For the Rookies

[undies]

Last year I got my house for $432k at 3.75%. Paying $2,450/month mortgage! 2 bed 1 bath, 815 sq feet!
Cost of living is crazy in So Cal.

 

[1989]

Last year I got my house for $432k at 3.75%. Paying $2,450/month mortgage! 2 bed 1 bath, 815 sq feet!
Cost of living is crazy in So Cal.

I could get a 1700sf house 3 bd 2 bath with a 35 ft dock, small lot though, for that kinda dough.

 

[Scottyhawk]

You don't need 20% down for a conventional mortgage.

You don't, but then you need to have PMI until you have 20% equity in the home

 

[UPS_CDOT_DRIVER]

I'm from PA, my son just bought a house on 5 acres for 150k. House needs work but he you can't beat that price for the land.

Depends on where you are in PA, once you go east of Philly working at express or ups is considered good money to most people

I assume you meant west of Philly because that's where I live and east of us is NJ.

 

[DriveInDriveOut]

You don't, but then you need to have PMI until you have 20% equity in the home

True, but you pay that with FHA too, and with the new regulations, you're stuck paying MI for the life of the FHA loan.

 

[1989]

True, but you pay that with FHA too, and with the new regulations, you're stuck paying MI for the life of the FHA loan.

Is PMI now tax deductible? It wasn't 25 years ago when I had an FHA loan.

 

[DriveInDriveOut]

Is PMI now tax deductible? It wasn't 25 years ago when I had an FHA loan.

If you make less than 100k.
So no, not for most of us with working spouses.

 

[1989]

If you make less than 100k.
So no, not for most of us with working spouses.

if your making over 100K. You probably don't qualify for FHA. Or have to worry about 20% down.

 

[DriveInDriveOut]

if your making over 100K. You probably don't qualify for FHA. Or have to worry about 20% down.

FHA loans don't have an income limit.
But my point was you can get a conventional loan with only 5 percent down.

 

[Star B]

derp.

 

[1989]

FHA loans don't have an income limit.
But my point was you can get a conventional loan with only 5 percent down.

Wells Fargo has a 3% down loan. Under the $417,000 jumbo limit.

 

[baklava]

True, but you pay that with FHA too, and with the new regulations, you're stuck paying MI for the life of the FHA loan.

Unless you refinance out of it when there's enough equity in the home

 

[DriveInDriveOut]

Unless you refinance out of it when there's enough equity in the home

True, but unless your credit isn't good enough to get a conventional, probably better to just save the extra 1.5 percent down payment, you could lose money on the refinance depending on the situation.

 

[IVE GOTTA PACKAGE 4U]

True, but unless your credit isn't good enough to get a conventional, probably better to just save the extra 1.5 percent down payment, you could lose money on the refinance depending on the situation.

If you have bad credit and can't at least come up with a 10% down payment. Maybe you aren't ready to buy a home ?



Not saying you...just in general.

 

[DriveInDriveOut]

If you have bad credit and can't at least come up with a 10% down payment. Maybe you aren't ready to buy a home ?



Not saying you...just in general.

Exactly.
Problem is banks are going to find a way to make money off those people one way or another, even if it means people being foreclosed on down the road. You'd think banks would have learned from the last fallout, but when the government/tax payer bails them out every time they fail what's the risk....

 

[IVE GOTTA PACKAGE 4U]

Exactly.
Problem is banks are going to find a way to make money off those people one way or another, even if it means people being foreclosed on down the road. You'd think banks would have learned from the last fallout, but when the government/tax payer bails them out every time they fail what's the risk....

Just like they have 7 year loans on cars or leases. You are letting people buy something they truly can afford.

 

[wayfair]

Last year I got my house for $432k at 3.75%. Paying $2,450/month mortgage! 2 bed 1 bath, 815 sq feet!
Cost of living is crazy in So Cal.

seen this a few days ago...

3115 Wimberley Creek Dr, Yukon, OK 73099 - 4 beds/3.5 baths

 

[1989]

If you have bad credit and can't at least come up with a 10% down payment. Maybe you aren't ready to buy a home ?



Not saying you...just in general.

If I'm paying 10% and the bank is paying 90%. Arn't I just leasing it from the bank?

 

[IVE GOTTA PACKAGE 4U]

If I'm paying 10% and the bank is paying 90%. Arn't I just leasing it from the bank?

Nope. You are buying it with their money. At the end of "the so called lease "
You own it,not having to return it to them.

 

[UpstateNYUPSer(Ret)]

Nope. You are buying it with their money. At the end of "the so called lease "
You own it,not having to return it to them.

...with the hope that the value has gone up...