City-Data Forum Young couples buying a house
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 Greensboro, Winston-Salem, High Point The Triad Area
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03-28-2013, 08:04 PM
 3,257 posts, read 5,042,114 times Reputation: 4578

honestly I would have to check it MrRational. Our payment is \$1100 right now but I'd have to go look at where insurance and taxes broke out per month. With everything escrowed and 3 years into the mortgage I honestly don't remember the breakdown at the moment. Sorry!

And roadpony: thanks. We are lucky at the moment to have no car payments, student loans paid off, and no kids, so we figured why not for now!

03-28-2013, 08:08 PM
 12,577 posts, read 13,302,282 times Reputation: 8896
Quote:
 Originally Posted by MrRational Care to quantify what "fairly small" means to you? Another 14% on top of Principle and Interest isn't small to me. PMI Calculator (\$221-5% x 30years @3%) produced a monthly of \$885 for PI + \$126 for PMI.
Quote:
 Originally Posted by MrRational vs how much for P&I? (that objective quantify thing again)
Not sure what numbers were plugged in to get those figures, but the PMI on our mortgage is about 10% of the P&I

03-29-2013, 07:40 AM
Quote:
 Originally Posted by WFW&P Not sure what numbers were plugged in to get those figures but the PMI on our mortgage is about 10% of the P&I
The numbers were shown in the same post: \$221-5% x 30years @3% No tax or PMI.

Quote:
 Originally Posted by jamietica Our payment is \$1100 right now... but I'd have to go look at where insurance and taxes broke out per month.
How about 2000 for property tax and 500 for insurance? (off the cuff)
1100 x12 -2500 /12 = 892. (89 then becomes 10%)
That's in line with what WFW&P pays.

So it appears that my off the cuff source came in higher than what you two shopped for
(I suspect other factors will apply) but those "bargain" rates are at least an additional 10% being
paid on top of the monthly mortgage that isn't going either to the principle or interest.

I'll continue to question how these payments can be considered a "fairly small amount".

03-29-2013, 09:13 AM
 240 posts, read 449,784 times Reputation: 135
Quote:
 Originally Posted by MrRational The numbers were shown in the same post: \$221-5% x 30years @3% No tax or PMI. How about 2000 for property tax and 500 for insurance? (off the cuff) 1100 x12 -2500 /12 = 892. (89 then becomes 10%) That's in line with what WFW&P pays. So it appears that my off the cuff source came in higher than what you two shopped for (I suspect other factors will apply) but those "bargain" rates are at least an additional 10% being paid on top of the monthly mortgage that isn't going either to the principle or interest. I'll continue to question how these payments can be considered a "fairly small amount".
They're fairly small compared to the \$50,000 that needs to be saved in order to avoid the PMI.

03-29-2013, 12:33 PM
Quote:
 Originally Posted by gtmo They're fairly small compared to the \$50,000 that needs to be saved in order to avoid the PMI.
At that level of the decision... they are more about propping up artificially high prices
by providing ways for the unprepared to buy more than they can afford.
(which is yet another discussion)

03-29-2013, 02:39 PM
 3,257 posts, read 5,042,114 times Reputation: 4578
I already explained my rationale in a previous post. I agree it is not a negligible amount, but there are times that it shouldn't be the only factor holding you back from getting a house. It made sense to us and ended up being a small cost compared to what will be the total cost of the loan. Getting in earlier and getting the house (with only 10% down) when its price was bottomed out saved us more money in interest than the PMI has cost us so waiting to buy this house later when we had 20% saved up to avoid PMI wasn't necessarily the cut and dry better decision...

In isolation I obviously agree that avoiding PMI or getting rid of it as fast as possible are the ideal situations, but there are plenty of scenarios where it is not a deal-breaker. Like I said, I have friends who put down as little as possible and aren't making extra payments because they are beating the home loan APR + PMI costs by keeping that money in the market. They're doing quite well and coming out ahead so far. I am a little more conservative than them and want to have a house paid off as soon as possible. Lots of different ways to play the opportunity cost game.

Also, as stated, we bought a house that was about half of what we were approved for, so it wasn't a matter of buying more than we could afford. We just had other obligations (mainly student loans with a higher rate than the house loan was going to be) and were still building our emergency fund at the time so I wasn't comfortable forking over the 20% and literally using every bit of cash we had at the time. Instead, I made the extra payments over 3 years to get rid of it, meanwhile having the peace of mind that I could stop those extra payments in an emergency and fall back on that extra cash saved up vs having to pull an equity loan out of the house to get that money back.

03-29-2013, 09:23 PM
 12,577 posts, read 13,302,282 times Reputation: 8896
Quote:
 Originally Posted by MrRational The numbers were shown in the same post: \$221-5% x 30years @3% No tax or PMI. How about 2000 for property tax and 500 for insurance? (off the cuff) 1100 x12 -2500 /12 = 892. (89 then becomes 10%) That's in line with what WFW&P pays. So it appears that my off the cuff source came in higher than what you two shopped for (I suspect other factors will apply) but those "bargain" rates are at least an additional 10% being paid on top of the monthly mortgage that isn't going either to the principle or interest. I'll continue to question how these payments can be considered a "fairly small amount".
PMI payments are fairly small when you consider the average tax refund could easily cover the payment amount with plenty left over..........at least in my case.

I didn't include property tax or insurance since those are expenses that will always be tied to the home.

04-06-2013, 10:54 AM
 1,820 posts, read 3,507,884 times Reputation: 1479
Can someone explain what some of this mean when looking up Greensboro property data and sale info on homes? What do these grade systems mean? Random example below>

Base Bldg Value\$75,885
Cond %A 86%

04-06-2013, 10:55 AM
 1,820 posts, read 3,507,884 times Reputation: 1479
Very confusing. Some homes randomly graded A then some D then others B+ . Is this like a report card of sorts?
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