So I'm Looking to Buy a House
- Thread starter Nyquist
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I love Credit Unions. I think they are less likely to change hands or sell your mortgage to someone else. It is also nice to deal with local people if you have an issue.
Go fixed for sure. Adjustable rates make sense in a few instances but not many. Also consider a 20 yr or a bi-weekly to save that interest!
Go fixed for sure. Adjustable rates make sense in a few instances but not many. Also consider a 20 yr or a bi-weekly to save that interest!
i would shop for the lowest fees from the lender, not just the interest rate of the loan.
credit union!!!
I'm not in the market for a house until next year. sucks that I signed a renewed lease when the govt is offering $8k for first time buyers. I seem to be missing these deals. I would go 30 years, then make payments in advance to knock off years/interest. You have to make sure your contract allows you to pay off your mortgage early though.
Consider NACA.
Sit down with your partner and very carefully think about all scenarios.
Be aware that buying before a bottom usually requires owning the property for what could be longterm.
More importantly, I wish you good luck and a bright future.
Sit down with your partner and very carefully think about all scenarios.
Be aware that buying before a bottom usually requires owning the property for what could be longterm.
More importantly, I wish you good luck and a bright future.
Kestas
Staff member
My credit union has given back the profits to its members for the past two years, to the tune of 0.5% of their holdings. Holdings include the mortgage you carry with them, so I made out like a bandit for the past two years.
Doesn't matter if it's a bank or credit union, find the place that gives you the best rate. I would ask around and see if you can find a good mortgage broker.
When we bought our house I called the bank I work for, and they quoted me 7.05%. Found a mortgage broker who got me 5.75%. And that was through Wells Fargo who quoted me 6.25%. This was all a few years ago. Maybe credit unions in your part of the country are better, they aren't very competitive here.
When we bought our house I called the bank I work for, and they quoted me 7.05%. Found a mortgage broker who got me 5.75%. And that was through Wells Fargo who quoted me 6.25%. This was all a few years ago. Maybe credit unions in your part of the country are better, they aren't very competitive here.
Originally Posted By: stockrex
unless u are staying in that house for 10 yrs just be patient and rent the smallest place in good neighborhood
Good advice in general but lots of factors of course. This is a declining market so in the short term your house would not be an appreciating asset and you would be paying huge amounts of interest to have an asset that is losing money or not gaining anything.
Save up a big downpayment then get a screaming deal and pay tens of thousands less interest. Look at an amoritization table/calculator such as on bankrate.com and see how much of your monthly payment in the first few years goes towards interest. It will be almost all of it unless you have a large downpayment already. You would be better off to put that money elsewhere instead of paying the bank interest and then make a bigger downpayment when you buy a house.
Of course local market, neghborhood, taxes, etc. variables must be taken into account and what I sam saying is obviously a broad generalization.
unless u are staying in that house for 10 yrs just be patient and rent the smallest place in good neighborhood
Good advice in general but lots of factors of course. This is a declining market so in the short term your house would not be an appreciating asset and you would be paying huge amounts of interest to have an asset that is losing money or not gaining anything.
Save up a big downpayment then get a screaming deal and pay tens of thousands less interest. Look at an amoritization table/calculator such as on bankrate.com and see how much of your monthly payment in the first few years goes towards interest. It will be almost all of it unless you have a large downpayment already. You would be better off to put that money elsewhere instead of paying the bank interest and then make a bigger downpayment when you buy a house.
Of course local market, neghborhood, taxes, etc. variables must be taken into account and what I sam saying is obviously a broad generalization.
Look for whoever will give you the best rate. Watch out for points and closing costs.
15 year fixed that is no more than 25% of your TAKE HOME pay.
All I hope for is that I can sell my home for $1 more than I paid for it when I get out. That way my kids can afford a home.
No reason for me to rip off the next generation.
Take care, Bill
15 year fixed that is no more than 25% of your TAKE HOME pay.
All I hope for is that I can sell my home for $1 more than I paid for it when I get out. That way my kids can afford a home.
No reason for me to rip off the next generation.
Take care, Bill
Go for it! You'll probably pay all these ripoff charges like PMI and you won't knock your principal down very much... but it beats renting!!! When you rent someone else pays a mortgage, taxes etc but also expects a profit.
Try for the very best loan you can get but you "might" be able to refi later. I did and went from a 30 year in the 7's to a 20 year in the 5's. Your credit will be even better still after owning a house for a couple years... crazy but true.
I rode an upward equity wave and was able to shake off PMI when I refi'd; I find it completely asinine that I paid $60 a month for that... and presumably many others did too... but the floppy mortgages still dragged down the house of cards.
I tried forever to explain to myself the premise of points, and finally convinced myself they're an upfront "bribe" to get a lower rate. Good only if you're sure you're not moving or refinancing over the term of the note.
Try for the very best loan you can get but you "might" be able to refi later. I did and went from a 30 year in the 7's to a 20 year in the 5's. Your credit will be even better still after owning a house for a couple years... crazy but true.
I rode an upward equity wave and was able to shake off PMI when I refi'd; I find it completely asinine that I paid $60 a month for that... and presumably many others did too... but the floppy mortgages still dragged down the house of cards.
I tried forever to explain to myself the premise of points, and finally convinced myself they're an upfront "bribe" to get a lower rate. Good only if you're sure you're not moving or refinancing over the term of the note.
I told my wife next year, I want to buy a nice house and live in it for the rest of our lives, pay it off. she wants to get a starter house to live in a few years then upgrade. in this market, we will lose money on a starter house. I'll be 32 years old this year, I want to buy a nice house, pay it off quickly so I can retire when I'm 55
You rarely lose money on a starter house, they hold value better than McMansions.
If you have ~30% equity when you move up, convert it to a rental property. You get better loan deals on houses you live in so you have to live in every new place you buy for a while.
If you have ~30% equity when you move up, convert it to a rental property. You get better loan deals on houses you live in so you have to live in every new place you buy for a while.
Here is a list of highlight that you may take with a grain of salt, because they are from a high priced market like SF Bay Area:
1. The types of home that keeps the value is the ones in good school district, because people are always trying to put their kids in good school and it is not always about ROI financially. Those are the high price districts that rarely drop, and people don't sell unless they retire and move out of the area. (i.e. Cupertino, Evergreen, Fremont, Black Hawk, etc).
2. Make sure your mortgage has no points or fee, even if the rate is higher, because you most likely will have to move when your need changes later (i.e. more income and move to a better house/school district, find a better job in another state, the price rise so much it is worth selling and move somewhere, the neighborhood go downhill and becomes a ghetto, etc). Keep yourself flexible so you have less to lose. Make sure if you pay off the mortgage early there is no penalty.
3. Get a fixed rate, as a defensive move and you will not need to worry about rate reset.
4. Check for things like HOA or property tax rate, those affect the long term value compare to the nearby area with differences in HOA and tax rate. $300/mo in HOA turns into $100k in 30 years.
5. Not sure about in Nashville, but in the bay area it is always the location that worth the price. A new house in Stockton could be only $250k but a run down, needs to be tear down house in San Francisco could be $700k. It is the commute time and distance that makes the differences.
6. Renting could be cheaper by a lot, because the rent you pay may be much lower than a mortgage interest even after tax deduction, that it makes sense to rent and save the money in CD, especially when the price is dropping. Don't wait too long if you think the price is bottomed out and the next boom starts, and you miss the boat and have to pay more.
7. I think paying off a mortgage first if you have extra income is a wise choice, because it has no risk and fixed return. Now if you are a stock wiz is always generating way higher return in your investment (unlikely) then you may be not want to do that. For most people, there is no better investment with such a low risk. Some people keep buying bigger and bigger houses because their income tax is getting too high, and need a big mortgage to reduce taxes. In those cases this is also not a good idea, if you can find a better way to use your money.
1. The types of home that keeps the value is the ones in good school district, because people are always trying to put their kids in good school and it is not always about ROI financially. Those are the high price districts that rarely drop, and people don't sell unless they retire and move out of the area. (i.e. Cupertino, Evergreen, Fremont, Black Hawk, etc).
2. Make sure your mortgage has no points or fee, even if the rate is higher, because you most likely will have to move when your need changes later (i.e. more income and move to a better house/school district, find a better job in another state, the price rise so much it is worth selling and move somewhere, the neighborhood go downhill and becomes a ghetto, etc). Keep yourself flexible so you have less to lose. Make sure if you pay off the mortgage early there is no penalty.
3. Get a fixed rate, as a defensive move and you will not need to worry about rate reset.
4. Check for things like HOA or property tax rate, those affect the long term value compare to the nearby area with differences in HOA and tax rate. $300/mo in HOA turns into $100k in 30 years.
5. Not sure about in Nashville, but in the bay area it is always the location that worth the price. A new house in Stockton could be only $250k but a run down, needs to be tear down house in San Francisco could be $700k. It is the commute time and distance that makes the differences.
6. Renting could be cheaper by a lot, because the rent you pay may be much lower than a mortgage interest even after tax deduction, that it makes sense to rent and save the money in CD, especially when the price is dropping. Don't wait too long if you think the price is bottomed out and the next boom starts, and you miss the boat and have to pay more.
7. I think paying off a mortgage first if you have extra income is a wise choice, because it has no risk and fixed return. Now if you are a stock wiz is always generating way higher return in your investment (unlikely) then you may be not want to do that. For most people, there is no better investment with such a low risk. Some people keep buying bigger and bigger houses because their income tax is getting too high, and need a big mortgage to reduce taxes. In those cases this is also not a good idea, if you can find a better way to use your money.
I agree with all the above postings.
but I mean a giant mama hippo but is ask yourself very very honestly if u will stay in it and in the area for many yrs.
house - appreciating asset, true but what cost?
ur dream and appreciating asset will quickly turn in to cash draining white elephant.
starter houses - I hope the poster is willing to warranty his claim about not losing any money like AIG.
house is no different ur car, people cease to exhibit rational behavior. only the best for my baby, said one poster about his car while filling her with 93 octane when it uses regular.
OP do as your life plan requires but only thing I suggest is that first have a plan and then execute. don't look at ur age but see where u r in ur life plan.
mortgage: would u pay me a dollar to save 10 cents?
disclosure: come on gents lets tell the OP how we spent on interest, ins, and repairs. oh also heating and cooling.
mine is around - 19000$
heating $500/month
but I mean a giant mama hippo but is ask yourself very very honestly if u will stay in it and in the area for many yrs.
house - appreciating asset, true but what cost?
ur dream and appreciating asset will quickly turn in to cash draining white elephant.
starter houses - I hope the poster is willing to warranty his claim about not losing any money like AIG.
house is no different ur car, people cease to exhibit rational behavior. only the best for my baby, said one poster about his car while filling her with 93 octane when it uses regular.
OP do as your life plan requires but only thing I suggest is that first have a plan and then execute. don't look at ur age but see where u r in ur life plan.
mortgage: would u pay me a dollar to save 10 cents?
disclosure: come on gents lets tell the OP how we spent on interest, ins, and repairs. oh also heating and cooling.
mine is around - 19000$
heating $500/month
the homeowner's association fees are bunk to me. I grew up in a neighborhood with no such fees and lived in an apt ever since. most houses I checked online have $100 HOA monthly fees Homes in the 350K (3250 square foot homes)
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Originally Posted By: stockrex
disclosure: come on gents lets tell the OP how we spent on interest, ins, and repairs. oh also heating and cooling.
Mortgage payment (30yr fixed): 3507.35/month
Insurance: $600/yr
Property Tax: $8400/yr
Maintenance: Less than $500/yr so far
Utility (gas, electric, water, garbage): $120-200/month
HOA: None
Second mortgage: None
Thinking about renting out a room that we don't use, but wife said no.
disclosure: come on gents lets tell the OP how we spent on interest, ins, and repairs. oh also heating and cooling.
Mortgage payment (30yr fixed): 3507.35/month
Insurance: $600/yr
Property Tax: $8400/yr
Maintenance: Less than $500/yr so far
Utility (gas, electric, water, garbage): $120-200/month
HOA: None
Second mortgage: None
Thinking about renting out a room that we don't use, but wife said no.
Originally Posted By: Nyquist
My question is if you had the chance to get a 30-year fixed mortgage from a bank or credit union, which would you choose and why?
try here, http://www.nopointsnoclosingcosts.com
My question is if you had the chance to get a 30-year fixed mortgage from a bank or credit union, which would you choose and why?
try here, http://www.nopointsnoclosingcosts.com
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