SMH, that was another intent of my long post . . . to show you, and others like you, in finite detail, where you erred in each step of the process. Maybe you knew where some of your errors were and maybe you didn’t.
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And I’m sure others will appreciate it. But, when you pasted in two tables of 30 years of payments, you lost your audience. Presentation is key, and finite detail killed your presentation…
Thanks again for spending time to discuss the issues. What I’m really looking forward to is learning how to do things right in the future, if it’s continuing to rent forever, or spending the proper time researching before buying…[/quote]
It was only 8 years of payments, SMH. You bailed in the 6th year, even though it was your intent to stay there =>10 years. I have actually never used amortization tables on this blog, but thought it would be useful for you to see how your purchase money loans would have amortized if you left them alone.
I have some suggestions for “doing things right in the future.”
1. Save up enough for at least a 20% downpayment + closing costs and at least a $10K “slush-fund” (for reserves and to buy a bag of fertilizer, etc after you move in). I don’t know how old you are, but if you have to quit feeding your retirement accts for awhile to do this, it might be worth it. I really feel that prices will hold fairly steady in the next 3 years, depending on area. Some areas which did not have much distress to begin with, may go up slightly. Your preferred area of Alpine has had a lot of distress and also suffered from a devastating fire in recent years so I don’t see the prices going up very fast there in the next 3 yrs, if at all. HOWEVER, the presence of a new, modern HS in Alpine could very well make it a more desirable destination for families, thus there could be an uptick in prices upon the school’s completion. GUHSD is currently spending a FORTUNE building that school and also rehabbing and expanding Granite Hills HS.
While tightening your belt and saving as much as you can:
-become intimately familiar with all of your desired areas by driving them repeatedly on different times and days and pulling plat maps of those streets or subdivisions from the assessors office. Find out what those owners are paying for fire ins coverage and also the exact amount of annual MR bonds (if applic) and HOA dues (if applic). Do not trust RE agents to tell you how much annual MR is. You need to research it yourself.
-If your desired area is custom semi-rural or rural, talk to some of the homeowners working outside and find out if their street is hooked up to sewer. If not and it is an older tract, find out where the septic tanks are located (front, side, back) and if the back yards are sloping up or down on either side of the st. Try to go to some open houses around there to see how the back yards lay and how far the leachfields are from the dwellings. Find out if well water is available. If it is and the pump is operable, this will save you a FORTUNE!
-Learn everything you can about the values in your desired area. If it is an older tract, learn what those properties were built as PRIOR to all the complete remodels and room additions you now see on the street. Comb thru recent solds online and find out why they sold for what they did (distress sale, custom woodwork, expensive outdoor hardscaping, etc).
-Do not buy on any dark residential streets surrounding Viejas casino, even if not the primary route to/from. They are routinely driven by drivers who may have had too much to drink and even may be temporarily “lost.”
-Run the hard monthly numbers on a “prime” or “Alt-A” mortgage with the assumption that your FICO score is at least 745 (and preferably higher). DO NOT buy with a 1st and 2nd TD purchase money! Buy ONLY with a 1st TD of 80% LTV or less and endeavor to get it with as low of an interest rate as possible without paying points.
-Comb your old settlement statements for all the points and junk fees you paid in the past and DO NOT continue on with the mtg process if your GFE has charges on it that were not discussed with you at the time of application. Perhaps more direct lenders will come back in the picture in the coming months/years which would eliminate “middlemen” and possibly lessen closing costs and fees.
-Most importantly, do NOT buy without knowing what that home will cost you monthly in total, incl all utilities. I would also suggest you stay away from 30/5’s, 30/7’s, I/O’s and ARMs and only agree to a fixed rate mtg as your current responsibilities are such that you need to have predictable housing expenses for many more years.
There is much more but you can start with the above. I wish you the best of luck, SMH![/quote]
Why put 20% down? When I run the rent vs buy calculator at NYTimes, the higher deposit makes it better to rent, assuming a 6% or higher ROI, which long-term is doable.
Why not put the 3.5% down? The next house I buy will be my last, if nothing changes with jobs, health, etc. Aren’t interest rates so low now that it makes sense?
I know a lot of people here wish that folks never could have bought with zero or little down, as it allowed many people to walk away with no loss.
I’m really still a little (a lot in some of your eyes) clueless as to why a higher down payment is a better thing for me.
