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Old 09-06-2020, 03:35 PM
 
9,613 posts, read 6,102,376 times
Reputation: 2281

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Hi!

Wife and I just moved and currently renting a 2 bed/2bath unit

The market for the most part (Depending on how gentrification happen or proximity to City center) home values are relatively
low/new.

After meeting with a banker we would be eligible for $280K home mortgage. Mortgage would exclude PMI and closing cost. $3K down.

With that puts us around 3 bed 2 bath home. With low property taxes anything under $300K we be looking at $1000K or less with mortgage.

Plan be buy a home 5 years then move to a 4 or use the home as a rental unit down the road.

Could wait another 2 years and rent. Rents are usually higher than monthly mortgages here. Average 2bed 2 bath is around $1400 and currently paying that amount.

Financially think buying is better then renting?

Also another similar loan available is a 5 year AMR loan?

Appreciate the insight.
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Old 09-06-2020, 04:10 PM
 
Location: The Triad (NC)
31,826 posts, read 72,901,760 times
Reputation: 38590
Quote:
Originally Posted by RunD1987 View Post
Financially think buying is better then renting?
Rarely. But for the few who can really afford the outlays and risk... go for it.
If it works out well it might just be buy and stay. Or doesn't.
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Old 09-06-2020, 05:31 PM
 
Location: Northern Virginia
6,094 posts, read 6,886,785 times
Reputation: 16376
How are you getting those numbers?

A sales price oof $295k in Gastonia, NC (so includes a decent estimate for taxes) with $3k down has a mortgage payment of about $1700.

How much money do you have saved?
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Old 09-06-2020, 06:09 PM
 
9,013 posts, read 11,717,514 times
Reputation: 17867
Quote:
Originally Posted by HokieFan View Post

How much money do you have saved?

As of end of June, zero.


https://www.city-data.com/forum/rent...ng-advice.html





But don't worry OPs posting history is to never follow advice and rarely come back to threads he starts.


So, I am sure he will find a predatory lender and get in an upside down situation soon enough.
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Old 09-07-2020, 05:25 AM
 
7,590 posts, read 3,830,363 times
Reputation: 14554
Quote:
Originally Posted by HokieFan View Post
How are you getting those numbers?

A sales price oof $295k in Gastonia, NC (so includes a decent estimate for taxes) with $3k down has a mortgage payment of about $1700.

How much money do you have saved?
Where can you buy a $280k home with $3k down? Whatever program this is will have much higher interest than the lowest rates. My payment for a home slightly more than that is $1740, but I live in IL and have insane taxes. Perhaps without the taxes, insurance, and PMI it is pretty close. However, you can’t leave out insurance and taxes from the consideration.
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Old 09-07-2020, 09:52 AM
 
Location: Denver CO
23,969 posts, read 15,660,607 times
Reputation: 37575
Quote:
Originally Posted by RunD1987 View Post
Also another similar loan available is a 5 year AMR loan?
after years of historically low mortgage interest rates, they have dropped even further, and you are considering getting an ARM?
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Old 09-07-2020, 10:41 AM
 
Location: Sandy Eggo's North County
4,304 posts, read 1,856,658 times
Reputation: 6333
Quote:
Originally Posted by spencgr View Post
As of end of June, zero.


https://www.city-data.com/forum/rent...ng-advice.html





But don't worry OPs posting history is to never follow advice and rarely come back to threads he starts.


So, I am sure he will find a predatory lender and get in an upside down situation soon enough.
Ahhh, good to know. You just saved me some typing.
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Old 09-07-2020, 12:31 PM
 
Location: Northern Virginia
6,094 posts, read 6,886,785 times
Reputation: 16376
Quote:
Originally Posted by RamenAddict View Post
Where can you buy a $280k home with $3k down? Whatever program this is will have much higher interest than the lowest rates. My payment for a home slightly more than that is $1740, but I live in IL and have insane taxes. Perhaps without the taxes, insurance, and PMI it is pretty close. However, you can’t leave out insurance and taxes from the consideration.
I don't know. But OP says that he's spoken with a banker (lender?) and that was an option. But I don't think OP's calculations are accurate and I don't know why he's not including PMI in his mortgage payment as that will make a significant difference. And don't discount closing costs, OP. It's a seller's market and it's likely you'll have to pay those.

But being familiar with his past postings, I don't think they are financially ready to buy a home right now. My opinion is that OP continue to rent, save aggressively, and then buy.
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Old 09-07-2020, 12:42 PM
 
3,290 posts, read 1,310,203 times
Reputation: 9033
Quote:
Originally Posted by HokieFan View Post

But being familiar with his past postings, I don't think they are financially ready to buy a home right now. My opinion is that OP continue to rent, save aggressively, and then buy.
Ditto. And IIRC, the OP has already moved around a lot in the past few years, which is also not conducive to owning.
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