Mortgage on new house goes up yikes!!

[homestarmy]

Man, for my new home I had been paying $778ish for the first year. It's a $120k home and the payments are low for the first year because for a year the property is taxed on land only, and the next year taxes on the 'improvements' (the house) are also assesed. Now my payment went up to a freakin $951... that's nuts!! I didn't think it would go up THIS high!

Well there goes the extra money for the new job (and then a little), but luckily I am going to have a friend moving in with me in the next few days paying $350 for a room...

 

[jyates]

I love a non changing 15 year note.....especially when I got it for 4-3/4% with no
points 🙂

 

[vi edit]

Didn't you check out property tax prices before buying? I knew exactly what I would be looking at once the property taxes kicked in after a year and a half on my new home.

 

[CPA]

That's why I don't escrow.

 

[Bryophyte]

Sometimes, you don't have a choice not to escrow your property taxes and insurance.

 

[Apathetic]

Originally posted by: jyates
I love a non changing 15 year note.....especially when I got it for 4-3/4% with no
points 🙂

Damn that's a good rate! 🙂 I was only able to get 5.5% for my 15 year.

Dave

 

[JulesMaximus]

I pay $1400/month including property taxes. 30 year fixed at 5.371%.

 

[spacejamz]

Originally posted by: Apathetic

Originally posted by: jyates
I love a non changing 15 year note.....especially when I got it for 4-3/4% with no
points 🙂

Damn that's a good rate! 🙂 I was only able to get 5.5% for my 15 year.

Dave

can you clarify what a non-changing note is? does this mean that you don't have an escrow for taxes/insurance so your payment doesn't change?

 

[jyates]

I pay my own taxes and insurance so my payment never
changes since the rate is fixed for the 15 year term of the
loan.

 

[Scarpozzi]

Originally posted by: jyates
I pay my own taxes and insurance so my payment never
changes since the rate is fixed for the 15 year term of the
loan.

I'm going to do a variable loan just because I don't plan on staying there the full 15 years. I'll be able to lock in 4% for 5 years if I do things right.... I may stay in this house for 7 years and then rent it out from there. (by the way, it has an apartment attached, so I'll have some income from that to help pay it off faster)

 

[DBL]

Originally posted by: Scarpozzi

I'm going to do a variable loan just because I don't plan on staying there the full 15 years. I'll be able to lock in 4% for 5 years if I do things right.... I may stay in this house for 7 years and then rent it out from there. (by the way, it has an apartment attached, so I'll have some income from that to help pay it off faster)

Sounds like a bad idea. We are coming off historically low mortgage rates. If you were planning on renting the place after 7 years or so, it would make sense to lock into a 30yr fixed. Rates are bound to go up at some point and you are looking at a possible problem in 7 years if you payments are dramatically increased due to rising rates and rents have subsequently decreased or stagnated relative to today?s situation. If you intend to hold onto the property, I would imagine you would be better off with a fixed rate mortgage.