Just signed on our first house (PICS INSIDE)

[GT1999]

hick cities? calm down bro, no one here is biting your style. i like it. the basement sold me.

I grew up hick. This house in my hometown would go for 130k easy. Nothing against hick folk. Just pointing out why it's so expensive.

The basement sold me too... we saw it, and wanted to give them the money right then and there. But of course we need the inspection.

 

[pontifex]

looks good.

I bought a house at the end of May. As soon as I saw it, I knew it was the one I wanted. I feel completely at home here.

I had a home inspection done for $500 and it included Radon, water and wood boring insect tests/inspection.

 

[IronWing]

Congrats!

 

[Tweak155]

Dang, nice! I just had our offer accepted 3 days ago. We under bid by $10k and won out to another bidder (these people clearly overmarked the house, but we knew that before bidding and still bid high).

20% down conventional loan, 2.75% (15 yr).

The house is 1440sqft but its a colonial so slight difference. Attached 2 car garage with nearly half acre of land and a large deck out the back of the house. Near mint condition (in the sense we can move right in with no updates) and built in 1984.

$185k and they agreed to lower price based on appraisal.

 

[Squisher]

if the sellers are still living there I doubt they'd let them leave something there a few days and then you'd have to wait longer for test results. I'd let the inspector do it - these are small costs in the grand scheme of things especially if you are in love with the house.

I'm not 100% sure, but as far as I know this is the only way to do radon testing. The inspector will have to do the same thing by leaving them in the home. As far as I know there isn't equipment that reads out radon in real time. The canisters are like an inch tall and four inches around and have a foam adhesive pad on the back.

But, to keep this all documented I agree about letting an inspector do this.

 

[Vdubchaos]

Assume NOTHING until closing is complete (it's easier that way)

Our Chase loan is now 3.25% FHA fixed with 3.5% down on a 30 year. Total monthly costs with PMI, Mortg ins, and taxes from 5700 year are $1730/mo.

Something is not right here.

What's the APR on this loan? Usually that's a good indicator of first year rapage.....

The reason I say something is not right is because I have a mortgage for $276000 at 4.25% and I'm paying $1740 a month (includes Principle/interest and Taxes but no insurance or PMI)

You should at around $1200 a month.....unless your taxes and PMI is astronomical..

 

[GT1999]

Assume NOTHING until closing is complete (it's easier that way)



Something is not right here.

What's the APR on this loan? Usually that's a good indicator of first year rapage.....

The reason I say something is not right is because I have a mortgage for $276000 at 4.25% and I'm paying $1740 a month (includes Principle/interest and Taxes but no insurance or PMI)

You should at around $1200 a month.....unless your taxes and PMI is astronomical..

PMI is 224/mo
Taxes are 475/mo

Our rate is LOCKED at 3.25% until mid September.

 

[soulcougher73]

Assuming you dont pay it off early. Enjoy your $622,800 home

 

[GT1999]

Assuming you dont pay it off early. Enjoy your $622,800 home

Uhm, no.

222,000 principal (after downpayment)
125,817.60 interest
=
347,817


I have a financial advisor.

Do you?

 

[soulcougher73]

Uhm, no.

222,000 principal (after downpayment)
125,817.60 interest
=
347,817


I have a financial advisor.

Do you?

$1730/m * 12months * 30years = $622,800

You may want to get a new advisor
I was doing total home ownership, not just the mortgage. (home insurance and prop taxes will always be there)

Edit: But on a side note, i do like the house. Very nice.

 

[GT1999]

$1730/m * 12months * 30years = $622,800

You may want to get a new advisor
I was doing total home ownership, not just the mortgage. (home insurance and prop taxes will always be there)

Edit: But on a side note, i do like the house. Very nice.

PMI doesn't last forever. It goes away after 20/22% equity.

Taxes are a given, and you have to pay insurance wherever you live, whether it's renting or owning.

So yes, your math is wrong.

 

[soulcougher73]

PMI doesn't last forever. It goes away after 20/22% equity.

Taxes are a given, and you have to pay insurance wherever you live, whether it's renting or owning.

So yes, your math is wrong.

Depends. If you rent you dont have to pay taxes or insurance. I mean you can get renters insurance if you want but its usually not more then like $15/m.

I am a home owner so i know the true cost. It will cost you more then $620k over the 30years you live there (assuming you dont pay it off early).

Houses are expensive and one of the reasons we are wanting out of ours. But we also want the mobility freedom so that is one of our big factors for wanting out.

I'm not trying to rain on the parade. As i said nice house, something id probably go for as well if i was looking. Just trying to keep it real

 

[Tweak155]

PMI doesn't last forever. It goes away after 20/22% equity.

Taxes are a given, and you have to pay insurance wherever you live, whether it's renting or owning.

So yes, your math is wrong.

Additionally, going by his logic, the cost of your "house" always goes up, since you never stop paying taxes...

Useful info: Pay a few hundred (or more) when you can towards your loan and it will save you a lot of interest in the long haul.

Doing some math for our home loan, I think we can get total interest paid easily under $30k, but going to shoot for under $15k.

 

[Tweak155]

Depends. If you rent you dont have to pay taxes or insurance. I mean you can get renters insurance if you want but its usually not more then like $15/m.

I am a home owner so i know the true cost. It will cost you more then $620k over the 30years you live there (assuming you dont pay it off early).

Houses are expensive and one of the reasons we are wanting out of ours. But we also want the mobility freedom so that is one of our big factors for wanting out.

I'm not trying to rain on the parade. As i said nice house, something id probably go for as well if i was looking. Just trying to keep it real

Uh huh... so you don't think part of your rent goes towards the landlord's taxes?

Additionally you're not including the fact he will get money back out of his investment (even if it loses half its value) whereas you'll get nothing back from rent?

 

[soulcougher73]

Uh huh... so you don't think part of your rent goes towards the landlord's taxes?

Additionally you're not including the fact he will get money back out of his investment (even if it loses half its value) whereas you'll get nothing back from rent?

I'm not looking to get anything back from renting. My wife and I both enjoy the freedom to move around when we'd like more than home ownership. I'm just trying to keep the true cost of home ownership in perspective is all.

Home ownership is not for everyone. And im not bashing home ownership either. Just stating some real facts about it is all. And ive not even touched on maintenance/upgrades over the years.

 

[momeNt]

$1730/m * 12months * 30years = $622,800

You may want to get a new advisor
I was doing total home ownership, not just the mortgage. (home insurance and prop taxes will always be there)

Edit: But on a side note, i do like the house. Very nice.

Taxes and insurance will go up. So it's likely to be a lot closer to 1mil.

edit: My advice, learn to live in an E-series van or Sprinter, it will save you 1 mil.

 

[soulcougher73]

Taxes and insurance will go up. So it's likely to be a lot closer to 1mil.

That is true as well. I dont know about 1 mill, but maybe 700k.

 

[Vdubchaos]

$1730/m * 12months * 30years = $622,800

You may want to get a new advisor
.

Correct, he is WAY off on the numbers.

But to his defense Interest is a tax deduction (which is nice)

Home ownership is not for everyone. And im not bashing home ownership either. Just stating some real facts about it is all. And ive not even touched on maintenance/upgrades over the years.

Correct

AS I have said before, do NOT look at it as an investment BUT a place to live.

My advice to OP. Work VERY VERY VERY hard to get up to 20% equity.

Remember, faster you pay down your loan, less interest you will pay (but keep Tax write off in mind as well).

And save that 6-9 month emergency fund, matter of time before you need it!!! But don't worry, I don't have it either (same goes for millions of Americans)

I will say congrats once you close....

 

[iRONic]

Nice looking home, congrats. One question; are those windows in the basement the only means of egress? They look very small.

 

[momeNt]

I'm not looking to get anything back from renting. My wife and I both enjoy the freedom to move around when we'd like more than home ownership. I'm just trying to keep the true cost of home ownership in perspective is all.

Home ownership is not for everyone. And im not bashing home ownership either. Just stating some real facts about it is all. And ive not even touched on maintenance/upgrades over the years.

It's not like renting is all roses and unicorn farts either. It's just a decision people make one way or another. The way you came into the thread seemed like you were trying to get his hackles up.

 

[Tweak155]

I'm not looking to get anything back from renting. My wife and I both enjoy the freedom to move around when we'd like more than home ownership. I'm just trying to keep the true cost of home ownership in perspective is all.

Home ownership is not for everyone. And im not bashing home ownership either. Just stating some real facts about it is all. And ive not even touched on maintenance/upgrades over the years.

I'm not sure why you're comparing it to renting, then. Overall renting is in the same ballpark as home ownership as far as cost (it can cost way more, the same, or way less depending what you're comparing). You have to live somewhere.

And still, you should prove your point with accurate numbers. 1730 * 360 is a terrible generalization of the actual cost.

Saying home ownership in relationship to cost is what makes it sound ridiculous, as everywhere you live will have a cost. You should be looking at lifestyle benefits between the two, as you have flexibility to control the cost. Mobility is a good one, as I too like mobility. But after moving 7 times in 6 years, it gets old. Also while it may be harder to move while owning a house, it isn't impossible. You can't make it so black and white.

 

[Wreckem]

Depends. If you rent you dont have to pay taxes or insurance. I mean you can get renters insurance if you want but its usually not more then like $15/m.

I am a home owner so i know the true cost. It will cost you more then $620k over the 30years you live there (assuming you dont pay it off early).

Houses are expensive and one of the reasons we are wanting out of ours. But we also want the mobility freedom so that is one of our big factors for wanting out.

I'm not trying to rain on the parade. As i said nice house, something id probably go for as well if i was looking. Just trying to keep it real

If you rent, a good chunk of your rent is because of taxes.

If you rent and own anything of value, you are foolish not to have renters insurance.

The "true" cost of homeownership in the long term is cheaper than renting long term, unless of course you buy at the height of a bubble.

 

[K1052]

Depends. If you rent you dont have to pay taxes or insurance. I mean you can get renters insurance if you want but its usually not more then like $15/m.

I am a home owner so i know the true cost. It will cost you more then $620k over the 30years you live there (assuming you dont pay it off early).

Houses are expensive and one of the reasons we are wanting out of ours. But we also want the mobility freedom so that is one of our big factors for wanting out.

I'm not trying to rain on the parade. As i said nice house, something id probably go for as well if i was looking. Just trying to keep it real

If he bought in a good inner ring suburb with quality schools inside Cook country the rent on a comparable house could easily exceed his monthly expenses for mortgage+tax+insurance. Rents have gone nuts here in the last two years.

 

[Wreckem]

With the burst housing bubble and the high amounts of foreclosures. There are a lot of cities where it is cheaper to buy than rent because the rental market is extremely tight.

 

[Baked]

Bought my own place (3 bd, 2 bt, 1.3K sq ft, corner unit condo) a little more than a year ago. It took me a long time to decorate it. My room still looks like a crack house.