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Old 12-21-2018, 07:28 PM
 
89 posts, read 29,976 times
Reputation: 108

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Quote:
Originally Posted by MikeJaquish View Post
OP....

Be careful where you get your financial advice.
None of these people know if you have two nickels to rub together after you make your monthly nut, but have the answers.

Yes, be careful OP, this is advise is coming from a "broker". OP asked about putting down 20%, it's not complicated. If OP could afford it, of course it would be better on numerous levels. If not, OP could purchase a home with less then 20%. I purchased my 2nd property with only 3% down so that I could keep and rent out my 1st property. Now I'm focused on paying off my rental; once I'll pay off my rental I'll focus on paying off my current home and will be debt free. So yes, people in these forums do have a clue. And good for OP for exploring his options and educating him/herself, no matter how much money OP has.
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Old 12-21-2018, 07:31 PM
 
89 posts, read 29,976 times
Reputation: 108
Interesting article:

Pay off your mortgage ASAP, experts say—here's why
https://www.cnbc.com/2018/12/19/suze...dDyyF_uDs_3Ej4
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Old 12-21-2018, 09:19 PM
 
1,065 posts, read 732,663 times
Reputation: 2028
Quote:
Originally Posted by Sweet Like Sugar View Post
PMI isn’t that big of a deal. Many people who can comfortably afford to pay PMI might not ever get a house if they’re waiting until they’re able to put 20% down.

Unbelievable way of thinking! If this is how you can “afford” a house, then you CAN’T afford one.
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Old 12-21-2018, 09:20 PM
 
1,065 posts, read 732,663 times
Reputation: 2028
Quote:
Originally Posted by EmiSky View Post
Interesting article:

Pay off your mortgage ASAP, experts say—here's why
https://www.cnbc.com/2018/12/19/suze...dDyyF_uDs_3Ej4
Of course you should pay it off quickly; debt is bondage. Most of the “experts” on CD want you to believe differently. I wonder why that is...
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Old 12-22-2018, 01:50 AM
 
Location: Sugarland
13,354 posts, read 12,026,696 times
Reputation: 15577
Quote:
Originally Posted by Sharpydove View Post
Unbelievable way of thinking! If this is how you can “afford” a house, then you CAN’T afford one.
Tell that to all the people who are comfortably living in their homes who didn’t put 20% down.
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Old 12-22-2018, 08:19 AM
 
Location: Cary, NC
32,055 posts, read 56,095,919 times
Reputation: 30721
Quote:
Originally Posted by EmiSky View Post
Yes, be careful OP, this is advise is coming from a "broker". OP asked about putting down 20%, it's not complicated. If OP could afford it, of course it would be better on numerous levels. If not, OP could purchase a home with less then 20%. I purchased my 2nd property with only 3% down so that I could keep and rent out my 1st property. Now I'm focused on paying off my rental; once I'll pay off my rental I'll focus on paying off my current home and will be debt free. So yes, people in these forums do have a clue. And good for OP for exploring his options and educating him/herself, no matter how much money OP has.
Yup.
A broker using all the information provided by the OP in his answer.
Vs. self-proclaimed experts who have no idea regarding details of the OP's full financial profile.

I could not care less whether the OP funds 100% or pays cash, or utilizes leverage at any level between the two.
His overall financial profile, and his specific personal goals and wants and needs should guide him. He just needs qualified advice.

A very wealthy guy told me about leverage:
"Borrow as much as you can, for as long as you can, for as little as you can."
Even that has to fit a personal financial profile, but I know many people who will carry a mortgage until death, because they borrowed in the era of free money over the last couple of years.
We are not too far from a CD paying interest rates equivalent to the lowest mortgage rates since the recession. Many people will leverage that fact, and wisely.
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Old 12-22-2018, 09:02 PM
 
Location: Raleigh NC
8,104 posts, read 6,390,421 times
Reputation: 7149
Quote:
Originally Posted by EmiSky View Post
Interesting article:

Pay off your mortgage ASAP, experts say—here's why
https://www.cnbc.com/2018/12/19/suze...dDyyF_uDs_3Ej4
hopefully, folks read the link until the end. especially since the grand total of 3 experts were Suze O herself, Mr Wonderful from Shark Tank, and a celebrity author.

I don't know if it was you or not, but conspicuously none of them addressed credit card debt, since nobody should be carrying a credit card balance routinely.
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Old 12-23-2018, 07:13 AM
 
459 posts, read 330,205 times
Reputation: 660
Quote:
Originally Posted by Sharpydove View Post
Unbelievable way of thinking! If this is how you can “afford” a house, then you CAN’T afford one.
Regarding PMI, even if you have funds available for a 20% down payment, one might argue that going with 10% down and keeping the other 10% as cash on hand make sense. There are way too many variables to make a blanket statement like this.
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Old 12-23-2018, 11:12 AM
 
1,065 posts, read 732,663 times
Reputation: 2028
Quote:
Originally Posted by Seguinite View Post
Regarding PMI, even if you have funds available for a 20% down payment, one might argue that going with 10% down and keeping the other 10% as cash on hand make sense. There are way too many variables to make a blanket statement like this.
One would be delusional to think that way. If you cannot put 20% down because you need half of that as “cash on hand”, you obviously are not financially prepared to purchase a home.
You should have six months total living expenses saved BESIDES the down payment, and no other debt.
I seriously don’t know how people sleep at night without a proper savings and adequate income for their budgets.
Do you people not study your amortization charts and see how interest is front-loaded? Check out how much you really pay for a house at the end of 30 years. The herd mentality is baffling.
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Old 12-23-2018, 02:07 PM
 
Location: Raleigh NC
8,104 posts, read 6,390,421 times
Reputation: 7149
they don't charge you more interest at the beginning. the interest is a higher amount as your principal is a higher amount.

Lenders don't require you to have no other debt. There are student loans, and there are low interest car loans. I borrowed about 50% of my new car price, and I've financed it over 36 months. I also have had my last 2 cars for 8+ years each.

I've already said some lenders don't charge PMI at 80.1%.

A small % of people actually pay their exact mortgage payment every month for 30 years. Smaller than those who actually live in the house 30 years. So, an ARM rate is certainly worth considering
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