Home buying thread

  • 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!
wormie

Asshat wormie

2023 Asshat Award Winner
<Gold Donor>
16,820
30,968
a_skeleton_03 said:
So instead of buying the house I "need" or want in order to fit my family and might be the perfect price to value ratio that I can find I should go find a starter house and ladder up for the next 37 years? Do I move immediately when I have the 20% ready for the next higher house? What square footage jump do I maximize moving at? Do I just keep moving even if I find the house I love so that I maximize my mortage to lack of PMI ratio at all times?

You should do stand up.
Click to expand...
What is your argument here? That you should micromanage your finances? Yeah?

You yourself put the word need into quotes. So you didnt need that house, you could have saved the money being wasted on PMI. But hey, you "need" it so you must have it, right?
 
alavaz

alavaz

Trakanon Raider
2,004
714
wormie said:
What is your argument here? That you should micromanage your finances? Yeah?

You yourself put the word need into quotes. So you didnt need that house, you could have saved the money being wasted on PMI. But hey, you "need" it so you must have it, right?
Click to expand...
giphy.gif
 
A

a_skeleton_03

<Banned>
29,948
29,763
wormie said:
What is your argument here? That you should micromanage your finances? Yeah?

You yourself put the word need into quotes. So you didnt need that house, you could have saved the money being wasted on PMI. But hey, you "need" it so you must have it, right?
Click to expand...
I also could live with my parents.

I can think of worse things to do with my money and finances but hey why would I hold you to some kind of logical standard.
 
wormie

Asshat wormie

2023 Asshat Award Winner
<Gold Donor>
16,820
30,968
a_skeleton_03 said:
I also could live with my parents.

I can think of worse things to do with my money and finances but hey why would I hold you to some kind of logical standard.
Click to expand...
Reducing an argument to "I can live with mom" is a logical standard? Ok you win.
 
A

a_skeleton_03

<Banned>
29,948
29,763
wormie said:
Reducing an argument to "I can live with mom" is a logical standard? Ok you win.
Click to expand...
Hey man you reduced the entire argument of PMI down to "just buy a cheaper house". Par for the course.

The way I started saving money though was not splitting my assets by 50% and inviting a lawyer into my house but I am guessing consistency when it comes to financial decisions is actually not a strong point of yours.
 
wormie

Asshat wormie

2023 Asshat Award Winner
<Gold Donor>
16,820
30,968
a_skeleton_03 said:
Hey man you reduced the entire argument of PMI down to "just buy a cheaper house". Par for the course.

The way I started saving money though was not splitting my assets by 50% and inviting a lawyer into my house but I am guessing consistency when it comes to financial decisions is actually not a strong point of yours.
Click to expand...
That is not a reduction of the argument. That is the entire argument. To avoid paying PMI you either put more money down or purchase a property that allows for the money you have to be 20% of the purchase price.
 
A

a_skeleton_03

<Banned>
29,948
29,763
wormie said:
That is not a reduction of the argument. That is the entire argument. To avoid paying PMI you either put more money down or purchase a property that allows for the money you have to be 20% of the purchase price.
Click to expand...
To avoid paying PMI you could also move in with mom. This allows you to save that 20% faster because you are no longer paying rent.
 
wormie

Asshat wormie

2023 Asshat Award Winner
<Gold Donor>
16,820
30,968
a_skeleton_03 said:
To avoid paying PMI you could also move in with mom. This allows you to save that 20% faster because you are no longer paying rent.
Click to expand...
That will allow one to save money faster. But that also makes the entire discussion here moot so...ok?
 
A

a_skeleton_03

<Banned>
29,948
29,763
wormie said:
That will allow one to save money faster. But that also makes the entire discussion here moot so...ok?
Click to expand...
No it won't make it moot. You are still eventually going to buy a house so why not go extreme to get there faster?

The statement I am making IS ridiculous I agree. That is how I see your "just rent cheaper" is. When I rent or buy a house I am always looking for the cheapest I can possibly go while maintaining a level of safety in the lifestyle that my family needs. I didn't put quotes around it this time because there are needs that you might not agree with and some others might but they are needs. A need is a shack that can protect me from the elements which is why I air quoted it earlier.

Not one person disagrees with you that PMI is not a great use of your money and should be planned to avoid. Not all scenarios are created equal and "just rent cheaper" is not actually always the best financial decision. There are thousands of variables to every decision on where to live that can impact you financially much more than avoiding PMI.
 
A

a_skeleton_03

<Banned>
29,948
29,763
Keystone said:
Wormie like 100% has to be trolling right?
Click to expand...
I really do not think he is. He is lecturing us because of some reason I can't understand. Like I said the start to good finances is not giving away 50% of your assets and paying a lawyer for the privilege of doing it but I guess PMI is the ultimate sin in his book.
 
wormie

Asshat wormie

2023 Asshat Award Winner
<Gold Donor>
16,820
30,968
a_skeleton_03 said:
I really do not think he is. He is lecturing us because of some reason I can't understand. Like I said the start to good finances is not giving away 50% of your assets and paying a lawyer for the privilege of doing it but I guess PMI is the ultimate sin in his book.
Click to expand...
I am not lecturing anyone on anything. I said I don't get why people toss money away on PMI and the only explanations presented were that someone needs a bigger house because "reasons" and that owning is always better than renting, which is nowhere near being always true.
 
Pops

Pops

Avatar of War Slayer
8,136
21,317
It's all good as long as the market holds together. PMI is just another form of leverage.
 
edko

edko

Ahn'Qiraj Raider
4,973
4,862
Pops said:
It's all good as long as the market holds together. PMI is just another form of leverage.
Click to expand...

If the mortgage interest deduction gets clipped there is going to be less mobility in certain areas of the country, where a 500k house is pretty normal.
 
Crone

Crone

Bronze Baronet of the Realm
9,714
3,211
I don't wanna eat ramen and live in a 2 bedroom apartment in the ghetto for 5 years in order to save enough to get 20%. Fuck that. Gimme dat PMI on a silver platter and I'll eat that shit up! 'MURICA

right wormie wormie ?
 
A

a_skeleton_03

<Banned>
29,948
29,763
wormie said:
I am not lecturing anyone on anything. I said I don't get why people toss money away on PMI and the only explanations presented were that someone needs a bigger house because "reasons" and that owning is always better than renting, which is nowhere near being always true.
Click to expand...
Not necessarily a bigger house, a house at all.

Look into the housing market in San Diego right now and their lack of inventory. This drives house prices unnaturally high. The logical thing is not to buy there, you could however get into a house that is near your range that you don't have a 20% down for but is a fixer upper. You instead put that cash you would have into fixing it and up its resale. You can then flip and get into a house you can afford without PMI.

Take a look at military towns or other areas where the population is often shifting where rent can sometimes be higher per month than an equal sized house because the people there know what people will rent for since nobody wants to buy there. I can waste my money on a stranger or I can waste it on the bank. If I waste it on the bank it is my house completely custom for me and I can do wtfever I want to it without any issues with the landlord. I don't have to worry about the fickleness of them selling it or worry about laws regarding rent increases.

PMI is not optimal and should be avoided, I agree. Your dogmatic stance that it should never ever be done is silly though. You are purposely being obtuse by assuming that everyone that does so is doing that to get into a house that is well beyond their means. You would be wrong.
 
  • 1Like
Reactions: 1 user
A

a_skeleton_03

<Banned>
29,948
29,763
Maybe this screenshot will put it into perspective.

pmi.png


That is a nice dinner with the wife once a month. That's it.
 
  • 2Like
Reactions: 1 users
alavaz

alavaz

Trakanon Raider
2,004
714
I definitely won't have 20 when I go to buy but (barring some unforeseen circumstance) will probably do an 80/10/10 and if interest rates are still low, I'll probably do 15 year fixed.
 
You must log in or register to reply here.