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+--- Thread: Tell Taylor What To Buy 2k17 (/showthread.php?tid=11345)
Re: Tell Taylor What To Buy 2k17 - HAULN-SS - 01-10-2017
I got fucked paying PMI for 9 years on my WV house - so I'm real skeptical of this. Too many ways for the banks to screw you. I bought way cheap for the time, and still couldn't get a refi (mostly because my loan wasn't owned by fanny/freddy). I also couldn't get rid of PMI with an appraisal even though I eventually hit +20% equity. Lots of fine print to read on that, and I think at a minimum freddy loans require PMI be on there for 2 years.
tl;dr - I looked at a ton of options to avoid PMI on my second house (which closes in a couple weeks), and ended up going with an 80-10-10 because I'll have the 10% loan paid off ASAP when I sell the WV house, and it will be cheaper than 2 years of PMI.
Re: Tell Taylor What To Buy 2k17 - Apoc - 01-11-2017
The only way, that I'm aware of, to get rid of PMI is to refinance.
Re: Tell Taylor What To Buy 2k17 - G.Irish - 01-11-2017
Wifey got rid of PMI on her first house, but she bought it as a foreclosure and renovated it so the value of the home went waayyy up. It was also an FHA loan so that probably had something to do with it.
Re: Tell Taylor What To Buy 2k17 - .RJ - 01-11-2017
My recall on this is a little fuzzy, but, if you are stretching the budget to get into a house, which I assume includes most first time buyers in NoVA, avoiding the $100/mo PMI payment can get you into $20-30k more house. Over 30 years, that $100/mo really goes a long way. 2.8% with no PMI made things really easy for me. CHEAP MONEY++
Re: Tell Taylor What To Buy 2k17 - *insertusernamehere* - 01-11-2017
What should Taylor buy -------> is it right to buy a house
Classic Madison Motorsports.
Re: Tell Taylor What To Buy 2k17 - *insertusernamehere* - 01-11-2017
PMI BMI TMI PMS BPM BEEBOP BETTY BOOP WEE WOO WEE WOO AFH JFK REFI LOFI HIFI WIFI SOUND THE ALAAARRRMMM!!!
Re: Tell Taylor What To Buy 2k17 - WRXtranceformed - 01-11-2017
.RJ Wrote:My recall on this is a little fuzzy, but, if you are stretching the budget to get into a house, which I assume includes most first time buyers in NoVA, avoiding the $100/mo PMI payment can get you into $20-30k more house. Over 30 years, that $100/mo really goes a long way. 2.8% with no PMI made things really easy for me. CHEAP MONEY++Yeah but you don't pay $100 / mo for all 30 years of your loan with PMI, you only pay it until you have 20% equity in the home. Hence Chris's comment about why people refinance if their home values have gone up (and rates have gotten better obviously). It's a bigger deal if you're putting down only 3% or less like you used to be able to. Don't get me wrong, I'm not a fan of paying bank fluff payments but they're going to get their money from you somehow no matter what (ie in higher closing costs, a slightly higher interest rate you're not going to notice, etc.).
It's kind of a moot point anyway because the average period of time people stay in one house is about 7 years
2.8% is crazy cheap, then I read back and remembered you had an ARM. I mean yeah that's such cheap money! I remember my first mortgage before a refi was an ARM at like 4.5 or 5% and at the time that was *really good*...I refi'd to 4.25 30yr fixed or something which was also really good. We're now at 3.125% on a 30yr fixed without paying any points on our new place 8)
Re: Tell Taylor What To Buy 2k17 - Apoc - 01-11-2017
PMI is moot - you can either afford the house or you can't. If you don't have 20% to put down but you can afford the monthly payment with PMI, do it*. There are creative ways to avoid it, but it's the price of doing business if you don't have 20%. Don't not buy a house just because you don't want to pay PMI.
I've had six mortgages in my lifetime - one refi for each house. I made a mistake by doing 30 year fixed for my first, at my parents suggestion, and subsequently paid more for it. Then rates went down and I refi'd with an ARM, which reduced our payments by like 20%. On the flip side, we kinda got screwed with our second refi because the market had gone down and we no longer had 20% equity. I borrowed money from my parents to avoid it, so I got lucky there. When we bought this house, I rolled the dice with an ARM because the market's been hot and doesn't show many signs of slowing. That said, we just did a refi six months ago and I locked in a 30 year fixed because a) I got a cheap Brexit rate, and b) I wanted predictable payments with a kid. If anyone is in the JUMBO loan territory and wants to talk creative mortgages, let me know.
*I still maintain the only two reasons to buy are market and kids.
Re: Tell Taylor What To Buy 2k17 - Senor_Taylor - 01-11-2017
Okay, so I'm selling my truck and buying a house now.
Re: Tell Taylor What To Buy 2k17 - *insertusernamehere* - 01-11-2017
Senor_Taylor Wrote:Okay, so I'm selling my truck and buying a house now.You could do like a speed3 for your house, as my recommendation. It'll go everywhere you go, be extremely versatile with a hatch, stay warm, entertain your guests wonderfully and fold down rear seats for your bed and doesn't cost five hundred thousand dollars.
Re: Tell Taylor What To Buy 2k17 - Senor_Taylor - 01-11-2017
*insertusernamehere* Wrote:Senor_Taylor Wrote:Okay, so I'm selling my truck and buying a house now.You could do like a speed3 for your house, as my recommendation. It'll go everywhere you go, be extremely versatile with a hatch, stay warm, entertain your guests wonderfully and fold down rear seats for your bed and doesn't cost five hundred thousand dollars.
Meet in the middle? This looks better than a speed3.
![[Image: Winnebago-Brave-motorhome.jpg]](http://www.doityourselfrv.com/wp-content/uploads/2015/11/Winnebago-Brave-motorhome.jpg)
Re: Tell Taylor What To Buy 2k17 - *insertusernamehere* - 01-11-2017
Senor_Taylor Wrote:Oh my god the wheels [FACE WITH TEARS OF JOY][FACE WITH TEARS OF JOY][FACE WITH TEARS OF JOY][FACE WITH TEARS OF JOY]*insertusernamehere* Wrote:Senor_Taylor Wrote:Okay, so I'm selling my truck and buying a house now.You could do like a speed3 for your house, as my recommendation. It'll go everywhere you go, be extremely versatile with a hatch, stay warm, entertain your guests wonderfully and fold down rear seats for your bed and doesn't cost five hundred thousand dollars.
Meet in the middle? This looks better than a speed3.
Re: Tell Taylor What To Buy 2k17 - Gordonovski - 01-11-2017
After reading this and realizing I'm essentially a child, we should have a house buying guide akin to Rex's gun buying guide.
Sent from my iPhone using Tapatalk
Re: Tell Taylor What To Buy 2k17 - .RJ - 01-11-2017
WRXtranceformed Wrote:We're now at 3.125% on a 30yr fixed without paying any points on our new place 8)
Thats really good :thumbup:
Re: Tell Taylor What To Buy 2k17 - Apoc - 01-11-2017
.RJ Wrote:WRXtranceformed Wrote:We're now at 3.125% on a 30yr fixed without paying any points on our new place 8)
Thats really good :thumbup:
We're at 3.75% for 30 year fixed, but it's a JUMBO so may not be comparable.
Re: Tell Taylor What To Buy 2k17 - WRXtranceformed - 01-11-2017
Apoc Wrote:That's also really good for jumbo! Those rates look to have mostly gone up to 4%+ in your area.RJ Wrote:WRXtranceformed Wrote:We're now at 3.125% on a 30yr fixed without paying any points on our new place 8)
Thats really good :thumbup:
We're at 3.75% for 30 year fixed, but it's a JUMBO so may not be comparable.
Re: Tell Taylor What To Buy 2k17 - HAULN-SS - 01-11-2017
Can confirm. We put in our offer before the election, and had some loan prequals at 3.875 - ended up having to pay half a point to get %4.25 - over quarter point jump in 20 some days. Fuck. That was for a fixed rate Jumbo, btw.
Also - PMI is a percentage, so it's not always $100. For this place we bought it would be more like $260-$300/mo which is why I wanted to avoid it. With the 2nd mortgage, I at least know when the end-date is (whenever I pay off the loan).
As for ARMs - some credit unions now are offering 5/5 ARMs which are pretty awesome. I did that eventually for the WV house. Got a 2.25 rate for the first 5 years. Max adjustment was 2 points on any given adjustment, with a ceiling of 6% or something like that. Not too bad, and saved me 30% on my monthly payment for the lower rate and lesser principle amount.
Re: Tell Taylor What To Buy 2k17 - JustinG - 01-11-2017
.RJ Wrote:WRXtranceformed Wrote:We're now at 3.125% on a 30yr fixed without paying any points on our new place 8)
Thats really good :thumbup:
Ditto, I was happy with our 3.375% on our new place, but 3.125% is pretty awesome.
I love the thread derailment.....it's like we know that "what should I do" threads result in the OP doing whatever they decided on before even making the thread.
Re: Tell Taylor What To Buy 2k17 - Senor_Taylor - 01-11-2017
Actually not really. This has made me reconsider a lot of things and I definitely won't pick up a car payment now.
Re: Tell Taylor What To Buy 2k17 - WRXtranceformed - 01-11-2017
JustinG Wrote:Ditto, I was happy with our 3.375% on our new place, but 3.125% is pretty awesome.WOOPS MY BAD! Your number sounded really familiar so I double checked my online statement and ours was indeed identical to yours at 3.375 with no points paid, not 3.125%. Sorry I am knee deep in numbers on multiple work projects right now and got thrown off :lol: Still super pleased as that's the lowest I could find anywhere and rates definitely began to rise pretty much immediately after I locked.
I love the thread derailment.....it's like we know that "what should I do" threads result in the OP doing whatever they decided on before even making the thread.