re: First Time Buying a House

quote:

---

I am in an industry that isnt affected by the economy.

---

What industry, if you don't mind me asking.

quote:

---

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.

---

id be alot happier in those 3 years with an extra $34,000 in liquid money that I can do what I please. And why are you selling the house after 3 years?

the folks that bought my house last year did a rural development loan which allowed them to borrow 100% of the full asking price.

he could have put 10% down but decided to use his cash for other things.

i'm not sure i would have done it different. not that much of a difference in the note and he can pay down on it if he wants.

pmi is the only negative.

As already stated, there are different programs with different down payment options and loan options. The best thing to do is speak to a professional. It's free and they will give you all the advice you need.

We used Nation's Lending in Lafayette and they were great to deal with. Like I said, call up any mortgage company and they can answer any questions you have.

quote:

---

think you missed the funky math of having to wait the 3 extra years to save up with option A

---

You didn't specify any of that in your post - you just said putting down 3% or 20% makes no difference with some extremely rough numbers.

Plus, this fantasy land where PMI is only paid until LTV is 78% fails to realize how many people go with FHA loans. Sure you can refinance down the road to remove PMI, but whose to say that interest rates will be as favorable then.

quote:

---

uy 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.

---

Just because I don't have 20% at the moment doesn't mean I can't afford the mortgage I'm intending to have.

I'm not stupid.

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

---

I ran into that problem when I moved back to BR from a mid sized town in East Texas.

We had a starter house about that size with some nicer features for less than $130k.

Comparable in BR was $200k, and not even in the best neighborhoods.

It was quite an eye opener.

quote:

---

PMI goes away at 20% equity for my FHA loan. I didn't do anything special I honestly didn't know that was possible

---

It isn't. You can refinance after you've built up that much equity but PMI is for the LIFE of the FHA loan you originated.

Basically, if you went with FHA, you'll pay MIP (FHA's version of PMI) for the term of the loan if you're original LTV was 90% or more, or for 11 years if your original LTV was less than 90%.

People are misled all the time on FHA loans saying that PMI will go away after you build up the equity to 20%, but no one ever tells them that the only way that happens is with a refinance and that will only save you money if rates are fairly close to where they are now.

quote:

---

Just because I don't have 20% at the moment doesn't mean I can't afford the mortgage I'm intending to have

---

This.

My wife and I just bought a house near Raleigh, NC. We used a VA loan, so 0 down and my rate is 3.75%. We take home, together, $86,000 a year and that is only because we just moved and she hasn't found a job yet. My mortgage is $1275 a month. If we were renting we would be paying probably more than that.

We save $1500 a month, we have no issues and we live very comfortably.

quote:

---

yeah so could I with a 50% pay cut

---

Manager level makes about 75-100k in Public. You pulling in close to two bills homie?

If yes are you hiring? I bring a great work ethic and sparkling personality