Why can I not get a loan?

[waitingpatiently]

This is the reason we are in this disaster…instant gratification. It seems very plain and simple that you don’t have the cash to buy the house you want. Looks like you have 2 options. Buy a cheaper house or save more money. Am I missing something?

I get a sense of arrogance…”why do WE have to live in a townhouse when we make a quarter million dollars a year” are you really that special?

[leucadiarenter]

You should be thanking the banks for not lending to you. At 250K a year, and only 10% down, you should be looking in the 500-600K range. Just be patient, not sure where you are looking, but you’ll be able to buy a whole lot of home in the next 1-2 years in great areas in SD for sub 500K.

[leucadiarenter]

You should be thanking the banks for not lending to you. At 250K a year, and only 10% down, you should be looking in the 500-600K range. Just be patient, not sure where you are looking, but you’ll be able to buy a whole lot of home in the next 1-2 years in great areas in SD for sub 500K.

[leucadiarenter]

You should be thanking the banks for not lending to you. At 250K a year, and only 10% down, you should be looking in the 500-600K range. Just be patient, not sure where you are looking, but you’ll be able to buy a whole lot of home in the next 1-2 years in great areas in SD for sub 500K.

[leucadiarenter]

You should be thanking the banks for not lending to you. At 250K a year, and only 10% down, you should be looking in the 500-600K range. Just be patient, not sure where you are looking, but you’ll be able to buy a whole lot of home in the next 1-2 years in great areas in SD for sub 500K.

[leucadiarenter]

You should be thanking the banks for not lending to you. At 250K a year, and only 10% down, you should be looking in the 500-600K range. Just be patient, not sure where you are looking, but you’ll be able to buy a whole lot of home in the next 1-2 years in great areas in SD for sub 500K.

[sdduuuude]

I think you are going to burn all your tax savings (from your wise financial choice of purchasing insted of renting a depreiciating asset) on PMI (which is a complete waste of money if you have a 20% down payment) and depreciation.

Assuming a purchase price of 800K and a loan of 720K at 6%, the payment is $4,316. Assuming ALL of that is interest and a 50% tax bracket, your tax savings is $2158 per month, or $25,900 per year. 25,9000 is 3.24% of the purchase price of 800K.

So, if the house depreciates by 3.25% or more, buying is not a wise financial decision. Add in the non-depreciable cost of PMI, adjust for the actual interest rate and tax bracket and you are barely there. Also, consider that you can put an extra $1K per month or so in the bank if you rent at $3300/month instead of make a mortgage payment of $4300 per month.

The point is not “never buy a house.”
The point is rent, don’t buy, a depreciating asset.

[sdduuuude]

I think you are going to burn all your tax savings (from your wise financial choice of purchasing insted of renting a depreiciating asset) on PMI (which is a complete waste of money if you have a 20% down payment) and depreciation.

Assuming a purchase price of 800K and a loan of 720K at 6%, the payment is $4,316. Assuming ALL of that is interest and a 50% tax bracket, your tax savings is $2158 per month, or $25,900 per year. 25,9000 is 3.24% of the purchase price of 800K.

So, if the house depreciates by 3.25% or more, buying is not a wise financial decision. Add in the non-depreciable cost of PMI, adjust for the actual interest rate and tax bracket and you are barely there. Also, consider that you can put an extra $1K per month or so in the bank if you rent at $3300/month instead of make a mortgage payment of $4300 per month.

The point is not “never buy a house.”
The point is rent, don’t buy, a depreciating asset.

[sdduuuude]

I think you are going to burn all your tax savings (from your wise financial choice of purchasing insted of renting a depreiciating asset) on PMI (which is a complete waste of money if you have a 20% down payment) and depreciation.

Assuming a purchase price of 800K and a loan of 720K at 6%, the payment is $4,316. Assuming ALL of that is interest and a 50% tax bracket, your tax savings is $2158 per month, or $25,900 per year. 25,9000 is 3.24% of the purchase price of 800K.

So, if the house depreciates by 3.25% or more, buying is not a wise financial decision. Add in the non-depreciable cost of PMI, adjust for the actual interest rate and tax bracket and you are barely there. Also, consider that you can put an extra $1K per month or so in the bank if you rent at $3300/month instead of make a mortgage payment of $4300 per month.

The point is not “never buy a house.”
The point is rent, don’t buy, a depreciating asset.

[sdduuuude]

I think you are going to burn all your tax savings (from your wise financial choice of purchasing insted of renting a depreiciating asset) on PMI (which is a complete waste of money if you have a 20% down payment) and depreciation.

Assuming a purchase price of 800K and a loan of 720K at 6%, the payment is $4,316. Assuming ALL of that is interest and a 50% tax bracket, your tax savings is $2158 per month, or $25,900 per year. 25,9000 is 3.24% of the purchase price of 800K.

So, if the house depreciates by 3.25% or more, buying is not a wise financial decision. Add in the non-depreciable cost of PMI, adjust for the actual interest rate and tax bracket and you are barely there. Also, consider that you can put an extra $1K per month or so in the bank if you rent at $3300/month instead of make a mortgage payment of $4300 per month.

The point is not “never buy a house.”
The point is rent, don’t buy, a depreciating asset.

[sdduuuude]

I think you are going to burn all your tax savings (from your wise financial choice of purchasing insted of renting a depreiciating asset) on PMI (which is a complete waste of money if you have a 20% down payment) and depreciation.

Assuming a purchase price of 800K and a loan of 720K at 6%, the payment is $4,316. Assuming ALL of that is interest and a 50% tax bracket, your tax savings is $2158 per month, or $25,900 per year. 25,9000 is 3.24% of the purchase price of 800K.

So, if the house depreciates by 3.25% or more, buying is not a wise financial decision. Add in the non-depreciable cost of PMI, adjust for the actual interest rate and tax bracket and you are barely there. Also, consider that you can put an extra $1K per month or so in the bank if you rent at $3300/month instead of make a mortgage payment of $4300 per month.

The point is not “never buy a house.”
The point is rent, don’t buy, a depreciating asset.

[ncounty4]

I appreciate the comments, leucadiarenter. The problem is not that we still own a house…we haven’t even gotten that far in discussions with the banks. The problem is that 90% jumbo loans with PMI just don’t exist anymore, period. We haven’t even gotten far enough to disclose any of that information (sorry to burst your bubble DWACP). Nobody is carrying those mortgage products right now…which was exactly the issue I outlined in my OP.

[ncounty4]

I appreciate the comments, leucadiarenter. The problem is not that we still own a house…we haven’t even gotten that far in discussions with the banks. The problem is that 90% jumbo loans with PMI just don’t exist anymore, period. We haven’t even gotten far enough to disclose any of that information (sorry to burst your bubble DWACP). Nobody is carrying those mortgage products right now…which was exactly the issue I outlined in my OP.

[ncounty4]

I appreciate the comments, leucadiarenter. The problem is not that we still own a house…we haven’t even gotten that far in discussions with the banks. The problem is that 90% jumbo loans with PMI just don’t exist anymore, period. We haven’t even gotten far enough to disclose any of that information (sorry to burst your bubble DWACP). Nobody is carrying those mortgage products right now…which was exactly the issue I outlined in my OP.

[ncounty4]

I appreciate the comments, leucadiarenter. The problem is not that we still own a house…we haven’t even gotten that far in discussions with the banks. The problem is that 90% jumbo loans with PMI just don’t exist anymore, period. We haven’t even gotten far enough to disclose any of that information (sorry to burst your bubble DWACP). Nobody is carrying those mortgage products right now…which was exactly the issue I outlined in my OP.

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