bills_fan Posted April 1, 2008 Posted April 1, 2008 Do NOT put 20% down if you can avoid it. Put 11% down, overlay a fixed-rate HELOC and bank the remainder (or pay the 6.5 student loan debt). With home prices dropping nationally, the less I have tied up in an illiquid asset, and subject to extreme market risk, the better I would feel.
RayFinkle Posted April 1, 2008 Posted April 1, 2008 Do NOT put 20% down if you can avoid it. Put 11% down, overlay a fixed-rate HELOC and bank the remainder (or pay the 6.5 student loan debt). With home prices dropping nationally, the less I have tied up in an illiquid asset, and subject to extreme market risk, the better I would feel. The dude lives in WNY. He doesn't have anything to worry about, the real estate market in local in nature. If he lived in someplace which had experience a boom in prices over the past 5-10 years, I would agree with you.
RayFinkle Posted April 1, 2008 Posted April 1, 2008 I've worked with the ratios. 15% of our base gross income would be going towards monthly mortgage/PITI. I have also worked the numbers using much more strick ratios using what our actual take home paycheck is asI invest ~20% of my paycheck (15% in 401kand 5%in stock) While my fiancee is at 15%in 401k. I think alot of you guys on here think I am talking about buying a 600,000 home. The home we are looking at is roughly 360,000. We are expected to clear ~50 to 60 on the sale of our current home. We are looking to upsize as we have run out of room in our current home. Now is the time to upgrade. There is always a better way to make a penny squeal, but it sounds like you've got a good head on your shoulders in regards to what your doing. If you don't mind me asking, what are the taxes on a 360,000 house in WNY?
John Adams Posted April 1, 2008 Posted April 1, 2008 1. Real estate is a safe but bad investment. Historically--except right after WWII and in the last decade, it has almost never gone up and barely keeps pace with inflation. 2. You will always be happy with less than you think. Try not to overspend just because the house is shinier.
MarkyMannn Posted April 2, 2008 Posted April 2, 2008 If you don't mind me asking, what are the taxes on a 360,000 house in WNY? Just guessing, I'd say $10,000/year, maybe up to 12
zevo Posted April 2, 2008 Author Posted April 2, 2008 Just guessing, I'd say $10,000/year, maybe up to 12 you nailed it at 10,000. The house is in amherst so these kind of taxes are unavoidable, but it is a great area especially tyhe schooling. We curretnly live in snyder (amherst) which we love and we love our home. We just always wanted something newer (our current wouse was built in th 1920's) without actually having to build. we found the right home and we actually got our offer accepted today which was 10 grand below asking price on a 2 year old home. We are both really excited as we are getting married in August and now we both have a home together rather me livingin the home she bought before we met. Lets just hope everyhting goes well with the closing! Also I really appreciate the helpfulness taht you guys showed toward my situation and I would love more input. I am young and have alot to learn about these things butI am very thankful to have people like my father andmother (who have boght and sold 11 homesin their life) to consult with on many things. So I am learning as I go. Also does anyone know of any good mortgage rates being offered? Thanks
plenzmd1 Posted April 2, 2008 Posted April 2, 2008 Also does anyone know of any good mortgage rates being offered? Thanks My advice is to use someone you trust or the the people your folks have used several times. I got a hunch that with the decline in mortgage business, lots of people in the mortgage business be looking to ratchet up their "junk fees". This is the $300 for courier fees, the $100 for copy fees etc. Go to someone reputable and someone who will stand by their good faith estimate. Have heard of way to many horror stories of getting to closing, and mortgage saying " well, we need an $1,000 for this, or your rate is 1/2 point higher than thought" etc. I have not been following the rates at all, really have no idea if locking in a rate is a good or bad idea at this time. Seems like the fed funds rate etc are pretty low, but that does not mean mortgage rates have followed.
Fan in Chicago Posted April 2, 2008 Posted April 2, 2008 Also does anyone know of any good mortgage rates being offered? Thanks Depends on your region so you have to look around. With the way you have handled your finances, you will get the best possible rate. Most adjustable rates are currently higher than the 30-yr fixed rates so you may choose to go the 30-yr way. As plenzmd1 said, be aware of total fees required to close. In the past, I have found that lending banks have good loan officers so you may not necessarily have to go to a mortgage broker. The banks are more upfront with their total closing cost estimates. My suggestion is to call 3-4 banks and 1-2 mortgage brokers. This can be done over the phone so the only downside is a sore ear.
zevo Posted April 2, 2008 Author Posted April 2, 2008 Depends on your region so you have to look around. With the way you have handled your finances, you will get the best possible rate. Most adjustable rates are currently higher than the 30-yr fixed rates so you may choose to go the 30-yr way. As plenzmd1 said, be aware of total fees required to close. In the past, I have found that lending banks have good loan officers so you may not necessarily have to go to a mortgage broker. The banks are more upfront with their total closing cost estimates. My suggestion is to call 3-4 banks and 1-2 mortgage brokers. This can be done over the phone so the only downside is a sore ear. Will do. Right now I am exploring the internet.
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