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Old 05-01-2018, 10:45 AM
 
10,196 posts, read 6,129,840 times
Reputation: 10668

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Quote:
Originally Posted by turf3 View Post
Look, there can be reasons to take a mortgage with minimum down. In that case you will be required to pay PMI. Or, you can put 20% down and not pay PMI. What you shouldn't do is to take a mortgage with minimum down, which everyone knows will require you to pay PMI, and then gripe about it. If you want to avoid the situation that makes you complain, put 20% down.
I wasn't griping or complaining I was just making an observation. Like I said it's figures into my mortgage payment which I can afford and the total payment including mortgage insurance is less than the current going rage, so refinancing at current rates with costs involved would cost me more than to keep my current FHA loan.

FHA must be making money hand over fist if they are getting about 1/4 of the current mortgage rate for mortgage insurance.

And if the housing market collapses again, which it shouldn't since unqualified loans are not being given out, I won't care. If my home is only worth half of what I paid for it, I will still have a roof over my head for less than what rents will be, because I did not see rents fall after the last crisis. Plus if housing falls it will only go back up eventually. Plus I can always rent out a spare room which till take care of my mortgage payment.

Last edited by LifeIsGood01; 05-01-2018 at 11:04 AM..
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Old 05-01-2018, 10:57 AM
 
Location: Great White North Hills
10,916 posts, read 13,424,284 times
Reputation: 8190
Quote:
Originally Posted by ncole1 View Post
I thought we were already discussing this. Putting more down avoids PMI and gives you an equity cushion in case the market goes down a bit. Another benefit is that you generally can't get 4%+ returns risk-free on your money, but by putting more money down, you can achieve that effect.
Never said that's not the case. But FHA gets you in the game, then you can go on from there.
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Old 05-01-2018, 10:58 AM
 
1,022 posts, read 684,372 times
Reputation: 1953
Quote:
Originally Posted by LifeIsGood01 View Post
Buying is cheaper. My FHA mortgage that I got 2 years ago cost me less than renting a room in someone's house.
Thatís great if you have good credit, 6-12 months of living expenses saved, a stable job, and put 20% down on the house.
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Old 05-01-2018, 11:03 AM
 
10,196 posts, read 6,129,840 times
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Quote:
Originally Posted by Sharpydove View Post
That’s great if you have good credit, 6-12 months of living expenses saved, a stable job, and put 20% down on the house.
No it's great regardless. If you can buy a home with FHA 3% down for less than it costs to rent a one bedroom apartment there is not downside. In most places all you need is a minimum wage job to pay the rent. Plus I have a spare bedroom that I can rent to cover my mortgage. The bank takes care of checking out if you are qualified and they don't require 6 to 12 months of living expenses.
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Old 05-01-2018, 11:16 AM
 
1,022 posts, read 684,372 times
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Quote:
Originally Posted by LifeIsGood01 View Post
No it's great regardless. If you can buy a home with FHA 3% down for less than it costs to rent a one bedroom apartment there is not downside. In most places all you need is a minimum wage job to pay the rent. Plus I have a spare bedroom that I can rent to cover my mortgage. The bank takes care of checking out if you are qualified and they don't require 6 to 12 months of living expenses.
You are exactly why we are sitting it out for now and not purchasing a home. The sad thing is, we are the very people who SHOULD, but it’s not worth the risk. You never know what situation your neighbors are in currently. And shame on the banks.
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Old 05-01-2018, 11:17 AM
 
10,196 posts, read 6,129,840 times
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Quote:
Originally Posted by Sharpydove View Post
You are exactly why we are sitting it out for now and not purchasing a home. The sad thing is, we are the very people who SHOULD, but it’s not worth the risk. You never know what situation your neighbors are in currently.
Thank you , I'm so happy to help your landlord get richer, keep waiting you won't be locked out of the housing market, Wait 10 years I will sell you my home for 3 times what I paid for it, toodles.

Last edited by LifeIsGood01; 05-01-2018 at 11:26 AM..
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Old 05-01-2018, 11:24 AM
 
1,022 posts, read 684,372 times
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Quote:
Originally Posted by LifeIsGood01 View Post
Thank you , I'm so happy to help your landlord get richer, keep waiting you won't be locked out of the housing market, Wait 10 years, toodles.
Haha...ok...sorry, but we have cash ready to purchase and no fear of being locked out. When people like you, who are taking risks, foreclose, maybe we will swoop down and buy a couple of houses.
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Old 05-01-2018, 11:29 AM
 
10,196 posts, read 6,129,840 times
Reputation: 10668
Quote:
Originally Posted by Sharpydove View Post
Haha...ok...sorry, but we have cash ready to purchase and no fear of being locked out. When people like you, who are taking risks, foreclose, maybe we will swoop down and buy a couple of houses.

i have no risk of foreclosure, zero. my credit score is over 800. like I said wait 10 years I will sell you my home for 3 times what i paid for it, because yes the market is increasing that much in my area for starter homes.

and you do have fear or you would buy now before you are priced out instead of waiting for the next housing collapse which may never happen, certainly not the same way it did last time, watch The Big Short for entertaining education on why it's not happening again any time soon.
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Old 05-01-2018, 12:23 PM
 
1,022 posts, read 684,372 times
Reputation: 1953
Quote:
Originally Posted by LifeIsGood01 View Post
i have no risk of foreclosure, zero. my credit score is over 800. like I said wait 10 years I will sell you my home for 3 times what i paid for it, because yes the market is increasing that much in my area for starter homes.

and you do have fear or you would buy now before you are priced out instead of waiting for the next housing collapse which may never happen, certainly not the same way it did last time, watch The Big Short for entertaining education on why it's not happening again any time soon.
My fear is not being “priced out”. It is getting a neighbor like yourself. We are not stupid enough to pay 3x for a house ten years from now- wherever your area is.
I’m not sure what your age is, but I will tell you that there are many places to make money besides real estate. I wish you great luck, though!
By the way, how are you going to afford a new roof, re-modeling, new HVAC, landscaping, plumbing repairs, appliance replacement, new flooring, etc? If you plan on getting 3x what you paid in ten years, you better have savings.
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Old 05-01-2018, 12:23 PM
 
12,358 posts, read 8,944,613 times
Reputation: 8752
Quote:
Originally Posted by LifeIsGood01 View Post
No your point was if you can't put 20% down than rent and that is not smart. When you rent you make your landlord richer, when you buy you increase your own net worth.
This is a complete misunderstanding of how it works. Whether you buy or rent, you are making yourself poorer (either by paying rent or by paying ownership costs, some of which are unrecoupable). However, in exchange for your money, you are getting a roof over your head, a place to sleep, receive mail, unwind, and be protected from the elements.

In other words, buying 100 vacation houses won't make you rich, it will make you broke (and most of them will be foreclosed on.)
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