[UCGal]

[quote=scaredycat]are most americans actually thinking about their loans?[/quote]

Probably not.
And look at the mess we’ve gotten into.

heck – most home buyers only look at what size payment they can afford… and don’t look at the underlying loan product being offered. That’s how we got so much creative financing with neg am loans etc…

If people bought homes with the idea of paying them off – there would be a very different economy right now. I don’t know how many people told me I was stupid for getting a 15 year loan. But I’m going to be mortgage free in my retirement, and they won’t be.

[UCGal]

[quote=scaredycat]are most americans actually thinking about their loans?[/quote]

Probably not.
And look at the mess we’ve gotten into.

heck – most home buyers only look at what size payment they can afford… and don’t look at the underlying loan product being offered. That’s how we got so much creative financing with neg am loans etc…

If people bought homes with the idea of paying them off – there would be a very different economy right now. I don’t know how many people told me I was stupid for getting a 15 year loan. But I’m going to be mortgage free in my retirement, and they won’t be.

[UCGal]

[quote=scaredycat]are most americans actually thinking about their loans?[/quote]

Probably not.
And look at the mess we’ve gotten into.

heck – most home buyers only look at what size payment they can afford… and don’t look at the underlying loan product being offered. That’s how we got so much creative financing with neg am loans etc…

If people bought homes with the idea of paying them off – there would be a very different economy right now. I don’t know how many people told me I was stupid for getting a 15 year loan. But I’m going to be mortgage free in my retirement, and they won’t be.

[UCGal]

He likes watching them on tv… and has voiced that if we ever get rich – that’s how he’d spend his time and money. But he’s never built a bot or anything.

didn’t you actually team with another Pigg and compete in them? Or am I getting confused.

[UCGal]

He likes watching them on tv… and has voiced that if we ever get rich – that’s how he’d spend his time and money. But he’s never built a bot or anything.

didn’t you actually team with another Pigg and compete in them? Or am I getting confused.

[UCGal]

He likes watching them on tv… and has voiced that if we ever get rich – that’s how he’d spend his time and money. But he’s never built a bot or anything.

didn’t you actually team with another Pigg and compete in them? Or am I getting confused.

[UCGal]

He likes watching them on tv… and has voiced that if we ever get rich – that’s how he’d spend his time and money. But he’s never built a bot or anything.

didn’t you actually team with another Pigg and compete in them? Or am I getting confused.

[UCGal]

He likes watching them on tv… and has voiced that if we ever get rich – that’s how he’d spend his time and money. But he’s never built a bot or anything.

didn’t you actually team with another Pigg and compete in them? Or am I getting confused.

[UCGal]

[quote=scaredycat]i see the numbers, I understand my worldview, but I cannot figure out what is the best thing to do. I am leaning toward 20% down, buy the interest rate down as low as possible and just hunker down and hopefully wait out the sh*tstorm I fully expect.[/quote]

You need to run the #’s on buying down the interest rate – determine when the break even point is for the points/fees. And figure out if you’ll likely to still be in that loan at that point. Each person’s time horizon is different. But that’s a simple calc. HLS has some calculators on his website you can “what if” the numbers. I used them a lot when I refi’d earlier this year, comparing rates from different sources.

[UCGal]

[quote=scaredycat]i see the numbers, I understand my worldview, but I cannot figure out what is the best thing to do. I am leaning toward 20% down, buy the interest rate down as low as possible and just hunker down and hopefully wait out the sh*tstorm I fully expect.[/quote]

You need to run the #’s on buying down the interest rate – determine when the break even point is for the points/fees. And figure out if you’ll likely to still be in that loan at that point. Each person’s time horizon is different. But that’s a simple calc. HLS has some calculators on his website you can “what if” the numbers. I used them a lot when I refi’d earlier this year, comparing rates from different sources.

[UCGal]

[quote=scaredycat]i see the numbers, I understand my worldview, but I cannot figure out what is the best thing to do. I am leaning toward 20% down, buy the interest rate down as low as possible and just hunker down and hopefully wait out the sh*tstorm I fully expect.[/quote]

You need to run the #’s on buying down the interest rate – determine when the break even point is for the points/fees. And figure out if you’ll likely to still be in that loan at that point. Each person’s time horizon is different. But that’s a simple calc. HLS has some calculators on his website you can “what if” the numbers. I used them a lot when I refi’d earlier this year, comparing rates from different sources.

[UCGal]

[quote=scaredycat]i see the numbers, I understand my worldview, but I cannot figure out what is the best thing to do. I am leaning toward 20% down, buy the interest rate down as low as possible and just hunker down and hopefully wait out the sh*tstorm I fully expect.[/quote]

You need to run the #’s on buying down the interest rate – determine when the break even point is for the points/fees. And figure out if you’ll likely to still be in that loan at that point. Each person’s time horizon is different. But that’s a simple calc. HLS has some calculators on his website you can “what if” the numbers. I used them a lot when I refi’d earlier this year, comparing rates from different sources.

[UCGal]

[quote=scaredycat]i see the numbers, I understand my worldview, but I cannot figure out what is the best thing to do. I am leaning toward 20% down, buy the interest rate down as low as possible and just hunker down and hopefully wait out the sh*tstorm I fully expect.[/quote]

You need to run the #’s on buying down the interest rate – determine when the break even point is for the points/fees. And figure out if you’ll likely to still be in that loan at that point. Each person’s time horizon is different. But that’s a simple calc. HLS has some calculators on his website you can “what if” the numbers. I used them a lot when I refi’d earlier this year, comparing rates from different sources.

[UCGal]

[quote=scaredycat]yes, but of course all of this goes out the window if in fact FHA PMI can be cancelled after a certain number of years. wher eis that FHA guru guy who was chased off the board a while back?

also, of cours,e there has to be some return imputed to the 66K in the fha scenario , since the 80k going into the house is getting a gain imputed to it. it mightbe very low, the bank ate of interest, or itmight be higher.[/quote]

scaredycat –
The google is our friend. I was curious about this so I googled.
It appears that the MIP can be removed from the FHA loan if three conditions are met:
– The loan term is for 15 or more years.
– The MIP has been paid for 5 years.
– The Loan to Value is at least 78%.

If you’re expecting the value of the house to decline – you can’t assume you’ll qualify for the 78% LTV in the 5 years. So if you’re going with FHA for the lower down, out of fear of losing the down payment in a declining market – you should NOT count on the MIP going away since, clearly, you’re assuming a declining market and your LTV will stay high as the value goes down.
(Does that make any sense?)

http://www.ehow.com/how_4574989_mortgage-insurance-fha-year-loan.html

http://www.bills.com/fha-mortgage-insurance/

[UCGal]

[quote=scaredycat]yes, but of course all of this goes out the window if in fact FHA PMI can be cancelled after a certain number of years. wher eis that FHA guru guy who was chased off the board a while back?

also, of cours,e there has to be some return imputed to the 66K in the fha scenario , since the 80k going into the house is getting a gain imputed to it. it mightbe very low, the bank ate of interest, or itmight be higher.[/quote]

scaredycat –
The google is our friend. I was curious about this so I googled.
It appears that the MIP can be removed from the FHA loan if three conditions are met:
– The loan term is for 15 or more years.
– The MIP has been paid for 5 years.
– The Loan to Value is at least 78%.

If you’re expecting the value of the house to decline – you can’t assume you’ll qualify for the 78% LTV in the 5 years. So if you’re going with FHA for the lower down, out of fear of losing the down payment in a declining market – you should NOT count on the MIP going away since, clearly, you’re assuming a declining market and your LTV will stay high as the value goes down.
(Does that make any sense?)

http://www.ehow.com/how_4574989_mortgage-insurance-fha-year-loan.html

http://www.bills.com/fha-mortgage-insurance/

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