Might be buying a house soon

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SagaLore

SagaLore

Elite Member
Dec 18, 2001
24,036
21
81
I interviewed for a job in Raleigh, NC on Friday.

We don't have much for a down payment. We'll be lucky if we get 10k out of selling our mobile.

So... it would be nice to buy a house asap if I get this job. A few of the nicer ones we're looking at on realtor.com are $150k to $200k.

What kind of penalty do we face if we don't have the 20% down payment? In the first year, could we put all our extra money onto the mortage to have the same benefit as the 20% upfront?
 
C

Caesar

Golden Member
Nov 5, 1999
1,686
178
106
Ah I love Raleigh. A frnd of mine bought a 3 yr old 3br townhome for 151k with finished walkout basement.
 
Mermaidman

Mermaidman

Diamond Member
Sep 4, 2003
7,987
93
91
Originally posted by: SagaLore
. . . In the first year, could we put all our extra money onto the mortage to have the same benefit as the 20% upfront?
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I know you're anxious to buy immediately, but based on your statement above, why don't you rent first and save up for the 20% down before buying? An additional benefit of renting first is you get to know RDU really well and can take the time to find the 'perfect' house. No rushing into a compromise.
 
G

GoingUp

Lifer
Jul 31, 2002
16,720
1
71
Originally posted by: Mermaidman
Originally posted by: SagaLore
. . . In the first year, could we put all our extra money onto the mortage to have the same benefit as the 20% upfront?
Click to expand...
I know you're anxious to buy immediately, but based on your statement above, why don't you rent first and save up for the 20% down before buying? An additional benefit of renting first is you get to know RDU really well and can take the time to find the 'perfect' house. No rushing into a compromise.
Click to expand...

Yep! I wanted to buy a place right away when I moved to MI, but I decided to rent for a year. Helped me get more money together, and then really consider and figure out where I wanted to buy a place.
 
funboy6942

funboy6942

Lifer
Nov 13, 2001
15,362
416
126
Too bad you cant move down here by me. See my sig and what I bought IN FULL. Many homes I have seen sold around here for $20K and below.

We were living in a mobile home, got a settlement, looked on line for a home, found this one and moved ASAP. I gave my home away to another person in the park that was in need of a much better home then what they had. Ended up giving to my neighbor who his trailer had no celing inside, windowns busted out, floor gone in spots, with a new baby. He also had 4 other kids and I felt I would pay it forward a bit and gave him and his wife our home instead of selling it.

But if you can move the houses are cheap, the schools are great, the town and people are wondeful, and you can take your down payment and buy a house out right OR use it and have ultra small monthly notes to pay.
 
SagaLore

SagaLore

Elite Member
Dec 18, 2001
24,036
21
81
Originally posted by: funboy42
Too bad you cant move down here by me. See my sig and what I bought IN FULL. Many homes I have seen sold around here for $20K and below.
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Where is that at?
 
KLin

KLin

Lifer
Feb 29, 2000
30,294
621
126
Originally posted by: ScottSwingleComputers
Originally posted by: SagaLore
Originally posted by: mwtgg
Take out an 80/20 mortgage.
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Can you elaborate what that means? I'll look it up tomorrow...
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Means you get two loans. One for 80%, and another for 20%
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So you can avoid paying private mortgage insurance. You can deduct the interest on both loans.
 
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farmercal

Golden Member
Mar 23, 2000
1,580
0
0
You can do the 80/20 but your have to pay two mortages. I went with a 80/15/5 which means I took out a loan for 80 percent from the mortgage company, took out a Home Equity Line of Credit (HELOC) and paid 5 percent down. This allowed me avoid PMI and the interest on both loans were tax deductable. I just sold my other house in another state and am paying off the HELOC so I will only have one mortgage.
 
R

Rudee

Lifer
Apr 23, 2000
11,218
2
76
Originally posted by: Mermaidman
Originally posted by: SagaLore
. . . In the first year, could we put all our extra money onto the mortage to have the same benefit as the 20% upfront?
Click to expand...
I know you're anxious to buy immediately, but based on your statement above, why don't you rent first and save up for the 20% down before buying?
Click to expand...

The biggest problem people are having trying to save the 20% downpayment is that the houses are appreciating in value faster then then are able to save. Many new homeowners are barely qualifying for a mortgage, thus when interest rates go up just a few percent - which they eventually will - that extra few hundred dollars a month for the increased mortage paymen can really make things difficult, thus couples fight and divorces go through the roof. Just don't get into more then you can comfortably afford.
 
minendo

minendo

Elite Member
Aug 31, 2001
35,560
22
81
I just bought my first house a few months ago and we did a 103% mortgage. Only money out of my pocket at closing was $11.
 
skyking

skyking

Lifer
Nov 21, 2001
22,729
5,872
146
The rent first idea has merit. you could think, "oh yeah, we've looked around and this is great" and make a quick purchase, only to find that the neighborhood is not right.
I'd want to get to know a community first, IMO.
 
SagaLore

SagaLore

Elite Member
Dec 18, 2001
24,036
21
81
Originally posted by: skyking
The rent first idea has merit. you could think, "oh yeah, we've looked around and this is great" and make a quick purchase, only to find that the neighborhood is not right.
I'd want to get to know a community first, IMO.
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I'm looking around Raleigh - Morrisville, Cary, Apex, Garner, outside of Durham.

If I get this job, then I will get an efficiency down there at first while my wife stays home to sell our mobile. We have a dog and a cat which makes it hard to find places that allow pets, we don't want to go through the hassle of putting most everyting in storage and paying rent again. We don't want to wait a year and have interest rates skyrocket.
 
D

DVK916

Banned
Dec 12, 2005
2,765
0
0
So it is possible to get a Fixed mortgage without a down payment.


Why don't mortgage companies require down payments for interest only loans?
 
B

bmacd

Lifer
Jan 15, 2001
10,869
1
0
i stayed with my uncle for a week in raleigh and i loved every day of it. My only complaint was the rain. Otherwise, beautiful city, beautiful schools (duke and UNC), and easy to commute roads.

-=bmacd=-
 
A

Aimster

Lifer
Jan 5, 2003
16,129
2
0
I bought a $300,000 place

$10,000 down

I am in school... so.. maybe that helped?

I talked to my loan officer for a good 30min about school/future plans.

My credit score was 779
 
S

shuttleboi

Senior member
Jul 5, 2004
669
0
0
I bought a 2/2 condo for over $400K (obviously, in CA). I put down less than 10% and am paying PMI. I got a 30 year fixed at a great rate (locked back in April 2005). I didn't do an 80/20 loan because the value of the place is skyrocketing, and soon my equity be over 20%, and at that point I can stop paying PMI (at least from my understanding).
 
SagaLore

SagaLore

Elite Member
Dec 18, 2001
24,036
21
81
Originally posted by: bmacd
i stayed with my uncle for a week in raleigh and i loved every day of it. My only complaint was the rain. Otherwise, beautiful city, beautiful schools (duke and UNC), and easy to commute roads.

-=bmacd=-
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Complaint of what? Too heavy? Too many days of it? I compared it to Williamsport where I live now, and there were 213 days of sun in Raleigh, but 180 days of sun here.

http://www.bestplaces.net/city/city.asp...A&city=4285312&ccity=3755000&cstate=NC
 
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