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Old 06-20-2021, 09:58 AM
 
Location: Westwood, MA
5,037 posts, read 6,923,971 times
Reputation: 5961

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Quote:
Originally Posted by msRB311 View Post
I don't have a whole lot of sympathy for a 25 yr old who can't buy a house right now. Live with parents and save or rent with roommates like everyone else.
Quote:
Originally Posted by GeoffD View Post
I’m kind of wondering where your down payment came from?
Bought my first house at 29 1/2, having aggressively saved until then. I also find it hard to have sympathy for someone who can't afford to buy a house at 25. I think it's great when people can buy their first house under 30, but I don't think it's a moral imperative that they be able to. It would be great if everyone could get everything they ever wanted, but a house in one of the top five most expensive markets in the country before the age of 30 is a goal, not a necessity.
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Old 06-20-2021, 10:49 AM
 
24,559 posts, read 18,259,472 times
Reputation: 40260
Quote:
Originally Posted by msRB311 View Post
Why would you wonder that ? I wonder where yours came from as well to be honest.
My first one was out of pocket cash from my bank account. 5% down. PMI. Pretty high interest rate. Welcome to the 1980s. That was in 1988. I got crushed in the S&L meltdown and sold it for 60 cents on the dollar 4 or 5 years later. Everything else, I had liquidity events from startups. My Winchester house was 60% down. I paid cash for my Killington place 28 years ago that I just sold.

My guess would be that your parents came up with your down payment.
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Old 06-20-2021, 11:06 AM
 
23,561 posts, read 18,707,417 times
Reputation: 10824
Quote:
Originally Posted by GeoffD View Post
My first one was out of pocket cash from my bank account. 5% down. PMI. Pretty high interest rate. Welcome to the 1980s. That was in 1988. I got crushed in the S&L meltdown and sold it for 60 cents on the dollar 4 or 5 years later. Everything else, I had liquidity events from startups. My Winchester house was 60% down. I paid cash for my Killington place 28 years ago that I just sold.

My guess would be that your parents came up with your down payment.

Would you not say that's a little arrogant on your part? I mean, the "tough" old days where "you" just happened to have cash in your bank account, yet this poster "obviously" had mommy and daddy pay for her coddled self...
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Old 06-20-2021, 11:26 AM
 
18,725 posts, read 33,390,141 times
Reputation: 37301
I worked multiple professional jobs and only had a high interest second mortgage in 1989, age 36. Single income and always worked extra when needed.
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Old 06-20-2021, 11:41 AM
 
24,559 posts, read 18,259,472 times
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Quote:
Originally Posted by massnative71 View Post
Would you not say that's a little arrogant on your part? I mean, the "tough" old days where "you" just happened to have cash in your bank account, yet this poster "obviously" had mommy and daddy pay for her coddled self...
No. I’m saying that with 1980s mortgage math, the down payment wasn’t the issue. Interest rates on a 30 year fixed were in the 9% to 10% range. You have no clue what that home buying environment was like. PMI didn’t matter because it was lost in the noise compared to the sky high interest rate. Nobody put 20% down back then for a first time purchase. Feed 10% interest into a mortgage calculator and look at the monthly payment. The down payment isn’t the problem. Income qualification where mortgage, taxes, and insurance (and condo fee) at 28% of your gross was the challenge. The down payment was ~ 3 months of your housing cost.
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Old 06-20-2021, 12:00 PM
 
23,561 posts, read 18,707,417 times
Reputation: 10824
Quote:
Originally Posted by GeoffD View Post
No. I’m saying that with 1980s mortgage math, the down payment wasn’t the issue. Interest rates on a 30 year fixed were in the 9% to 10% range. You have no clue what that home buying environment was like. PMI didn’t matter because it was lost in the noise compared to the sky high interest rate. Nobody put 20% down back then for a first time purchase. Feed 10% interest into a mortgage calculator and look at the monthly payment. The down payment isn’t the problem. Income qualification where mortgage, taxes, and insurance (and condo fee) at 28% of your gross was the challenge. The down payment was ~ 3 months of your housing cost.

First time buyers today aren't typically putting 20% down either, it's simply unachievable for most. The norm is like 3-5%, sometimes 0% with certain FHA/VA or first time buyer programs. It was no different when I started back in 2008 with a cheapo short sale condo. I just so happened to have recently received a settlement for an accident I was in, and was therefore able to put 20% down. I certainly never got or expected help from my parents. But even had it not timed like that, I still would have bought then and just sucked it up with the PMI. A year or two prior to the market crash, buying would not have been realistic for me nor was it for most people in my age range. I don't see how it is any different from now, or back in the 80s. Low interest rates = inflated sales prices. Nobody is ever entitled to home ownership, and waiting out the bubbles has always been a fact of life.
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Old 06-20-2021, 12:05 PM
 
16,395 posts, read 8,198,277 times
Reputation: 11378
Default Re

I'll keep my thoughts to myself on Geoffd because every thing he posts is some garbage he thinks he knows and yes he's he's very arrogant

My parents didn't give me a dime towards either of my down payments. I wish. Lol.
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Old 06-20-2021, 01:43 PM
 
24,559 posts, read 18,259,472 times
Reputation: 40260
Quote:
Originally Posted by massnative71 View Post
First time buyers today aren't typically putting 20% down either, it's simply unachievable for most. The norm is like 3-5%, sometimes 0% with certain FHA/VA or first time buyer programs. It was no different when I started back in 2008 with a cheapo short sale condo. I just so happened to have recently received a settlement for an accident I was in, and was therefore able to put 20% down. I certainly never got or expected help from my parents. But even had it not timed like that, I still would have bought then and just sucked it up with the PMI. A year or two prior to the market crash, buying would not have been realistic for me nor was it for most people in my age range. I don't see how it is any different from now, or back in the 80s. Low interest rates = inflated sales prices. Nobody is ever entitled to home ownership, and waiting out the bubbles has always been a fact of life.
Right, and the converse of that is that with 10% interest rates, housing prices were much lower and it was way easier to come up with that 5% down payment.
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Old 06-20-2021, 02:09 PM
 
Location: Massachusetts & Hilton Head, SC
10,020 posts, read 15,665,421 times
Reputation: 8669
Quote:
Originally Posted by GeoffD View Post
No. I’m saying that with 1980s mortgage math, the down payment wasn’t the issue. Interest rates on a 30 year fixed were in the 9% to 10% range. You have no clue what that home buying environment was like. PMI didn’t matter because it was lost in the noise compared to the sky high interest rate. Nobody put 20% down back then for a first time purchase. Feed 10% interest into a mortgage calculator and look at the monthly payment. The down payment isn’t the problem. Income qualification where mortgage, taxes, and insurance (and condo fee) at 28% of your gross was the challenge. The down payment was ~ 3 months of your housing cost.
9-10%? I wish. When we were young and house shopping during the 80's they were more like 18%

We ended up buying a foreclosure by the VA where the mortgage rate was "only" 12%.
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Old 06-20-2021, 02:18 PM
 
2,352 posts, read 1,780,522 times
Reputation: 700
Quote:
Originally Posted by CaseyB View Post
9-10%? I wish. When we were young and house shopping during the 80's they were more like 18%

We ended up buying a foreclosure by the VA where the mortgage rate was "only" 12%.
Seems it was only that high for a brief period of time in 81 and 82.
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