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(former)FormerSanDiegan
ParticipantGetting a car loan immediately before getting a mortgage is not a great idea. Your credit score will drop a bit and your debt ratio will be higher.
When I obtained a car loan 3 years ago I watched my credit score drop about 40 points to about 740. It took 9 months or a year to get back t where it had been.
If you are still 12 months away, it does not really matter much on your score, but impacts your DTI ratio. If you will be purchasing at low DTI anyway (e.g. 25%), then the only thing to consider is your score.
Participant[quote=asianautica][quote=Ren]
PITI w/20% down may equal rent now, but the problem with that is this: losing a good chunk of that 20% over the next few years makes it anything but equal.
[/quote]
Like I said before, equilibrium is not equal to bottom. No one will know when/where the bottom is until it already passed. BTW, at the bottom of the last cycle, a SFR in MM, PITI w/20% down was equal rent.[/quote]But, but … it’s different this time.
The fundamentals have changed. No more reversion to the mean.
We are headed to a permanently lower plateau. House prices always go down.Participant[quote=asianautica][quote=Ren]
PITI w/20% down may equal rent now, but the problem with that is this: losing a good chunk of that 20% over the next few years makes it anything but equal.
[/quote]
Like I said before, equilibrium is not equal to bottom. No one will know when/where the bottom is until it already passed. BTW, at the bottom of the last cycle, a SFR in MM, PITI w/20% down was equal rent.[/quote]But, but … it’s different this time.
The fundamentals have changed. No more reversion to the mean.
We are headed to a permanently lower plateau. House prices always go down.Participant[quote=asianautica][quote=Ren]
PITI w/20% down may equal rent now, but the problem with that is this: losing a good chunk of that 20% over the next few years makes it anything but equal.
[/quote]
Like I said before, equilibrium is not equal to bottom. No one will know when/where the bottom is until it already passed. BTW, at the bottom of the last cycle, a SFR in MM, PITI w/20% down was equal rent.[/quote]But, but … it’s different this time.
The fundamentals have changed. No more reversion to the mean.
We are headed to a permanently lower plateau. House prices always go down.Participant[quote=asianautica][quote=Ren]
PITI w/20% down may equal rent now, but the problem with that is this: losing a good chunk of that 20% over the next few years makes it anything but equal.
[/quote]
Like I said before, equilibrium is not equal to bottom. No one will know when/where the bottom is until it already passed. BTW, at the bottom of the last cycle, a SFR in MM, PITI w/20% down was equal rent.[/quote]But, but … it’s different this time.
The fundamentals have changed. No more reversion to the mean.
We are headed to a permanently lower plateau. House prices always go down.Participant[quote=asianautica][quote=Ren]
PITI w/20% down may equal rent now, but the problem with that is this: losing a good chunk of that 20% over the next few years makes it anything but equal.
[/quote]
Like I said before, equilibrium is not equal to bottom. No one will know when/where the bottom is until it already passed. BTW, at the bottom of the last cycle, a SFR in MM, PITI w/20% down was equal rent.[/quote]But, but … it’s different this time.
The fundamentals have changed. No more reversion to the mean.
We are headed to a permanently lower plateau. House prices always go down.ParticipantWhatever you do, I would not make plans that depend on refinancing after your remodel.
If you are able to refi afterwards, that’s great. But I wouldn’t plan on it.
I would take a fixed rate on the first and use the HELOC for remodeling (However, I doubt that you can get a HELOC for more than 90% CLTV or about 135K in this case)
Since you are planning on using a HELOC for the remodel you will have enough variable interest rate exposure.
I would not compound that with a 5/1 ARM.
Based on my personal experience your remodel may take twice as long and will cost 50% more than you plan. Also, I have a friend who is near the end of a remodel and cannot secure financing to combine his existing 1st and HELOC used to remodel (due to ~ 15% further depreciation in his neighborhood). He is stuck with the terms of his original loans.
You can plan on combining your loans after completions, just don’t depend on that happening.
ParticipantWhatever you do, I would not make plans that depend on refinancing after your remodel.
If you are able to refi afterwards, that’s great. But I wouldn’t plan on it.
I would take a fixed rate on the first and use the HELOC for remodeling (However, I doubt that you can get a HELOC for more than 90% CLTV or about 135K in this case)
Since you are planning on using a HELOC for the remodel you will have enough variable interest rate exposure.
I would not compound that with a 5/1 ARM.
Based on my personal experience your remodel may take twice as long and will cost 50% more than you plan. Also, I have a friend who is near the end of a remodel and cannot secure financing to combine his existing 1st and HELOC used to remodel (due to ~ 15% further depreciation in his neighborhood). He is stuck with the terms of his original loans.
You can plan on combining your loans after completions, just don’t depend on that happening.
ParticipantWhatever you do, I would not make plans that depend on refinancing after your remodel.
If you are able to refi afterwards, that’s great. But I wouldn’t plan on it.
I would take a fixed rate on the first and use the HELOC for remodeling (However, I doubt that you can get a HELOC for more than 90% CLTV or about 135K in this case)
Since you are planning on using a HELOC for the remodel you will have enough variable interest rate exposure.
I would not compound that with a 5/1 ARM.
Based on my personal experience your remodel may take twice as long and will cost 50% more than you plan. Also, I have a friend who is near the end of a remodel and cannot secure financing to combine his existing 1st and HELOC used to remodel (due to ~ 15% further depreciation in his neighborhood). He is stuck with the terms of his original loans.
You can plan on combining your loans after completions, just don’t depend on that happening.
ParticipantWhatever you do, I would not make plans that depend on refinancing after your remodel.
If you are able to refi afterwards, that’s great. But I wouldn’t plan on it.
I would take a fixed rate on the first and use the HELOC for remodeling (However, I doubt that you can get a HELOC for more than 90% CLTV or about 135K in this case)
Since you are planning on using a HELOC for the remodel you will have enough variable interest rate exposure.
I would not compound that with a 5/1 ARM.
Based on my personal experience your remodel may take twice as long and will cost 50% more than you plan. Also, I have a friend who is near the end of a remodel and cannot secure financing to combine his existing 1st and HELOC used to remodel (due to ~ 15% further depreciation in his neighborhood). He is stuck with the terms of his original loans.
You can plan on combining your loans after completions, just don’t depend on that happening.
ParticipantWhatever you do, I would not make plans that depend on refinancing after your remodel.
If you are able to refi afterwards, that’s great. But I wouldn’t plan on it.
I would take a fixed rate on the first and use the HELOC for remodeling (However, I doubt that you can get a HELOC for more than 90% CLTV or about 135K in this case)
Since you are planning on using a HELOC for the remodel you will have enough variable interest rate exposure.
I would not compound that with a 5/1 ARM.
Based on my personal experience your remodel may take twice as long and will cost 50% more than you plan. Also, I have a friend who is near the end of a remodel and cannot secure financing to combine his existing 1st and HELOC used to remodel (due to ~ 15% further depreciation in his neighborhood). He is stuck with the terms of his original loans.
You can plan on combining your loans after completions, just don’t depend on that happening.
December 18, 2008 at 8:36 AM in reply to: Fed empties the Armory, expends all ammo, housing has bottomed. SD RE will cost more in August of 09 than it does now. #317348Participant[quote=Nor-LA-SD-guy]
Gee Guy’sWhen owning (fix rate loan an all) is lees than renting….
JMO but that is when I would pull the trigger.
Don’t know if that figures in coastal SD yet but it is available in Temecula (for the moment anyway).
But to each their own , no two lives are the same.
[/quote]But just because buying is cheaper than renting does not mean it’s a good idea.
After all, real estate only goes down. Sell and rent now or be priced in forever.
/sarcasm off
December 18, 2008 at 8:36 AM in reply to: Fed empties the Armory, expends all ammo, housing has bottomed. SD RE will cost more in August of 09 than it does now. #317700Participant[quote=Nor-LA-SD-guy]
Gee Guy’sWhen owning (fix rate loan an all) is lees than renting….
JMO but that is when I would pull the trigger.
Don’t know if that figures in coastal SD yet but it is available in Temecula (for the moment anyway).
But to each their own , no two lives are the same.
[/quote]But just because buying is cheaper than renting does not mean it’s a good idea.
After all, real estate only goes down. Sell and rent now or be priced in forever.
/sarcasm off
December 18, 2008 at 8:36 AM in reply to: Fed empties the Armory, expends all ammo, housing has bottomed. SD RE will cost more in August of 09 than it does now. #317743Participant[quote=Nor-LA-SD-guy]
Gee Guy’sWhen owning (fix rate loan an all) is lees than renting….
JMO but that is when I would pull the trigger.
Don’t know if that figures in coastal SD yet but it is available in Temecula (for the moment anyway).
But to each their own , no two lives are the same.
[/quote]But just because buying is cheaper than renting does not mean it’s a good idea.
After all, real estate only goes down. Sell and rent now or be priced in forever.
/sarcasm off
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