Home buying thread
- Thread starter Pasteton
- Start date
-
Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!
Go here and give us your nominations!Who's been the biggest Asshat in the last year? Give us your worst ones!
Cad
scientia potentia est
- 25,426
- 49,042
I did pay off my first house in like 2 years. But it was like 180k. It seemed nice at the time but in retrospect if I had bought $150k of VTI in 2003....
Khane
Got something right about marriage
- 20,338
- 14,002
OK, and I get it. But when that's the case why buy a house at all? If you're future focused and investment savvy, why buy a house?
Cad
scientia potentia est
- 25,426
- 49,042
Didn't make any money on my first house because it was a tract house. I'm already up about $500k on this house. I learned since then.
Also, gotta live somewhere. Fairly difficult to rent a 5 bedroom place without the cost being stupid.
That's the rub. Finding a house to live in that I can do what I want with and do what I want in is difficult.
Khane
Got something right about marriage
- 20,338
- 14,002
Based on what you said in the Big Short thread are you at all concerned with the current market? I don't mean to be cynical but you sound like you're letting this outrageously bullish market make you cocky.
Cad
scientia potentia est
- 25,426
- 49,042
Personally concerned, no. Because I bought at the very bottom of the local market (by luck, really, but it worked out). Even in the event of another crash, prices will just reset to around what I paid, most likely. Which is fine.
Also I'm planning to stay here until my last kid graduates high school... which is about 15 more years. So I have plenty of time for it to crash and inflate again before I need to worry.
My housing expenses (PITI) are also only like 19% of my bring home, neverminding my wife's income... so I'm good either way.
Here's the thing with the housing market. It never matters unless you are buying or selling. If you aren't doing either it doesn't matter how much your house has appreciated or depreciated.
Khane
Got something right about marriage
- 20,338
- 14,002
That is exactly the rub. It's what makes buying a house an investment in personal well-being and happiness rather than a financial investment.
Khane
Got something right about marriage
- 20,338
- 14,002
I know you're a smart guy, I just wanted you to fully disclose for the sake of would be investors who hold your opinion in high value in such matters. I think that trust in your opinion isn't unwarranted but wanted you to elaborate because you were almost making it sound like the kind of success you've seen is a sure thing when market forces are completely outrageous and have been for most of your (and mine) adult life.
Cad
scientia potentia est
- 25,426
- 49,042
Borzak
Bronze Baron of the Realm
- 25,443
- 33,205
I bought the 2 houses in my name and paid cash. Of course they were probably a lot cheaper than the houses most of you own/live in. I'm really conservative in that aspect. I grew up in the petro chemical bust of the early 80's and I knew families who lost everything. I like having a house paid for. Sure it doesn't come out ahead money wise, but it's nice for me peace of mind wise.
I found lots of 5 bedroom houses in Stone Oak and Garden Ridge just north of San Antonio when I was looking. But I really didn't want to pay $18k a month in rent. Blew my mind that they had multi million dollar homes 1/4 mile from our shop. Normally the kind of shops I work with are in the very worst of the worst part of town. President of the company told me a house was for sale just down the road I could look at. I told him I would need a raise to buy a $4.5 million house. But he said you can save a lot of gas money since you could bike or walk to work.
I found lots of 5 bedroom houses in Stone Oak and Garden Ridge just north of San Antonio when I was looking. But I really didn't want to pay $18k a month in rent. Blew my mind that they had multi million dollar homes 1/4 mile from our shop. Normally the kind of shops I work with are in the very worst of the worst part of town. President of the company told me a house was for sale just down the road I could look at. I told him I would need a raise to buy a $4.5 million house. But he said you can save a lot of gas money since you could bike or walk to work.
Noodleface
A Mod Real Quick
- 38,274
- 15,097
I think I'm going to give this lady the info she requested - W2's, tax returns, income verification, etc. I assume it will be a hard credit check which I never like, but looking over our mortgage we might save a ton of money. Our interest rate is absurd (4.75), and while I'm not exactly sure what rates are right now I think we could drop 1% or so, plus if she can get rid of PMI that will be big savings for us.
I'm a little leery of re-financing because I've never done it and don't know what costs are associated with it - in a typical refinance, what do you need to pay out of pocket? Closing costs? Any title/escrow stuff? Inspection?
I'm a little leery of re-financing because I've never done it and don't know what costs are associated with it - in a typical refinance, what do you need to pay out of pocket? Closing costs? Any title/escrow stuff? Inspection?
Cad
scientia potentia est
- 25,426
- 49,042
Usually just closing costs which are title insurance and whatever filing fees/etc they have. Most of the time the lower interest rate more than overwhelms the costs over a short time horizon if you are getting a lower rate.
I paid nothing out of pocket. All the fees got rolled into the mortgage -- for better or for worse. But removing the PMI and getting a slightly lower rate I saved ~$450/mo so I wasn't going to stress out too bad.
Closing costs will be 2 or 3k and if he knocks off a point on a 200k loan he'll save 120 a month so 2 or 3 years? You have to remember cad, some mortgages are less than 7 million dollars.
Noodleface
A Mod Real Quick
- 38,274
- 15,097
The only problem is rolling it into the mortgage you're paying interest on it for however many years the mortgage is.
I just want to make sure I know what I'm getting into.
Are there any major drawbacks in my scenario? I mean with me having PMI and an absurd interest rate.
I just want to make sure I know what I'm getting into.
Are there any major drawbacks in my scenario? I mean with me having PMI and an absurd interest rate.
Getting rid of the PMI alone is worth it unless you plan on moving soon. My PMI was stupid like $140/mo or some shit. Combined with knocking that off and getting a better rate it seems like a logical decision to me.