NEED your input, About to buy a new Pienza home in 4S Ranch

[buyorhold]

Hello!

We JUST put a $10K deposit down on a Pienza home in 4S ranch (2901). From what I have read, this same lot sold back in Apr this year for $721,390 without any upgrades, but the deal fell through. We are paying $765,110 – $30,000 incentive = $735,110 (total) but with upgrades such as granite, upgraded cabinets, jet tub, nicer master shower, french patio doors… I tried to negotiate a better price, but Fieldstone would not budge…

For those of you that know a little background on 4S, do you have any comments on the deal I’m about to make? We have a little baby and we make a decent living, just enough to cover mortgage and mello roos, and a tiny bit $ left to save for retirement…

I have read on this board that some builders are actually taking mello roos out of the picture (not 4S ranch)… I am just super worried that if they do not in 4S, I’ll be stuck in this home for the next 30-35 years.

THANKS a MILLION!

[temeculaguy]

Price aside, what is the down payment and the loan specifics. If you are interest only, or anything other than 20% down with a fixed traditional, you won’t survive the very real possibility that this is not the bottom, even if it goes flat you lose. It is totally normal for a young couple to be house poor for a few years. The stress of resetting payments is far greater than the stress you get from a young woman with a child and her instinct to “nest.”

If you truly can afford it, 4-s is very nice for a young family and will always be. I think that because so many of the homes were purchased during the peak, it has room to fall and waiting until after the summer has passed will be worth it.

[temeculaguy]

Price aside, what is the down payment and the loan specifics. If you are interest only, or anything other than 20% down with a fixed traditional, you won’t survive the very real possibility that this is not the bottom, even if it goes flat you lose. It is totally normal for a young couple to be house poor for a few years. The stress of resetting payments is far greater than the stress you get from a young woman with a child and her instinct to “nest.”

If you truly can afford it, 4-s is very nice for a young family and will always be. I think that because so many of the homes were purchased during the peak, it has room to fall and waiting until after the summer has passed will be worth it.

[CAwireman]

Buy or hold,

Please see this very recent post:

http://piggington.com/well_im_pretty_sick_to_my_stomach

HiggyBaby

[CAwireman]

Buy or hold,

Please see this very recent post:

http://piggington.com/well_im_pretty_sick_to_my_stomach

HiggyBaby

[buyorhold]

Our loan person advised us to do 20% down, and then borrow the rest under a fixed, Interest Only loan since our plans are to stay in this home for at least 7-10 years. You guys are really scaring me. I now think that I should have probably listened to my husband…

[buyorhold]

Our loan person advised us to do 20% down, and then borrow the rest under a fixed, Interest Only loan since our plans are to stay in this home for at least 7-10 years. You guys are really scaring me. I now think that I should have probably listened to my husband…

[what_a_disasta]

buyorhold,

Did you know that 4S ranch has already earned the nickname ‘4closure ranch’?

IO for seven years without some hot investment for the unpaid principal is quite a risky play if you ask me. Factor in inflation and things could easily still be below today’s prices in 7 years. They would have to go up by 25% just to stay even.

I dont like making $500k+ bets unless the deck is stacked in my favor.

http://en.wikipedia.org/wiki/Ponzi_scheme

[what_a_disasta]

buyorhold,

Did you know that 4S ranch has already earned the nickname ‘4closure ranch’?

IO for seven years without some hot investment for the unpaid principal is quite a risky play if you ask me. Factor in inflation and things could easily still be below today’s prices in 7 years. They would have to go up by 25% just to stay even.

I dont like making $500k+ bets unless the deck is stacked in my favor.

http://en.wikipedia.org/wiki/Ponzi_scheme

[barnaby33]

Buyorhold, have you not been reading this site? You couldn’t seriously expect you’d get advice to buy now, especially in Carmel Valley area.

I personally get annoyed when someone who hasn’t seemed to have posted here before asks a question, which has a fairly obvious answer to this community. Spend some time reading through the forums first. There is a wealth of information there. Then ask some questions that specifically pertain to what you still don’t understand. In my opinion you should buy now before the market shoots up again at the end of summer!

Josh

[barnaby33]

Buyorhold, have you not been reading this site? You couldn’t seriously expect you’d get advice to buy now, especially in Carmel Valley area.

I personally get annoyed when someone who hasn’t seemed to have posted here before asks a question, which has a fairly obvious answer to this community. Spend some time reading through the forums first. There is a wealth of information there. Then ask some questions that specifically pertain to what you still don’t understand. In my opinion you should buy now before the market shoots up again at the end of summer!

Josh

[temeculaguy]

My apologies, I assumed you were the husband, there are so many husbands who pop up here becuase their pregnant wife or just had a baby, just needs that new house (I’m thinking of coming up with a syndrome name as soon as my research is done with regards to granite counters and estrogen). Your loan person is a liar, an idiot, or works for the builder and knows you can’t afford it. Interest only is so wrong for someone who plans to be there long term. When does the loan convert to principal, is there a prepayment penaly, what are the adjustment terms? Just about when you decide to have a second kid or take time off work, your mortgage will double, you will need to refinance out of your interest only and rates will likely be higher. Find out the fully amortized, 30 year fixed payment and if you can’t afford it, then you have your answer. Mortgage calculators are all over the internet.

Interest only is for certain situations and markets, barely being able to afford the I/O payment in a falling market with rising rates and long term plans is not one of those situations. Quick, read some of the posts about getting your deposit back.

[temeculaguy]

My apologies, I assumed you were the husband, there are so many husbands who pop up here becuase their pregnant wife or just had a baby, just needs that new house (I’m thinking of coming up with a syndrome name as soon as my research is done with regards to granite counters and estrogen). Your loan person is a liar, an idiot, or works for the builder and knows you can’t afford it. Interest only is so wrong for someone who plans to be there long term. When does the loan convert to principal, is there a prepayment penaly, what are the adjustment terms? Just about when you decide to have a second kid or take time off work, your mortgage will double, you will need to refinance out of your interest only and rates will likely be higher. Find out the fully amortized, 30 year fixed payment and if you can’t afford it, then you have your answer. Mortgage calculators are all over the internet.

Interest only is for certain situations and markets, barely being able to afford the I/O payment in a falling market with rising rates and long term plans is not one of those situations. Quick, read some of the posts about getting your deposit back.

[SD Realtor]

buyorhold –

I would imagine this “loan person” is someone who works for the preferred lender who you were forced to use if you wanted to collect the incentives. Am I correct?

Also I would imagine that they will float your loan rate, until the close of escrow? Did you guys get the program where you lock in the rate now and then have 1 option to grab a lower rate if they go down?

Anyways, I am sorry to hear of your predicament. How long ago did you sign loan docs? When is close of escrow?

SD Realtor

[SD Realtor]

buyorhold –

I would imagine this “loan person” is someone who works for the preferred lender who you were forced to use if you wanted to collect the incentives. Am I correct?

Also I would imagine that they will float your loan rate, until the close of escrow? Did you guys get the program where you lock in the rate now and then have 1 option to grab a lower rate if they go down?

Anyways, I am sorry to hear of your predicament. How long ago did you sign loan docs? When is close of escrow?

SD Realtor

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