U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-15-2018, 09:10 AM
 
Location: The Ozone Layer, apparently...
1,668 posts, read 537,436 times
Reputation: 3225

Advertisements

Quote:
Originally Posted by moneymm22 View Post
all cash is best.

I agree. You will get your best price, and do not have a huge payment hanging over your head for the next 30 years. Life can be fickle. There are many situations that effect income that are impossible to plan for.
Reply With Quote Quick reply to this message

 
Old 12-15-2018, 12:08 PM
 
445 posts, read 478,562 times
Reputation: 1422
Even wiser to pay cash for a used car. The best way to buy a home is with as little down as you can comfortably afford and not take on a payment that you can't handle. Stay as liquid as possible and don't have all your money tied up in a home. You never know what lies around the bend. Never be "house-poor".
Reply With Quote Quick reply to this message
 
Old 12-15-2018, 12:52 PM
 
755 posts, read 513,202 times
Reputation: 415
Default Buying a House with Student Loan Debt?

Posted in the wrong thread by mistake. Sorry.
Reply With Quote Quick reply to this message
 
Old 12-15-2018, 01:08 PM
 
82 posts, read 25,892 times
Reputation: 93
Quote:
Originally Posted by Pfhtex View Post
Where are you? Investment properties require 20% down, investment multi-units (1-4) require 25% down in America.

The relative wisdom of the move, IMO, has to do with your access to capital in the future. You generally cannot do a cash-out refinance over 80% of the value of the home (85% FHA, 100% VA, but for the most part it's 80%.)

To that end, if something were to happen in the future that required funds "now," and you sunk your savings into a 20% down payment, it's suddenly not a smart move.

I'm a huge fan of carrying the bulk of your debt in the house. Mortgage interest, for the most part, is a tax write-off, and mortgage rates tend to be lower than credit cards. So, keep open-and-empty credit cards, try to avoid a car payment, and if this can be facilitated by a 3-5% down payment on a house, so be it.

Mortgage rates tend to be very similar for higher-credit borrowers, on conventional loans, whether you put 3-5% or 20% down. You can avoid Mortgage insurance by doing a piggyback loan, such as an 80% first mortgage and then a second mortgage for 10%, 15% or (next month) the remaining entire 20% of the price.

Sure, equity is great, but not if it means carrying thousands in higher-interest credit card debt.

I personally am a fan of this strategy, but I totally understand that it can also make smart people uncomfortable, too.
I disagree, I'd rather pay higher interest on a credit card for a while than pay interest on 30 yr. mortgage. Are people looking at their mortgage statements to see how much they're paying in interest? One can easily pay $1000 in interest per month on their mortgage. Personally, I can't wait to pay off my mortgage so I'm not throwing money away in interest. So, it my opinion, the more money you put down the better!
Reply With Quote Quick reply to this message
 
Old 12-15-2018, 03:25 PM
 
700 posts, read 152,346 times
Reputation: 1350
Quote:
Originally Posted by Capitalprophets View Post
Is it wise to put 20% down on a house?
Yes, because with 20% or more, you won't have PMI. PMI is Private Mortgage Insurance, which creates an additional cost for you each month. If you can put down 20% to avoid the PMI, you should you do it.

To help you determine this, look at your other finances and employment situations. For starters, do you have an emergency fund if you were unemployed for 6 months?
Reply With Quote Quick reply to this message
 
Old 12-15-2018, 03:26 PM
 
700 posts, read 152,346 times
Reputation: 1350
Quote:
Originally Posted by Diana Holbrook View Post
Is it useful to ask very specific questions of a general audience?
How about a useful reply instead of a snarky one. It was a legit question. I answered it, I don't know why you couldn't.
Reply With Quote Quick reply to this message
 
Old 12-15-2018, 03:28 PM
 
700 posts, read 152,346 times
Reputation: 1350
Quote:
Originally Posted by Ron61 View Post
Put down as much as you can spare but a minimum of 20% so you can avoid PMI.
No, put down the 20%, but don't put in more unless you don't need the money, because you can always make additional principal payments if you wish, and those would be under your control. Once you put more than 20% in there, it isn't like you can easily get it back.
Reply With Quote Quick reply to this message
 
Old 12-15-2018, 03:29 PM
 
755 posts, read 513,202 times
Reputation: 415
Quote:
Originally Posted by EmiSky View Post
I disagree, I'd rather pay higher interest on a credit card for a while than pay interest on 30 yr. mortgage. Are people looking at their mortgage statements to see how much they're paying in interest? One can easily pay $1000 in interest per month on their mortgage. Personally, I can't wait to pay off my mortgage so I'm not throwing money away in interest. So, it my opinion, the more money you put down the better!
Can the 30 yr. mortgage be refinanced into a 15 year or less? Iím not arguing with you, but to qualify for a mortgage I plan on taking in January 2020 or somewhere there about Iíll probably have to do the 30 year. Of course Iíd rather pay more and not suffer all the interest and get it refinanced into a 15 year or less, but donít know how difficult or possible that is to do.
Reply With Quote Quick reply to this message
 
Old 12-15-2018, 03:30 PM
 
700 posts, read 152,346 times
Reputation: 1350
Quote:
Originally Posted by ComeCloser View Post
I agree. You will get your best price, and do not have a huge payment hanging over your head for the next 30 years. Life can be fickle. There are many situations that effect income that are impossible to plan for.
No, you won't get the best price. Do you care of someone buys your car with cash or check from a loan company? No, you don't. It doesn't matter to the seller at all. They are not going to be impressed and lower the price for you.

Yes, life can be fickle as you say, so don't buy a house with all cash unless you are rich.
Reply With Quote Quick reply to this message
 
Old 12-15-2018, 03:33 PM
 
700 posts, read 152,346 times
Reputation: 1350
Quote:
Originally Posted by EmiSky View Post
I disagree, I'd rather pay higher interest on a credit card for a while than pay interest on 30 yr. mortgage. Are people looking at their mortgage statements to see how much they're paying in interest? One can easily pay $1000 in interest per month on their mortgage. Personally, I can't wait to pay off my mortgage so I'm not throwing money away in interest. So, it my opinion, the more money you put down the better!
Interest on a mortgage is tax deductible while interest on a credit card is not. Plus, interest rates on a mortgage are 4-5%, while a credit card is much higher and they don't amortize loans like mortgage companies do.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top