First time Home-Buyers! Help!!!
Comments
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Sami wrote:Make sure also that they are paying for the title costs in the contract as that's a big closing cost right there.
Any by "title costs", do you mean insuring that the title is clear/undisputed?I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
You are still going to run into costs when you get your financing. Fees and you have to pay one year of hazard insurance up front, as well as 3 month cushion on escrow account (if you choose to get one, I wouldn't) for real estate taxes and insurance. Ask for a good faith estimate from your lenders. If you end up using escrow you will be surprised how much money you need to have at closing. Seller will pay the agent fees and more but you also need to bring in a chunk of change.zombie boy 2000 wrote:Actually, that's what I meant:o By "closing costs", I mean that money which will be needed up front. Looks like the seller will be handling closing costs anyway....
If you ask money back for closing costs, you can use the leftover to buy down interest which will save you money in the long run. -
I think you pay for the insurance but there is also the title transfer fee which is costly. Make sure the seller takes care of the latter. It will come up when you make an offer, make sure your agent checks the seller box on the form on that one.zombie boy 2000 wrote:Any by "title costs", do you mean insuring that the title is clear/undisputed? -
Pretty House! Over 2800 square feer and still in the 200K range!? Wow. I am moving to Austin.Sharp Elite 70
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wingnut4772 wrote:Pretty House! Over 2800 square feer and still in the 200K range!? Wow. I am moving to Austin.
That's easier to find in Dallas than Austin. But I would much rather live in Austin, than Dallas
I paid 213K for my 2046 sq ft. home in a decent area. If you want to live in the boonies you can do better. If you want to live close to downtown, forget about it. -
DFW. Bedford is in the "mid-cities", between Dallas and Fort Worth. My house will be 18 miles from downtown Fort Worth and 20 miles from downtown Dallas. DFW International airport is just a few miles down the road and my office 11 miles on the other side of the airport. Perfect location for me.wingnut4772 wrote:Pretty House! Over 2800 square feer and still in the 200K range!? Wow. I am moving to Austin. -
Thanks for the heads up Sami on the title insurance and transfer fee. Our realtor has yet to bring the latter up....
As for the all the additional fees/costs, we're already getting a breakdown from most of the lenders and they seem to all match monetarily -- give or take $100.
As to what that money's going to, it varies. Most of it seems likes BS (i.e. courier fees, paper handling, etc.), and should be negotiable. As such, I would like to put as much of my 5% loan towards buying down the interest.I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
Oh yeah, since you said all the closing costs are lining up you may not need to worry, but lenders can be sneaky and low-ball figures (taxes/insurance/change the closing date) in the closing costs to make their deal seem better. Just make sure you check each one line by line against the others.
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wingnut4772 wrote:Pretty House! Over 2800 square feer and still in the 200K range!? Wow. I am moving to Austin.
That doesn't tell the WHOLE story, property taxes in Texas are HIGH.
My son bought a new 3 bedroom (about 1100 sq ft) home in Texas; $84,000. Nice home. We financed $182,000 against our $243,000 for our home in Arizona (1950 sq ft/4 bedroom). His PITI is only about $30 a month less than ours...why? Our tax is about $84 a month.
The bottom line on any home is principal/interest/taxes/insurance. Total monthly output for a given square footage. Of course average monthly utilities cost for the area is another consideration.Source: Bluesound Node 2i - Preamp/DAC: Benchmark DAC2 DX - Amp: Parasound Halo A21 - Speakers: MartinLogan Motion 60XTi - Shop Rig: Yamaha A-S501 Integrated - Shop Spkrs: Elac Debut 2.0 B5.2 -
In my calculations, about 2% is the ideal sum to spend on points. After that I noticed it gets expensive and you will have to wait a long time before you get that money back. Use 2%, and use it preferably from the seller (money back option on the contract), keep the 5% and spend it like this:zombie boy 2000 wrote:As such, I would like to put as much of my 5% loan towards buying down the interest.
As you know, your 20% loan will be at much higher rate than the 80%. Use that 5% to pay off that loan, or just get 80/15 loan like PolkThug did. In the future, put as much extra payments on this loan. From the lenders, if the total payments are about equal, take the one with the lower primary (80%) loan interest as making extra payments on the secondary loan will bring your monthly payment even lower. -
Plus, there seems to be a firm divide between what are considered "closing costs" and what is considered "additional fees". Both are paid to seal the deal, so to speak. And whereas, the former can be pushed on the seller, the latter can be negotiated with the lender.
This may seem like a stupid question, but is it possible for some of the closing costs to jump the fence over to "additional fees"? Or are there pretty straightforward lines of demarcation?I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
They are. On that house about $6k a year. Monthly payment with everything included, around $2100 with no money down. So in your neighborhood I would think that $235k house would become a $300-310k house based on tax difference.steveinaz wrote:That doesn't tell the WHOLE story, property taxes in Texas are HIGH. -
Sami wrote:As you know, your 20% loan will be at much higher rate than the 80%. Use that 5% to pay off that loan, or just get 80/15 loan like PolkThug did. In the future, put as much extra payments on this loan. From the lenders, if the total payments are about equal, take the one with the lower primary (80%) loan interest as making extra payments on the secondary loan will bring your monthly payment even lower.
Gotcha gotcha gotcha.....:)I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
WOW. That are pretty high taxes on a house in that range. Mine are about $7500.00 per year and my 2600 SQ FT house was 538K in Miami :eek: AND it needs remodeling :eek: :eek:Sharp Elite 70
Anthem D2V 3D
Parasound 5250
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Oppo BDP 95
Von Schweikert VR4 Jr R/L Fronts
Von Schweikert LCR 4 Center
Totem Mask Surrounds X4
Hsu ULS-15 Quad Drive Subwoofers
Sony PS3
Squeezebox Touch
Polk Atrium 7s on the patio just to keep my foot in the door. -
steveinaz wrote:That doesn't tell the WHOLE story, property taxes in Texas are HIGH.
luckily we don't have a state income tax, so it probably balances out in the end.
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And that reminds me, interest and real estate taxes are tax deductible on federal taxes, just in case someone didn't know.PhantomOG wrote:luckily we don't have a state income tax, so it probably balances out in the end. -
PhantomOG wrote:luckily we don't have a state income tax, so it probably balances out in the end.
State income taxes in Arizona are very low, I consistently get a return and pay the lowest percentage allowable. Sales tax is a little above the norm at 7.5% on the dollar, but we also have no other personal property taxes. I don't have the numbers in front of me, but trust me, it's nowhere near balancing out.Source: Bluesound Node 2i - Preamp/DAC: Benchmark DAC2 DX - Amp: Parasound Halo A21 - Speakers: MartinLogan Motion 60XTi - Shop Rig: Yamaha A-S501 Integrated - Shop Spkrs: Elac Debut 2.0 B5.2 -
..as well as points paid. :cool:Sami wrote:And that reminds me, interest and real estate taxes are tax deductible on federal taxes, just in case someone didn't know.Source: Bluesound Node 2i - Preamp/DAC: Benchmark DAC2 DX - Amp: Parasound Halo A21 - Speakers: MartinLogan Motion 60XTi - Shop Rig: Yamaha A-S501 Integrated - Shop Spkrs: Elac Debut 2.0 B5.2 -
Around 4%? Without deductions that would be over $4k a year so it's about the same. That's dependant on the salaries and the whole situation but to me it looks like a washout.steveinaz wrote:I don't have the numbers in front of me, but trust me, it's nowhere near balancing out. -
Taxes are no joke, I pay 6500.00 on a 1950 sq ft house in NJ, and 3100.00 on a 3200 sq ft house in Florida, go figure. The home in Florida is about a 1 1/2 years old, the Nj home is 45 years old.
CRj -
Sami wrote:Around 4%? Without deductions that would be over $4k a year so it's about the same. That's dependant on the salaries and the whole situation but to me it looks like a washout.
Not when the comparison is between an 1100 sg ft 3 bedroom to a 1950sq ft 4 bedroom. I do my own taxes and I ran the numbers once for my son, it was far from anything resembling a washout. FWIW, utilities exspenses between Texas/Arizona are very comparable however, almost "spot-on."Source: Bluesound Node 2i - Preamp/DAC: Benchmark DAC2 DX - Amp: Parasound Halo A21 - Speakers: MartinLogan Motion 60XTi - Shop Rig: Yamaha A-S501 Integrated - Shop Spkrs: Elac Debut 2.0 B5.2 -
Well, I said it vaguely "to me" which was meant to be "in my case".steveinaz wrote:Not when the comparison is between an 1100 sg ft 3 bedroom to a 1950sq ft 4 bedroom. I do my own taxes and I ran the numbers once for my son, it was far from anything resembling a washout. -
Doesn't add up. His taxes should be about $200 a month. 84k/30y/6.5% = $531/m and yours is $1150/m. You should be paying about $500 more a month.steveinaz wrote:My son bought a new 3 bedroom (about 1100 sq ft) home in Texas; $84,000. Nice home. We financed $182,000 against our $243,000 for our home in Arizona (1950 sq ft/4 bedroom). His PITI is only about $30 a month less than ours...why? Our tax is about $84 a month.
Sorry, I realized it's getting way OT...
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quick question...
what's the benefit of not paying PMI, if you end up having to pay a higher interest rate on that 20%? isn't PMI cancelled once you pay off 20% of the mortage anyway?I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
There are many ways to look at it and when you put it in that light it would be a wash. If you pay PMI for a lower rate and inntend on staying in that house to ejoy that reduction of the longer run than it may prove in to be cheaper...***WAREMTAE***
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I still don't think it ends up being a wash. All PMI money is lost. Every dime of it. With a 20% loan, even if the percentage rate is a bit higher, at least some of the payment will go towards equity in your house.
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Alright.. that makes sense:)
Secondly, what factors go into determining a mortgage rate?I never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore -
PhantomOG wrote:I still don't think it ends up being a wash. All PMI money is lost. Every dime of it. With a 20% loan, even if the percentage rate is a bit higher, at least some of the payment will go towards equity in your house.
AND the interest is tax deductible on the 20/15 part!
PMI is like lighting money on fire. -
zombie boy 2000 wrote:Secondly, what factors go into determining a mortgage rate?
Two primary factors:
1. Your debt to income ratio.
2. Your FICO score.
Get this info BEFORE you start searching for loans.
Calculate your debt to income ratio here: http://www.usnews.com/usnews/biztech/tools/modebtratio.htm -
The wife and I closed on the house this morning:) .
Thanks for all your help guys and gals.
Rest assured, we will be celebrating tonight:DI never had it like this where I grew up. But I send my kids here because the fact is you go to one of the best schools in the country: Rushmore. Now, for some of you it doesn't matter. You were born rich and you're going to stay rich. But here's my advice to the rest of you: Take dead aim on the rich boys. Get them in the crosshairs and take them down. Just remember, they can buy anything but they can't buy backbone. Don't let them forget it. Thank you.Herman Blume - Rushmore
