I realize most don't have a house. But what do you pay

[PIYF]

Cost: 160k
Loan Type: 80/20 (you have 2 loans one for 80% the purchase price the other for 20% the purchase price.)
Interest Rate: 80 Loan: 6% locked; 20 Loan: 8.75%
Monthly Payment: 80 Loan: around 1300; 20 Loan: 187
Taxes Yearly Dickinson: 4,500


The 80/20 loan is good to avoid the Mortgage Insurance that for us was an extra 100 bucks/month if we used a regular loan.

[evolutionsentra]

a good way to figure it... 1% of what you finance. I financed 118K and pay 1187/mo

[mtran]

good stuff.

[PIYF]

a good way to figure it... 1% of what you finance. I financed 118K and pay 1187/mo

Not always that easy. Depending on the Interest Rate and more importantly Property Taxes, it could be more than 1%

[goztepe2002]

15 years fixed loan at 6.675

[tit$]

20 year fixed at 6.5%

all my taxes come to just under $5k and i'm in Cypress/Cy-Fair ISD

couldn't do the 80/20 loan deal because i'm on comission at my job and had been there less than 2 years when i bought my house.

just made my monthly payment and i'm at $1,341.82 w/ insurance + taxes escrowed.

i put down $15k on a $130k house.

[longnguyen714]

loans are bs, you pay almost double after 15-30 yrs. Just pay 100% on day one.

[tit$]

loans are bs, you pay almost double after 15-30 yrs. Just pay 100% on day one.

on a house? LOL

[azinwood]

for a 200k house we pay around $1700/month. borrwed 80%. 15 year fixed.

this includes escrow for property tax and insurance.

[longnguyen714]

on a house? LOL

and whats your reason for lol? i lol at the interest you pay after x amount of yrs. So what you're saying is you like to give money to the lenders for fun?

[azinwood]

and whats your reason for lol? i lol at the interest you pay after x amount of yrs. So what you're saying is you like to give money to the lenders for fun?
i think what he is saying is that the average american does not have $150-300k lying around (esp first time home buyers). if you do, i applaude you. that is impressive.

[Gunz4Sale]

My parent's house was 0 down 5% interest locked.

[longnguyen714]

Youre right not many would drop 150-500k, but i'd atleast save up 80%-90% so you dont pay out the ass in the long run.

[PIYF]

Youre right not many would drop 150-500k, but i'd atleast save up 80%-90% so you dont pay out the ass in the long run.

Come on man. If you aint got a house then don't post in the thread. And good luck saving up for 200k in a realistic amount of time unless you live with your parents for 5 yrs+.

[longnguyen714]

i have a house...........................

[azinwood]

i have a house...........................
did you buy it out right?

[longnguyen714]

yes, house was post katrina 100k for 300 something k house.

[Pr3Lud3PLaYa]

Youre right not many would drop 150-500k, but i'd atleast save up 80%-90% so you dont pay out the ass in the long run.

why drop $150k cash on a house? Let's assume the house is $150K and you pay 100% of it on day one. Sure, nothing is owed and you own a house and property that will increase in value. If you had $300k in the bank, you now only have $150k left in the bank to save/invest/spend.

Assume you took out a loan instead and locked a 6% interest rate. So instead of paying $150k you drop a down payment of $30k. Now you owe $120k but have $270k left to invest. You could probably take the $120k you would have used to buy the house outright and create a return higher than the 6% interest you pay on the loan with proper investment strategies. You know what that means?? You actually made more money than what you lost in interest. Of course, it is a risk but if you have $150k in cash to drop on a house the day you buy it, it means you have more money so your not left with $0 to your name.

[91SEE-ARE-EX-Si]

135k

$1450 starting next month (stupid tax!!...I better get some money back!! Fuck all this "You make to much" BS.)

Time to get some more ASE to get a raise only to be taxed more !!

[Limeade]

and whats your reason for lol? i lol at the interest you pay after x amount of yrs. So what you're saying is you like to give money to the lenders for fun?

Well, theres two problems with this, one most people do not make enough to buy a house cash, and paying cash is only good if you cannot earn a higher return on the money somewhere else.

[Limeade]

By the way great thread.

Heres a question, in addition to your mortgage payment how much does it cost to RUN a house. IE, AC, WAT, Electric, Cable, Internet.

[alreadyknow]

Don't have a mortgage, dad left me the townhouse and car when he went to live in the motherland.

I transfer $200 bucks to his account every month and just pay for electricity and bills..

I might rent it out to some cousins for $500/month.. and move closer to my to someone as well as me jub..


but in lieu of this, i've gotten pretty far in my company and a house sounds promising for myself at this point, i'm gettin old might as well establish me house now..

i like living here though as opposed to my old apartment

old apartment - $1150 a month 1000sq ft. galleria area

my townhouse - in alief 2000 sq ft, garage.. and paying:

200-house
30- satellite
50 dsl/phone
15 water
150 electricity
25$ maintenance for neighborhood

:)

[YesSiR]

Youre right not many would drop 150-500k, but i'd atleast save up 80%-90% so you dont pay out the ass in the long run.

do you have any idea how long that would take the adverage person to do? what are they supposed to do in the meantime, live at home till there 35? everyone doesn't make 6 figures a year now......and not many people wanna live in a 100k house if they're gonna invest in a house they usually want something better than a house in that price range.

my plan was to save up 48k in 5 years for a house in the 150-160k range while living in a starter home, figured it was a better idea then paying 900 a month for rent in an apartment and then after 5 years of living there, having nothing to show for it when it comes time to move on to bigger and better things. would anyone else care to suggest an alternative (outside of living at home till i'm 30 lol) or does that sound like a sound idea?

[DC]

loans are bs, you pay almost double after 15-30 yrs. Just pay 100% on day one.

What the hell are you talking about? Do you know that interest is tax-deductible? It's not that big of a waste to pay interest on a mortgage. I would do my best to avoid paying interest on other loans, though (e.g. credit cards, auto loans.)

[keksic]

iono..when i start working and be my own boss i just want something simple s i dont waste my time on cleaning the house all day when i can enjoy doing something else

just i wld love to have a place with alotta sun

[zerinVR6]

There's always that one moron that tells you that you are inferior if you don't pay cash, and loans are for suckers...be it in a mortgage thread or a car finance thread.

[zerinVR6]

Oops forgot to put this in the last reply...

I don't remember what the exact selling cost of my house was, but I did an 80/15 loan on my house. We worked out the amortization and realized that at the interest rate I had, putting a full 20% down would take me about 10 years to recover versus putting that money away in savings or other investments, so I put 5% down.

80%: 30 year fixed @ 5.25% (locked April '04)
15%: 15 year fixed @ 5.75% (locked April '04)

Utilities aren't too bad on my house... it's 2200 sq feet, but is energy star rated (VERY important if you are buying!!!!) so it is extremely efficient. The highest electric bill I've seen in the nearly 4 years in the house was $175, and that's with a house full of electronics and what not.

Don't forget, you can look on hcad.org and see what the taxes and values are for other houses in the immediate area you are looking.

[didimao0072000]

loans are bs, you pay almost double after 15-30 yrs. Just pay 100% on day one.

wow.. you’re a financial genius.. can you enlighten the rest of us with more of your wisdom?

[PIYF]

Oops forgot to put this in the last reply...

I don't remember what the exact selling cost of my house was, but I did an 80/15 loan on my house. We worked out the amortization and realized that at the interest rate I had, putting a full 20% down would take me about 10 years to recover versus putting that money away in savings or other investments, so I put 5% down.

80%: 30 year fixed @ 5.25% (locked April '04)
15%: 15 year fixed @ 5.75% (locked April '04)

Utilities aren't too bad on my house... it's 2200 sq feet, but is energy star rated (VERY important if you are buying!!!!) so it is extremely efficient. The highest electric bill I've seen in the nearly 4 years in the house was $175, and that's with a house full of electronics and what not.

Don't forget, you can look on hcad.org and see what the taxes and values are for other houses in the immediate area you are looking.


Damn, lucky you. I would love to get an electric bill like that. Mine in the summer usually runs around 350.

[tit$]

Damn, lucky you. I would love to get an electric bill like that. Mine in the summer usually runs around 350.

ya'll are nuts - i have a 1,500+ sq ft house and i've never paid more than $110 in electricity. i am also a total jew though. AC doesn't kick on in the summer until it gets to be 80 indoors, heater doesn't kick on in the winter until it gets down to 60.

and to the guy that's LOLing at me for getting a loan on my house - i'm paying 6.5% interest and making well over 10% on the average every year in the stock market with my money. i must be a total moron huh?

[tegteg]

good thread! i will hopefully be making a purchase by the end of the year.

[DoubleNutt]

wow.. you’re a financial genius.. can you enlighten the rest of us with more of your wisdom?

haha...haha..LOL

[YesSiR]

Oops forgot to put this in the last reply...

I don't remember what the exact selling cost of my house was, but I did an 80/15 loan on my house. We worked out the amortization and realized that at the interest rate I had, putting a full 20% down would take me about 10 years to recover versus putting that money away in savings or other investments, so I put 5% down.

80%: 30 year fixed @ 5.25% (locked April '04)
15%: 15 year fixed @ 5.75% (locked April '04)

Utilities aren't too bad on my house... it's 2200 sq feet, but is energy star rated (VERY important if you are buying!!!!) so it is extremely efficient. The highest electric bill I've seen in the nearly 4 years in the house was $175, and that's with a house full of electronics and what not.

Don't forget, you can look on hcad.org and see what the taxes and values are for other houses in the immediate area you are looking.
so what my limited brain power is getting from this is that i shouldn't put 20% down on a house i really want 5 years from now? main reason i was doing that is because i really would rather keep my living expensive kinda linear as i upgrade while payin off the house in the same fasion as i would have done with a cheaper house. i was always under the impressing that 20% down was ideal....guess i should look more into this, oh and thanks for that link for investigating taxes! me and my dad were tryin to find a website that hosted that kinda information when i told him what i was looking for. :thumb:

[zerinVR6]

That totaly depends on your entire financial situation. Get a realtor that is familiar with the market in your area and make them work for you. Give them numbers to crunch and let them do the work in addition to you doing your own math. What might work for one person might not be the best for the other. Just make sure you avoid paying PMI if at all possible!

so what my limited brain power is getting from this is that i shouldn't put 20% down on a house i really want 5 years from now? main reason i was doing that is because i really would rather keep my living expensive kinda linear as i upgrade while payin off the house in the same fasion as i would have done with a cheaper house. i was always under the impressing that 20% down was ideal....guess i should look more into this, oh and thanks for that link for investigating taxes! me and my dad were tryin to find a website that hosted that kinda information when i told him what i was looking for. :thumb:

[AXaznAX]

That totaly depends on your entire financial situation. Get a realtor that is familiar with the market in your area and make them work for you. Give them numbers to crunch and let them do the work in addition to you doing your own math. What might work for one person might not be the best for the other. Just make sure you avoid paying PMI if at all possible!

In case you guys don't know, PMI stands for Private Mortgage Insurance. If you put less then 20% down, you are required to pay PMI. You can still get a house with 3% down but you just need to pay PMI.

[zerinVR6]

Which is why your best bet is an 80/20 loan or an 80/15 loan. Both will get you out of PMI, even if you have nothing or little to put down.

In case you guys don't know, PMI stands for Private Mortgage Insurance. If you put less then 20% down, you are required to pay PMI. You can still get a house with 3% down but you just need to pay PMI.

[tit$]

That totaly depends on your entire financial situation. Get a realtor that is familiar with the market in your area and make them work for you. Give them numbers to crunch and let them do the work in addition to you doing your own math. What might work for one person might not be the best for the other. Just make sure you avoid paying PMI if at all possible!

absolutely - remember also that you will not be paying a fee to use a realtor when you are buying.

i don't know if he's still a sponsor, but i absolutely suggest using RESteve. i had my license and STILL used him - he's absolutely great at what he does. i also have a great lender that i've used, if you want his contact please PM.

[AXaznAX]

absolutely - remember also that you will not be paying a fee to use a realtor when you are buying.

i don't know if he's still a sponsor, but i absolutely suggest using RESteve. i had my license and STILL used him - he's absolutely great at what he does. i also have a great lender that i've used, if you want his contact please PM.

I was looking for RESteve but I don't see him on here. What license do you have?

[tit$]

I was looking for RESteve but I don't see him on here. What license do you have?

real estate sales.

i probably could have handled it on my own, but i only have done commercial deals in the past and steve and i were able to work out a mutually beneficial deal so i just gave him the business. (because i have my license i could have kept the 2% that was being paid out to the buyer/me)

[Pr3Lud3PLaYa]

and to the guy that's LOLing at me for getting a loan on my house - i'm paying 6.5% interest and making well over 10% on the average every year in the stock market with my money. i must be a total moron huh?

perfect example why getting a loan > paying it all cash, even when somebody could pay it off on day 1.

[DC]

absolutely - remember also that you will not be paying a fee to use a realtor when you are buying.

i don't know if he's still a sponsor, but i absolutely suggest using RESteve. i had my license and STILL used him - he's absolutely great at what he does. i also have a great lender that i've used, if you want his contact please PM.

I was looking for RESteve but I don't see him on here. What license do you have?

I can vouch for Steve as well, as he did an excellent job in coordinating my house purchase.

[1SLOTEGE]

Cost: 140k
Loan Type: 3,2,1 Buy down
Interest Rate: 1st yr 3.75%, 2nd yr 4.75%, 3rd yr 5.75%, 4th yr-end of loan 6.75% fixed. (depending on what the market is like we will probably refinance at the 4th yr to get a lower rate.)
Monthly Payment: Still in the first yr. $1170 a month (includes escrow for taxes and insurance)

No MUD taxes

[S2000-SOTO]

Home with Pool $160k

Loan Type 80/20. 20% portion has pool loan wrapped in.
Payment on 80%- $630 @ 5.9%
Payment on 20% with Pool - $550 @ 7.25%

Taxes and Insurance paid separately.

[rene]

i'll probably be doing an 80/20 split when i finance to avoid the insurance.

[tofuspeedstar]

Parents pay $1800 a month/15years.

Next December it's ours!

[grnlude97]

perfect example why getting a loan > paying it all cash, even when somebody could pay it off on day 1.

Good to know that someone in this thread understands the time value on money! If I can borrow at 6% and invest at 10% I'd be stupid to pay cash.

Daniel :)

[Mr. MCoupe]

It is a great market to buy houses these days. Great deals out there!!

[vuu-SW21]

I have always known tha the faster you pay off debt, the better you are off. I find it rather seldom that anyone gets a good 10% or more off an investment consistently, especially over a 15-30 year period. And that is the term you have to think about because that is the period of your loan. Loans are great for people that need but if I had 300K cash and I was buying a house, it would be cash. Because I have yet to earn over a 1000 dollar on interest on a 150,000 CD or investment account in one month but I sure as help seen people pay it in interest on a mortage.

And yes, I do own a house. Me and my wife purchase about 1.5 yrs ago.
170K house
120K Down
50K mortage
House is paid off (we had help from her parents some).

[tit$]

I have always known tha the faster you pay off debt, the better you are off. I find it rather seldom that anyone gets a good 10% or more off an investment consistently, especially over a 15-30 year period. And that is the term you have to think about because that is the period of your loan. Loans are great for people that need but if I had 300K cash and I was buying a house, it would be cash. Because I have yet to earn over a 1000 dollar on interest on a 150,000 CD or investment account in one month but I sure as help seen people pay it in interest on a mortage.

And yes, I do own a house. Me and my wife purchase about 1.5 yrs ago.
170K house
120K Down
50K mortage
House is paid off (we had help from her parents some).

its pretty easy to find a strip center or apartment complex with a 10% cap rate, if you look hard enough there are deals with 14% cap rates out there..

[Brooklyn]

loans are bs, you pay almost double after 15-30 yrs. Just pay 100% on day one.

lol, I'm sure a high percentage of us would want to do that but as for myself, im not sitting on hundreds of thousands of dollars, lol.

[tdo]

$210k

20% down

30 year fixed at 6.125%

$1070 w/o escrow and taxes

Steve was our Realtor

[Flores]

PMI fees are going to be tax deductable for the next couple of years, BTW, so it's not a big deal.

[vuu-SW21]

its pretty easy to find a strip center or apartment complex with a 10% cap rate, if you look hard enough there are deals with 14% cap rates out there..

so are you saying invest in commericial real estate? That takes inside information or what not to do wisely.

[memoryleak]

I don't like PMI but rather have it than 2 big loans.

[tit$]

so are you saying invest in commericial real estate? That takes inside information or what not to do wisely.

i wouldn't say it takes any inside information that you coudln't get for free out of a commercial real estate agent.

the same could be said for stocks or any investment for that matter. i was just responding to your comment that it's hard to ever make 10% consistently, which is just not true.

[tofuspeedstar]

It is a great market to buy houses these days. Great deals out there!!

Shameless plug from the real estate agent haha.

[CrzyS4]

I paid cash for the house in Houston. 172k

But for the house in Boston is 425k.

15% down, lock in at 7.15% interest with Chase until 2009. After 2009, it will be fixed rate. Reason for the 15% instead of 20% because of the rehab. If anyone check out the LINK to the page. (http://www.houston-imports.com/forums/showpost.php?p=7820653&postcount=42). Good thing about the house is, it's a 2 family. Upper unit is rented out for 2250 a month and for my unit is 1800 a month.

[Pr3Lud3PLaYa]

i wouldn't say it takes any inside information that you coudln't get for free out of a commercial real estate agent.

the same could be said for stocks or any investment for that matter. i was just responding to your comment that it's hard to ever make 10% consistently, which is just not true.

wrd. it's not that hard if you properly allocate your cash. You could do a proper mix of bonds and stocks that could result in 10% gains with $120k. You don't even need to average 10%, even beating the interest rate you pay by 200bps is fine.

[DC]

I paid cash for the house in Houston. 172k

But for the house in Boston is 425k.

15% down, lock in at 7.15% interest with Chase until 2009. After 2009, it will be fixed rate. Reason for the 15% instead of 20% because of the rehab. If anyone check out the LINK to the page. (http://www.houston-imports.com/forums/showpost.php?p=7820653&postcount=42). Good thing about the house is, it's a 2 family. Upper unit is rented out for 2250 a month and for my unit is 1800 a month.

That is EXCELLENT renovation work you guys did! I'm especially impressed with the bathroom. :bow:

[yungintl]

i'll probably be doing an 80/20 split when i finance to avoid the insurance.

is there any downside to purchasing a house this way?

[Mr. MCoupe]

Shameless plug from the real estate agent haha.

I am not a real estate agent.

[1SLOTEGE]

is there any downside to purchasing a house this way?

It really depends, you need to compare the cost of an 80-20 piggyback loan with a loan that includes mortgage insurance. The piggyback loan usually costs less each month though. Also if the house loses value, a possibility in overheated markets where these loans might be especially tempting, the owner ends up owing more than the house is worth. That becomes a problem if the owner needs to sell the house or wants to refinance the loan. In such a case, the owner has to come up with cash to repay the loan in full. But that can happen with a regular mortgage as well.

[CrzyS4]

That is EXCELLENT renovation work you guys did! I'm especially impressed with the bathroom. :bow:

Thanks man. Alot of stuff was bought at Expo store. I want to remodel the house in Houston, but closest Expo is in Dallas.

Expo.com (http://www.expo.com) Check here for most extraordinary design.

[tit$]

Thanks man. Alot of stuff was bought at Expo store. I want to remodel the house in Houston, but closest Expo is in Dallas.

Expo.com (http://www.expo.com) Check here for most extraordinary design.

they used to have one of those in houston right? i love that place...just a little expensive though!

[CrzyS4]

I have NO idea. lol! I never look for Expo in Houston. There was one 20 minutes north of Boston. That's where I bought most of my stuff for my home design.