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Kefit posted:I bought a townhouse in the Seattle eastside last summer, and when I started shopping I was similarly unsure about how to assess an HOA. But it became fairly clear to me after seeing a few HOA packets. Here are a few things to consider:
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Oct 7, 2023 18:45
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SFCU definitely takes RSUs of publicly traded companies into account Annual bonus can be included as part of your income, but you need to demonstrate it's a significant part of your regular income, and even then they only take the average of the last three years and then they apply some multiplier like 0.50 to it, because taxes. Both times we bought, we had to produce a signed letter from my wife's hiring manager that they expect her bonuses to continue at the same level. The standard is pretty high to count bonus as income. Agree that unlisted startup RSU is lol
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Oct 7, 2023 19:02
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pmchem posted:I took my response to the global econ thread. But baddog and I are right. Glad that you came around to seeing my side of things. That's great e: Oh nevermind, I'm reading that thread now, and lol QuarkJets fucked around with this message at 22:38 on Oct 7, 2023 |
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Oct 7, 2023 22:32
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How much of a hassle is it to get PMI removed from your mortgage once you hit 80% LTV? Wife and I are coming into some debt-paying cash and trying to determine if it makes sense to put it into getting rid of our PMI vs other stuff.
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Oct 8, 2023 03:29
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C-Euro posted:How much of a hassle is it to get PMI removed from your mortgage once you hit 80% LTV? Wife and I are coming into some debt-paying cash and trying to determine if it makes sense to put it into getting rid of our PMI vs other stuff. It depends on how you're going to get from A to B. If it's 80% LTV of your original loan/value (aka, you paid down the loan to 80%), it'll be super easy. Just submit the request. It might even fall off on its own. If you do it the other way (try to claim that your market has inflated and the value has increased enough to offset the loan, basically), your lender may very well tell you to gently caress off and say they won't honor the appraisals. That's what mine did - they refused to honor any reappraisals that weren't paired with major renovations on the basis of unstable interest rate conditions making appraisals unreliable.
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Oct 8, 2023 06:20
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C-Euro posted:How much of a hassle is it to get PMI removed from your mortgage once you hit 80% LTV? Wife and I are coming into some debt-paying cash and trying to determine if it makes sense to put it into getting rid of our PMI vs other stuff. For me it sounded like there would have been an appraisal I might have had to pay for. it was easier and cheaper for me to just wait for it to drop off automatically, which happens to be at the end of this month 
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Oct 8, 2023 06:50
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If you're going to make a big lump sum principal payment you might also want to look into having the loan recast. That's where they adjust the payment down to reflect the fact that there's a lot less interest being accrued than the initial amortization schedule was expecting. You can still pay the old payment and pay the loan off a lot faster, but having the official payment be lower gives you some flexibility to pay a lower payment if money ever becomes tight. I think there's normally a few hundred dollar fee attached and a minimum lump-sum principal amount required.
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Oct 8, 2023 11:08
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Update on the house with the leased solar panels on a 25 year old roof from a few pages back, I walked away from the deal when they weren't going to give me what I wanted (a new roof or a buyout of the panels), and then they came back the next day saying they would give us a credit if we got a quote on the roof. I came back with a roofing quote + a quote from the solar company to take the panels off and put them back on and the sellers said they would give me roughly ~60% of that quote as a credit and that was their final offer or they were going back to market. I told them no thanks! Then the next day they come back and say they will replace the roof before closing because they are able to go through insurance to have it done. Them being responsible for the roof on its own was enough for me to realize that would be bad for me, but them also saying they were getting insurance involved on an end-of-life roof that had no damage and it would be covered by insurance was enough to make me run for the hills. So they're back on the market. I cannot wait to see what it ultimately sells for because I'm thinking they're not going to end up with multiple offers over list again and certainly nowhere near my $50k over list offer, so I'm thinking they'll be losing anywhere between $20-$35k by not just giving me the credit I was asking for lol
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Oct 8, 2023 15:34
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Do they have an agent? The agent is probably going to fire them if they haven't already.
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Oct 8, 2023 16:29
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Dang nice job realizing that you needed to walk away and then doing so
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Oct 8, 2023 16:50
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QuarkJets posted:House-buying thread - Dang nice job realizing that you needed to walk away and then doing so
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Oct 8, 2023 17:41
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QuarkJets posted:Dang nice job realizing that you needed to walk away and then doing so
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Oct 8, 2023 18:25
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Sundae posted:It depends on how you're going to get from A to B. If it's 80% LTV of your original loan/value (aka, you paid down the loan to 80%), it'll be super easy. Just submit the request. It might even fall off on its own. If you do it the other way (try to claim that your market has inflated and the value has increased enough to offset the loan, basically), your lender may very well tell you to gently caress off and say they won't honor the appraisals. That's what mine did - they refused to honor any reappraisals that weren't paired with major renovations on the basis of unstable interest rate conditions making appraisals unreliable. NyetscapeNavigator posted:For me it sounded like there would have been an appraisal I might have had to pay for. it was easier and cheaper for me to just wait for it to drop off automatically, which happens to be at the end of this month This would just be us shoving a bunch of money into the loan in order to get down to 80% LTV, but we did the math and it's outside of the amount we have to work with. Alas! Shifty Pony posted:If you're going to make a big lump sum principal payment you might also want to look into having the loan recast. That's where they adjust the payment down to reflect the fact that there's a lot less interest being accrued than the initial amortization schedule was expecting. Hmmm I might see if our monthly home equity loan payment could be adjusted in a similar manner.
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Oct 8, 2023 20:19
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I'm a little confused, they said they'd replace the roof and you didn't want that? Or they were going to do the work themselves of something? You can absolutely have insurance cover a roof despite it looking fine from the ground. I had my roof replaced this spring from a hail storm that had happened over a year prior. The roof looked fine from the ground and had no water or anything was was ~25 years old. Insurance completely covered it minus a small deductible, they even covered replacing the boards underneath and the venting as they weren't to code. Maybe I am misunderstanding, if you just decided you didn't want the house great, but I feel like I am missing something if you didn't want them to replace the roof in this situation.....
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Oct 8, 2023 20:30
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Your insurance covered damage from an event you reported a year after it occurred?
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Oct 8, 2023 20:34
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Jenkl posted:Your insurance covered damage from an event you reported a year after it occurred? Yep. Not quite a year because we reported it before the work was done, but yes that's not super unusual for roof damage. This was a huge event and they have a pretty simple formula for figuring out if there's enough hail damage to warrant a complete replacement. There's still people getting roofs replaced now for the hail storm that was 18 months ago. https://stinsonservices.com/insuran...nd%20confusing.
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Oct 8, 2023 20:38
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Lockback posted:I'm a little confused, they said they'd replace the roof and you didn't want that? Or they were going to do the work themselves of something? Except the massive increase in insurance that the new owner will be stuck with after these sellers make the claim. He’ll be paying for that new roof out of pocket in insurance premiums over the next 10 years.
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Oct 8, 2023 20:52
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Pilfered Pallbearers posted:Except the massive increase in insurance that the new owner will be stuck with after these sellers make the claim. That's usually not how it works, the previous owners are filing the claim, not you. In fact a new roof means its less likely that house is at risk, not more. In my case my insurance stayed pat though it's the only claim I've made in 10 years.
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Oct 8, 2023 21:06
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Lockback posted:Yep. Not quite a year because we reported it before the work was done, but yes that's not super unusual for roof damage. This was a huge event and they have a pretty simple formula for figuring out if there's enough hail damage to warrant a complete replacement. There's still people getting roofs replaced now for the hail storm that was 18 months ago. Wow! That's pretty neat. You made me go read my policy because I could swear you had a clock. Mine states I have to inform them ASAP basically. Not sure what that means in practice. I've not heard the best thing about my insurer's claims handling process, and could see them denying over that.
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Oct 8, 2023 21:56
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Ours was a year as well. We got ours replaced from a hailstorm 9 months prior. I had a roofer out to just look at my roof. Just for fun. No idea it had damage. He said it has hail damage... used some app to track hail storms in my area from the past year. Confirmed one had happened 9 months prior... filed a claim and that was it! (This was 2019 I think with nationwide)
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Oct 8, 2023 23:36
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Lockback posted:I'm a little confused, they said they'd replace the roof and you didn't want that? Or they were going to do the work themselves of something? If there was damage to the roof, they didn't ever disclose that to me in our back and forth over a week and a half nor did the roofing contractor I sent out for a quote. All of a sudden manifesting some issue that was going to have insurance pay to replace their roof did not give me good vibes at all. And I also really did not want them hiring someone to half-rear end the job for cheap either. The credit so that I could handle all of this was a perfectly reasonable solution and the fact that they didn't take that, after all the bullshit I'd already been with this seller (in the original post I explained how the disclosure said the roof was less than 10 years old, which turned out to be not the case when we pulled the previous seller's disclosure that revealed the roof was 25 years old), I did not feel things were going in a good and honest direction.
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Oct 8, 2023 23:49
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JUNGLE BOY posted:...I did not feel things were going in a good and honest direction. I cannot stress enough what a good move you made walking away from this. Congrats, you passed a key test that so many buyers fail.
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Oct 9, 2023 00:06
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Yeah just being done with it makes sense, but just to let you know (for your future house) that having a roof that seems fine but gets replaced on inspection is super common, doesn't mean anything nefarious happened. They took the insurance route because it costs the $1500 deductible, not the 20-30k it would cost to give you a credit, and if they do it through insurance it'll have to be fine through a reputable roofing contractor, there isn't really any motivation to use a cheap company. Your paying the same deductible either way. I get the "I gave them an offer and they denied it and I'd like to move on" and I think it's smart if you have bad vibes, but in the future the smart thing to do if you need to replace a roof is to try to get it through insurance, so their steps aren't really shady or anything at all.
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Oct 9, 2023 01:39
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Lockback posted:Yeah just being done with it makes sense, but just to let you know (for your future house) that having a roof that seems fine but gets replaced on inspection is super common, doesn't mean anything nefarious happened. They took the insurance route because it costs the $1500 deductible, not the 20-30k it would cost to give you a credit, and if they do it through insurance it'll have to be fine through a reputable roofing contractor, there isn't really any motivation to use a cheap company. Your paying the same deductible either way. The biggest red flag is that it was advertised as “less than 10 years old” when “oopsie, its actually 25 years old”. What else are they forgetting or omitting?
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Oct 9, 2023 01:41
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Lockback posted:Yeah just being done with it makes sense, but just to let you know (for your future house) that having a roof that seems fine but gets replaced on inspection is super common, doesn't mean anything nefarious happened. They took the insurance route because it costs the $1500 deductible, not the 20-30k it would cost to give you a credit, and if they do it through insurance it'll have to be fine through a reputable roofing contractor, there isn't really any motivation to use a cheap company. Your paying the same deductible either way. e: fb
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Oct 9, 2023 01:42
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Lockback posted:That's usually not how it works, the previous owners are filing the claim, not you. In fact a new roof means its less likely that house is at risk, not more. This is incorrect. My insurance is quite a bit higher because my previous owners made 2 claims over a 4 year period. Also see https://www.insure.com/home-insurance/past-claims.html Or google about it if you don’t like my link. I was surprised as hell, but it’s true. One claim may not be enough to tip the scales here, but you don’t know the past claim history either.
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Oct 9, 2023 03:47
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Pilfered Pallbearers posted:This is incorrect. My insurance is quite a bit higher because my previous owners made 2 claims over a 4 year period. "A string of homeowners claims" is a different story. Like you said, 1 claim from the previous owner isn't what this is referring to. Like, don't not get a new roof because you think your premiums might go up. And it should go without saying, get multiple quotes. You should have insurance options and you can absolutely play them off each other.
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Oct 9, 2023 03:59
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Lockback posted:"A string of homeowners claims" is a different story. Like you said, 1 claim from the previous owner isn't what this is referring to. Like, don't not get a new roof because you think your premiums might go up. Oh I did this and was able to get one, but it was difficult and work. My point is saying “the previous owners are filing a claim, not you” isn’t a valid statement here. What if there was some kind of disaster 1 or 2 years in that did need a claim? It 100% is a factor here.
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Oct 9, 2023 04:12
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I want to know why they just wouldn't buy out the solar lease. That's going to be way less than $20k.
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Oct 10, 2023 14:58
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Lockback posted:and if they do it through insurance it'll have to be fine through a reputable roofing contractor, there isn't really any motivation to use a cheap company. Your paying the same deductible either way. I'd like to introduce you to all the fly by night roofing companies that sit and wait for a storm to come through Florida, collect a fat insurance check, slap on the roof the cheapest they can by using day laborers, change their name and repeat the same scam a few counties over. It's why a lot of insurance companies have pulled out of Florida because of these scam claims.
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Oct 10, 2023 18:35
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Am I reading this right? If you take an early withdrawal from a SIMPLE IRA for a first time home purchase there is no extra penalty, but there is from a 401K? I thought it was the other way around. Really love the US tax system and it's simplicity. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions
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Oct 16, 2023 19:32
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charliebravo77 posted:Am I reading this right? If you take an early withdrawal from a SIMPLE IRA for a first time home purchase there is no extra penalty, but there is from a 401K? I thought it was the other way around. Really love the US tax system and it's simplicity. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions I'm very much not a tax expert but that's how I read it, and also why I think the better path is to explore a loan from your 401k for the down payment as opposed to a withdrawal.
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Oct 16, 2023 19:35
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Beef Of Ages posted:I'm very much not a tax expert but that's how I read it, and also why I think the better path is to explore a loan from your 401k for the down payment as opposed to a withdrawal. I'm not eligible for a loan so ¯\_(ツ)_/¯
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Oct 16, 2023 19:49
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I'm not shaming or anything and it really depends on all the particulars, but I think most of us in the thread are against raiding your retirement money to buy a house with. You lose all those future returns that money would have gotten you, so you're robbing your older self for money to buy a house. Maybe that money will appreciate similarly (or better) as a real estate asset... maybe not. Additionally, if you can't save enough for a down payment that suggests that you won't be able to reasonably afford the add-on costs of a house, like maintenance. Of course you could potentially be buying for less than your current rent, but that's unusual.
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Oct 16, 2023 20:23
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If you don't qualify for a loan from your 401k it's probably less than 70k and... the way inflation is going it's not a completely terribly awful idea. Especially if you're under 35, and/or have a baby on the way. But yeah ideally don't rob your retirement fund to buy a house. That said, I have done it twice in Liquidating ~250k 401k to buy a house is a really dumb idea though
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Oct 16, 2023 21:12
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One thing to keep in mind when taking a 401(k) loan is that often times if you leave your job (or your job leaves you), the outstanding balance of the loan becomes due all at once. If you don't have the cash to cover it, then they'll take it out of your 401(k) balance as a distribution, which would have its own tax consequences. I'll admit I've considered taking money out of a Roth IRA to supplement our down payment, especially these days considering current interest rates, but I'll probably end up leaving it where it is since my wife and I earn just enough that I can't make Roth IRA contributions to put it back.
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Oct 16, 2023 21:51
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Paper Tiger posted:One thing to keep in mind when taking a 401(k) loan is that often times if you leave your job (or your job leaves you), the outstanding balance of the loan becomes due all at once. If you don't have the cash to cover it, then they'll take it out of your 401(k) balance as a distribution, which would have its own tax consequences. I presume you are aware of backdoor Roth IRA contributions, and there's something else preventing you from doing so like a big tax-deductible trad IRA balance, but if not... you should do that.
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Oct 16, 2023 21:53
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KYOON GRIFFEY JR posted:I presume you are aware of backdoor Roth IRA contributions, and there's something else preventing you from doing so like a big tax-deductible trad IRA balance, but if not... you should do that. Are you coming on to me??? jk I actually forgot about those, I should really look into it now that the market's cooled off (relatively) Paper Tiger fucked around with this message at 21:59 on Oct 16, 2023 |
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Oct 16, 2023 21:55
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charliebravo77 posted:I'm not eligible for a loan so ¯\_(ツ)_/¯ From my recollection, most 401k plans offer loans for home buying with pretty extreme payback periods (10-20 years) and very loose requirements. There aren’t any credit checks or anything, and you generally aren’t eligible only if you - Aren’t vested - Already have a loan of x% - Balance is under a certain threshold (which is typically pretty low) I did take a small one to get over the PMI hump & ensure my savings for maintenance and such were at safe numbers, but my job is unique in that it if I leave the company I get to keep my payment plan for the entire original period as long as I don’t lapse. My 401k is already well funded, plus my wife has a pension + a 403b that’s much better funded, and we’re not even 35 yet. I have enough retirement savings laid out so early that it shouldn’t be an issue for me, and I didn’t take anywhere near the max I could have. It’s certainly possible and seems to make sense in the right situations, but I also could have afforded the house without it. It’s a risky bet against your future. I’m of the opinion that someone complaining about the withdrawal penalty, and not divulging any information other than they’re not loan eligible with a shrug, should absolutely not do whatever they’re planning to do.
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Oct 16, 2023 22:34
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I took 401k loan to buy our first house, I think it's common but probably still not a good idea. I eventually paid it off, and up to that point the fear of getting downsized or some poo poo was amplified a little by the fear of also having to pay back this loan to myself. It sucks Don't withdraw from your Roth ira to buy a house imo, not worth it at all
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Oct 17, 2023 00:35
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