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MY bank used to have 4% interest checking now it is 2.5% upto 25K but no new customers are accepted
sorry for the confusion
Here are new questions
1) Would you get mortgage if there is high possibility to sell it in 2-3 years and move to another state
2) Except for the 20% downpayment, is there another way to avoid PMI?
3) Am I qualified for HUD or something else as a first time home buyer? Is there an advantage with these programs?
1) only if I wanted to be a landlord
2) yes, with very specific lender no pmi with higher than 80% LTV. Otherwise you can avoid the pmi monthly payment by paying it all up front, but you still have the Mortgage insurance ,just without a monthly payment.
3) Probably, although some non hud programs are income limited, your income seems too high for most places. There are other hud homes where you can bid before investors. Some of these "first time buyers", or "city subsidies" would require you to live there for a certain amount of time otherwise have to pay them back. It is very specific to where you live.
Also if you are buying the property with the intent of appreciation, keep in mind if you sell it later though an agent, you can expect to pay more fees. Around here, it is typically 5%
2) yes, with very specific lender no pmi with higher than 80% LTV. Otherwise you can avoid the pmi monthly payment by paying it all up front, but you still have the Mortgage insurance ,just without a monthly payment.
Would the interest be higher?
Quote:
Originally Posted by thelopez2
3) Probably, although some non hud programs are income limited, your income seems too high for most places. There are other hud homes where you can bid before investors. Some of these "first time buyers", or "city subsidies" would require you to live there for a certain amount of time otherwise have to pay them back. It is very specific to where you live.
I am in Houston area, where can I find these types of programs?
Quote:
Originally Posted by thelopez2
Also if you are buying the property with the intent of appreciation, keep in mind if you sell it later though an agent, you can expect to pay more fees. Around here, it is typically 5%
5%?? I thought it was 3% for buyer and another 3% for the seller agent? What is this 5%?
5%?? I thought it was 3% for buyer and another 3% for the seller agent? What is this 5%?
What they are saying is.... if you buy a home for $100,000 and later on you want to sell it and the commission is 5% = $5,000. So $105,000 to break even. There are no guarantees in real estate. You could could take a huge loss in 2 years when you go to sell. If it were me, I would continue renting.
I am in Houston area, where can I find these types of programs?
Local Bank
Real Estate Agent
Loan Broker
HUD Website
5%?? I thought it was 3% for buyer and another 3% for the seller agent? What is this 5%?
In my area it is 5% so I guess in your area it is 6%
Here is another thing to consider, if you can get a steal by paying cash, it might be worth considering. Get a $100k property for 80k, wouldn't be a bad idea, but you could very well also buy a money pit.
MY bank used to have 4% interest checking now it is 2.5% upto 25K but no new customers are accepted
sorry for the confusion
Here are new questions
1) Would you get mortgage if there is high possibility to sell it in 2-3 years and move to another state
Sure. Why not buy a nice reasonably priced condo in a great location, take an 80% mtg., and if you need to relocate in 2/3 years, make your money work for you by renting it out for an amount that will pay your expenses. You obviously don't need anything ostentatious. Advantage: no capital gains after 2 years; and by renting it is an investment property and your expenses are deductible. You do need some deductions don't you ?
2) Except for the 20% downpayment, is there another way to avoid PMI? No.
3) Am I qualified for HUD or something else as a first time home buyer? Is there an advantage with these programs?
3. With your income of $143K/yr., I doubt it. The restrictions may not be worthwhile.
4. Make your money work for you.
5. Don't close 48 credit cards, just cut them up and keep the two best that have low interest. Closing them will hurt your credit big time.
6. One major issue I believe you left out: your age. ?
7. Don't scrimp on homeowner's insurance ! you never know when you will need it. And if you end up with renting something, it's deductible.
In the zipcodes I am looking, 77063 and 77096 it is so hot that it is impossible to get a discount for cash purchase
But I will do it anyway to save from interest
I will maximize 401K
A "cash" discount on a home purchase is not a good reason to not get a mortgage. Sorry, but I don't follow your reasoning. You still did not say what your age is? Makes a huge difference in financial planning sir.
money, u save money. and u have no debt. and the property will sell for a fraction of a buffed out retailed to the max of a new house.
sadly most americans have forgotten what paying for stuff is. they just sign for stuff. to the average american debt is meaningless, the great lie of the 21st century.
Lenders origination fee
Points or discount fees
Lenders Title policy
Appraisal
Costs will dependent on lender and the price of the property, but for a $250K home you could expect approx. 2% of the purchase price.
In addition most lender will require you to deposit in escrow approx. 6 months taxes, 3-6 months insurance and if an HOA is required 3-6 months HOA dues.
A "cash" discount on a home purchase is not a good reason to not get a mortgage. .
In some markets, people would rather take cash, close quickly , and not have to worry about appraisals, inspections, and underwriting. Cash can be tool to get something at a cheaper price, but the OP believes , not in his market. The cash can be used to acquire the property then the OP could either seek I HELOC or Cashout Refi.
Shortsale and foreclosures are something that also move a lot quicker with cash offers.
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