Best time to buy a house

[chess9]

Originally posted by: Sinsear

Originally posted by: Aimster
where did you get 4.87? That's a great deal.

The lowest I found was Wachovia

HSBC. Got in their Community Works program; you have to earn less than 78k combined. So my girl and I jumped on it before we get some real nice raises next year. If we close later than Jan 31 we won't qualify anymore and we will be looking at something in the area of 5.2 I think was our last quote. Not too much of a difference but 4.87 is real nice, so we're trying to sneak on in.

Twenty years ago, without a very large down payment, you wouldn't have qualified for such a loan.

I'm not sure that is a prudent loan by HSBC in this environment, though it may be prudent for you if you expect your real wages to rise substantially over the next few months. Even so, what if we have continued deflation in the housing market and the value of your home falls by 30%?

-Robert

 

[Deviant Grasshopper]

Originally posted by: chess9

Originally posted by: Sinsear

Originally posted by: Aimster
where did you get 4.87? That's a great deal.

The lowest I found was Wachovia

HSBC. Got in their Community Works program; you have to earn less than 78k combined. So my girl and I jumped on it before we get some real nice raises next year. If we close later than Jan 31 we won't qualify anymore and we will be looking at something in the area of 5.2 I think was our last quote. Not too much of a difference but 4.87 is real nice, so we're trying to sneak on in.

Twenty years ago, without a very large down payment, you wouldn't have qualified for such a loan.

I'm not sure that is a prudent loan by HSBC in this environment, though it may be prudent for you if you expect your real wages to rise substantially over the next few months. Even so, what if we have continued deflation in the housing market and the value of your home falls by 30%?

-Robert

+1 - wtf are banks still doing giving out loans like this?

 

[brencat]

Definitely wait -- until Spring at least, when a flood of homes will be put up for sale. People don't like to move while kids are in school, unless job loss or relocation forces their hand. I learned this lesson when I tried to sell my last home back in 2006. We put it up for sale right before Xmas hoping to catch a relocation buyer and it didn't sell until May -- lots of traffic, but no one was 'serious' until late Feb / early March. Never again will I list a home for sale before the flowers bloom.

 

[WhipperSnapper]

Originally posted by: ProfJohn
Clark Howard was talking about the fact that we may have as many as 5 million too many homes in the country and that it will take years to work that inventory off.

How can we possibly have 5 million too many homes when they would be snatched up by apartment dwellers if they sold for $1000 each? "Too many homes" relative to what?

 

[StageLeft]

Originally posted by: WhipperSnapper

Originally posted by: ProfJohn
Clark Howard was talking about the fact that we may have as many as 5 million too many homes in the country and that it will take years to work that inventory off.

How can we possibly have 5 million too many homes when they would be snatched up by apartment dwellers if they sold for $1000 each? "Too many homes" relative to what?

Probably relative to a historically-prudent price.

 

[Vette73]

Originally posted by: brencat
Definitely wait -- until Spring at least, when a flood of homes will be put up for sale. People don't like to move while kids are in school, unless job loss or relocation forces their hand. I learned this lesson when I tried to sell my last home back in 2006. We put it up for sale right before Xmas hoping to catch a relocation buyer and it didn't sell until May -- lots of traffic, but no one was 'serious' until late Feb / early March. Never again will I list a home for sale before the flowers bloom.

Spring is a good time for sellers but winter is a great time for buyers that don;t have kids. there are fewwer buyers and right bnow there are even fewwer then that.


What I would do it start looking now. If you find something that is a awesome deal then go fir it. If not then just keep looking. Check out realtor.com and other listings once a week.
Also get your money ready and check out your credit reports to make sure there is nothing on there that can hurt you. If so this gives you time to fix it.

 

[StageLeft]

I have a 30 year at 6.5 or so. Good credit and income but no equity. Is there any real chance at the moment I coulkd refi for a lower rate with a 100 or 80/20? I presume no but had to check!

 

[spidey07]

Originally posted by: Skoorb
I have a 30 year at 6.5 or so. Good credit and income but no equity. Is there any real chance at the moment I coulkd refi for a lower rate with a 100 or 80/20? I presume no but had to check!

I don't see why you couldn't. They may require 5% down so you could do a 80/15/5.

 

[Capt Caveman]

Originally posted by: Skoorb
I have a 30 year at 6.5 or so. Good credit and income but no equity. Is there any real chance at the moment I coulkd refi for a lower rate with a 100 or 80/20? I presume no but had to check!

Hell yeah. I just locked in at 4.875% 30 year fixed conforming with the ability to relock once prior to the refinance closing. $1.5k in fees which I will recoup in 5 months.

edit - did realize you had no equity. Not even enough to put 5% down?

 

[Vic]

When to buy depends completely on the individual market. Some have probably already bottomed out (like Vegas, Phoenix, Florida), while others are only now beginning to see their prices slide (Portland, Seattle, NY) and may have a ways to go.

 

[Vic]

Originally posted by: Skoorb
I have a 30 year at 6.5 or so. Good credit and income but no equity. Is there any real chance at the moment I coulkd refi for a lower rate with a 100 or 80/20? I presume no but had to check!

Your best bet would probably be an FHA at 95% LTV. Cheapest MI but there is the funding fee upfront. If you're neg-equity, you're probably not getting anything. However, it's not like 6.5% fixed is a bad rate or anything like that.

 

[LegendKiller]

Originally posted by: Vic
When to buy depends completely on the individual market. Some have probably already bottomed out (like Vegas, Phoenix, Florida), while others are only now beginning to see their prices slide (Portland, Seattle, NY) and may have a ways to go.

I agree with this somewhat, with the only caveat being that I do think that Vegas, PHX, and FL have a little more to go before they hit bottom, but not much. Portland or Seattle never really heated up too much, but I think they are still going to decline. NY has a lot of inventory right now and a ton more coming online, some of the new stuff may increase unsold inventory by as much as 15-20% over current numbers. That, combined with Wall Street and other high-buck job layoffs will hammer at NY values.

I would wait till Feb or March to see where things are shaking out with the Shiller index. I think that Spring this year may show a significantly better outlook than Spring 08. I don't think we'll see price increases on a seasonally adjusted basis, but I do think we'll start seeing inventory get soaked up.

If you can get into a place right now in a high bubble area (FL, LV, PHX) for 50%+ off of peak, then I'd take it. Saw that Miami prices are down as much as 70% off of peak.

 

[miketheidiot]

I would wait a little bit, there isn't much potential for most markets to rebound, but there is potential for it to drop some more. If you are getting a really good deal and want to buy a house, just go for it.

 

[Zebo]

I am serious about living at Comfort Inn. I did it for two years back in the 90's and saved money over an apartment or house. Had to buy no TV's, fridge, beds, furniture, etc. Put all that money in bank (actually 20th century growth fund) All inclusive. Got inclusive cable TV and all utilities. New sheets and towels every day. 'House' cleaned everyday.Pools, hot tubs, free breakfast, room service...better than any house or apartment for a single guy. Get free internet today. All for about $1200 a month today (900 back then)

The market will drop further once the second mortage meltdown hits.
http://www.cbsnews.com/stories...utes/main4666112.shtml

Then buy.

 

[alchemize]

Originally posted by: Sinsear

Originally posted by: Aimster
where did you get 4.87? That's a great deal.

The lowest I found was Wachovia

HSBC. Got in their Community Works program; you have to earn less than 78k combined. So my girl and I jumped on it before we get some real nice raises next year. If we close later than Jan 31 we won't qualify anymore and we will be looking at something in the area of 5.2 I think was our last quote. Not too much of a difference but 4.87 is real nice, so we're trying to sneak on in.

Pardon me butting in on your personal life - but WTF are you doing buying a 310K house w/ 78K in income???

 

[BigDH01]

Originally posted by: Sinsear
I think it's a pretty good time. I'm in the process of buying one right now. It's a short sale, the owner has like 450k left on his note and I'm getting it for 310k. And I plan on using that first time buyers tax credit as well. I wouldn't be able to afford such a nice place and piece of property here on Long Island if it werent for the housing mess.


edit: and I'm getting an interest rate of 4.87% on a 30 year fixed.

You are your cosigner earn less than 75k and you are getting this? How much are you putting down?

 

[StageLeft]

Yeah 6.5% is not terrible, but 5% is nicer, although that would be realistic best-case. It's possible I'm upside down in the house, but not sure as most people in our neighborhood have not moved or put their homes up for sale. I'd hate to put down 5% in this economy because I want as much of a cushion as possible in case something worse happens.

Regarding NY, I think I made a thread a few months ago about because I really see no way it can do anything but crash down in value. Most expensive housing in the country, flew up during the boom, and has not come down, which it must, especially with banking's implosion impacting the city very directly.

Pardon me butting in on your personal life - but WTF are you doing buying a 310K house w/ 78K in income???

Depending on other things like student loans, car situation, and likes, plus of course property taxes, it could be either an egregious or prudent move. It's hard to say, really, but a person with no other debt and low property taxes could very easily cover a 310k house on that income.

 

[LegendKiller]

Originally posted by: Zebo
I am serious about living at Comfort Inn. I did it for two years back in the 90's and saved money over an apartment or house. Had to buy no TV's, fridge, beds, furniture, etc. Put all that money in bank (actually 20th century growth fund) All inclusive. Got inclusive cable TV and all utilities. New sheets and towels every day. 'House' cleaned everyday.Pools, hot tubs, free breakfast, room service...better than any house or apartment for a single guy. Get free internet today. All for about $1200 a month today (900 back then)

The market will drop further once the second mortage meltdown hits.
http://www.cbsnews.com/stories...utes/main4666112.shtml

Then buy.

I don't think the "second bump" is going to be as large as some people are thinking.

Think about it, mortgage applications are up, sales are still going down.

 

[Corn]

Originally posted by: Craig234

And there are people - let's call them liberals - who prefer a goal as close as possible to not having a 'poor' class and having as many people as possible own homes.

This typical wrong thinking "liberal" approach to home ownership is what caused this current mess to begin with. Way too many people who had no business qualifying for mortgage loans were given them for practically nothing making it easy to walk away.

 

[Zebo]

Originally posted by: LegendKiller

Originally posted by: Zebo
I am serious about living at Comfort Inn. I did it for two years back in the 90's and saved money over an apartment or house. Had to buy no TV's, fridge, beds, furniture, etc. Put all that money in bank (actually 20th century growth fund) All inclusive. Got inclusive cable TV and all utilities. New sheets and towels every day. 'House' cleaned everyday.Pools, hot tubs, free breakfast, room service...better than any house or apartment for a single guy. Get free internet today. All for about $1200 a month today (900 back then)

The market will drop further once the second mortage meltdown hits.
http://www.cbsnews.com/stories...utes/main4666112.shtml

Then buy.

I don't think the "second bump" is going to be as large as some people are thinking.

Think about it, mortgage applications are up, sales are still going down.

I am not smart enough to know when we are at the bottom. But to me it makes sense when more defaults are coming (link above), layoffs abound and are increasing, Big 3 might go broke and all them jobs and associated jobs there will probably be even more peoples that can't make mortgage payment increasing supply of homes on the market thus decreasing their prices even further.

 

[OCGuy]

I just funded a 4.625% 30 year fixed 10 minutes ago, and locked one at 4.5% yesterday. It is an AMAZING time to purchase/refinance if you are a prime borrower.

 

[BigDH01]

Originally posted by: Corn

Originally posted by: Craig234

And there are people - let's call them liberals - who prefer a goal as close as possible to not having a 'poor' class and having as many people as possible own homes.

This typical wrong thinking "liberal" approach to home ownership is what caused this current mess to begin with. Way too many people who had no business qualifying for mortgage loans were given them for practically nothing making it easy to walk away.

I'm not sure if greed is conservative or liberal. The real problem was that the people who stood to profit had no risk, both borrowers and lenders. I'm sure both conservatives and liberals were involved.

 

[StageLeft]

Originally posted by: Ocguy31
I just funded a 4.625% 30 year fixed 10 minutes ago, and locked one at 4.5% yesterday. It is an AMAZING time to purchase/refinance if you are a prime borrower.

omfg

 

[Zebo]

Originally posted by: BigDH01

Originally posted by: Corn

Originally posted by: Craig234

And there are people - let's call them liberals - who prefer a goal as close as possible to not having a 'poor' class and having as many people as possible own homes.

This typical wrong thinking "liberal" approach to home ownership is what caused this current mess to begin with. Way too many people who had no business qualifying for mortgage loans were given them for practically nothing making it easy to walk away.

I'm not sure if greed is conservative or liberal. The real problem was that the people who stood to profit had no risk, both borrowers and lenders. I'm sure both conservatives and liberals were involved.

You nailed it. It's socialism alright but a morphed version that plunders the renters, home 'owners', the retired, the savers and the bond investors in order to benefit poor home owners and speculators in financial industry. It's a new type of socialism to plunder the middle majority in order to bail out the bottom and top minorities of race and riches.

 

[Corn]

Originally posted by: BigDH01

Originally posted by: Corn

Originally posted by: Craig234

And there are people - let's call them liberals - who prefer a goal as close as possible to not having a 'poor' class and having as many people as possible own homes.

This typical wrong thinking "liberal" approach to home ownership is what caused this current mess to begin with. Way too many people who had no business qualifying for mortgage loans were given them for practically nothing making it easy to walk away.

I'm not sure if greed is conservative or liberal. The real problem was that the people who stood to profit had no risk, both borrowers and lenders. I'm sure both conservatives and liberals were involved.

Craig used "liberal" as the label, I merely replied to it.