(11-11-2020, 09:08 AM)SlimKlim Wrote: Start playing around w/mortgage costs calculators to get a feel for how it breaks down, you'd probably do an FHA loan with a 3.5% downpayment which would look like this. Although it doesn't show closing costs (2-3% of home price).
Any downpayment under 20%(?) requires PMI or... MIPs on FHAs I think, which adds a significant amount to your monthly cost until you've made a certain number of payments.
Yes on the loan calcs, but not all loans have PMI. I've never had PMI and always done a 10% down payment - if you can get in with Navy Fed your life will be much easier, but there are other good CU's out there too - run the costs, do the research, build a spreadsheet, because a 30 year fixed mortgage is not always the best thing - if you are stretching your budget then every point counts. PMI is money you will never get back avoid it if you can. More % down means lower interest rate too, but you can always refi later. But 10% down on $550k means bringing $70-80k to the table to close.
(11-11-2020, 09:14 AM)JPolen01 Wrote: Also don't buy a house while you are young and not married. You'll spend your free time maintaining the house and limit your relocation abilities dramatically.
Caveat - yes to a point, but, buy something you can hold and rent if you decide you dont want to be tethered to it. I wish I'd done more to build wealth/savings earlier but racecars motorbikes no ragrets dot gif.
(11-11-2020, 09:14 AM)JPolen01 Wrote: Also $550k is a ridiculous budget for a house for someone that only needs a house for themselves.
Yeah, this here. Figure out what you want - i.e. garage space, bedrooms, roommates, etc - and then figure out if you can a) afford the location(s) you want or b) live with the commute options.
Its a really hard market - and you kinda have to look at a bunch of houses to figure out what you want so it may be worth looking at what you can see now, if there are open houses around (not sure because hot market and covids). Once you've been in a bunch of houses/neighborhoods you can better make a judgement on photos alone.
Its a big purchase and its stressful but it can be worth it.
(11-11-2020, 09:42 AM)Senor_Taylor Wrote: Just spitballing, but have people pulled out personal loans to cover closing costs?
Bad idea, IMO. If you're borrowing twice you cant afford it.
Happy to talk this over more over a beer if you want.