Need some input on mortgage

[SuperNaruto]

I'm looking to buy a house in the next few days... doing my worse case calculations with interest at 9%, and different amount of down payments... what would you guys do..

I'm looking to put a down payment of 400,000 or up to 500,000 which will lower my monthly payment from 3620.80 to 2816.18 and save me a difference of 804 a month and up to 289,663 in a 30 year period..
Which means, no new furniture, moving all existing furniture, beds, etc to the new home and buy all the stuff like year 2 or year 3... Or take the extra 100k I was going to put down and get HDTV, new sofa, etc, etc ?
My gut says to put as much down as possible and dont worry about new furniture... but am I missing anything ? I still have other savings for repairs and others... so just like some input..

I'm moving from NJ to NYC and the amount down does not include the current house I'm putting on the market (only worth 1/4 of the ny home)


Down Loan Down Difference Monthly Payment Savings Year Diff 30 Year Savings
$400,000.00 $450,000.00 $3,620.80
$425,000.00 $425,000.00 $25,000.00 $3,419.65 $201.15 $2,413.85 $72,415.40
$450,000.00 $400,000.00 $50,000.00 $3,218.49 $402.31 $4,827.72 $144,831.60
$460,000.00 $390,000.00 $60,000.00 $3,138.03 $482.77 $5,793.26 $173,797.85
$470,000.00 $380,000.00 $70,000.00 $3,057.57 $563.23 $6,758.81 $202,764.26
$480,000.00 $370,000.00 $80,000.00 $2,977.10 $643.70 $7,724.36 $231,730.67
$490,000.00 $360,000.00 $90,000.00 $2,896.64 $724.16 $8,689.90 $260,697.09
$500,000.00 $350,000.00 $100,000.00 $2,816.18 $804.62 $9,655.45 $289,663.50

 

[DaveSimmons]

Reaching 20% down does save you from paying mortgage insurance.

If your loan doesn't block you from making extra payments you can alway pay extra later to get back some of the 30 year savings.

I'm very happy with my 50" Samsung DLP, so I'd say hold back some money to furnish and equip your house so you can fully enjoy it, and to keep a few months' worth of expenses in high-interest savings.

An extra year of having nice furniture and watching movies on a big screen TV is worth it since you can't say for sure you'll even be alive in 30 years.

 

[SuperNaruto]

Originally posted by: DaveSimmons

An extra year of having nice furniture and watching movies on a big screen TV is worth it since you can't say for sure you'll even be alive in 30 years.

wow interesting concept.. i dont wanna think about getting hit by a car tomorrow thanks..

 

[allisolm]

$400,000 down gets you a payment of $3620 for 30 years.
$500,000 down gets you a payment of $2816 for 30 years.

Put the $500,000 down, pretend you only put $400,000 down and bank the extra $800 each month. After one year you'll have$9600 to spend on furniture and 29 more years at the lower payment. Unless, of course, you make enough money that the $800 more in payment each month is unimportant.

 

[edro]

Let me be the first person to say "400-500k for a down payment? WTFMATE!?"

 

[MichaelD]

Originally posted by: edro
Let me be the first person to say "400-500k for a down payment? WTFMATE!?"

Freaking ROGER THAT! :Q I've lived in many different parts of the country, and I just cannot see paying $1M for a 2,500 SF house b/c it's in a desireable neighborhood.

I'm not there anymore, but three years ago in San Antonio, TX, $400K would get you a 3K SF brand new, brick home, 3 car garage, two AC units, small backyard/front yard, in a gated, cul de sac community.

$500K for a down payment? Someone makes way too much money, methinks.

/waits for the "I live in Simi Valley California and you can't buy a shack for $2M" replies :roll:

 

[bctbct]

There was a post on what you do with a $125 windfall this morning and you have the nerve to post this?

 

[d33pt]

why would your rates be at 9%? I just locked in at 5.875% 30 yr fixed.

 

[Feldenak]

Originally posted by: edro
Let me be the first person to say "400-500k for a down payment? WTFMATE!?"

No sh!t.

 

[tfinch2]

Originally posted by: MichaelD

Originally posted by: edro
Let me be the first person to say "400-500k for a down payment? WTFMATE!?"

Freaking ROGER THAT! :Q I've lived in many different parts of the country, and I just cannot see paying $1M for a 2,500 SF house b/c it's in a desireable neighborhood.

I'm not there anymore, but three years ago in San Antonio, TX, $400K would get you a 3K SF brand new, brick home, 3 car garage, two AC units, small backyard/front yard, in a gated, cul de sac community.

$500K for a down payment? Someone makes way too much money, methinks.

/waits for the "I live in Simi Valley California and you can't buy a shack for $2M" replies :roll:

For 400k you can get way more than that in San Antonio...

And if you can afford to put 400k down, you can afford shorter than a 30 year mortgage.

 

[MichaelD]

Originally posted by: tfinch2

Originally posted by: MichaelD

Originally posted by: edro
Let me be the first person to say "400-500k for a down payment? WTFMATE!?"

Freaking ROGER THAT! :Q I've lived in many different parts of the country, and I just cannot see paying $1M for a 2,500 SF house b/c it's in a desireable neighborhood.

I'm not there anymore, but three years ago in San Antonio, TX, $400K would get you a 3K SF brand new, brick home, 3 car garage, two AC units, small backyard/front yard, in a gated, cul de sac community.

$500K for a down payment? Someone makes way too much money, methinks.

/waits for the "I live in Simi Valley California and you can't buy a shack for $2M" replies :roll:

For 400k you can get way more than that in San Antonio...

This was in Stone Oak.

 

[ultimatebob]

Nothing personal man, but if you can really afford to put down half a million dollars for a house, you might want to hire an accountant or personal financial adviser to work the numbers for you.

 

[Slew Foot]

Im guessing the down payment includes profits from the sale of the current home? Which wouldnt be totally surprising considering the recent runup in RE prices. Get out now before that equity goes kaput

 

[tfinch2]

Originally posted by: MichaelD

Originally posted by: tfinch2

Originally posted by: MichaelD

Originally posted by: edro
Let me be the first person to say "400-500k for a down payment? WTFMATE!?"

Freaking ROGER THAT! :Q I've lived in many different parts of the country, and I just cannot see paying $1M for a 2,500 SF house b/c it's in a desireable neighborhood.

I'm not there anymore, but three years ago in San Antonio, TX, $400K would get you a 3K SF brand new, brick home, 3 car garage, two AC units, small backyard/front yard, in a gated, cul de sac community.

$500K for a down payment? Someone makes way too much money, methinks.

/waits for the "I live in Simi Valley California and you can't buy a shack for $2M" replies :roll:

For 400k you can get way more than that in San Antonio...

This was in Stone Oak.

Stone Oak is nice but the location is terrible. I wouldn't pay that much to live at 1604 & 281 with all of that fvcking traffic.

 

[MichaelD]

I agree with you, tfinch2. Traffic there SUCKS (but shopping is good, and proximity to the airport is nice). It wasn't my house...GFs at the time.

 

[SuperNaruto]

My current nj house only cost me 325k.. but commute into nyc is 2 hours on a good day and 2.5 on a bad day.. and over 5 if we lose power or heavy rain / storm

Moving to NYC cuts commute to 25 min / 45 min bad..

We been waiting for a while (3 years now) and these places used to be price over 1 million and I was hoping it'll get lower... but it hasn't.. We're still trying to get the owner to go down to 800.. but who knows.. he might have a change of heart..

I'm assuming worse case with 9%.. i mean i can get lucky with a 6-7% but again.. depends on the lender... so shop till i get best interest..

 

[SuperNaruto]

Thanks for all the help.. my wife is there making an offer to the owner now..

40% down and my real estate guy told me it's very easy to ge a 6-6.5% right now..

I was considering worse case at 9%... so we didn't need put too much down.. might go down to 35% also and put the extra money we save on the high savings or the tv

 

[KK]

So you'll be living in a million dollar house, and you are worrying about if you'll have money available to buy a tv, furniture.

 

[iamwiz82]

Personally, I'd take the down payment and move somewhere else and buy the house outright. Sure you might not make as much, but you won't have a mortgage.

A $400,000 house in 99% of the country is going to be 100x nicer than a $400,000 house in those few locations that have insane real estate.

 

[jhayx7]

Originally posted by: SuperNaruto
Thanks for all the help.. my wife is there making an offer to the owner now..

40% down and my real estate guy told me it's very easy to ge a 6-6.5% right now..

I was considering worse case at 9%... so we didn't need put too much down.. might go down to 35% also and put the extra money we save on the high savings or the tv

Another good trick is to setup bi-weekly mort. payments. Instead of making one payment a month, you will make 2 payments a month that equal one monthly payment. This will allow you to put one mort. payment to your principal a year.

Plugging in some numbers, doing a bi-weekly payment will pay off your house 6 years faster than a regular monthly payment.