Home buying thread

I wasn't actively monitoring my credit, someone opened a couple cell phones in my name and didn't pay them. They're removed now but it came too late in the process, so I Just said fuck it

Pay a higher interest rate to avoid PMI?

I wasn't thinking points, I was thinking like if the going rate was 3.5%, you're rate would be 3.75%, the bank would make money selling the loan with the higher rate and they would pay pmi instead of you. I think its called lender paid pmi?

Big Phoenix_sl said:

that sounds like purposely confusing people.

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Lol everything financial seems purposefully confusing to me

Arative_sl said:

I wasn't thinking points, I was thinking like if the going rate was 3.5%, you're rate would be 3.75%, the bank would make money selling the loan with the higher rate and they would pay pmi instead of you. I think its called lender paid pmi?

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I'm not sure, I actually think we got locked in at a comparatively higher interest rate than we'd get now. I'm only doing this because the guy is a friend and he was solid when he helped us buy our house. If it's bullshit I'll just not proceed. I'll probably post whatever she says here.

Jysin_sl said:

This. If you have all that money to pay up-front PMI (nothing but an insurance). Why not just put it towards your 20% down (principle) to get rid of PMI and wasted money altogether?

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Hardly.

http://www.bankrate.com/finance/mort...insurance.aspx

How long do you think it will take someone putting 5% down to get to 20% equity in a normal market? Much longer than 2.5 - 3 years.

If you're in a situation where you'll be paying PMI then you're best option is to pre pay it unless you are planning on selling it in 3 years. Obviously not all loans are equal and not all programs are the same.

a_skeleton_03_sl said:

Except I am paying only $150/mo more in order to not rent and be able to customize my house to the comfort level I want. That alone is worth all the money I can afford.

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Cherry picking the original quote. You aren't "investing" in a house. You're buying a home that you plan on staying in long term.

No it isn't nonsense, seems like you're falling hook line and sinker as well. Doing a new build, customizing it for extra cash, and planning on moving in 4 years? That's not an investment at all. Though I guess if you don't see it as an investment, but rather luxury spending (which it is), then it's neither here nor there.

I'm about a year away from finishing my mortgage, and we plan to be in this house until death. Thanks be praised.

lurkingdirk_sl said:

I'm about a year away from finishing my mortgage, and we plan to be in this house until death. Thanks be praised.

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Hey man congrats on that, that's awesome. I can't wait for that day.

I know that's the current theme but if there's anything to celebrate it's paying off a mortgage. I know with money bags in your vault it's tough to relate to the common folk