ugh wtf my house buying experience

[mchammer]

Originally posted by: dullard

Originally posted by: mchammer
$1000 at 3.75% (ING Direct)=$37.50=equals not worth the risk something will come up and you won't pay it on time and get hosed with fees+interest for the whole year.

3.75% is a stupid number to use. His mortgage is 4.5%. So by using that $1000 to pay principal on his mortage, he'd save $1000*0.045 = $45.

Then where does he get it from when he need to pay the bill in one year?

 

[DBL]

Originally posted by: zixxer
people talk about how buying a house is soooo stressful. The stressful part ISN'T looking, buying, etc.... it's the mortgage. Bend over and prepare to be buttraped over the crap they need. 7 years worth of w-2's... WTF I was 14 7 years ago... so then, after giving them ALL the crap they need, you are never "approved". pre-approved yes... but the approval is at closing. So, you're stressed out beyond belief until you sign the f-ing paper.

Get a new mortgage broker. That's not typical in my experience.

I'm broke. I DID however get 4.5% fixed for 30 years yay.

That's about the best deal I have ever heard of, provided you paid no points. I'd submit to mild torture for a rate like that. Stop complaining.

Originally posted by: Jaihahih
Your mistake. You took out a 30 year mortgage. Live at your mom's, work a few years, and take out a 10 year mortgage after 5.

Why not take a 30yr with much lower monthly payments and have the OPTION to make additional payments?

Few people take 10yr mortgages. If that is your "unbreakable" policy, I hope you don't mind living in a home that persons who make 1/2 your salary can afford.

Mortgages should not be seen as bad. For most people, it's the lowest interest loan they will ever receive.

 

[dullard]

Originally posted by: mchammer
Then where does he get it from when he need to pay the bill in one year?

His paycheck. He clearly has sufficient income since he paid for a bunch of unnecessary stuff up front. We are only talking of $1000 here. Not something difficult to pay off like $10,000.

I do agree with you though. $45 isn't worth the risk and the lowered credit score.

 

[Taggart]

Originally posted by: DBL

I hope you don't mind living in a home that persons who make 1/2 your salary can afford.

Why the hell would that matter? Are you vain?

 

[DBL]

Originally posted by: Taggart

Originally posted by: DBL

I hope you don't mind living in a home that persons who make 1/2 your salary can afford.

Why the hell would that matter? Are you vain?

So I take it, you plan to live in a 1bdrm shack for the duration of your life? Sounds like fun.

 

[waggy]

wow 21 and a 4.5% fixed 30 yr loan with no points? ona first house? how much was the house? i would call shens but i have seen a few people get good deals..just never at 21 and on a first house.

as for everything else thats normal. EVERY time i move into a new house it cost me at least a thousand. seems like everyone spends that much on move changing the house to how they want it.

 

[DBL]

Originally posted by: waggy
wow 21 and a 4.5% fixed 30 yr loan with no points? ona first house? how much was the house? i would call shens but i have seen a few people get good deals..just never at 21 and on a first house.

as for everything else thats normal. EVERY time i move into a new house it cost me at least a thousand. seems like everyone spends that much on move changing the house to how they want it.

Considering the way the OP was treated at closing, I'm highly skeptical. More details would help.

 

[markgm]

Having just closed on my house, I really don't see how it is possible to get a fixed rate at 4.5%.

 

[waggy]

Originally posted by: markgm
Having just closed on my house, I really don't see how it is possible to get a fixed rate at 4.5%.

UNLESS he went though special programs. My sister has one through USDA and she has a 2% mortgage (usda picks up other 4%) with no points, no downpayment etc.

heck a buddy of mine lives in Napervill, IL (well to do area) and has nearly perfect credit and just got a first house and got a 5.8% (i belive or 5.6) with 20% down on a 150k house and he makes $150k a year (25yrs old).

 

[daweeze02]

when i bought my house i was 21, and all i provided was a year of bank statements and got a variable apr of 6% i think my credit score at the time was 630, but a year later and its around 725. I did have to put 5% down though on the $130,000 house



Good thing is im now renting that house out plus its valued at around $195,000, i couldnt be more happy

 

[Howard]

If possible, buy quality tools now so you will never have to pay for them again.

 

[Rudee]

Originally posted by: rh71
you're 21... just bought a house... and didn't expect financial strain ? $1000 at home depot is nothing. Wait till you have to buy furniture for the whole house.

Wait until he has to do costly repairs.

 

[DBL]

Originally posted by: waggy

UNLESS he went though special programs. My sister has one through USDA and she has a 2% mortgage (usda picks up other 4%) with no points, no downpayment etc.

So if someone else pays 100% of your mortgage, does that mean you have a 0% fixed?

heck a buddy of mine lives in Napervill, IL (well to do area) and has nearly perfect credit and just got a first house and got a 5.8% (i belive or 5.6) with 20% down on a 150k house and he makes $150k a year (25yrs old).

That's believable considering recent rates for even a 30yr fixed. I got 5 5/8% in October for a 30yr. However, rates have gone up at least a 1/2 pt since. 4.5% for a 30yr fixed does not seem possible.

 

[mplutodh1]

Originally posted by: Jaihahih
Your mistake. You took out a 30 year mortgage. Live at your mom's, work a few years, and take out a 10 year mortgage after 5.

10 year makes no sense at all, as previous post mentioned. Especially for a first house, why put yourself in a position that is risky like that? If you are so set on being able to pay it off in 10, alright pay a 30 off sooner.

As for living at his moms, yeah although I can see that as an option for most of the ATOT crowd, some of us enjoy the privacy. I love my parents, however when I graduate in June, I doubt I'll be living at home for more then 3 months while I save a few paychecks and find a condo/apartment. It would be far harder on me to live at home longer, be unhappy, stressed, etc because I am stuck in this tiny bedroom I grew up in, sharing the rest of the living space. Yes saving money for a while is smart, luckily I have been smart growing up and while everyone else blew their paychecks on ricers and beer, I've saved. I'll have cash for a down payment. And if I could find a place to live cheap for more then 3 months I'd probably consider doing it for a year to save up, but that most likely wont happen.

Anyone have experience with trying to do the whole mortgage thing soon after starting a new job? I'll be graduating in June and starting a job in Seattle, just not sure how long before I'd be even remotely eligible for anything decent. Still weighing my buy condo/rent apartment options.

 

[LikeLinus]

Originally posted by: waggy
wow 21 and a 4.5% fixed 30 yr loan with no points? ona first house? how much was the house? i would call shens but i have seen a few people get good deals..just never at 21 and on a first house.

as for everything else thats normal. EVERY time i move into a new house it cost me at least a thousand. seems like everyone spends that much on move changing the house to how they want it.

I second that motion. There's no way he got a 4.5 loan with the current rates.

 

[Utterman]

I'm 20 and got into a 4.99% 30 year fixed through HUD. I even got a $3500 grant to put down on the principal 🙂

Congrats on the 4.5% rate. I don't think you answered yet if that was with or without points?

 

[DrPizza]

I'm betting that's with points... Has to be (especially at 21 on a first house)

Just bought this house I'm in during this past year... it was hell going through all the mortgage stuff (search for threads on my experiences). This is my 2nd house and we've easily put 10K into it already. (waiting another 30 minutes at this moment before I do the final sanding on the drywall in the until recently gutted dining room). We could easily afford a 10 year mortgage on this place, but (I think wisely) went with a 30 year instead. We can always pay it off quicker (and we are making extra payments on the principal), but if something happened to either one of us, we wouldn't be in financial trouble as far as keeping this place.

 

[zixxer]

um not sure what you mean by paying points or whatever.

loan is 4.5% fixed for 30 years. no pmi, 1.5% down, and they pay $850 towards my closing.

it is a 160k house (which is nice in this area... built in 99, 4br3ba, ~1/2 acre yard, large garage and large kitchen...

 

[Cruisin1]

Originally posted by: zixxer
um not sure what you mean by paying points or whatever.

loan is 4.5% fixed for 30 years. no pmi, 1.5% down, and they pay $850 towards my closing.

it is a 160k house (which is nice in this area... built in 99, 4br3ba, ~1/2 acre yard, large garage and large kitchen...

Holy smokes... where do you live? That is an amazingly cheap house.

 

[KEV1N]

Damn, 4.5% fixed. I closed in June at 5.875% (30 year fixed). And that was paying 1 point. I am 24, BTW.

Uhh, also you don't really need a grill. You probably don't need anything you bought at Home Depot. You're complaining, but you actually love it.

By the way I spent $4,000 in the month before and after I moved in. Things are normal now...

P.S. I don't know how you could go through the home buying process and not know what points are...

 

[Vic]

Originally posted by: waggy

Originally posted by: markgm
Having just closed on my house, I really don't see how it is possible to get a fixed rate at 4.5%.

UNLESS he went though special programs. My sister has one through USDA and she has a 2% mortgage (usda picks up other 4%) with no points, no downpayment etc.

heck a buddy of mine lives in Napervill, IL (well to do area) and has nearly perfect credit and just got a first house and got a 5.8% (i belive or 5.6) with 20% down on a 150k house and he makes $150k a year (25yrs old).

USDA doesn't pick up the other 4%, they subsidize. When/if she sells or refinances, USDA will recapture a portion of that subsidy, up to 50% of the equity in the house.

I'm EXTREMELY skeptical of this rate, even if it was a portfolio deal through a local bank. Current 30 fixed rates are going in the low 6% range.

 

[Reel]

Originally posted by: Vic

Originally posted by: waggy

Originally posted by: markgm
Having just closed on my house, I really don't see how it is possible to get a fixed rate at 4.5%.

UNLESS he went though special programs. My sister has one through USDA and she has a 2% mortgage (usda picks up other 4%) with no points, no downpayment etc.

heck a buddy of mine lives in Napervill, IL (well to do area) and has nearly perfect credit and just got a first house and got a 5.8% (i belive or 5.6) with 20% down on a 150k house and he makes $150k a year (25yrs old).

USDA doesn't pick up the other 4%, they subsidize. When/if she sells or refinances, USDA will recapture a portion of that subsidy, up to 50% of the equity in the house.

I'm EXTREMELY skeptical of this rate, even if it was a portfolio deal through a local bank. Current 30 fixed rates are going in the low 6% range.

I just closed yesterday with a 6% rate in a 5/1 ARM. The other mortgage brokers I had couldn't come close to that rate. I had great credit. 4.5% would have been great but it definitely seems unbelievably low. Those are the rates that the online brokers pretend to have to get you to give them your information and then they come back with 6.5%.

 

[waggy]

Originally posted by: Vic

Originally posted by: waggy

Originally posted by: markgm
Having just closed on my house, I really don't see how it is possible to get a fixed rate at 4.5%.

UNLESS he went though special programs. My sister has one through USDA and she has a 2% mortgage (usda picks up other 4%) with no points, no downpayment etc.

heck a buddy of mine lives in Napervill, IL (well to do area) and has nearly perfect credit and just got a first house and got a 5.8% (i belive or 5.6) with 20% down on a 150k house and he makes $150k a year (25yrs old).

USDA doesn't pick up the other 4%, they subsidize. When/if she sells or refinances, USDA will recapture a portion of that subsidy, up to 50% of the equity in the house.

I'm EXTREMELY skeptical of this rate, even if it was a portfolio deal through a local bank. Current 30 fixed rates are going in the low 6% range.

ahh gotcha. i guess that is understandable. great plan. my sister has made a LOT of bad decisions in her life. she is finally growing up (at 35 heh). got her family in a house and she has a good job.

 

[CTrain]

Yup.
Anyone here with experience dealing with housing and such know its impossible to get 4.5% with 30yr fixed.
Thats just unheard of.

I got a 4.75% 5/1 ARM and I was lucky to get that.

 

[waggy]

Originally posted by: CTrain
Yup.
Anyone here with experience dealing with housing and such know its impossible to get 4.5% with 30yr fixed.
Thats just unheard of.

I got a 4.75% 5/1 ARM and I was lucky to get that.

not imposible. just unlikely without going on programs such as hud etc. Nothing wrong with using HUD,USDA , local things to help.

First time buyers can get a good deal of help on buying a house. IF they are willing to live in small rural towns OR even towns they grew up in.