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 Post subject: I want to buy a house and put a kick-balls stereo in it too
PostPosted: Wed Jan 11, 2006 2:11 pm 
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frostingspoon
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anyone have any advice for a first time homebuyer? how much should i put down? what can i afford? should i plan on setting it afire for the insurance money or just try to make money selling it? i have no idea what i'm doing, although i have noticed that the wife seems to be perusing the listings in her spare time. give me something to think about.


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PostPosted: Wed Jan 11, 2006 2:19 pm 
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20% down is needed so you don't have to pay mortgage insurance which is like throwing money out the window.

(Most banks will work with you to secure a loan to get you up to that 20% mark, and then also give you a mortgage for the remaining 80%. This means instead of paying 1 huge mortgage and the PMI (mortgage insurance) you pay 1 large and 1 small mortgage. Usually the smaller mortgage has a higher interest rate, so you want to pay that off asap.)

It's hard to say what you guys can afford. Assuming you have 2 incomes, that opens your options. I think the rule of thumb was not to spend more than 1/4 of your take home pay onthe mortgage payment.

I wouldn't intentionally burn it down unless you get more than the minimum insurance which is all the mortgage company will require. (IE: you pay $150K for the house. The bank says the house is worth $120K and the property is $30K, you take out $120K worth of insurance, so if you burn the house down, you only get $120K and then are left with property with nothing on it, that will be hard to sell, or you rebuild a new house which will cost more than $120K, but it will be brand new, and exactly what you want.) Burning it down is your call. It might be a good idea if you buy some nasty ass house on a good location.

It's probably best to find out your range, and then let your wife decide which houses/ neighborhoods she wants to look at and let her decide which house she wants. haha


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PostPosted: Wed Jan 11, 2006 2:21 pm 
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My recommendation is to put as much down as you can without really stretching yourself financially, plus leave some back because you'll undoubtedly need to buy some things for the house.

If you do buy a house, plan on staying in it a while, so you don't lose any money on it (and hopefully will make some money on it).

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PostPosted: Wed Jan 11, 2006 2:22 pm 
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Usually you have to put 20% down to avoid paying pmi if you can. I was under the assumption it was better to buy a crappier home in better neighborhood than a nice home in a crappier neighborhood. I actually have no idea what I'm talking about. Completely out of my ass. I have a feeling Capn will knock it out the park though.

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I tried to find somebody of that sort that I could like that nobody else did - because everybody would adopt his group, and his group would be _it_; someone weird like Captain Beefheart. It's no different now - people trying to outdo ! each other in extremes. There are people who like X, and there are people who say X are wimps; they like Black Flag.


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PostPosted: Wed Jan 11, 2006 2:24 pm 
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Also know that mortgage lenders will *always* approve you for higher than you can afford. Be realistic with your home pricing.


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PostPosted: Wed Jan 11, 2006 2:26 pm 
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timmyjoe42 Wrote:
Assuming you have 2 incomes, that opens your options. I think the rule of thumb was not to spend more than 1/4 of your take home pay onthe mortgage payment.
i wouldn't assume that. so we're talking like a week's pay, eh? bummer.


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 Post subject:
PostPosted: Wed Jan 11, 2006 2:28 pm 
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plus you have to add the home insurance and taxes on top of that

edit: and it's good to assume that one of you will lose their job, forcing you to eat rice and ramen to keep the house.


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PostPosted: Wed Jan 11, 2006 2:30 pm 
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timmyjoe42 Wrote:
plus you have to add the lawn mower, ladders, hammers, rakes, wet vac, paint brushes, drill, and lawn gnomes on top of that


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 Post subject:
PostPosted: Wed Jan 11, 2006 2:32 pm 
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i got a reciprocating saw for xmas. I'm going to try to get adept enough with it that i can replace my Dremmel AND my wet vac with it.


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 Post subject:
PostPosted: Wed Jan 11, 2006 6:29 pm 
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How long before you're asking the board for diaper advice?

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PostPosted: Wed Jan 11, 2006 6:33 pm 
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We paid off all our monthly bills so we could afford a better place. Car loan, cards, etc. It's a thought. And when it comes stereo time, lemme know. There's options.

I need a reciprocating saw. Badly.

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[quote="Bloor"]He's either done too much and should stay out of the economy, done too little because unemployment isn't 0%, is a dumb ingrate who wasn't ready for the job or a brilliant mastermind who has taken over all aspects of our lives and is transforming us into a Stalinist style penal economy where Christian Whites are fed into meat grinders. Very confusing[/quote]


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 Post subject:
PostPosted: Wed Jan 11, 2006 6:39 pm 
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ayah Wrote:
timmyjoe42 Wrote:
plus you have to add the lawn mower, ladders, hammers, rakes, wet vac, paint brushes, drill, and lawn gnomes on top of that


thats what a home equity line is for :wink:


i wouldnt hold tight on that 1/4 of your take home nonsense.....although I dont know what your other expenses (cars, car ins., credit cards) are.

On homeowners insurance, I would suggest getting it yourself and then having your mortgage company pay for it every year. same goes for property taxes----escrow is nice. It makes your mortgage payment higher overall, but you dont get that "oops" moment when you get that $3,000 property tax bill.

I could tell you things like getting a zero down, interest only loan if you are going to flip the house in a fast growing market and then immediately taking out a first line for improvements and to pay off your other loans but.......well there are cautionary tales and it may be a bit much for you at this point.

also, dont you have a fucking father? or at least father-in-law.

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 Post subject:
PostPosted: Wed Jan 11, 2006 6:44 pm 
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what does having a father have to do with anything? My dad's a home builder, so I guess in my case a lot, but still...


this whole thread is testament to the fact that I know jack shit about monkey.

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 Post subject:
PostPosted: Wed Jan 11, 2006 6:48 pm 
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cotton Wrote:
what does having a father have to do with anything? My dad's a home builder, so I guess in my case a lot, but still...


i dunno, maybe his dad has bought a house before.....i guess what I meant was ask other people who have bought houses (not sure if crack has friends so im gonna make an assumption here) in addition to the dipshits on the board.

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 Post subject:
PostPosted: Wed Jan 11, 2006 6:52 pm 
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Kiev Wrote:
* Planning on having kids? Check out local schools. Don't laugh, school districts are an important consideration. Note: Private schools cost a small fortune. Double note: If the missus is checking out houses - guess what she'll want next...


they have to get a puppy first.


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 Post subject:
PostPosted: Wed Jan 11, 2006 6:53 pm 
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A True Aristocrat of Freedom

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ayah Wrote:
Kiev Wrote:
* Planning on having kids? Check out local schools. Don't laugh, school districts are an important consideration. Note: Private schools cost a small fortune. Double note: If the missus is checking out houses - guess what she'll want next...


they have to get a puppy first.


Shit I already have one of those....No house tho...at least nothing I own. We rent one and I squat in a FINE unfurnished town home. No stereo either, I hope that 3 disc piece of shit I left at Yail's hasn't been shot at with a .44?

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Throughout his life, from childhood until death, he was beset by severe swings of mood. His depressions frequently encouraged, and were exacerbated by, his various vices. His character mixed a superficial Enlightenment sensibility for reason and taste with a genuine and somewhat Romantic love of the sublime and a propensity for occasionally puerile whimsy.
harry Wrote:
I understand that you, of all people, know this crisis and, in your own way, are working to address it. You, the madras-pantsed julip-sipping Southern cracker and me, the oldman hippie California fruit cake are brothers in the struggle to save our country.

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LooGAR (the straw that stirs the drink)


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 Post subject:
PostPosted: Wed Jan 11, 2006 6:57 pm 
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If you guys are the high-invlovement types (and you aren't), then you can go halfway and just get a realestate lawyer who will review their documents and write up yours. That's like a third the price the realtor would've gotten for comission, and if you're willing to go find your own house, then screw it - why give some chick $3,000 to do it for you.

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[quote="Bloor"]He's either done too much and should stay out of the economy, done too little because unemployment isn't 0%, is a dumb ingrate who wasn't ready for the job or a brilliant mastermind who has taken over all aspects of our lives and is transforming us into a Stalinist style penal economy where Christian Whites are fed into meat grinders. Very confusing[/quote]


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PostPosted: Wed Jan 11, 2006 7:02 pm 
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Senator LooGAR, TX Monger Wrote:
Shit I already have one of those....No house tho...at least nothing I own. We rent one and I squat in a FINE unfurnished town home. No stereo either, I hope that 3 disc piece of shit I left at Yail's hasn't been shot at with a .44?


Not yet though I did find MORE of your shit while I was looking for something in that little writing desk in your old room the other day....Like empty cuff link boxes. IT NEVER STOPS.

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 Post subject:
PostPosted: Wed Jan 11, 2006 7:03 pm 
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Stone Wrote:
My recommendation is to put as much down as you can without really stretching yourself financially, plus leave some back because you'll undoubtedly need to buy some things for the house.


I don't really agree with this at all. Probably worth it to put down 20% to avoid the pmi, but beyond that take as much debt as you can afford. You're not likely to ever find a cheaper source of capital than a home mortgage. You'd be better off investing the additional cash you have in an index fund than putting up a larger downpayment. The average annual stock market return (over any long period of time) is higher than current mortgage rates.

But kiev is right about school districts. Even if you're smart enough to never have kids, most people aren't and it will be a big consideration and driver of your home's value when you look to sell the house down the road.


Last edited by billy g on Wed Jan 11, 2006 7:27 pm, edited 1 time in total.

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PostPosted: Wed Jan 11, 2006 7:04 pm 
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blah blah blah...
:D

pm me some basic info (i work in the mortgage industry) maybe i can answer a few, more specific ?'s


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 Post subject:
PostPosted: Wed Jan 11, 2006 7:05 pm 
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cotton Wrote:
this whole thread is testament to the fact that I know jack shit about monkey.


haha you said "monkey"


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 Post subject:
PostPosted: Wed Jan 11, 2006 7:08 pm 
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sadly, I know a lot more about monkeys than I do about money.

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 Post subject:
PostPosted: Wed Jan 11, 2006 7:10 pm 
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billy g Wrote:
I don't really agree with this at all. Probably worth it to put down 20% to avoid the pmi, but beyond that take as much debt as you can afford. You're not likely to ever find a cheaper source of capital than a home equity loan. You'd be better off investing the additional cash you have in an index fund than putting up a larger downpayment. The average annual stock market return (over any long period of time) is higher than current mortgage rates.


i agree with both of these. there are savings accounts paying over 6% interest right now.

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 Post subject:
PostPosted: Wed Jan 11, 2006 7:14 pm 
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Yail Bloor Wrote:
Senator LooGAR, TX Monger Wrote:
Shit I already have one of those....No house tho...at least nothing I own. We rent one and I squat in a FINE unfurnished town home. No stereo either, I hope that 3 disc piece of shit I left at Yail's hasn't been shot at with a .44?


Not yet though I did find MORE of your shit while I was looking for something in that little writing desk in your old room the other day....Like empty cuff link boxes. IT NEVER STOPS.


Just think how I feel. I have NO IDEA where I left most of my shit that's not either at FEMGAR's or at Redlands. IMPORTANT shit. (You know, like all those pictures we cut out of books at the library, etc.

_________________
Throughout his life, from childhood until death, he was beset by severe swings of mood. His depressions frequently encouraged, and were exacerbated by, his various vices. His character mixed a superficial Enlightenment sensibility for reason and taste with a genuine and somewhat Romantic love of the sublime and a propensity for occasionally puerile whimsy.
harry Wrote:
I understand that you, of all people, know this crisis and, in your own way, are working to address it. You, the madras-pantsed julip-sipping Southern cracker and me, the oldman hippie California fruit cake are brothers in the struggle to save our country.

FT Wrote:
LooGAR (the straw that stirs the drink)


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