[SDEngineer]

[quote=AN][quote=SDEngineer]
Actually, RB is part of San Diego City. It’s about the furthest flung part though.
[/quote]
Thanks for correcting me. I always though RB belong to Poway city. But it seems like 4S is not part of San Diego City.[/quote]

4S is part of San Diego City as well. You cross out of San Diego city limits when you cross the I-15 bridge north over Lake Hodges, or east into Poway. Pretty much everything to the south and west of the I-15 (as well as some stuff to the east of the I-15) until you hit the 94 is San Diego City, except La Jolla, Del Mar, and Rancho Santa Fe.

[SDEngineer]

[quote=AN][quote=ibjames]I think that is what we are talking about, if you go inland, middle class areas, you can find deals.

If you are west of the 15, and the closer you get to the coast.. a lot of adjustment has to happen yet.

I think that was what SDR was referring to. When I think of San Diego, I don’t think of eastlake

Is that san diego? <-serious question[/quote] Eastlake is part of San Diego County but not San Diego City. Kind of like Rancho Bernardo is not part of San Diego City. Eastlake is much closer to Downtown San Diego than RB is.[/quote] Actually, RB is part of San Diego City. It's about the furthest flung part though.

[SDEngineer]

[quote=AN][quote=ibjames]I think that is what we are talking about, if you go inland, middle class areas, you can find deals.

If you are west of the 15, and the closer you get to the coast.. a lot of adjustment has to happen yet.

I think that was what SDR was referring to. When I think of San Diego, I don’t think of eastlake

Is that san diego? <-serious question[/quote] Eastlake is part of San Diego County but not San Diego City. Kind of like Rancho Bernardo is not part of San Diego City. Eastlake is much closer to Downtown San Diego than RB is.[/quote] Actually, RB is part of San Diego City. It's about the furthest flung part though.

[SDEngineer]

[quote=AN][quote=ibjames]I think that is what we are talking about, if you go inland, middle class areas, you can find deals.

If you are west of the 15, and the closer you get to the coast.. a lot of adjustment has to happen yet.

I think that was what SDR was referring to. When I think of San Diego, I don’t think of eastlake

Is that san diego? <-serious question[/quote] Eastlake is part of San Diego County but not San Diego City. Kind of like Rancho Bernardo is not part of San Diego City. Eastlake is much closer to Downtown San Diego than RB is.[/quote] Actually, RB is part of San Diego City. It's about the furthest flung part though.

[SDEngineer]

[quote=AN][quote=ibjames]I think that is what we are talking about, if you go inland, middle class areas, you can find deals.

If you are west of the 15, and the closer you get to the coast.. a lot of adjustment has to happen yet.

I think that was what SDR was referring to. When I think of San Diego, I don’t think of eastlake

Is that san diego? <-serious question[/quote] Eastlake is part of San Diego County but not San Diego City. Kind of like Rancho Bernardo is not part of San Diego City. Eastlake is much closer to Downtown San Diego than RB is.[/quote] Actually, RB is part of San Diego City. It's about the furthest flung part though.

[SDEngineer]

[quote=AN][quote=ibjames]I think that is what we are talking about, if you go inland, middle class areas, you can find deals.

If you are west of the 15, and the closer you get to the coast.. a lot of adjustment has to happen yet.

I think that was what SDR was referring to. When I think of San Diego, I don’t think of eastlake

Is that san diego? <-serious question[/quote] Eastlake is part of San Diego County but not San Diego City. Kind of like Rancho Bernardo is not part of San Diego City. Eastlake is much closer to Downtown San Diego than RB is.[/quote] Actually, RB is part of San Diego City. It's about the furthest flung part though.

[SDEngineer]

[quote=jpinpb][quote=AN]I don’t understand why you’d say the 20% down did you no good when it come to refi. Assuming you did spend that 20%, if price drop below your original loan, you’d have to bring cash to the table to refi. But with 20% down, you might not need to. The other question is, do you expect rates to go much lower than 4.5%?[/quote]

The prices fell much lower than the 20% I put down when I bought it 2 years earlier. I would’ve needed to come up w/more money if I wanted to take advantage of the lower rates and refinance. Sorry if I was unclear.

Unknown whether the rates will fall lower than 4.5%, but I feel pretty confident prices will fall in my complex much lower.

SDEngineer – thanks for your feedback.

Anyone – how do you calculate PMI?
[/quote]

On FHA it’s fairly simple. With 3.5% down, it’s 0.55% of the mortgage balance annually (paid monthly). So a 380K mortgage balance would have monthly payments of $174.17. However, with FHA, you also have an upfront premium of 1.75% of the mortgage balance paid at closing (which can, and usually is, rolled into the loan).

Conventional is more complex (based on the LTV, rather than a flat % like the FHA’s program), usually more expensive (on a monthly basis), but does not have the upfront premium.

[SDEngineer]

[quote=jpinpb][quote=AN]I don’t understand why you’d say the 20% down did you no good when it come to refi. Assuming you did spend that 20%, if price drop below your original loan, you’d have to bring cash to the table to refi. But with 20% down, you might not need to. The other question is, do you expect rates to go much lower than 4.5%?[/quote]

The prices fell much lower than the 20% I put down when I bought it 2 years earlier. I would’ve needed to come up w/more money if I wanted to take advantage of the lower rates and refinance. Sorry if I was unclear.

Unknown whether the rates will fall lower than 4.5%, but I feel pretty confident prices will fall in my complex much lower.

SDEngineer – thanks for your feedback.

Anyone – how do you calculate PMI?
[/quote]

On FHA it’s fairly simple. With 3.5% down, it’s 0.55% of the mortgage balance annually (paid monthly). So a 380K mortgage balance would have monthly payments of $174.17. However, with FHA, you also have an upfront premium of 1.75% of the mortgage balance paid at closing (which can, and usually is, rolled into the loan).

Conventional is more complex (based on the LTV, rather than a flat % like the FHA’s program), usually more expensive (on a monthly basis), but does not have the upfront premium.

[SDEngineer]

[quote=jpinpb][quote=AN]I don’t understand why you’d say the 20% down did you no good when it come to refi. Assuming you did spend that 20%, if price drop below your original loan, you’d have to bring cash to the table to refi. But with 20% down, you might not need to. The other question is, do you expect rates to go much lower than 4.5%?[/quote]

The prices fell much lower than the 20% I put down when I bought it 2 years earlier. I would’ve needed to come up w/more money if I wanted to take advantage of the lower rates and refinance. Sorry if I was unclear.

Unknown whether the rates will fall lower than 4.5%, but I feel pretty confident prices will fall in my complex much lower.

SDEngineer – thanks for your feedback.

Anyone – how do you calculate PMI?
[/quote]

On FHA it’s fairly simple. With 3.5% down, it’s 0.55% of the mortgage balance annually (paid monthly). So a 380K mortgage balance would have monthly payments of $174.17. However, with FHA, you also have an upfront premium of 1.75% of the mortgage balance paid at closing (which can, and usually is, rolled into the loan).

Conventional is more complex (based on the LTV, rather than a flat % like the FHA’s program), usually more expensive (on a monthly basis), but does not have the upfront premium.

[SDEngineer]

[quote=jpinpb][quote=AN]I don’t understand why you’d say the 20% down did you no good when it come to refi. Assuming you did spend that 20%, if price drop below your original loan, you’d have to bring cash to the table to refi. But with 20% down, you might not need to. The other question is, do you expect rates to go much lower than 4.5%?[/quote]

The prices fell much lower than the 20% I put down when I bought it 2 years earlier. I would’ve needed to come up w/more money if I wanted to take advantage of the lower rates and refinance. Sorry if I was unclear.

Unknown whether the rates will fall lower than 4.5%, but I feel pretty confident prices will fall in my complex much lower.

SDEngineer – thanks for your feedback.

Anyone – how do you calculate PMI?
[/quote]

On FHA it’s fairly simple. With 3.5% down, it’s 0.55% of the mortgage balance annually (paid monthly). So a 380K mortgage balance would have monthly payments of $174.17. However, with FHA, you also have an upfront premium of 1.75% of the mortgage balance paid at closing (which can, and usually is, rolled into the loan).

Conventional is more complex (based on the LTV, rather than a flat % like the FHA’s program), usually more expensive (on a monthly basis), but does not have the upfront premium.

[SDEngineer]

[quote=jpinpb][quote=AN]I don’t understand why you’d say the 20% down did you no good when it come to refi. Assuming you did spend that 20%, if price drop below your original loan, you’d have to bring cash to the table to refi. But with 20% down, you might not need to. The other question is, do you expect rates to go much lower than 4.5%?[/quote]

The prices fell much lower than the 20% I put down when I bought it 2 years earlier. I would’ve needed to come up w/more money if I wanted to take advantage of the lower rates and refinance. Sorry if I was unclear.

Unknown whether the rates will fall lower than 4.5%, but I feel pretty confident prices will fall in my complex much lower.

SDEngineer – thanks for your feedback.

Anyone – how do you calculate PMI?
[/quote]

On FHA it’s fairly simple. With 3.5% down, it’s 0.55% of the mortgage balance annually (paid monthly). So a 380K mortgage balance would have monthly payments of $174.17. However, with FHA, you also have an upfront premium of 1.75% of the mortgage balance paid at closing (which can, and usually is, rolled into the loan).

Conventional is more complex (based on the LTV, rather than a flat % like the FHA’s program), usually more expensive (on a monthly basis), but does not have the upfront premium.

[SDEngineer]

[quote=jpinpb][quote=AN]jpinpb, I think right now, you should be able to get 4.5% with about 2 points. That’s about $4500 from a 80% loan w/ purchase price of $285k. That’s still $3500 less than than the $8k the government is giving you to buy. Your example doesn’t work, I agree with that. [/quote]

AN – Thanks for the explanation. I appreciate you taking the time. I still am a little confused. You said 80%. So that means putting 20% down? Not to be dense.

I have a question for anyone out there. Are those intending to eventually buy planning to put 20% down?

I originally intended to put 20% down, but w/each day hearing about the unemployment rising and the economy doing so poorly and the inventory rising and potential future decline in r.e. prices, if I bought today, I would only be comfortable putting down the minimum.[/quote]

We are going FHA with 3.5% down ourselves. We’re not in a position to put 20% down (we could do 10%), and in this economy, we view keeping our reserves high (they’ll still be in excess of 30K after the transaction is completed) as a reasonable trade-off to being stuck with a $180/mo mortgage insurance payment.

Truthfully, it’s not that bad – the reserves will be sitting earning interest in CD’s, which by themselves will bring in nearly half of what the MI payment is annually. If we had the full 20%, the 16.5% saved by not putting it in the down payment would pay for the entire thing (and that’s just figuring a 3% rate of return on the CD’s).

[SDEngineer]

[quote=jpinpb][quote=AN]jpinpb, I think right now, you should be able to get 4.5% with about 2 points. That’s about $4500 from a 80% loan w/ purchase price of $285k. That’s still $3500 less than than the $8k the government is giving you to buy. Your example doesn’t work, I agree with that. [/quote]

AN – Thanks for the explanation. I appreciate you taking the time. I still am a little confused. You said 80%. So that means putting 20% down? Not to be dense.

I have a question for anyone out there. Are those intending to eventually buy planning to put 20% down?

I originally intended to put 20% down, but w/each day hearing about the unemployment rising and the economy doing so poorly and the inventory rising and potential future decline in r.e. prices, if I bought today, I would only be comfortable putting down the minimum.[/quote]

We are going FHA with 3.5% down ourselves. We’re not in a position to put 20% down (we could do 10%), and in this economy, we view keeping our reserves high (they’ll still be in excess of 30K after the transaction is completed) as a reasonable trade-off to being stuck with a $180/mo mortgage insurance payment.

Truthfully, it’s not that bad – the reserves will be sitting earning interest in CD’s, which by themselves will bring in nearly half of what the MI payment is annually. If we had the full 20%, the 16.5% saved by not putting it in the down payment would pay for the entire thing (and that’s just figuring a 3% rate of return on the CD’s).

[SDEngineer]

[quote=jpinpb][quote=AN]jpinpb, I think right now, you should be able to get 4.5% with about 2 points. That’s about $4500 from a 80% loan w/ purchase price of $285k. That’s still $3500 less than than the $8k the government is giving you to buy. Your example doesn’t work, I agree with that. [/quote]

AN – Thanks for the explanation. I appreciate you taking the time. I still am a little confused. You said 80%. So that means putting 20% down? Not to be dense.

I have a question for anyone out there. Are those intending to eventually buy planning to put 20% down?

I originally intended to put 20% down, but w/each day hearing about the unemployment rising and the economy doing so poorly and the inventory rising and potential future decline in r.e. prices, if I bought today, I would only be comfortable putting down the minimum.[/quote]

We are going FHA with 3.5% down ourselves. We’re not in a position to put 20% down (we could do 10%), and in this economy, we view keeping our reserves high (they’ll still be in excess of 30K after the transaction is completed) as a reasonable trade-off to being stuck with a $180/mo mortgage insurance payment.

Truthfully, it’s not that bad – the reserves will be sitting earning interest in CD’s, which by themselves will bring in nearly half of what the MI payment is annually. If we had the full 20%, the 16.5% saved by not putting it in the down payment would pay for the entire thing (and that’s just figuring a 3% rate of return on the CD’s).

[SDEngineer]

[quote=jpinpb][quote=AN]jpinpb, I think right now, you should be able to get 4.5% with about 2 points. That’s about $4500 from a 80% loan w/ purchase price of $285k. That’s still $3500 less than than the $8k the government is giving you to buy. Your example doesn’t work, I agree with that. [/quote]

AN – Thanks for the explanation. I appreciate you taking the time. I still am a little confused. You said 80%. So that means putting 20% down? Not to be dense.

I have a question for anyone out there. Are those intending to eventually buy planning to put 20% down?

I originally intended to put 20% down, but w/each day hearing about the unemployment rising and the economy doing so poorly and the inventory rising and potential future decline in r.e. prices, if I bought today, I would only be comfortable putting down the minimum.[/quote]

We are going FHA with 3.5% down ourselves. We’re not in a position to put 20% down (we could do 10%), and in this economy, we view keeping our reserves high (they’ll still be in excess of 30K after the transaction is completed) as a reasonable trade-off to being stuck with a $180/mo mortgage insurance payment.

Truthfully, it’s not that bad – the reserves will be sitting earning interest in CD’s, which by themselves will bring in nearly half of what the MI payment is annually. If we had the full 20%, the 16.5% saved by not putting it in the down payment would pay for the entire thing (and that’s just figuring a 3% rate of return on the CD’s).

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