest and our combined monthly income after tax is around 4750. e: Also mostly been looking at 150-170k homes for the same range of down payment (5% tops) but this particular one checks off every box on our dream list and includes a very well done patio built out towards a river. It's officially listed as not in a flood zone as well. Master Stur fucked around with this message at 20:01 on Nov 6, 2016 |
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Nov 6, 2016 19:48
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Master Stur posted:The OP seems a bit out of date and also (rightfully) opinionated on certain things so how loving dumb am I to be considering a 0-3% down mortgage? To each his own, but keep in mind that PMI and interest add up quickly. And of course, a mortgage is not nearly the only cost of a home. Maintenance and heating can be huge costs. I would really suggest getting a good savings cushion to account for sudden big-time home expenses Master Stur posted:It's officially listed as not in a flood zone as well. Keep in mind that "officially listed" doesn't actually mean it's safe. All it means is your home insurance and building permits will be different. FEMA is constantly revising their flood maps. When you only have 70 years of reliable flood data, trying to accurately calculate a 100 year storm is...tricky.
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Nov 6, 2016 20:20
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Master Stur posted:The OP seems a bit out of date and also (rightfully) opinionated on certain things so how loving dumb am I to be considering a 0-3% down mortgage? My fiance and I both got new jobs in a city one hour away so we're looking to move for commute reasons. Renting sucks because the monthly payments are equal to the monthly mortgage even at 0-3% down for the houses we're looking at with the house being 2-3x the size. We have two large dogs that really limit our available apartments to mostly "luxury" ones. We found a house we really like for 200k with the only issue being lack of savings for a decent down payment. If it matters, my only debt is about 12k left on student loans at 4.5% interest and our combined monthly income after tax is around 4750. As long as you are considering the PITI payment and not just mortgage calculator payment you're fine. You should make sure that the mortgage calculators are including PMI, and that most of your 2.5% down is going to be sucked up as FHA PMI prepayment. Call your renters insurance people and ask for a quote on a sample house (send them a link on Zillow to one you like.) Call a few lenders and get pre-qualified. Eventually when you go to make an offer you will want to get a Good Faith Estimate which is a regulated item they must provide you. http://www.consumerfinance.gov/askcfpb/146/what-is-a-good-faith-estimate-what-is-a-gfe.html https://en.wikipedia.org/wiki/Good_faith_estimate Almost most importantly? Find a realtor you can trust. They should be guiding, not rushing, you through the process. Remember they're getting paid ~2-3% ($4-6k) of your purchase price for this service. They are there to represent your interest in the purchase so if they are being obnoxious fire them. Come to jesus talk optional depending on track record. (I know your budget is $200k max but here are a bunch of homes 25-50% over that, not helping you through the mortgage process, or downright on the sellers side on every single issue.)
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Nov 6, 2016 20:21
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Master Stur posted:The OP seems a bit out of date and also (rightfully) opinionated on certain things so how loving dumb am I to be considering a 0-3% down mortgage? My fiance and I both got new jobs in a city one hour away so we're looking to move for commute reasons. Renting sucks because the monthly payments are equal to the monthly mortgage even at 0-3% down for the houses we're looking at with the house being 2-3x the size. We have two large dogs that really limit our available apartments to mostly "luxury" ones. We found a house we really like for 200k with the only issue being lack of savings for a decent down payment. If it matters, my only debt is about 12k left on student loans at 4.5% interest and our combined monthly income after tax is around 4750. The same advice applies whether you're putting 0% down or 20% down: make a serious budget of your living expenses for staying where you are now, make a serious budget of how your living expenses will change if you buy a house, and if you like the numbers then it's worth considering. Be sure to post the numbers here in case you miss something (most people forget to budget for maintenance, emergency repairs, taxes, and the additional utility expenses that come from owning vs renting) A big downside of small down payments is that your first several years of payments are mostly interest, so you're building no equity. You build no equity as a renter, either, but if prices don't rise much and you suddenly need to sell then you'll probably have to bring some of your own money to the table.
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Nov 6, 2016 20:29
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H110Hawk posted:As long as you are considering the PITI payment and not just mortgage calculator payment you're fine. You should make sure that the mortgage calculators are including PMI, and that most of your 2.5% down is going to be sucked up as FHA PMI prepayment. Call your renters insurance people and ask for a quote on a sample house (send them a link on Zillow to one you like.) Call a few lenders and get pre-qualified. Eventually when you go to make an offer you will want to get a Good Faith Estimate which is a regulated item they must provide you. Yeah we've factored PMI and property taxes into this already. The only rush is on our end: Current lease is up in June which severely limits the time we have to save up which is why I am even considering a 5% or less down payment since it is the only realistic option. I've lurked BFC in the past so I'm all set up tight with a budget. Mostly just wanted to make sure these type of mortgages weren't complete bad ideas regardless of any budget considerations. Unfortunately I would love time to save up but the idea of commuting 2hrs a day and rolling dice on car maintenance for another year or two is completely unappealing. LogisticEarth posted:Keep in mind that "officially listed" doesn't actually mean it's safe. All it means is your home insurance and building permits will be different. FEMA is constantly revising their flood maps. When you only have 70 years of reliable flood data, trying to accurately calculate a 100 year storm is...tricky. I was more angling at not needing to have flood insurance factored into the price I suppose. I've lived near water my whole life so for better or worse I'm aware of the other considerations needed.
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Nov 6, 2016 20:46
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They're a bad idea if you're looking at a house as a financial investment (houses are poor financial investments in general but are downright terrible when you're putting 3% down). They're fine if you're looking at a house as a place to live and you're only thinking about your monthly living expenses
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Nov 6, 2016 20:50
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Master Stur posted:I was more angling at not needing to have flood insurance factored into the price I suppose. I've lived near water my whole life so for better or worse I'm aware of the other considerations needed. Do your research on this one though. Like I said, the maps can be and will be revised, so you may be taking a risk that you could get hit with that insurance and drop in property value. Having seen a bunch of flooding in my area, I never, ever, ever would want to own a home anywhere near a floodplain. High and dry for me.
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Nov 6, 2016 20:53
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QuarkJets posted:They're a bad idea if you're looking at a house as a financial investment (houses are poor financial investments in general but are downright terrible when you're putting 3% down). They're fine if you're looking at a house as a place to live and you're only thinking about your monthly living expenses The latter mostly. We got a long ways to go before even considering it a proper investment. This potential decision is more just timing on getting new jobs and how utterly bad the rental market is in the new area + surrounding places both $-wise and needs wise. Ultimately if we're paying roughly the same amount then I'd rather it be on a house. Apartment living with large pets is awful for all involved  The other factor is we will be living near a proper area for good paying tech jobs in this state so there is no need to move again when the time comes to look for better jobs.
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Nov 6, 2016 21:05
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Master Stur posted:0-3% down mortgage
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Nov 6, 2016 21:07
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I could see scenarios where you're relatively high income and would benefit enough from the PMI tax deduction and you're hopefully buying something well below your means where 0-3% down would be fine. Probably not ideal for your average Andy though.
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Nov 6, 2016 21:15
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I wouldn't ever buy a house in a city I hadn't lived in previously unless I was getting some crazy relocation package that required me to buy and not rent. Especially if I'm starting a new job. Have you looked on craigslist to see how much single family homes rent for?
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Nov 6, 2016 21:16
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Master Stur posted:Yeah we've factored PMI and property taxes into this already. The only rush is on our end: Current lease is up in June which severely limits the time we have to save up which is why I am even considering a 5% or less down payment since it is the only realistic option. I've lurked BFC in the past so I'm all set up tight with a budget. Mostly just wanted to make sure these type of mortgages weren't complete bad ideas regardless of any budget considerations. Unfortunately I would love time to save up but the idea of commuting 2hrs a day and rolling dice on car maintenance for another year or two is completely unappealing. I would start talking to realtors and lenders now. Figure out what makes the most sense for you guys price wise and mortgage structure wise. As everyone else is saying your costs do go up owning even if the PITI payment is the same as your rent. You'll get a random supplemental tax bill, and you have to pay to have your waste hauled away (trash, sewer), etc. Unless there is a fundamental difference in your costs I would not put 100% of your savings into the down payment. 2.5% FHA vs. 5% FHA as I recall is not fundamentally different in price. You can always pay 2.5% extra principle later, but if you get hit with a burst water heater the day after you move in that's going on a credit card. Make sense? Ask for amortization tables and for things to be filled out on HUD approved forms if you want to know the true cost of the house. Get buyers title insurance. Don't let anyone talk you out of it. It's cheap for a reason, most people don't need it, but when you do it can save you the entire cost of your house. And you get to find out fun facts about the easements on your house!
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Nov 6, 2016 21:23
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Hashtag Banterzone posted:I wouldn't ever buy a house in a city I hadn't lived in previously unless I was getting some crazy relocation package that required me to buy and not rent. Especially if I'm starting a new job. We've both been working these new jobs since early summer so I guess not so so new anymore. I've worked in this area a couple years ago right out of college and my old college buds lived in the area so while not having lived there I'm fairly familiar with the area. We're always looking at rental options along side everything but so far the price values don't work out so well for the quality. Many of the rental properties available also lack central air and require oil heating 
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Nov 6, 2016 21:27
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H110Hawk posted:I would start talking to realtors and lenders now. Figure out what makes the most sense for you guys price wise and mortgage structure wise. As everyone else is saying your costs do go up owning even if the PITI payment is the same as your rent. You'll get a random supplemental tax bill, and you have to pay to have your waste hauled away (trash, sewer), etc. Unless there is a fundamental difference in your costs I would not put 100% of your savings into the down payment. 2.5% FHA vs. 5% FHA as I recall is not fundamentally different in price. You can always pay 2.5% extra principle later, but if you get hit with a burst water heater the day after you move in that's going on a credit card. Make sense? Will do, thanks! Unfortunately extra tax bills and trash/sewer are something our current place (and many others) already pass onto us so it is nothing unsurprising.
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Nov 6, 2016 21:30
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Pryor on Fire posted:I could see scenarios where you're relatively high income and would benefit enough from the PMI tax deduction and you're hopefully buying something well below your means where 0-3% down would be fine. Probably not ideal for your average Andy though. I thought that the PMI deduction was going away? e: Looks like it's sticking around, but you don't get the deduction if your AGI is at least $109k, filing jointly. That's not a huge amount for two people in the tech sector
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Nov 6, 2016 22:07
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Also Master Stur don't buy a house until you and your fiance are married
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Nov 6, 2016 22:09
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QuarkJets posted:I thought that the PMI deduction was going away? You can negotiate lender paid PMI which ups your rate a bit, but then it's all deductible.
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Nov 7, 2016 00:23
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Pryor on Fire posted:I could see scenarios where you're relatively high income and would benefit enough from the PMI tax deduction and you're hopefully buying something well below your means where 0-3% down would be fine. Probably not ideal for your average Andy though. If you're high-income you can't deduct PMI, I thought.
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Nov 7, 2016 02:09
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If you can budget additional money to principle payments it becomes a not terrible idea. If you cannot then you'll spend a ridiculous amount of time paying almost entirely interest and nothing toward principle, which has all kinds of gross risks attached.
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Nov 7, 2016 15:40
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Note that FHA MIP doesn't go away ever, any more. The only way to stop paying it is to refinance out of the FHA mortgage, and you don't get your up-front premium back when you do that. That's just an FYI. Basically plan to have to refinance at least once, when you hit 80% LTV, assuming interest rates haven't risen by enough that getting out of the MIP will cost you more in interest than it's worth. When I bought with an FHA loan, you could get rid of the MIP once you hit 78% LTV, but congress changed the deal a few years ago to make it a lot worse.
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Nov 7, 2016 20:28
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I don't have a problem with low down mortgages. It's not always possible to save up a 20% down payment. Many of the drawbacks have already been discussed, here's my opinion. It's fine if you know you're going to be there for probably 5 to 7 years. I bought my house FHA 3.5% down about 7 years ago. The first 5 years of ownership I couldn't have sold the house without bringing money to the table. This was due to 2 primary factors. 1: I bought new construction and it's hard as hell to sell resale when the builder is down the street heavily incentivizing the sale of new homes 2: The first 5 years of the mortgage I paid very little of the principal down. In retrospect even an extra 50 dollars a month would have made a huge difference over 7 years and I could have easily afforded it. Almost 7 years later I'm in a better position. The builder is gone, resale in the neighborhood is strong, and the property has appreciated about 10% in value. Combined with paying down principal over the last 7 years and I'm at about 20% equity in the house. Finally at the point where I could sell the house if I wanted to, and actually walk away with some money. If your timeline is ok with that, sure, go for it. Just understand the drawbacks involved.
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Nov 7, 2016 20:44
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I'm doing a final walkthrough of my new place after work today, and if all goes according to plan we may even sign all the final paperwork today and close early. Oh god this is happening
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Nov 7, 2016 21:30
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I'm about to close on re-financing my 30-year purchase from 2011 (3.625% with ~$5,600 points) into a 15-year mortgage @ 2.875% with no points. This raises my mortgage + escrow from around $3,150 to $3,760 I've been averaging $550/month extra toward principle through the first 5 years of my loan so from that perspective it's a wash - just means that the "extra" is no longer optional. Overall I'm pretty excited. Based on my prior early-pay behaviors I was tracking to finish paying my mortgage in late-2035 (24 years total). This shortens my payoff by an additional 4 years. Let's hope the Chinese don't own California by then. I probably could have gotten a slightly lower rate (2.75%) by going through my mortgage wholesaler but ultimately it's worth the extra $20/month for me to keep everything at Wells Fargo. I know they're the devil but it's awesome to be able to make payments just by pushing buttons on a website.
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Nov 7, 2016 22:17
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Wells Fargo lets you make bi-weekly mortgage payments too which is cool or at least they used to (they ended up with a mortgage of mine back in 2011.)
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Nov 8, 2016 15:17
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Keyser S0ze posted:Wells Fargo lets you make bi-weekly mortgage payments too which is cool or at least they used to (they ended up with a mortgage of mine back in 2011.) Still do, just started a new mortgage with them. The downside is that they hold your payment until they have enough to pay the entire payment. So still paying an extra payment a year generally, but not getting all the advantages.
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Nov 9, 2016 01:37
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Finally signed a contract for a condo. Third time's a charm. The market in NYC is p crazy. They had like 40 offers and we ended up closing 100k over ask. We had to waive our mortgage contingency to be competitive against all cash buyers. Luckily, we have a mortgage approval letter from a previous deal that fell through, so the mortgage shouldn't be a problem.
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Nov 9, 2016 01:51
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Welp I wonder if I picked a terrible week to buy a house.
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Nov 9, 2016 07:55
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Drunk Tomato posted:Welp I wonder if I picked a terrible week to buy a house. Same. At least I locked in a low rate!
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Nov 9, 2016 08:57
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