Getting ripped buying a home

[Weedydidi]

Originally Posted by happehart

But I am sure the seller would have been willing to negotiate the price a little more if he didn't have to pay the 6%.

That's really not true. People want the best price for their home, and it's the selling price that goes to comps - not the commission. I priced my home at its value - the realtor's commission did not play into it. I didn't up the price by 6% to make up for it.

[mkforu]

Another thing I believe is a ripoff is the PMI. If you have years of steady history of paying your mortgage (or even Rent) on time every month by the 5th of the month, and have really good credit, why do you have to pay PMI (which can add up to a big chunk of money as time goes by). The reasoning is if you don't have 20% equity in your house you have to pay PMI. This is a major ripoff.

[2spyderman]

Originally Posted by mkforu

Another thing I believe is a ripoff is the PMI. If you have years of steady history of paying your mortgage (or even Rent) on time every month by the 5th of the month, and have really good credit, why do you have to pay PMI (which can add up to a big chunk of money as time goes by). The reasoning is if you don't have 20% equity in your house you have to pay PMI. This is a major ripoff.

PMI is private mortgage insurance. What are buying is insurance that helps the lender recover the costs involved in foreclosure in case the loan goes bad. Not sure why it would be a ripoff, unless you had more than 20% equity, which these days, not many people have!

Fees are charges that are put in place to DISCLOSE that there are costs to doing business. I would prefer this to just having a blanket cost, thrown into the deal. We all know that there are costs to doing business and that in order for each and every business to survive (and employ people) they need to be profitable. I have no problem with that. Like others have stated, if you don't like the fees, shop them to the competition and see if you can do better. Rarely is anything as simple or as cheap as it seems. Think about all of the "things" that go on in whatever business or trade you are in. What one's would you do for free?

[XcapefromNJ]

Who cares how much the fees are? Just borrow 110% of the purchase price. That should be enough to cover all your fees and leave you a little bit left over for decorating the new home.

[Fighter 1]

Originally Posted by Zatol

Realtor fees are always negotiable. Find a smaller agency that will work with you.

Why use a realtor???? you can do the same yourself ,just open an escrow acount , they will tell you what is needed . QUESTION ???? what did we do many years ago when we bought a home. ?? we drove around , found property that we liked , knocked on the door discused price , then went and opened escrow. time to do it the "OLD FASHION WAY" you already know you have to do the job your self if you want it done right!

[amploud]

Originally Posted by XcapefromNJ

Who cares how much the fees are? Just borrow 110% of the purchase price. That should be enough to cover all your fees and leave you a little bit left over for decorating the new home.

I hope this was a joke. If not, I rate this "Dumbest post ever."

Who in their right mind would want -10% LTV?

[jstevens44]

Originally Posted by happehart

I wasn't charged the 6% Realtor fee, it was on the seller side of the HUD statement. But I am sure the seller would have been willing to negotiate the price a little more if he didn't have to pay the 6%. So ultimately the buyers pay for it.

Using that same thought process, one could also argue that the buyer is having to pay for your closing costs. If you didn't have to pay so many closing costs, he could have negotiated a higher price for his home.

[chicagocubs]

Originally Posted by amploud

I hope this was a joke. If not, I rate this "Dumbest post ever."

Who in their right mind would want -10% LTV?

No lender out there would do that now, anyway

[NCyank]

Originally Posted by chicagocubs

No lender out there would do that now, anyway

True, no lender will do that now but instead of a sad smiley should be a .

[Tober138]

Originally Posted by mkforu

Another thing I believe is a ripoff is the PMI. If you have years of steady history of paying your mortgage (or even Rent) on time every month by the 5th of the month, and have really good credit, why do you have to pay PMI (which can add up to a big chunk of money as time goes by). The reasoning is if you don't have 20% equity in your house you have to pay PMI. This is a major ripoff.

Ya know - I only got one speeding ticket in my life (in 1989), have never had a car accident or any other sort of driving incident....its a major ripoff that I have to pay auto insurance in order to be able to drive my car.

Having stellar credit and a history of on-time payments means nothing if you lose your income for a sustained period of time and have to default on the loan. Why should the bank assume that risk? If you think PMI is a ripoff - put down 20%.