When buying a house......

[TC2]

How much money do you usually need for the down payment???

Rent houses are just rediculously priced now and I'm sick of throwing away my money every month.

 

[EnderJE]

You can have as little as 5% to as much as you want. However, if you give less then 20%, there is an additional insurance payment added to your mortgage.

Becareful though. I know alot of people who are stretched thin right now with a new house. I'd hate to see them when the rates rise.

 

[gonelifting]

You can have as little as 5% to as much as you want. However, if you give less then 20%, there is an additional insurance payment added to your mortgage.

Becareful though. I know alot of people who are stretched thin right now with a new house. I'd hate to see them when the rates rise.

Correct, but you are referring to an adjustable rate mortgage. I would suggest a fixed rate at this time.

If you can't afford the 20% downpayment, you can put down less and when your equity finally reaches 20%, you can stop paying the PMI (private mortgage insurance) that they make you pay when putting down less than the 20%. I think it's roughly $50-$75/month, I really don't know, I've never paid it.

You should look at the tax savings you'll get with owning a home when comparing rent vs buying. You may pay more for your mortgage but you get some money back at tax time because the mortgage interest is tax deductable as is the Real estate taxes.

The first several year's mortgage payments are mostly interest and very little principle. So mostly all of it will be tax deductible. good luck.

If you wanna throw some numbers up here, we'll help you out.

 

[bran987]

I've noticed gonelifting is excellent with housing info. & mortgages, you should listen to him. He is also a top notch dancer/performance artist if you need help with that too.

One other factor you have to weigh in the cost/benefit is the cost of maintenance when owning your own home vs. renting an apt. or house where the landlord has to pay those costs for you. It can be significant.

 

[TC2]

Correct, but you are referring to an adjustable rate mortgage. I would suggest a fixed rate at this time.

If you can't afford the 20% downpayment, you can put down less and when your equity finally reaches 20%, you can stop paying the PMI (private mortgage insurance) that they make you pay when putting down less than the 20%. I think it's roughly $50-$75/month, I really don't know, I've never paid it.

You should look at the tax savings you'll get with owning a home when comparing rent vs buying. You may pay more for your mortgage but you get some money back at tax time because the mortgage interest is tax deductable as is the Real estate taxes.

The first several year's mortgage payments are mostly interest and very little principle. So mostly all of it will be tax deductible. good luck.

If you wanna throw some numbers up here, we'll help you out.

The tax break would come in handy, I'm just going to save as much $ as possible right now.

I want to get as low as a house payment as possible until the job market picks up.

It's just me and my single income so I'm paranoid about shit.

 

[EnderJE]

Correct, but you are referring to an adjustable rate mortgage. I would suggest a fixed rate at this time.

If you can't afford the 20% downpayment, you can put down less and when your equity finally reaches 20%, you can stop paying the PMI (private mortgage insurance) that they make you pay when putting down less than the 20%. I think it's roughly $50-$75/month, I really don't know, I've never paid it.

You should look at the tax savings you'll get with owning a home when comparing rent vs buying. You may pay more for your mortgage but you get some money back at tax time because the mortgage interest is tax deductable as is the Real estate taxes.

The first several year's mortgage payments are mostly interest and very little principle. So mostly all of it will be tax deductible. good luck.

If you wanna throw some numbers up here, we'll help you out.

Actually, I wasn't. Most people usualy get their mortgage for five or so years. Five years from now, I'm assuming that the rates will be higher.

 

[gonelifting]

Actually, I wasn't. Most people usualy get their mortgage for five or so years. Five years from now, I'm assuming that the rates will be higher.

So, it would be fixed for 5 years, then fluctuate depending on interest rates after that? In some cases adjustable and other types of loans are beneficial but an average homeowner would want the 30 year fixed. Especially at this time. You can always refinance if rates go down or you built enough equity and want some money.

Some people know they won't be staying in a home more than 5-7 years and they get mortgages to mirror that time frame so they pay the least amount monthly. Time expected to be in the home before you sell it also greatly dictates if you buy down the rate with points or not. If you're gonna sell in 3-5 years, I would get an adjustable rate for the lowest rate you can get and pay Zero points. If you're gonna stay in the house for 10 years. Get the fixed rate and sleep soundly, IMO.

TC2, what are the price ranges where you would look to buy a house? What is the rent range you're paying now? With those 2 pieces of info, you could see if you're able to afford the mortgage. Sometimes people need the adjustable loan to help pay the mortgage because it brings the payment down, but they know they'll be making more money in 2-3 years down the line, so when it does adjust, they'll be ready.