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Lrt it drop

I just bought a house in Oblivion for 5000 GP. I feel I can make the payments, because bashing in the skulls of monsters is an effective income source.


 
Originally posted by: Tick
I just bought a house in Oblivion for 5000 GP. I feel I can make the payments, because bashing in the skulls of monsters is an effective income source.
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Well thanks for the input bud, but I don't have that option in Real life.
 
wouldn't putting that extra money every month into savings or CD's for a few years yield enough for a down payment? Maybe you could put a little more in than that...
 
It'd "doable", but remember there's more to a house than the mortgage payment.

House insurance, property taxes, all the bills that come with, etc.

The most annoying problem you'll run into is a little thing called "PMI". It's a type of "high-risk insurance" the bank will most certainly charge you since 1) you're young and a first-time home buyer and 2) you aren't making at least a 20% down payment.

It adds $50-$150, maybe more, per month for about a year or so to your house payment. Unless you get the 20% down, you have to include this in your calculations.

$120k seems like a bit of a stretch to me on those wages. Another real option is renting; you get the comforts of a place on your own without the property taxes and mortgage. The downside, of course, is you're not building any home equity.

Bottom line: I'd try to find a place around $90k if I couldn't come up with a down payment. All the best!
 
If you put less than 20% down you have to pay an additional monthly charge called mortgage insurance which will cost a lot. (Not sure how much: in 1998 I was financing 70K and would have had to pay 160/month more if I didn't have 20%).
 
I posted nearly the same question on Fatwallet Finance and a good number of posters thought I was taking on too much

My stats:
24 years old. Single w/ girlfriend
37k pre-tax income in stable job grocery retail 1 year strong
Weekly paychecks
734 FICO
No College debt. No CC Debt. Car (a '96 Volvo). $50 in insurance per month
$4250 in bank

Heres a link to the discussion:
http://www.fatwallet.com/forums/messageview.php?catid=52&threadid=590665

Might give ya some perspective

Edit: Though the fact that you don't live in an overpriced college town like me helps a bit.
 
I bought a $130,000 house with 5% down and was only making 35k at the time with no PMI, so it all depends on who does your mortgage I guess.

I was 21 at the time becon was a 630.

I got $130,000
%5 down at 6.25 variable locked in for the first 2 years. It has been 1.5 years now and I am actually making less money and my becon is a 730, plus my house is worth 210k now.
 
IMO, it's not worth it unless you feel you have an advantageous investment situation with the house. If all you can expect is a ~3% increase in value a year your money might be better used elsewhere.

What are average apartment costs in your area? How long do oyou plan on being in the house? If you plan on moving within the next 5 years then strongly consider an apartment/house rental at a cheaper amount and take the remaining amount and invest.

There's far too much "You have to own a house" messages spread throughout the financial community. People treat it as though it's a milesetone in life, and while this is partly true it may not necessarily be the best investment decision.
 
To be honest, at $15/hour, buying a house would be the last thing on my mind... you have closing costs, probably pay for inspection, probably higher mortgage with PMI, property tax, etc... I would look into renting with some friends first, or save more money while living w/ parents...

FYI, I made a little less than double what you did before I bought my place, and although it wasn't pressing, I felt the pinch. Good luck.
 
So are you putting 10% down $12.000.00 or more or less?
Buying Points.

What about closing Costs. It may take over 1,000.00 in closing costs!
Termite Inspection?
Estimate for the worth of the property
Filing fees
Taxes??? Title???
Finance fees

Then after that you can claim a tax deduction on next years taxes for the initial closing costs and interest on the loan and title and taxes etc.

Then when you get the house you need to have
TV
WASHING MACHINE
FURNITURE
REFRIGERATOR
STOVE
RUGS
DISHES POTS PANS SILVERWARE KITCHEN TABLE CHAIRS FOOD IN REFRIGERATOR.


tv cable install and bill
electric setup and bill
sewer bill
garbage bill
phone install and bill (You can get by with a Cell Phone)
Insurance on house, Car

Also if the house needs paint or anything, do that before you move in!!!

Get used furniture form friends, family, yard sales.

What about Grass? You need to cut the grass somehow so you need a lawn mower also.

These are some of the things you might want to think about. Closing costs on a house can be expensive, especially on a first house loan. If you can find somone who will not charge you to refinance later. Shop the loan maybe. Just one tenth of a percentage point can save you thousands of dollars.
 
You MAY be able to get the loan at a bank, but you'd be really house-poor. Meaning you'll have a house but no money to furnish it, no money to cook on your new oven as you'll only be eating Ramen noodles, no money to show off your house with a house party, etc.

You really can afford a ~$90k house with your current situation if you don't want to live like you are poor. So, can you find a cheaper house, work a bit on weekends, get a raise (to say $19 an hour), get overtime, save for a downpayment, sell your toy car, or anything else?
 
Originally posted by: daweeze02
I bought a $130,000 house with 5% down and was only making 35k at the time with no PMI, so it all depends on who does your mortgage I guess.

I was 21 at the time becon was a 630.

I got $130,000
%5 down at 6.25 variable locked in for the first 2 years. It has been 1.5 years now and I am actually making less money and my becon is a 730, plus my house is worth 210k now.
Click to expand...

Holy crap, I've only been reading on home financing for 2 months now but shouldn't you be planning on selling and moving?! Correct me if I'm wrong but when the Rate Lock ends, you're gonna get torn a new one. :Q
 
Originally posted by: SouthPaW1227

The most annoying problem you'll run into is a little thing called "PMI". It's a type of "high-risk insurance" the bank will most certainly charge you since 1) you're young and a first-time home buyer and 2) you aren't making at least a 20% down payment.
Click to expand...

I've never paid PMI and I've never put down more than the closing costs of the house... There are ways around it that can be beneficial... Talk to your mortgage broker or banker.



 
Originally posted by: dullard
You MAY be able to get the loan at a bank, but you'd be really house-poor. Meaning you'll have a house but no money to furnish it, no money to cook on your new oven as you'll only be eating Ramen noodles, no money to show off your house with a house party, etc.

You really can afford a ~$90k house with your current situation if you don't want to live like you are poor. So, can you find a cheaper house, work a bit on weekends, get a raise (to say $19 an hour), get overtime, save for a downpayment, sell your toy car, or anything else?
Click to expand...

Originally posted by: Chewy
To be honest, at $15/hour, buying a house would be the last thing on my mind... you have closing costs, probably pay for inspection, probably higher mortgage with PMI, property tax, etc... I would look into renting with some friends first, or save more money while living w/ parents...

FYI, I made a little less than double what you did before I bought my place, and although it wasn't pressing, I felt the pinch. Good luck.
Click to expand...

These about sum it up.

If you have to ask, you probably are.

Keep in mind that a bank loan for a house isn't just a few year thing like a car. Unless you pay it off early, once you're done, the next thing to worry about is retirement.

Start saving so you have a chance to jump at a good opportunity, instead of jumping and hoping it was the right opportunity for 30 years.
 
It depends on your lifestyle. Do you buy the newest DVDs, CDs, games and clothes? Can you get by with not dining out all the time? How much have you spent in the last 3 months on items you can control, such as dinner, movies, etc?

I think it is doable. In Alaska we have a program for first time homebuyers that allows a 2% down payment on a home. You might want to check into your state and seeing if they have something like that.

If you are a handy person, e.g. you can do minor repairs, paint, etc. you might want to think about purchasing a house that has be repossesed by the bank or one that is not in that great of shape. Your payments would be less and with time you would be able to save money and do repairs.

Another option is to purchase a house, or even a duplex, and get a roommater/tenants. Let them pay for half of your mortgage. If you have an $800 / month payment, get a roommate who will pay $300-$400 a month for a bedroom.

You can do it.
 
Originally posted by: SouthPaW1227

Bottom line: I'd try to find a place around $90k if I couldn't come up with a down payment. All the best!
Click to expand...

$90k homes exist?? Maybe I've lived in Florida too long but that'd get me either a double-wide trailer or a cracker house in the ghetto!
 
Some more opinions here given I bought a house last year for about the same amount, and went 30yr at 5.7. My credit rating is about the same as yours, although from what I've learned once it gets above 700 not much changes.

I went FHA dude. Even told my mortgage lady I didn't want a down payment given I wanted to do some minor work on the house and put the money in that. Got the house with only basic closing costs and nothing down, and it wasn't one of those special cases either. That was very cool, although I got dirty looks from the mortgage place after I told them to start from scratch 🙂

My mortgage is certainly much less than a decent apartment, about $650 a month. It's the frikken escrow payment though that hits hard. City taxes, insurance add up half my mortgage. The heat bill for that last apartment I had, which was 1200 sq feet, was 1/10 what my heat bill is in winter for the house.

If you keep a tight budget, you can do this, but you might want to consider a roomate you can trust.
 
Figure about 1% of purchase price every month for payment + insurance + taxes. So around $1200 (may be lower depending on high your RE taxes are locally). You monthly income is $2600, so 46% of your gross would be going to the house, and that is excluding utilities. That's way too high, most lenders will recommend getting that percentage below 30. I would look at renting until your income goes up.
 
The more money you can put down on a house the better you are. I would expect a house paymnt with insurance and taxes which most financial institutions will expect you to pay with your house payment may be around $800-$1,000

Insurance is usually around say $300-$400 Annual which they accumulate and hold for you to insure their loan is guaranteed.

They do the same with taxes in most cases. Taxes vary on location.

I would open a savings account and save some money. I estimate saving at least $10,000 to buy your first house. If you live at home, now is the time to save the money not after you move in. If you can show the lending institution you can save $10,000 in one or two years they may feel they can depend on you and give you a good interest rate. If you cant save $10,000.00 in one year living at home, then you can not afford to buy a house.

50% of your income for a house for a single person is probably pretty good. If you were married and had people to support that might be high. But in most cases when you get married your wife may be bringing in income as well. Single people do not have too many pressing expenses.

Every year you wait the cost of buying a house may rise.
 
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