patrick.net

swebb - agreed.

tatupu70 says

Does anyone still do the 15/5 where you immediately take a second loan of 5% to cover the 20% down payment? So you avoid PMI but still keep some of your emergency fund.

A good friend of mine asked me that just yesterday. Short answer is I don't know for sure, but anecdotal evidence is "NO"

ECBB,

Are you in contract now and waiting to close escrow? I don't like to congratulate you prematurely. Let us know when that day comes. :)

It seems like your MI is only about 0.5% of the loan value, which is pretty good. There are a couple of things that you can do to get rid of the MI early. Get the house renovated before you move in. Keep a copy of all the receipts so you know how much you spend on the renovations.

Say you bought the house for $300k. You put $30k down and borrow $270k. You will spend $30k on renovation. Who knows, it may worth $330k in the next couple of years. That's when you refinance & get rid of the MI. I know I'm being optimistic here, but who knows right? Keep monitor the market. When you see an uptick in your market in the next several years, talk to a mortgage broker to see if you can refi & get rid of the MI. the mortgage broker can run a comparable analysis free of charge to check for your home value before you spend money for a formal appraisal.

Keep the receipts so you can show the appraiser how much money you spent on the renovation. Maybe he would work with you & give you a fair value for your renovation.

Now don't be a stranger from now on ok? I find you, seaside and TechGromit very genuine and would hate to lose you guys from this forum. So two down one more to go. When will it be your turn to buy seaside? :o)

Do you really need that much (30k) on hand? Some one with good credit and a good salary could easily take out a 10k @ 0% credit line for 18 months (they are everywhere) and pay it down within the time period. Hell you could even get another 18 months 0% balance transfer from a new card if u have a balance left over. It may be worth it as you will be saving 1300/yr in mortgage insurance alone and you may not even need to go this route if nothing comes up in the immediate future.

Well, E-man, as you specifically asked me about that matter...

The only reason that I still am a renter is simply because

EastCoastBubbleBoy says

I like the house. No doubt. It meets all of my “needs” (in terms of living area, condition, etc.) and most of my wants (large lot, good schools, well built).

this does not happen to me yet. For this, I envy him and edvard2. :)

Something is very much amiss when your premise for buying a residence (following a bubble like what we just come out of) is "I don't care if it goes down some in value." Son, if the house is not a screaming deal, you are simply surrendering to the tremendous pressure to own vs rent. There is no other reason for overpaying, even if you can afford to. I know supply is being played with. I know interest rates are being played with. I know you wife is talking about leaving you for another man because you rent such a tiny place. But trust Jody. You are buying what you feel you can afford to lose. That is not very savvy logic.

If you ever ditch the (B)east for the (B)est, you let me know. I would love to rent you a house. I'll give you 2700 sq ft with a view for 1150 a month.

Jody,

There is no other reason for overpaying, even if you can afford to.

I’m cognizant of the fact that I can’t time the market – which means that in the short term it may loose value. So be it. I factored that into the price.

if the house is not a screaming deal, you are simply surrendering to the tremendous pressure to own vs rent.

No, its not a screaming deal, but IMHO it’s a fair deal. I’m buying what I know I can afford.

I know you wife is talking about leaving you for another man because you rent such a tiny place.

Please, leave my wife out of it. As any good woman will tell you, size isn't everything.

would love to rent you a house. I'll give you 2700 sq ft with a view for 1150 a month.

I’d let you rent me a place, but there’s 3000 miles plus between us.

@E-man, thank you for the kind words. I'll keep you guys posted as this develops. Still some hurdles to clear before it happens.

@woppa - call me conservative, but you never know. Two medium sized unexpected bills can really throw a wrench in the works. $30k ain’t what it used to be, particularly in my neck of the woods.

@seaside - I hope you get your chance before too long. I never thought I’d get this close (and its still not a guarantee). If it does all come to fruition I’ll have to post the long and involved story as to how it came to be. Let's just say I had to beat the bushes for a long time.

Three months later I'm still clearing hurdles. Summer SLOWED things down like y'all would not believe. Every time I turned around it was "they took the afternoon off" or "they are on vacation this week". Now that we are a few weeks post labor day there is finally forward progress. Not quite a done deal yet but its getting closer.

When all is said and done I'm writing a book "How not to buy a house" the entire process has been slow, nerve racking and pitfall ridden - and I still have a few more hurdles to clear before I am home free.

Ugh. I'll be glad when it is over.

A month since my last post and I can finally see the finish line….

Let’s hope I finish strong and don’t simply stumble across.

EastCoastBubbleBoy says

Let’s hope I finish strong and don’t simply stumble across.

It's just a mortgage - not a death race!

I'm sure you will be fine.

EastCoastBubbleBoy says

A month since my last post and I can finally see the finish line….

Let’s hope I finish strong and don’t simply stumble across.

What's taking you so long? Anyways, good luck to you. Hope you finish this thing strong. :)

PK & I just got an approval on another short sale a couple of days ago. We should be in contract on another property this Friday or Monday. That should be it for this year. We might do one more deal next year before he's leaving & retiring in another country.

Fingers crossed. :)

E-man says

We might do one more deal next year before he's leaving & retiring in another country.

I've heard of long-distance property management, but that's just silly.

JodyChunder says

E-man says

We might do one more deal next year before he's leaving & retiring in another country.

I've heard of long-distance property management, but that's just silly.

His properties are in good hands until he's being billed to death. LOL!!!

JodyChunder says

EastCoastBubbleBoy says

Let’s hope I finish strong and don’t simply stumble across.

It's just a mortgage - not a death race!

I'm sure you will be fine.

Thanks.

Perhaps it is a death race... the term mortgage is derived from French for "dead pledge"

http://dictionary.reference.com/browse/mortgage

@Eman - I think the Louisiana Purchase was completed in less time.

EastCoastBubbleBoy says

Perhaps it is a death race... the term mortgage is derived from French for "dead pledge"

Rent or Mortgage, you pay your monthly installments until gravity finally sets in.

Finaly my quest has ended! Closed today.

EastCoastBubbleBoy says

Finaly my quest has ended! Closed today.

Congrats my friend. PK and I also closed on another deal today. It's November the 13th, 2012. You see a pattern there? 11-13-12. :)

If you don't mind sharing the details. How much did you pay for it? What's the property tax for your area? Fire Insurance cost? Any flood insurance? Size and age of the house and its lot.

Cheers. :)

What part of ny did you buy in? What bank?

@E-man

Here are the specs.
4 BDRM, 2.5 BATH ON 12 ACRES
Approx. 2400 ft2
House is about 30 years old. Needs some updating, but overall is in good condition.

The guy that built it was “a perfectionist” and that’s according to the structural engineer I had give the place a once over – who know the original owner personally.

I purchased direct from the seller; no real estate agents were used.

I ended up Putting 10% down. with loan terms slightly better than what was stated in the OP.

Sales History
August 2003: $460,000
December 2011: $350,000
November 2012: $300,000

The only kicker is the taxes - current FMV is supposedly $365,000.
In the coming months, I will file a grievance and, with any luck, knock that number down a bit.

That said, as of today taxes are as follows:

Village: $550
County: $4300
School: $9000

No flood insurance needed - area is not in a food zone.
As far as I know my homeowners policy will cover fire.

That about covers it. Perhaps this weekend I’ll write a longer post about how the process went start to finish.

Payment is right within our budget, (just north of $2500 / month for PITI).

@woppa- house is about 10 minutes from where I live right now.
Sterling National Bank.