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re: First Time Buying a House
Posted on 1/20/16 at 2:43 pm to PhiTiger1764
Posted on 1/20/16 at 2:43 pm to PhiTiger1764
quote:
You can get a conventional loan with 5% down. I'd save up until you have this and go with the conventional loan over FHA or RD. Your interest rate will be lower than a 0% down RD loan and PMI goes away once you reach 22% equity (not the case for most FHA loans. Much better loan if you can do it.
This is what we're going to do.
We need to buy a house soon for a lot of reasons, but most of which is the prices will continue to sky rocket in Nashville due to growth so we want to get in ASAP to make some money on our first home eventually.
4
Posted on 1/20/16 at 2:44 pm to TheCaterpillar
quote:
This is what we're going to do.
We need to buy a house soon for a lot of reasons, but most of which is the prices will continue to sky rocket in Nashville due to growth so we want to get in ASAP to make some money on our first home eventually.
This was my line of thinking in Dallas 3 years ago. It's worked out perfect for us.
Posted on 1/20/16 at 2:44 pm to OneMoreTime
quote:
I'm looking for my first house now and I have the scratch to put down 20% on a house in my price range $200k-$250k. However, that wouldn't leave me with much left in savings,
This is kind of the mindset I'm not used to having. Not blaming anyone, as I do get it. But how is your price range set before you know what's left in savings. That's kind of backwards to me. We should be saying "I can come up with X amount of money, so my price range is X dollars". Now it's become systematic and you are left with shitty starter homes costing 250k because everyone is willing to take money from the bank. And I know it's forced on some people because the only places acceptable to live are going to cost you, but it's a problem no matter which way you cut it.
Posted on 1/20/16 at 2:44 pm to TheCaterpillar
quote:
We need to buy a house soon for a lot of reasons,
you knocked up your wife within year 1
rookie move. you will miss that DINK money
Posted on 1/20/16 at 2:45 pm to TheCaterpillar
quote:If you could have gotten into East Nashville 3 years ago you could flip your house for triple.......
but most of which is the prices will continue to sky rocket in Nashville due to growth
Posted on 1/20/16 at 2:45 pm to lsupride87
quote:
We talkin bout Metairie bruh, not Manhattan
Maybe you should live in Kenner
Posted on 1/20/16 at 2:46 pm to lsupride87
quote:
save some money for a down paymentWith current interest rates being low, why? It makes no sense So lets say person A puts 20,000 down on a house that was 200,000. So there loan is 180,000. They move 3 years later, selling the house for 203,000, meaning they only actually gained 3,000. Lets say person B puts 0 down. There loan is worth 200,000. They sell for 203,000 meaning they still make 3,000. Now they may have to come out of pocket for realtors fees etc etc, but they arent out anymore money then person A IMHO, putting more money down should only be done when interest rates are high or you have a volatile job
What kind of funky math is that?
A) If you put down 3% on 200k @ 4.5%, including PMI, you'd owe $184,173 after 3 years.
B) If you put down 20% on 200k @ 4.5%, with no PMI, you'd owe $151,895 after 3 years.
So if you sold the house for $200k after 3 years, Option A would net you $15,827 and Option B would net $48,105 - $32,278 more than Option A (even though you paid $34k more upfront for Option A), but you can't stop there. In those 36 months of payments you would have paid $12,200 more with Option B, so in the end, putting $20k down up front saves you more than $10k if you sell the house in 3 years.
Posted on 1/20/16 at 2:48 pm to KG6
quote:Yep. I mean look at this house, in Metairie. You would guess it is going for like 150-175 right? Nope. 252,000 for this 1600 sq ft beauty
Now it's become systematic and you are left with shitty starter homes costing 250k because everyone is willing to take money from the bank. And I know it's forced on some people because the only places acceptable to live are going to cost you, but it's a problem no matter which way you cut it.
Posted on 1/20/16 at 2:48 pm to Displaced
You might wanna check this map. "Rural" is relative. There are some areas around BR that qualify this year and are hardly rural(everything southeast of Bluebonnet).
try this link. click single-family housing and zoom in on area you are looking at. Shows what's eligible. This is definitely the way to go right now.
LINK
try this link. click single-family housing and zoom in on area you are looking at. Shows what's eligible. This is definitely the way to go right now.
LINK
This post was edited on 1/20/16 at 2:50 pm
Posted on 1/20/16 at 2:48 pm to PhiTiger1764
quote:PMI goes away at 20% equity for my FHA loan. I didn't do anything special
PMI goes away once you reach 22% equity (not the case for most FHA loans.
Posted on 1/20/16 at 2:48 pm to KG6
quote:What? I know what I have in savings and roughly what I would have left depending on the down payment.
But how is your price range set before you know what's left in savings.
quote:This is pretty much what I'm saying
We should be saying "I can come up with X amount of money, so my price range is X dollars".
Posted on 1/20/16 at 2:49 pm to slackster
quote:I think you missed the funky math of having to wait the 3 extra years to save up with option A
What kind of funky math is that?
A) If you put down 3% on 200k @ 4.5%, including PMI, you'd owe $184,173 after 3 years.
B) If you put down 20% on 200k @ 4.5%, with no PMI, you'd owe $151,895 after 3 years.
So if you sold the house for $200k after 3 years, Option A would net you $15,827 and Option B would net $48,105 - $32,278 more than Option A (even though you paid $34k more upfront for Option A), but you can't stop there. In those 36 months of payments you would have paid $12,200 more with Option B, so in the end, putting $20k down up front saves you more than $10k if you sell the house in 3 years.
Posted on 1/20/16 at 2:51 pm to OneMoreTime
quote:
This is pretty much what I'm saying
No, what you're saying is, my price range is ~250k, but I don't have enough money to put down 20% and feel comfortable with savings. So, instead of lowering my price range, I'm lowering my down payment. There's a difference. To me, you shouldn't come up with the 250k number until you back out the down payment number from what you're comfortable parting with.
This post was edited on 1/20/16 at 2:53 pm
Posted on 1/20/16 at 2:52 pm to TheCaterpillar
quote:
We need to buy a house soon for a lot of reasons, but most of which is the prices will continue to sky rocket in Nashville due to growth so we want to get in ASAP to make some money on our first home eventually.
I understand your concern, but if real estate in any area was that much of a guarantee then institutional investors would be pouring money into that area.
Buy a house you can afford is the best advice you can get. Any plan that requires your house to significantly increase in value and/or for you to refinance in the future in order for it to work could have a disastrous result.
On a related note, we're less than 8 years removed from one of the biggest housing downturns this country has ever seen and people have already forgotten what got us into that mess. I'm not going to criticize individual decisions, but the sentiment among the majority in this thread is the same thought process that nearly ruined us in 2008.
This post was edited on 1/20/16 at 2:52 pm
Posted on 1/20/16 at 2:52 pm to KG6
quote:Im in the Ridge bruh
Maybe you should live in Kenner
Posted on 1/20/16 at 2:53 pm to lsunurse
quote:
You should ask this question to the Dave Ramsey disciples on the money board
Dave Ramsey doesn't do too hot on the money board.
Posted on 1/20/16 at 2:55 pm to Salmon
quote:
goddamn I love this place
right. So on a $200,000 home you want this guy to have, ball parking here and saying $3,000 a month emergency fund, $58,000 in the bank before buying a home... On top of a max 401K plan... Lawdy.
Posted on 1/20/16 at 2:55 pm to slackster
quote:
Buy a house you can afford is the best advice you can get.
right
but you are working on the assumption that "if you can only afford 3% down payment" in this thread, while I don't see anyone advocating that
Posted on 1/20/16 at 2:55 pm to yellowfin
quote:
keep from paying PMI which basically negates low interest rates
I don't know why more people can't figure this out.
Posted on 1/20/16 at 2:56 pm to slackster
quote:It depends on your industry. If the bottom fell out it simply doesnt matter for me personally. Sure, for a period of time I may be upside down on my house, but who cares? I am in an industry that isnt affected by the economy. So I just wont sell my house. And even if I put the 20% down initially, my ROI during the crash would be roughly the same
On a related note, we're less than 8 years removed from one of the biggest housing downturns this country has ever seen and people have already forgotten what got us into that mess. I'm not going to criticize individual decisions, but the sentiment among the majority in this thread is the same thought process that nearly ruined us in 2008.
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