03-18-2003, 07:51 PM
Quote:NOT in this lifetime, bub!
Imagine how great it would be, we wouldn't even have to have discussions like this, because the choice would've already been made
03-18-2003, 07:51 PM
03-18-2003, 07:52 PM
Quote:what do points do?
and thus Arpi's initial post is validated.
03-18-2003, 07:58 PM
Quote:and thus Arpi's initial post is validated.
thanks Ken why should I know anything about mortgages?
03-18-2003, 08:00 PM
Renting is good if you have no other option. When you rent, it's pure expense, you get nothing for your money other than living space for 30 days. granted, maintenance is not your concern (aside from cleaning, etc.) but unless your landlord is a caring soul, whatever repairs that need to be done can wait until he/she gets around to it. Perfect example - my former landlord never shoveled the walk when it snowed, ever. Technically, it was her responsibility to provide a safe entrance/exit to the sidewalk for us, but she never did it. What could I do, sue? It wasn't worth it - I mean if I slipped and fell maybe, but still, who needs the hassle?
Anyway, paying to own is a way better option - you not only own the house, but it becomes equity, something that you can borrow against if you need to. It's also security - if your landlord sells her house, you gotta go (usually). Unless you sell your house, you don't have to go anywhere (assuming you keep up with the mortgage payments.)
Speaking of mortgages, rates are at their lowest in several years. People are refinancing and buying houses like crazy. I'm getting credit card offers with 0% rates for a year, all kinds of great deals (though credit cards are the devil). My point is, if there was a time to get a mortgage, this would be it.
Is it a hassle to find a house? Yeppers, it took us 6 months - but we found it. I would recommend doing it on your own, especially if you know someone who can help you along the way - real estate agents don't do shit and try to hit you up for 1% - 2%, or even more. If you buy a house for $250,000 and they didn't do anything but make a phone call to set up the appointment to see it and some bullshit paperwork that your attorney does for you at closing anyway, why should you give them $5,000?
Yes, there are bullshit fees along the way, but that's life. A good rule of thumb is to have at least 5% of the purchase price to pay your closing fees, and DP's usually are in the 10%-20% range. So, for a $250,000 house you'll need say $25,000 down (low end) and need around $12,500 for closing costs. You can also roll up to 3% or 4% of the closing costs into your mortgage which will cost you a little more, but it gives you less cash needed to get the house now and your monthly mortgage payment won't be all that much more - especially with a low rate.
Just keep an eye out for shady brokers (if you use one) who promise you the world, try to find one that a friend of family member knows, etc. so they won't fuck you in the ass too hard. Getting our house and even getting into our house was a real tough experience on us, but now I can honestly say I'm glad we did it - it's nice to walk around the house and say it's "mine", and not have to worry about making too much noise or having to deal with an annoying landlord every month.
Anyway, paying to own is a way better option - you not only own the house, but it becomes equity, something that you can borrow against if you need to. It's also security - if your landlord sells her house, you gotta go (usually). Unless you sell your house, you don't have to go anywhere (assuming you keep up with the mortgage payments.)
Speaking of mortgages, rates are at their lowest in several years. People are refinancing and buying houses like crazy. I'm getting credit card offers with 0% rates for a year, all kinds of great deals (though credit cards are the devil). My point is, if there was a time to get a mortgage, this would be it.
Is it a hassle to find a house? Yeppers, it took us 6 months - but we found it. I would recommend doing it on your own, especially if you know someone who can help you along the way - real estate agents don't do shit and try to hit you up for 1% - 2%, or even more. If you buy a house for $250,000 and they didn't do anything but make a phone call to set up the appointment to see it and some bullshit paperwork that your attorney does for you at closing anyway, why should you give them $5,000?
Yes, there are bullshit fees along the way, but that's life. A good rule of thumb is to have at least 5% of the purchase price to pay your closing fees, and DP's usually are in the 10%-20% range. So, for a $250,000 house you'll need say $25,000 down (low end) and need around $12,500 for closing costs. You can also roll up to 3% or 4% of the closing costs into your mortgage which will cost you a little more, but it gives you less cash needed to get the house now and your monthly mortgage payment won't be all that much more - especially with a low rate.
Just keep an eye out for shady brokers (if you use one) who promise you the world, try to find one that a friend of family member knows, etc. so they won't fuck you in the ass too hard. Getting our house and even getting into our house was a real tough experience on us, but now I can honestly say I'm glad we did it - it's nice to walk around the house and say it's "mine", and not have to worry about making too much noise or having to deal with an annoying landlord every month.
03-18-2003, 08:03 PM
Quote:what do points do?
Points are a percentage of the purchase price of your home, such as 1% or 2%. Paying these up front fees can allow you to get a lower mortgage rate than you would by paying 0 points. The rationale behind it is that by paying this up front charge, you will save considerably more in interest payments over the lifetime of the mortgage.
Usually you would pay points if it would make the mortgage payment fit into your budget, or if you plan on staying in the house until the mortgage is paid off. If you don't plan on staying in the house that long and can afford the higher monthly payment otherwise, avoid points if at all possible.
Edited By Metalfan on 1048017910
03-18-2003, 08:05 PM
Quote:Quote:what do points do?Points are a percentage of the purchase price of your home, such as 1% or 2%. Paying these up front fees can allow you to get a lower mortgage rate than you would by paying 0 points. The rationale behind it is that by paying this up front charge, you will save considerably more in interest payments over the lifetime of the mortgage.
Points are bad, noone should have to deal with points, especially with these low rates.
03-18-2003, 08:06 PM
Quote:real estate agents don't do shit and try to hit you up for 1% - 2%, or even more.6% & they'll call to have your phone hooked up
if I bother to get a real estate liscense, I can get a cut of the realtor's commission back
Quote:not have to worry about making too much noise:fucking:
03-18-2003, 08:11 PM
Also when you buy a house in NY, you have to pay a mortgage tax which I believe for us was 2% of the total mortgage - just because we were getting a mortgage. That's one of those bullshit fees - most of the others are small though. If you get a good real estate attorney, he can advise you as to how to avoid them, or if you can work out a deal with whatever bank you go with to get the mortgage (get them to waive the application fee, shit like that). Most people don't dare to even try, so they pay it.
Edited By goatweed on 1048018376
Edited By goatweed on 1048018376
03-18-2003, 08:16 PM
Quote:Also when you buy a house in NY, you have to pay a mortgage tax which I believe was 2%
Actually Goaty, I think it is $4/1,000 of purchase price, or 0.40%....even more annoying a fee than the 2% you said.
03-18-2003, 08:17 PM
if you can afford to....buy.
03-18-2003, 08:18 PM
don't you mean if your wife can afford to....buy?
03-18-2003, 08:26 PM
either way.
if possible......buy.
if possible......buy.
03-18-2003, 08:27 PM
Quote:Actually Goaty, I think it is $4/1,000 of purchase price, or 0.40%....even more annoying a fee than the 2% you said.
I think you're right, the 2% was on the sale (we sold a house at the same time).
Quote:don't you mean if your wife can afford to....buy?
:rofl:
03-18-2003, 08:28 PM
Metal, make me laugh again today, and you go into uncharted territory.
03-18-2003, 08:30 PM
points are simple...they lower your rate. i was reviewing the rates here at work today and we have very few options if you wanted to pay more than .5 points. thats insane...and the rates are staying the same, even though the market is adjusting up...sure they will get a slight bump, but no more than say .250, .375 at the most...
03-18-2003, 08:40 PM
Quote:Metal, make me laugh again today, and you go into uncharted territory.
Have no fear Ken....I just stuck my little toe into the funny pool, and its too cold for me to venture back in :thumbs-up:
03-18-2003, 09:03 PM
OK .... how about House vs Condo vs Co-op?
Condo/Co-op you have the maint fee & the Co-op you have to be approved first.
House, no fee but no maint done for you.
What about property taxes ... I know they are high by me, I just have no idea how high. :poke:
Condo/Co-op you have the maint fee & the Co-op you have to be approved first.
House, no fee but no maint done for you.
What about property taxes ... I know they are high by me, I just have no idea how high. :poke:
03-18-2003, 09:07 PM
I used to have a townhouse....no fucking privacy. Anytime you opened your door, someone knew about it. House is much more private, in most cases :-) Although not having to shovel is a bonus in winters like the one we just had.
I pay almost $7,000 a year in property taxes, mostly because I have a large piece of land (over 1 acre). I also have really good schools, which drives the taxes up.
I pay almost $7,000 a year in property taxes, mostly because I have a large piece of land (over 1 acre). I also have really good schools, which drives the taxes up.
03-18-2003, 09:14 PM
A friend of mine bought a co-op in Hackensack, but I don't like it. It's like an apartment building, but it's his - and he still has to abide by the building's bullshit rules. Example, he had applied for a parking space in the garage - he got it. Now at the time, that space was his to do with as he pleased - the assumption is for a car, but people would also use it to put stuff in along with the car, like a bike, or chairs, etc. Anyway, they turn around one day and decide that they don't want anything there but cars so they send a memo and the next day if people still had stuff there, they confiscated it until they were claimed and only gave like 3 days to claim it. I don't know if it's that bad everywhere, but I know my friend has to abide by certain building rules (deliveries only at certain times, no late wild parties, shit like that). If I'm renting the place it's understandable, but if I own it that's bullshit.
and property taxes here suck, especially nowadays - but not as bad as in NJ though.
and property taxes here suck, especially nowadays - but not as bad as in NJ though.
03-18-2003, 09:16 PM
Quote:I also have really good schools, which drives the taxes up.
this was another little known fact that I discovered when I questioned the amount of my taxes - they should only make people who have kids pay these taxes! :angry: