Buying a house, need advice.
12-01-2006, 07:20 AM
#31
I have checked the trend reports and even with the market leveling off the houses in my area are still and will continue to go up (this area is getting very busy and becoming a central area for business).
And I was wrong, I just remembered that the interest only was with 5% down. If we can do it this way, we will lower our monthly payments by around $300 (compared to a standard 100% mortgage with the same rate) which will allow us to take care of some higher interest rate debts for the first year (car payments and credit cards) and then apply this amount PLUS the amount that was being put to the higher interest debts directly to the principle. Which actually comes out to us having more equity at the 5 year point then we would if we put 5% down and payed standard interest+principle due to the interest being payed on our current debts.
And I was wrong, I just remembered that the interest only was with 5% down. If we can do it this way, we will lower our monthly payments by around $300 (compared to a standard 100% mortgage with the same rate) which will allow us to take care of some higher interest rate debts for the first year (car payments and credit cards) and then apply this amount PLUS the amount that was being put to the higher interest debts directly to the principle. Which actually comes out to us having more equity at the 5 year point then we would if we put 5% down and payed standard interest+principle due to the interest being payed on our current debts.
12-01-2006, 12:17 PM
#32
Registered User
lest just say you buy a 300k house. and lets say after 5 years its worth 319k.
now you want to sell:
319k x 5% real estate fees =15950
19000-15950=3050
now you have to pay your 1% transfer tax which on 319k is 3190....
3050-3190= neg. 140
so already its costing you money to sell..... now you don't have anything to put towards your next home....... it pays to stay in a place for 10 + years if possible.
now you want to sell:
319k x 5% real estate fees =15950
19000-15950=3050
now you have to pay your 1% transfer tax which on 319k is 3190....
3050-3190= neg. 140
so already its costing you money to sell..... now you don't have anything to put towards your next home....... it pays to stay in a place for 10 + years if possible.
12-01-2006, 12:20 PM
#33
Registered User
that was all assuming that you put nothing down and didn't pay on principle.... obviously you won't owe all 300k after 5 yrs of paying, but i can tell you that the first couple years on a conventional mort. and just about any mort. for that matter are like 98% intrest out of your monthly payment.
after the first year of my mortage payments only 400$ was applied to principle!
i did get 1500 back in over escrowed money though
after the first year of my mortage payments only 400$ was applied to principle!
i did get 1500 back in over escrowed money though
12-04-2006, 09:25 AM
#34
Figured I'd give a quick update for those of you have been helping out. We had found what was an almost ideal house with the exception of the driveway. It was steep as hell and impossible to make it down and turn right without scraping my front bumper. However we figured there are ways to live with it (namely back down and out if I need to leave in that direction). But after some bidding with the sellers (stubborn old people already in assisted living) we gave up and walked away. We will be out checking on some more houses in the area this week, and taking a second look at a particular house that was quite nice. Wish us luck!
Thanks for the calcs mustang. The mortgages that we had been looking at (interest only) would actually allow us (considering our current income) to put around 200 per month directly to the principle. So over 5 years we should have put down over 10k towards the principle giving us a slight edge on the next house (of course yearly raises will increase the amount applied to principle each year)
Thanks for the calcs mustang. The mortgages that we had been looking at (interest only) would actually allow us (considering our current income) to put around 200 per month directly to the principle. So over 5 years we should have put down over 10k towards the principle giving us a slight edge on the next house (of course yearly raises will increase the amount applied to principle each year)
he's just a sarcastic little... nvm, so nakd how many rooms ARE for rent and how many sq ft are you talking
12-05-2006, 11:03 AM
#39
Registered User
oh ok. well i just have seen so many people that buy a house thats not really what they wanted and then are stuck in it for years and years... just don't like seeing that happen to people.
