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Do we talk financing here? My gf and I have been offered to buy my GFs parents house at a favorable price which will basically count as a 20% down payment. I'm thinking about whether to get a fixed rate mortgage or variable rate. Fixed rates are ~ 2.25%, variable at the moment is 0,95%. Difference between payments would be about 300 dollars a month. Am I being foolish not locking in the fixed rate?
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Apr 20, 2018 18:36
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Struensee posted:Do we talk financing here? My gf and I have been offered to buy my GFs parents house at a favorable price which will basically count as a 20% down payment. I'm thinking about whether to get a fixed rate mortgage or variable rate. Fixed rates are ~ 2.25%, variable at the moment is 0,95%. Difference between payments would be about 300 dollars a month. Am I being foolish not locking in the fixed rate? In general, yes.
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Apr 20, 2018 18:39
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I think it is pretty probable that is a non-us question, so the fixed period in question is probably of relevance. If it is non-us, please note, most advice in the thread is US focused, so specific questions regarding interest rate markets, and best advice may be limited as a result.
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Apr 20, 2018 18:43
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Welp, I put in an offer on that house with the sloped backyard and the seller accepted. Pretty terrifying. Next step is inspection...
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Apr 20, 2018 18:47
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Yeah, this is Denmark. 30 year mortgage. Also looks like the rates are more like 3,06% vs 1,19%.
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Apr 20, 2018 18:49
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Personally, given it is fixing for the full 30 years as opposed to a portion of the term, I'd strongly consider the 3.06% as that is very cheap. I don't have a strong understanding of Danish market to know what volatility looks like, but it does look like your prepayment options are pretty limited, so it isn't like the savings can really be used to pay down the principal sooner. Given you are already getting a very good deal with the discounted price to meet your 20% down requirements, I'd personally take the sure thing. Your mileage may vary as to how important the extra 300 dollars is, along with the potential your credit profile changes down the line, which might impact your ability to refinance the loan in the future.
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Apr 20, 2018 18:56
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And just to be totally clear, in Canada they refer to the most common type of mortgage as "fixed rate"... because it has a fixed rate for a few years and then becomes floating. It's not a true 30-year fixed rate as we have here in the US. So, even if someone in Denmark is saying it's a fixed rate, it's worth asking, is it a 100% fixed rate for the full 30-year life of the loan? But then also, how do interest rates work in Denmark, are they allowed to float with the market, are they tied to the EU, what happens during inflationary periods, etc? In general I think most of us in the US prefer a fixed rate to an ARM or floating rate, on the basis that rates right now are at historic lows and are likely to rise in the future, but that principle may not apply as much or at all in Denmark, I just don't know.
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Apr 20, 2018 19:00
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Struensee posted:Do we talk financing here? My gf and I have been offered to buy my GFs parents house at a favorable price which will basically count as a 20% down payment. I'm thinking about whether to get a fixed rate mortgage or variable rate. Fixed rates are ~ 2.25%, variable at the moment is 0,95%. Difference between payments would be about 300 dollars a month. Am I being foolish not locking in the fixed rate? If you were in the US I'd be screaming at the top of my lungs not to buy property with someone you are not married to. You get all the headaches of divorce without the benefits of marriage. I don't know how much that advice applies to Denmark because I don't know the process or transaction costs associated with selling real estate. That's aside from the potential relationship pitfalls of her parents lording the favorable sale over your relationship at a later date.
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Apr 20, 2018 22:31
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Every drat house I look at has just the most atrocious work done on it. I wouldn't mind buying a flipped house if they didn't just absolutely cheap out on every possible part to the most extreme. I looked at a house today that's in a good spot, lots of good upgrades from a previous owner (electrical, insulation, detached garage/workshop), but the last owner/flipper replaced the wood siding with the third cheapest vinyl siding that Home Depot sells, and they did a piss poor job installing it. The trim around the windows is especially bad. The house also has hardwood floors which are in decent shape considering their age, but in the bathroom and kitchen someone laid down tile. So instead of removing that tile, the flipper just laid a different pattern of tile on top of it. So now there is half an inch offset between certain areas. Also they only bothered to cover the 1/2" double-tile to wood edge between the living room and kitchen. Not anywhere else, so you can see the raggedy edge and old tile layer from the bedrooms. I mean it's all pretty paltry stuff I could fix, but I'd rather not pay for their poo poo included in the sale price, and then have to shell out to fix it myself again. Especially when the neighborhoods prices are at an all time high. e: I took pics The cheap vinyl siding (the cheapest color too!) https://imgur.com/nUF5Z1i Bedroom to hallway tile edge https://imgur.com/PijLbQG Great siding on the window https://imgur.com/x6iDQTr SpartanIvy fucked around with this message at 00:12 on Apr 21, 2018 |
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Apr 21, 2018 00:09
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Struensee posted:Do we talk financing here? My gf and I have been offered to buy my GFs parents house at a favorable price which will basically count as a 20% down payment. I'm thinking about whether to get a fixed rate mortgage or variable rate. Fixed rates are ~ 2.25%, variable at the moment is 0,95%. Difference between payments would be about 300 dollars a month. Am I being foolish not locking in the fixed rate? It depends on how long the rate is fixed for with the variable, how long you plan on living there, and if you can afford what the variable rate maxes out at. If you are going to move in a few years the variable makes more sense. You can put in different numbers for future interest rates and see what makes more sense for your situation. Plenty of people save money with a variable rate, and refinancing every few years. But some people get hosed after the rate increases to 10%
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Apr 21, 2018 00:30
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The variable rate is fixed for 3 years at a time, the fixed rate is fixed for 30 years. We're having a baby in august, so marriage is starting to make sense.
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Apr 21, 2018 18:26
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I'm not sure if this is the best place to put this, but how does one go about considering a cashout refi? I bought my house in 2012 for just under 160k, and currently owe about 128k. Loan is 3.25% FHA loan, which I know I'll never see again if I refi, but I also pay $146 monthly in PMI which I should be able to eliminate. Zillow says my house is worth $250,000 right now, which is surely complete bullshit, but I would refi at whatever the house appraises and have 80% ltv. I'm guessing closer to $220 based on comps. Wife an I are happy with our house, and don't want the trouble of moving, but it is a "starter home" and could use new countertops, refaced cabinets, gutters, updated bathrooms, etc, etc that would probably gobble up $20,000 or so. Wife also just finished up her LPN with sights set on pursuing her RN in the near future, so there may be some desire there in reducing student loans. Wife and I have 800+ credit scores, and will probably gross around 100,000 this year, but wife has only been in her current job a little under 2 months. I just see a good opportunity for a nice cash infusion which would be very useful right now, and enough equity in the house currently that even if housing took a big dive, I shouldn't be terribly underwater, with no goals of moving regardless. Any glaring drawbacks aside from the obvious interest rate increase and consequential lifetime amount owed?
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Apr 22, 2018 21:12
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Would the student loan interest be greater than the interest on the new mortgage? And how long would it take you to save up $20k for those home upgrades? Without dipping into emergency/retirement accounts
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Apr 22, 2018 21:32
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QuarkJets posted:Would the student loan interest be greater than the interest on the new mortgage? Loans are actually better than I expected, I thought they were closer to 6% but are actually around 3.5%, and have 5 months grace period before payments are "required". As far as saving 20k, probably 18 months with intense attention towards saving. Our emergency fund is not where I would like it to be either, and unfortunately we are soon staring down some substantial daycare fees for two kids. Does the risk/reward make more sense with a smaller cashout? In my head I'm targeting a 170k note. I know I shouldn't fixate on the monthly payment, but assuming I pay $100,000 more over the lifetime of the loan, I'm honestly ok absorbing that if it puts $40,000 cash in hand now for roughly what I'm paying now on the mortgage.
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Apr 23, 2018 05:01
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SuicidalSmurf posted:I'm not sure if this is the best place to put this, but how does one go about considering a cashout refi? I bought my house in 2012 for just under 160k, and currently owe about 128k. Loan is 3.25% FHA loan, which I know I'll never see again if I refi, but I also pay $146 monthly in PMI which I should be able to eliminate. Zillow says my house is worth $250,000 right now, which is surely complete bullshit, but I would refi at whatever the house appraises and have 80% ltv. I'm guessing closer to $220 based on comps. Should be at 78 LTV your PMI will just drop off, although depending on your lender you might need to pay for an appraisal to "prove" it. This is ratio is required by the FHA. Also cash out refi's are nearly always only for your lender's benefit. Sounds like you got some equity, maybe look into a Heloc/Heloan if you need money now, save that 3.25%. The heloc might get you the appraisal you need too. Shop around for helocs too, pricing varies a fuckload currently at various lenders, and there's no requirement to get it at the same lender. Edit: As a heads up HELOCS are done on the old forms sometimes, so you may not get a LE/CD on it from some lenders, this isn't a trick or a scam, just a reflection of lovely law writing. Double Edit: You're right, I was assuming he put down 10% but yeah, it's probably a life of loan cause gently caress poors forever and ever and ever. 1st_Panzer_Div. fucked around with this message at 06:22 on Apr 23, 2018 |
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Apr 23, 2018 05:31
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1st_Panzer_Div. posted:Should be at 78 LTV your PMI will just drop off, although depending on your lender you might need to pay for an appraisal to "prove" it. This is ratio is required by the FHA. New (since the recession) FHA pmi is the life of the loan. You prepay a mountain of it then have pmi forever. Only way out is refi. Because gently caress poor people.
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Apr 23, 2018 06:03
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I can’t believe Donald trump is the loving president
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Apr 23, 2018 06:28
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H110Hawk posted:New (since the recession) FHA pmi is the life of the loan. You prepay a mountain of it then have pmi forever. Only way out is refi. Because gently caress poor people. If you put down 10% or more it goes away after 11 years.
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Apr 23, 2018 14:34
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Motronic posted:If you put down 10% or more it goes away after 11 years. You can also just not use FHA at 10%, no more prepaid pmi.
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Apr 23, 2018 15:09
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Inching closer to our purchase, we got the inspection today. The big things that stood out: -The microwave vent above the range doesn't vent to the atmosphere, but to the attic (wtf?!!??). The inspector said that this is actually a safety issue, as it could lead to a fire in the attic. He said that to ameliorate it, they'd have to basically cut a hole in the roof and redo the vent (and the surrounding roofing). Is this a deal-breaker? Something like this seems pretty expensive to fix and I'd rather that they fix it. -The wiring at the breaker box is maxed out/has too many wires. He said that this is also somewhat of a safety hazard but is relatively inexpensive to address. -The goddamn oven doesn't work, even though it has power. Coupd this be related to the wiring issue? -The pool filter has a leak by the machinery (don't know what it's called). He presumed that it wasn't reassembled correctly the last time it was serviced. -Dent in the garage door. It doesn't prevent it from opening/closing, but it's unsightly. There were other minor things, but these were the ones that seemed more of a concern. Should we walk away given the vent/electrical issue? For reference, the house was built in 1992. The roof was replaced in 2013 after a hail storm, the pool was resurfaced in 2012 and the AC was replaced in 2013. IT BURNS fucked around with this message at 02:24 on Apr 25, 2018 |
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Apr 25, 2018 02:21
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Your real estate agent should be negotiating seller credits on your behalf.
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Apr 25, 2018 04:02
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I had a shower exhaust vent into the attic of our house when I bought it. It wasn’t that expensive. Three figure. I suspect the first issue would be similar. Seller should fix or credit the oven issue. Those don’t seem like big deals to me.
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Apr 25, 2018 04:29
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IT BURNS posted:Inching closer to our purchase, we got the inspection today. The big things that stood out: LOL on what planet is a new vent a big deal and a new electrical panel a small one? You are probably looking at a couple/ few hundred to fix the vent, and thousands for a new panel. Both are certainly fixable. Bring the inspection report to a contractor and see what they bid it.
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Apr 25, 2018 04:31
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This house sounds like a nightmare based on that post. But I also bought one so wtf do I know.
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Apr 25, 2018 04:34
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I’d be most afraid of the pool and the wiring and wouldn’t even bother mentioning the garage door. Like someone else said, money fixes everything and you should have the cost for those fixes negotiated in.
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Apr 25, 2018 05:03
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Slappy Pappy posted:I’d be most afraid of the pool and the wiring and wouldn’t even bother mentioning the garage door. Like someone else said, money fixes everything and you should have the cost for those fixes negotiated in. The other items sound like seller credits to me. And the new panel (if actually over loaded - inspectors are not electricians...) is definitely more money, probably a couple times more, than a roof jack. But also not a big deal. SiGmA_X fucked around with this message at 07:25 on Apr 25, 2018 |
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Apr 25, 2018 07:10
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IT BURNS posted:Inching closer to our purchase, we got the inspection today. The big things that stood out: I stopped at pool, don't buy a house with a pool. Water is the enemy, Also all houses are nightmares at least you won't be under some illusion that they are not.
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Apr 25, 2018 11:54
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We bought a house with a pool and filled it in immediately, bake the cost of that into your offer imo.
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Apr 25, 2018 11:56
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First time homebuyer here. Is there any risk in letting rocket mortgage put all my paperwork in front of an underwriter for full approval to get some numbers that I can shop around to other lenders? I dont think they are the best deal but feel like an easy first step to get some real world info to work with in terms of actual money.
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Apr 25, 2018 13:57
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I had a company ask me for that stuff too and I told them no simply because they wanted un-redacted copies of my bank transactions which is pretty drat personal information. To make it worse they also have in a disclosure I needed to sign that says they're free to sell any and all information I provide to them so I told them just to give me a standard pre-approval letter and they did with minimal push back, and I don't think I had to provide much info for it. When I actually need a loan then I'll provide my entire financial history to companies to sell to marketers, but not before.
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Apr 25, 2018 14:02
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therobit posted:LOL on what planet is a new vent a big deal and a new electrical panel a small one? You are probably looking at a couple/ few hundred to fix the vent, and thousands for a new panel. Both are certainly fixable. Bring the inspection report to a contractor and see what they bid it. I'm a first time homebuyer, so all of this is new to me, LOL. The exact phrasing from the inspection is "The panel box located at the garage has one or more double tapped breakers(additional circuit added to a breaker). This is a safety issue that needs to be corrected. A qualified licensed electrical contractor should perform repairs that involve wiring" and "The panel box located at the garage has one or more double tapped neutral wires(more than one wire sharing a spot on the buss bar). This is a safety issue that needs to be corrected. A qualified licensed electrical contractor should perform repairs that involve wiring" So, is this a major repair? If we're looking at rewiring the whole house, fuggit.
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Apr 25, 2018 16:53
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Elephanthead posted:I stopped at pool, don't buy a house with a pool. My buddy's divorced, depressed dad let his pool turn into a bright green science experiment. It was pretty impressive. The best way to have a pool is live in a condo complex with an HOA that maintains the community pool. I've been in the hot tub every night since I realized it helps me sleep.
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Apr 25, 2018 17:01
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IT BURNS posted:I'm a first time homebuyer, so all of this is new to me, LOL. The exact phrasing from the inspection is "The panel box located at the garage has one or more double tapped breakers(additional circuit added to a breaker). This is a safety issue that needs to be corrected. A qualified licensed electrical If you are not sure, hire an electrician to inspect it and give a quote. Same as with any other issues identified by the home inspector that could be expensive. Then ask for a seller credit. Also get the sewer scoped.
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Apr 25, 2018 17:09
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IT BURNS posted:I'm a first time homebuyer, so all of this is new to me, LOL. The exact phrasing from the inspection is "The panel box located at the garage has one or more double tapped breakers(additional circuit added to a breaker). This is a safety issue that needs to be corrected. A qualified licensed electrical It's not always bad. Some breakers are designed to be double tapped. If it is bad in your case, and there is no more space, then you can install a Tandem breaker like this one. https://www.amazon.com/Square-Schne...=tandem+breaker Now, all that being said, if the breaker is double tapped and shouldn't be, then that means Grover did the wiring for your house and it's probably sketchy.
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Apr 25, 2018 17:14
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Those problems are pretty minor compared to what I've seen in my area. The attic ducting should be a pretty straight forward fix I think. See if you can run the vent to the eave. That way you wouldn't have to worry about flashing and roof shingles and stuff. IANAE(lectrician) but I would think the breaker is a pretty straight forward fix too. Google and YouTube are your friend for finding out how much this stuff costs to fix and if it's a DIY job.
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Apr 25, 2018 17:21
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IT BURNS posted:I'm a first time homebuyer, so all of this is new to me, LOL. The exact phrasing from the inspection is "The panel box located at the garage has one or more double tapped breakers(additional circuit added to a breaker). This is a safety issue that needs to be corrected. A qualified licensed electrical That's a minor repair as described. The real question is who monkeyfucked that to being with, and what else did they do? Not only on that circuit or the electrical system in general, but to the entire house.
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Apr 25, 2018 17:54
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A house built in 1992 should not have any horrible wiring nightmares requiring re-wiring the whole house. But, there could be some previous-owner fuckery that needs to be fixed. None of those inspection items sound like dealbreakers to me, except for the existence of a pool which you were presumably already aware of. The kitchen vent can also be routed to an external wall instead of the roof, if it's already pretty close to a wall. Either way, getting a proper vent installed usually isn't a horribly high cost.
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Apr 25, 2018 18:35
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Sunny Side Up fucked around with this message at 02:18 on May 28, 2019 |
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Apr 25, 2018 19:24
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IT BURNS posted:I'm a first time homebuyer, so all of this is new to me, LOL. The exact phrasing from the inspection is "The panel box located at the garage has one or more double tapped breakers(additional circuit added to a breaker). This is a safety issue that needs to be corrected. A qualified licensed electrical I would say you want an electrician to bid it. I would think outs a bigger deal than the vent, but probably not a rewire situation. I'm not a contractor but replacing a panel can be pricey if that is truly what needs to be done. Nowhere close to the cost of rewiring the whole house though.
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Apr 25, 2018 21:21
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Sunny Side Up posted:1. With perfect credit, what interest rate would you expect or what would be your target right now for a jumbo loan? (after 20% down payment, loan amount is 440k) Bankrate is showing the lowest right now to be 4.25%. In October, we were able to negotiate about half a percentage point lower than the Freddie Mac survey average at the time: http://www.freddiemac.com/pmms/ we also paid a quarter of a point. cr0y posted:First time homebuyer here. Is there any risk in letting rocket mortgage put all my paperwork in front of an underwriter for full approval to get some numbers that I can shop around to other lenders? I dont think they are the best deal but feel like an easy first step to get some real world info to work with in terms of actual money. Seems fine to me as long as you don't commit to buying. I had a good experience with better.com - they had a $1000 best rate guarantee at the time. Their rate was not in fact the best, and they actually mailed me a check without much hassle. I was shocked. (Obviously make sure you read the fine print)
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Apr 25, 2018 23:22
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