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Yeah...Chicago is expensive, but not as expensive as Socal.
You have an expansive bank of life experience behind your vast knowledge base, don't you?
Well it is more common sense. Young couples don't look at reality when buying a house these days . That mortgage insurance is like throwing extra money out on the street. Basically it makes more sense to save up the full 20 percent for the down payment when you buy the house. And the housing market is not what it was 10 to 15 years ago. There are still many houses that are in foreclosure and it is a buyers market. You can't expect to buy a house these days and think that you will make a ton of money in it. Homes are still depreciating and if they go up in value not much. Plus young couples are too greedy for a big home for their starter home. What does it prove buying a first home between 450 to 800k? It is just being a show iff. Always remember there is someone out there with a better home. And who are you trying to impress with a big home? The queen of England or some famous person? A home is just a place to sleep. My home is 200k and I am happy with it and I have money for other things instead of all of my paycheck going to themortgsge and I don't cry and moan if I have to pay 5k or 6k for a new air conditioner system or furnace.?always remember the more expensive the house the more expensive the upkeep and I bet these young couples will cry and moan when the repair costs come for the house
That is really funny. Does any husbands get mad at the wife that she uses up too much toilet paper and plug up the toilet with it? How do husbands put up with a wife like that? Hahaha
Mortgage companies do check their applicants before loaning 500-800k
Well it depends also if one of the couple had a rich relative that left them a ton of money for the down payment. All the bank cares about is the down payment . If you it down enough then you get the 500 to 800k loan but they don't know how your expenses will be after you do the closing on the house. Because they don't know if your job is secure. You can close on your house and 5 or 6 months later what happens if you get laid off or fired from your job? Banks don't ask your employer if you are garunteed a job for life at the company you work at: companies can't predict the future for their emoloyee. So down payment is the big thing then you will get your loan
Eagle S, this is kinda off-topic so it may get scrapped, but I wanted to point out that you have a 12 page post on your first 24 hours on city-data! Congrats! and good luck!
Well it is more common sense. Young couples don't look at reality when buying a house these days . That mortgage insurance is like throwing extra money out on the street. Basically it makes more sense to save up the full 20 percent for the down payment when you buy the house. And the housing market is not what it was 10 to 15 years ago. There are still many houses that are in foreclosure and it is a buyers market. You can't expect to buy a house these days and think that you will make a ton of money in it. Homes are still depreciating and if they go up in value not much. Plus young couples are too greedy for a big home for their starter home. What does it prove buying a first home between 450 to 800k? It is just being a show iff. Always remember there is someone out there with a better home. And who are you trying to impress with a big home? The queen of England or some famous person? A home is just a place to sleep. My home is 200k and I am happy with it and I have money for other things instead of all of my paycheck going to themortgsge and I don't cry and moan if I have to pay 5k or 6k for a new air conditioner system or furnace.?always remember the more expensive the house the more expensive the upkeep and I bet these young couples will cry and moan when the repair costs come for the house
We weren't that young--35--but this is our first house. As I said earlier, our mortgage including PMI in the Chicago suburbs is less than the rent we paid in Orange County. The house we were renting sold for more then twice what this house cost, and it was a fairly ordinary tract home in a fairly ordinary Orange County neighborhood. It's not like we were living in Newport or Coto de Caza. We had lived there for three years and had no equity, and we had used our own money to upgrade the place with ceiling fans, better landscaping, a garden, new garage door openers, paint, etc. We did this to improve our home life and I don't resent it, but it's nice to know now that the money we spend on our house is an investment in its long-term value. We have an FHA loan with a low interest rate, and we moved into a neighborhood where home values have remained strong. Home values dipped a bit after the bubble burst (we moved here in 2008) but have rebounded, and we'll convert to a conventional loan with no PMI once our equity goes up a little more. We moved here because of my husband's job, and the schools here are first-rate. I don't see the value in moving into yet another rental, paying someone else's mortgages, earning no equity, then moving again after many years of saving--meanwhile the house prices here go up and up because this is a high-demand location.
We replaced our air conditioner two years ago for $6K. Yes, we cried a little ... because ouch, six grand.
Eagle S, this is kinda off-topic so it may get scrapped, but I wanted to point out that you have a 12 page post on your first 24 hours on city-data! Congrats! and good luck!
Rg
Well it is good topics that we are discussing. People sometimes think that life is easy and everything will go smoothly. But it doesn't . There are pros and cons with everything in life and even marriage and you will agree with me about that with marriage that things are not always dandy. There are times that you just love life and marriage and sometimes you think why did you ever get married???
Well it depends also if one of the couple had a rich relative that left them a ton of money for the down payment. All the bank cares about is the down payment . If you it down enough then you get the 500 to 800k loan but they don't know how your expenses will be after you do the closing on the house. Because they don't know if your job is secure. You can close on your house and 5 or 6 months later what happens if you get laid off or fired from your job? Banks don't ask your employer if you are garunteed a job for life at the company you work at: companies can't predict the future for their emoloyee. So down payment is the big thing then you will get your loan
Regulations are much tighter than they used to be after the housing bubble fiasco. Banks had to be bailed out for their past foolishness, remember? Times have changed. My sister-in-law is an underwriter and the paperwork now is immense.
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