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For those of you who own their homes...
How much did you put down and what did the home cost? I'm just curious. I'm looking at buying a home in the next couple of years and I'd feel guilty only putting down 20-30k on a 200k condo (if all works out as I forsee)... but I don't want to wipe out my savings account, either. And... I'd like to have a mortage payment that's maybe $1,500 if not less (I won't be a stripper forever). I have no debt and no other outstanding loans.
So yea... I'm just gathering information... I hope it's not too personal.
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Re: For those of you who own their homes...
why would you feel guilty?
Your mortgage payment will be higher if you don't put at least 20% down because you'll have a higher interest rate, you'll pay PMI and of course your loan will be based on a higher amount.
If you can do 20%, it's so worth it.
I put 20% down on mine, and it cost 313,000. I did wipe out my savings, it's not like I spent it on something stupid. I still have the money, just as home equity. (I live in an area that's not depreciating.)
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Re: For those of you who own their homes...
I believe we only put about 5% down on ours.
DOnt feel guilty..there are a million programs that are specifically for people wh cant afford to put down 20%....as in..almost everybody. There are even some 0 down programs. You will have a higher rate and higher payments though. It will also depend on your credit.
10% is more then most people put down nowadays!
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Re: For those of you who own their homes...
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Originally Posted by
cameron_keys
10% is more then most people put down nowadays!
True story. It's more and more common for people to put down 10% or less when they buy a home but really, the more the better when it comes to making a downpayment. For example, a $25 000 down payment on a house costing $250 000 (10%) leaves $225 000 to be mortgaged. Making monthly payments ($2070/mo) at an interest rate of 8% over twenty years would cost you an extra $170 000+ in interest.
Putting $50 000 (20%) down and keeping the interest and amortization period the same would only cost $118 700. It saves quite a bit of money and like Emily said, it's not as if you "blew" your savings. You invested it and home equity will get you further then the monthly interest from having the cash sitting in your bank account.
Then again, these are just random numbers. I just picked $250 000 because that's the average price of a home in my city. Obviously if you're going to spend less then that you can get away with making a smaller down payment.
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Re: For those of you who own their homes...
^^^ with the newly enacted regulatory guidelines for mortgage lenders, it may not be possible to obtain a new mortgage at all unless you put 20% down in the near future.
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Re: For those of you who own their homes...
We didn't put down a down payment but my husband is in the military and we used his va loan.
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Re: For those of you who own their homes...
I put nothing down and did an 80/20. My mortgage broker hooked me up and my closing costs were really low. If you include earnest money, inspection, closing, etc. I probably put down less than $4K. But again, I wouldn't recommend it.
I will have enough years of full-doc income pretty soon, and plan to re-finance. Because I hadn't been retired from stripping for a year, I had to go stated. I have excellent credit, like 750, but I'm still not pleased with the rate I got for the second lien.
Some clients of mine just got turned down for a loan because husband had to do stated income (he's in real estate). The regulations are getting very tight!
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Re: For those of you who own their homes...
will you be all right if you can put down a six-figure downpayment for a home under 7 figures?
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Re: For those of you who own their homes...
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How much did you put down and what did the home cost? I'm just curious. I'm looking at buying a home in the next couple of years and I'd feel guilty only putting down 20-30k on a 200k condo (if all works out as I forsee)... but I don't want to wipe out my savings account, either. And... I'd like to have a mortage payment that's maybe $1,500 if not less (I won't be a stripper forever). I have no debt and no other outstanding loans.
So yea... I'm just gathering information... I hope it's not too personal.
I am in the same situation. I hope to buy next year but am having a hard time figuring out what amount I can expect the mortgage payments to be. I'm using various online calculators where you provide a mortgage rate and the amount you plan to put down, but they're not shedding much light. I am still really uninformed of the whole process!
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Re: For those of you who own their homes...
a little of topic,.... so i've been looking into refinancing one of my investme nt properies, the equity's there, my credit's fine, but the 3 mortg co's i called said they've been cut off from doing stated income loans. i pay my taxes, i got plenty of assets(::) )...so what the hell?
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Re: For those of you who own their homes...
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Originally Posted by
Bella21
How much did you put down and what did the home cost? I'm just curious. I'm looking at buying a home in the next couple of years and I'd feel guilty only putting down 20-30k on a 200k condo (if all works out as I forsee)... but I don't want to wipe out my savings account, either. And... I'd like to have a mortage payment that's maybe $1,500 if not less (I won't be a stripper forever). I have no debt and no other outstanding loans.
So yea... I'm just gathering information... I hope it's not too personal.
I bought my first house right out of college, my down payment was the money I had saved from stripping, about $8,000. My company credit union loaned me $140,000 to buy the house and land and another $25,000 to fix it up. My dad and I worked on it all summer long while I lived in it. I sold it a little more than a year later for $225,000. Net gain, after the realtor took her cut and I paid off the mortgage was about $44,000.
With that money, I bought a nice little tract house from a couple who wanted something bigger. I paid $220,000 for it and lived there for a couple of years. But, it was so boring, not having anything to do to a house, and not having anything about the place that was really mine. I had to find a fixer-upper. I sold the tract house for $222,000. I lost money on that deal because the realtor still wanted her cut.
In March 2006, I bought this really run down cape cod just before it went into foreclosure. I paid $149,000 for the house and spent a little over $40,000 fixing it up. I sold it in August for $275,000! Right now, I'm renting a condo on a golf course and looking for the next place.
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Re: For those of you who own their homes...
Like Katrine, I put 0 down and got an 80/20 loan. My interest rate's right around 7.3 for five years. Now that it's been a year, there's no more prepayment penalty. I can refinance if I want. I've been paying down the home equity line (the 20 percent line), which my mortgage guy advised me to do. Hopefully by the time I refi, I've paid down enough of that line, and will have enough saved to get a better rate. We'll see, though.. with this whole gambling game of real estate.
Zofia, that's awesome! I've been COMPLETELY OBSESSED lately with the whole rehabbing of houses craze. Some of those shows, I can't believe how blindly these people go into it! You've been sucessful at it, tho! My next house, I'd like to buy a fixer upper, and move into it. I'd like to keep the current house I've bought, because the area it was purchased in is wonderful. Perhaps move some of my family into it when I move.
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Re: For those of you who own their homes...
I have no desire to ever rehab or try to flip. My mom did it, several of my colleagues do it. I simply have no interest in dealing with contractors, they are huge pains in the ass!
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Re: For those of you who own their homes...
^^^ I would never have the patience to deal with rehabbing a house that I intended to resell. However, for the house that I will be living in for a long time, it's a different story. I'm currently involved in a total rehab of the bathroom in my own house (formerly my grandmother's house) - which is turning into an unbelievably complex project due to structural / water damage discovered behind the walls and between the sub-floors AFTER the contractor had started ripping out the old tub / sink / toilet.
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I simply have no interest in dealing with contractors, they are huge pains in the ass!
Yup I hear that. IMHO contractors may be great craftsmen but most don't have a clue in regard to efficient project management or trading off higher material costs in exchange for far lower labor time/cost. Perfect example was the water damage inside the wall of my bathroom. Attempting to replace just the damaged section (which the contractor naturally assumed) would have meant dozens of hours of 'f#$k around work'. I immediately told them to rip off the entire side wall of my house, to replace the undamaged sheathing and siding on my adjoining bedroom wall right along with the damaged sheathing and undamaged siding on my bathroom wall. In the meantime I borrowed up a pickup truck, ran down to Home Depot, and came back with 20 sheets of plywood, a bundle of vinyl siding, 10 2x4 studs, and a roll of house wrap at a cost of about $500 bucks. But by ripping and replacing versus 'f#$king around' trying to save part of the existing wall the labor requirement dropped from probably 80 hours to maybe 36 hours. At even $30 an hour * 44 = $1320, I saved myself at least $800 - and more importantly I could use my bathroom again 2-3 days sooner !!! Thank God that my dad was a building contractor himself, who treated me like the son he never had while I was growing up.
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Some clients of mine just got turned down for a loan because husband had to do stated income (he's in real estate). The regulations are getting very tight!
This is what I was referring to earlier. The new regulatory guidelines are primarily focused towards stopping 'liar loans' and stopping 'zero equity' loan risk. As dancers, since we lack the regular paycheck of a 'straight job', we're now pretty much automatically thrown into the 'subprime' borrower pool regardless of credit rating which will carry a higher interest rate. We're going to be scrutinized for income verification purposes via the bank wanting to see several years worth of tax returns. We're also going to be scrutinized for immediate equity at the time of purchase, with the primary lender more or less insisting on 20% and with secondary lenders attempting to charge loan shark interest rates or running away as fast as possible. As a matter of business policy, primary lenders are now going to look for FNM / FRE compliance in order to resell the mortgage to someone that can be trusted not to go bankrupt thus leaving the primary lender holding the mortgage that they thought they had sold into the secondary market.
In a nutshell, the release of new regulatory guidelines with focus on 'stated income loans', 'piggyback loans' with low/no true equity, income verification etc. now make it EXTREMELY difficult for dancers to obtain mortgages ... and I would dare say virtually impossible to obtain at an affordable interest rate without 20% true equity = 20% down payment plus all closing costs covered = around 25% of the purchase price in up-front cash.
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Re: For those of you who own their homes...
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Originally Posted by
saphire123456
a little of topic,.... so i've been looking into refinancing one of my investme nt properies, the equity's there, my credit's fine, but the 3 mortg co's i called said they've been cut off from doing stated income loans. i pay my taxes, i got plenty of assets(::) )...so what the hell?
If you pay your taxes and have for the last few years (or at least 2-3) then you should have valid tax returns to show income. That is NOT stated income, that is documented - most companies worth a damn will have you sign a form allowing them to check the validity of your returns with the IRS so they know your forms are legit. I would call these fucksticks back and tell them I have tax returns, or just look around and find other companies who understand wtf they're doing ::)
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Re: For those of you who own their homes...
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Originally Posted by
Bridgette
If you pay your taxes and have for the last few years (or at least 2-3) then you should have valid tax returns to show income. That is NOT stated income, that is documented - most companies worth a damn will have you sign a form allowing them to check the validity of your returns with the IRS so they know your forms are legit. I would call these fucksticks back and tell them I have tax returns, or just look around and find other companies who understand wtf they're doing ::)
Yes..thats low doc, not stated. And depending on what program you go with..it could even be considered full-doc. I've put through full-doc loans with just tax returns if the credit was high enough
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Re: For those of you who own their homes...
I was talking to a girl at work last night who owns a couple of homes and she was telling me that I needed to open a few seperate checking accounts (I currently have one checking account and one savings account) and put money into it slowly so that when I buy a house, blah blah blah... something about taxes... She had shared her diet pills with me and neither of us were of a very good state of mind... she wasn't clear and I couldn't pay very good attention. Anyone think they know what she might have been getting at?
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Re: For those of you who own their homes...
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Originally Posted by
Zofia
I bought my first house right out of college, my down payment was the money I had saved from stripping, about $8,000. My company credit union loaned me $140,000 to buy the house and land and another $25,000 to fix it up. My dad and I worked on it all summer long while I lived in it. I sold it a little more than a year later for $225,000. Net gain, after the realtor took her cut and I paid off the mortgage was about $44,000.
With that money, I bought a nice little tract house from a couple who wanted something bigger. I paid $220,000 for it and lived there for a couple of years. But, it was so boring, not having anything to do to a house, and not having anything about the place that was really mine. I had to find a fixer-upper. I sold the tract house for $222,000. I lost money on that deal because the realtor still wanted her cut.
In March 2006, I bought this really run down cape cod just before it went into foreclosure. I paid $149,000 for the house and spent a little over $40,000 fixing it up. I sold it in August for $275,000! Right now, I'm renting a condo on a golf course and looking for the next place.
I was doing research and they say the best place to flip homes right now is Raleigh, NC - followed by Austin and St Loius. Youre in a very good area.
Oh, got this info from Forbes
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Re: For those of you who own their homes...
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I was talking to a girl at work last night who owns a couple of homes and she was telling me that I needed to open a few seperate checking accounts (I currently have one checking account and one savings account) and put money into it slowly so that when I buy a house, blah blah blah... something about taxes...
Whatever she was referring to, it certainly doesn't come into play under today's tighter regulatory guidelines. Stated Income loans (a.k.a. 'Liar Loans) are now 'poison' with all financial institutions. Low-Doc loans with 2-3 years worth of tax returns to prove your income level are pretty much the minimum, on top of having 20% of the purchase price saved up in cash as the down payment plus another 5% of the purchase price saved up in cash to cover closing costs, on top of a reasonably good credit rating.
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Re: For those of you who own their homes...
Bella, out of curiosity where in San Diego are you looking? I am wondering where you could buy a condo for $200k. That's awesome!
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Re: For those of you who own their homes...
Yea, this market sucks :(
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Re: For those of you who own their homes...
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Originally Posted by
LAChloe
Bella, out of curiosity where in San Diego are you looking? I am wondering where you could buy a condo for $200k. That's awesome!
Well, I pulled that number out of my butt because I'd only get a tiny one-bedroom condo... probably... unless I get married somewhere in between now and then.
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Re: For those of you who own their homes...
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Originally Posted by
LAChloe
Bella, out of curiosity where in San Diego are you looking? I am wondering where you could buy a condo for $200k. That's awesome!
Yeah I was wondering too... I'm sure they're available somewhere but probably not in an area you want to live in.
I'm inspired by your search though, I'd like to buy a condo as well. Most of the ones I like started around 400K, so it may be a while.
Good luck!
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Re: For those of you who own their homes...
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Originally Posted by
cameron_keys
Yes..thats low doc, not stated. And depending on what program you go with..it could even be considered full-doc. I've put through full-doc loans with just tax returns if the credit was high enough
I don't see why validated tax returns would even be considered low-doc or need a "high enough" credit score. After all, it's filed with the IRS just like a W2 and any creditor worth its salt can validate it with a simple inquiry. duh!
I know, I know, *supposedly* self-employed income isn't as stable as that from a regular job. Yeah, tell that to the people who lose their jobs everyday to cutbacks and downsizing ::)
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Re: For those of you who own their homes...
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Originally Posted by
Melonie
Whatever she was referring to, it certainly doesn't come into play under today's tighter regulatory guidelines. Stated Income loans (a.k.a. 'Liar Loans) are now 'poison' with all financial institutions. Low-Doc loans with 2-3 years worth of tax returns to prove your income level are pretty much the minimum, on top of having 20% of the purchase price saved up in cash as the down payment plus another 5% of the purchase price saved up in cash to cover closing costs, on top of a reasonably good credit rating.
so when you say cash, does money pulled out from a refi counrt as cash?, if i can even get a refi, cause so far noone's agreed to even do that, i just don't get it, i got like 6 years of returns, assets, and good credit....