The Real Estate Questions Thread

[Tenbatsuzen]

I figured this would be a good semi-perma thread.

My questions:

1) Is it better to buy a new construction or someone else's house? What are the advantage/disadvatages?

1a) Are taxes higher in a new construction?

2) Is there any legitimate sites to find out about foreclosures or possible bargains that wouldn't be on the MLS?

[JPMNICK]

I have been following housing on a daily basis for the last 2+ years. 3 years ago I had a choice to make when everyone was buying a house and I was renting, and I choose to keep on renting and saving my money.

From all my research, I would def NOT be looking to buy anytime soon. The housing market is going to drop signifigantly in this area. It happened before, in the 1990's, and I think it is going to happen again. It has already started, and if you really look at the fundementals, it seems like it is going to save you a lot of money to wait. Check out this website for NJ housing info.

www.njrereport.com

[Tenbatsuzen]

Oh, I have no interest in buying until at least this time next year. I just signed a one year lease.

I have no interest in buying a townhouse or condo. It's just not financially feasible, considering the taxes and associated fees with either of those options. We'd rather save the money to put towards a real, actual house instead of having to pay all the fees for a mortgage, etc. just to live there for a year and then start all over again.

[Tenbatsuzen]

My main interest right now is with all the subprime foreclosures, seeing if I can swoop in on something that is either a slight fixer-upper or a real bargain.

[Earlshog]

I have been following housing on a daily basis for the last 2+ years. 3 years ago I had a choice to make when everyone was buying a house and I was renting, and I choose to keep on renting and saving my money.

From all my research, I would def NOT be looking to buy anytime soon. The housing market is going to drop signifigantly in this area. It happened before, in the 1990's, and I think it is going to happen again. It has already started, and if you really look at the fundementals, it seems like it is going to save you a lot of money to wait. Check out this website for NJ housing info.

www.njrereport.com

Thats not necessarily true, it depends on where you are looking to buy. For example the cost of homes in NYC, Hoboken, nice sections of Brooklyn and Jersey City, among others in the immediate vicinity of NYC are still rising. Granted not at the rate they were two years ago.

Now on the other hand if you are looking in the suburbs of New York I agree you should definitely hold out a little while, if you can. We are very close to the point that it will be too late for people to get there kids into schools for the upcoming year. People who are desperate to sell homes in the suburbs will soon have to drop their prices. Once a few homes drop the price in a given area a domino effect often occurs.

[JPMNICK]

Thats not necessarily true, it depends on where you are looking to buy. For example the cost of homes in NYC, Hoboken, nice sections of Brooklyn and Jersey City, among others in the immediate vicinity of NYC are still rising. Granted not at the rate they were two years ago.

Now on the other hand if you are looking in the suburbs of New York I agree you should definitely hold out a little while, if you can. We are very close to the point that it will be too late for people to get there kids into schools for the upcoming year. People who are desperate to sell homes in the suburbs will soon have to drop their prices. Once a few homes drop the price in a given area a domino effect often occurs.

I am sure some sections are still slowly rising, but as a whole NYC, esp. manhatten is down. Actually Jim norton has said on O&A that what he paid for his Apt in NYC is less than he could sell it for right now.

this is from mid-april of this year (from the NY Times)

In New Jersey, the market seems to have slowed from March to April — just when things would ordinarily be revving up. The number of sales contracts signed in April declined in 20 of 22 counties monitored by the Otteau Valuation Group, which does market analysis for brokers. Even in Hudson County, which encompasses such sought-after riverfront towns as Hoboken and Jersey City, sales volume declined 21 percent.

Next month, units at one newly built high-end condominium building in Hoboken will be put up for auction. Forty of 128 units at the complex, Velocity, which will have 24-hour concierge service, are to be offered at base prices set well below the cost of construction, according to Erik Kaiser, chief executive of the REMI Companies, the developer.
…
Next door in Jersey City, where numerous condominium projects are under way, 16 percent fewer sales contracts were signed last month than the month before, according to the Otteau Group.

The inventory/sales ratio is getting higher as more people try to get out of the mess that they are in.


Now to answer Tenbats... buying a forclosure is really risky. I have looked into it. They best thing to do is find someone who is in the mortgage buisness, see who is calling them to default on their loan, go to the house and make an offer. the problem is that if you do not have money to pay for your house, you are most likely not keeping it up which eventually leads to a lot of other problems. it is a massive headache. Also, with prices falling on a general level, there is always the possibility that you buy now, spend time fixing it up, and then when you go to sell everything around you has come down to a more attractive level. The carrying costs to do something like this are also very high. I have 2 friends who are are in the middle of doing shit like this now (flipping houses and buyign forclosures). 1 of them is in 3 houses for 1,000,000 dollars and he can not sell them. his monthly costs are so high he had to get a fake apprasial on one of the houses and refinance it, just to keep being able to pay the rest of them off. wait 12 months and you can get his houses nice and cheap.

[angrymissy]

Mortgage companies will not lend a traditional mortgage for a foreclosure. You pretty much have to have cash/cashiers check when they auction off the house. You also usually cannot get an inspection on the house. Sometimes you can get a pre-forclosure bank "short sale" but at that point the bank is still trying to make as much money back as possible.

[furie]

well, ideally, the best would be to buy a used, but not old house. I bought a house last year built in 1989, which for LI and the area put that house about 40 years younger than my neighbors. There are alot of costs involved in a new construction and there would be an updated tax assessment, where as the older houses (at least out here) aren't up to date on the tax assessment.

an older house is nice because it has more potential. being older you'll have to update it anyway, so you can think of it as a blank canvas. a new house comes ready to live in, which is nice. moving suck. moving then spending three years getting the place up to date, really sucks. I'm lazy so i bought a house that didn't need any work or updating.

The housing market nationally is dropping which is creating a crisis, but by and large not in the NY area. let's face it, we have to live within a certain distance from NYC, keeping the costs in the ajacent counties stable. so don't be scared off by talk of the dropping market. it has already started to sag, but not here. at most, it's flatlined, which makes this a buyers market.

as for forclosures, i'll have my wife post something, she used to keep tabs on those sites.

[Tenbatsuzen]

I actually found an area in jersey that has new homes somewhere near my price range, but it's out of the living area.

It's ridiculous. Arizona has comparable homes on bigger lots for up to 250k cheaper.

[JPMNICK]

I actually found an area in jersey that has new homes somewhere near my price range, but it's out of the living area.

It's ridiculous. Arizona has comparable homes on bigger lots for up to 250k cheaper.

arizona, vegas, and parts of FLA. are going to feel the biggest bust when this all shakes out. Arizona and vegas, houses have more than doubled in 4 years.

[Tenbatsuzen]

arizona, vegas, and parts of FLA. are going to feel the biggest bust when this all shakes out. Arizona and vegas, houses have more than doubled in 4 years.

So you're saying that new houses are going to be CHEAPER there than they are now? Damn.

[SouthSideJohnny]

I'm a "dirt" lawyer in Florida. Be really careful if you're buying a foreclosure. I'm not sure how it works in NY, but in Florida, you can get hosed pretty bad if you don't know what you're doing. The physical condition of the property is a big concern but so is the title.

I've seen several situations where someone buys a f/c only to realize that the mortgage being foreclosed was a second priority lien such as a condo assessment or second mortgage. They pay a few hundred grand to the court for the purchase and then realize there is still a huge first mortgage on the property and that lender is demanding immediate payment or they're going to foreclose out the new owner. If you're looking at foreclosures, hire a real estate lawyer to help you and check the title and real estate taxes before the f/c sale.

Also, alot of people get caught up in the bidding at the sale and pay too much. They also buy into the late night tv bullshit that they're going to steal a f/c for almost nothing. In Ft. Lauderdale / Miami, if you walk in off the street and start bidding on a property at the sale, the f/c vultures, who are at every sale, start bidding just to run up the price. We are seeing a huge increase in the number of foreclosures, so that situation might be changing. In my experience over the last ten years, there are not alot of great deals, and the ones that are there are grabbed up by the f/c regulars.

Missy is right about needing to have cash to buy it at the sale since the courts usually won't wait for you to line up a loan. Here, you pay the full price by 2:00 p.m. on the day of sale.

My best advice is to try to make friends with your local banker and have them get you in touch with their REO (Real Estate Owned) or OREO department. I am seeing alot of property owners having to give properties back to lenders since the debt is more than the property is worth. You might be able to find a deal, but it's a longshot.

[BeltOfScotch]

I have been following housing on a daily basis for the last 2+ years. 3 years ago I had a choice to make when everyone was buying a house and I was renting, and I choose to keep on renting and saving my money.

From all my research, I would def NOT be looking to buy anytime soon. The housing market is going to drop signifigantly in this area. It happened before, in the 1990's, and I think it is going to happen again. It has already started, and if you really look at the fundementals, it seems like it is going to save you a lot of money to wait. Check out this website for NJ housing info.

www.njrereport.com

In some areas yes, but I"m surprised you're saying that considering where you live. Housing prices increased at the rate of 1% per month for years in the Chatham/Madison/Summit area. A slowdown had to happen eventually. However, good houses are still getting multiple offers and are still going for fair value or above. It may slow down, there may be a price drop, but the schools are too good and the transportation to NYC is too easy for the housing market to completely fall apart in that area.

[Tenbatsuzen]

I'm actually not that interested in buying in No. Jersey... I'm really focusing my search on Central and Northern South Jersey. - Middlesex, Somerset, Monmouth, and Burlington counties. If I *do* look at North Jersey, it would be in the less populated areas, same with South Jersey.

[JPMNICK]

In some areas yes, but I"m surprised you're saying that considering where you live. Housing prices increased at the rate of 1% per month for years in the Chatham/Madison/Summit area. A slowdown had to happen eventually. However, good houses are still getting multiple offers and are still going for fair value or above. It may slow down, there may be a price drop, but the schools are too good and the transportation to NYC is too easy for the housing market to completely fall apart in that area.

Yea the area I live in is pretty insane. In chatham the smallest 2 bedroom house goes for well over 650k. you can not really even get a 1 bedroom condo for less than 400k.

But even though this area is propped up by Wall Street Money, I personally know of cases where there have been short sales. I have also seen asking prices lowered by 200k for a quicker sale due to the new house already being purchased. If everything else drops 20%, maybe chatham/madison/summit drop 10%, but it is still something.

my logic is if in 2008-2009 prices fall back to 2004 levels, which is being predicted, then you have gained nothing buy buying in that 4 year span. technically you lost because you paid interest, taxes, maint. ect. but that would most likely balance out with your rent. In the end, for me at least, renting seemed to be my best option finacially.

NJ esp. has A LOT of borrowes who are subprime, and a lot of those loans are coming due for reset this year. There has been a massive rise in forclosures, which is where tenbats prolly got his idea to swoop into one on the cheap.

The US Housing Index is at its lowest since the 1991 housing recession. Lending is getting tighter, so less people will be able to afford houses. as this happens, prices have to drop. You can not move to a new house unless you get enough for your old house. It is a pyramid, so even the higher end towns are indirectly propped up by what happens at the lower level.

[JPMNICK]

I'm actually not that interested in buying in No. Jersey... I'm really focusing my search on Central and Northern South Jersey. - Middlesex, Somerset, Monmouth, and Burlington counties. If I *do* look at North Jersey, it would be in the less populated areas, same with South Jersey.

I know in Howell, which I think is monmouth, you can get some really good deals on houses. Well good deals relative to where I look in North NJ

[Tenbatsuzen]

I know in Howell, which I think is monmouth, you can get some really good deals on houses. Well good deals relative to where I look in North NJ

Howell is either Monmouth or Ocean. I know where it is... but that's like worst case scenario. It'll be a hike for both of us to get to work. It has to be THE house to make it worthwhile.

[Tenbatsuzen]

I saw a new construction today that I really, really loved.

It's at the redline of both where I want to be location wise, and top ceiling of what I want to pay.

We'll see. I have a year to shop around.

[sailor]

Mortgage companies will not lend a traditional mortgage for a foreclosure. You pretty much have to have cash/cashiers check when they auction off the house. You also usually cannot get an inspection on the house. Sometimes you can get a pre-forclosure bank "short sale" but at that point the bank is still trying to make as much money back as possible.

today we went to an open house up in peekskill. we're not yet looking for a house but ran across the open house and thought it would be fun. it was run by re/max and the agent was telling us he does a lot of foreclosure properties and was actually going to handle an eviction early next week. he was saying that the prices are obviously lower and most are in disrepair, but it would be a normal mortgage. i also don't think these were auctions, just normal sales. maybe re/max bought the property from the bank already? who knows? i didn't think to ask the guy, and it's an odd coincidence that i read this post tonight.

[JPMNICK]

today we went to an open house up in peekskill. we're not yet looking for a house but ran across the open house and thought it would be fun. it was run by re/max and the agent was telling us he does a lot of foreclosure properties and was actually going to handle an eviction early next week. he was saying that the prices are obviously lower and most are in disrepair, but it would be a normal mortgage. i also don't think these were auctions, just normal sales. maybe re/max bought the property from the bank already? who knows? i didn't think to ask the guy, and it's an odd coincidence that i read this post tonight.

sometimes they work something out with the owner that benefits everyone involved. Remax agrees to sell the house before the people go into forclosure. say they owe 280k and the house should sell for 365k, maybe they price it at 305 for a quick sale. you come in, buy it, remax makes the money, the people do not have to file for forclosure and kill their credit, and you get a house on the cheap.

that is the best thing to do, if you know someone who is in the mortgage buisness, ask them for all the people who are 60+ days late on their payments, knock on their doors, and ask them what they would sell for.

[Fat_Sunny]

that is the best thing to do, if you know someone who is in the mortgage buisness, ask them for all the people who are 60+ days late on their payments, knock on their doors, and ask them what they would sell for.


Damn, That Just Seems A Bit Too Vulture-Ish!

[JPMNICK]

Damn, That Just Seems A Bit Too Vulture-Ish!

I agree I would never do it, but it does happen. not often, but i know of a few cases. I think it might be illegal.

the thing is, while it does benefit the buyer cause they get a house cheap, the person who is about to go into forclosure def feels better at the end of it all, because in most cases they do not have time to sell using the normal means, and they will almost certainly face forclosure where they get nothign for the house and a dent in the credit.

[sailor]

sometimes they work something out with the owner that benefits everyone involved. Remax agrees to sell the house before the people go into forclosure. say they owe 280k and the house should sell for 365k, maybe they price it at 305 for a quick sale. you come in, buy it, remax makes the money, the people do not have to file for forclosure and kill their credit, and you get a house on the cheap.

that is the best thing to do, if you know someone who is in the mortgage buisness, ask them for all the people who are 60+ days late on their payments, knock on their doors, and ask them what they would sell for.

sounds interesting, but is that entirely legal? sounds a little creepy just showing up knowing their bidness like that.

and it sounded like they were kicking these folks out next week, not trying to make a deal with them. but again, we weren't seriously looking, so i really don't have a freakin' clue what i'm talkin' aboot. :)

edit, just saw:
I agree I would never do it, but it does happen. not often, but i know of a few cases. I think it might be illegal.

i'm a little thrown, tho. first it's the best thing to do, now it's something you'd never do. a little mixed messagey there. :)

[JPMNICK]

sounds interesting, but is that entirely legal? sounds a little creepy just showing up knowing their bidness like that.

and it sounded like they were kicking these folks out next week, not trying to make a deal with them. but again, we weren't seriously looking, so i really don't have a freakin' clue what i'm talkin' aboot. :)

edit, just saw:


i'm a little thrown, tho. first it's the best thing to do, now it's something you'd never do. a little mixed messagey there. :)

I would never do it, but it is the best thing to do in terms of the people who can not make the payments. They get bailed out of their house, usually with some extra money in their pocket to get back on their feet, and they do not have a forclosure on their record.

I just could not ring a strangers doorbell and make them an offer on a house.

[sailor]

I would never do it, but it is the best thing to do in terms of the people who can not make the payments. They get bailed out of their house, usually with some extra money in their pocket to get back on their feet, and they do not have a forclosure on their record.

I just could not ring a strangers doorbell and make them an offer on a house.

yeah, me neither.

[JPMNICK]

yeah, me neither.

it takes a special kind of person, i do not think 95% of the people could do it, but for those who can, they usually get some great deals.

[angrymissy]

today we went to an open house up in peekskill. we're not yet looking for a house but ran across the open house and thought it would be fun. it was run by re/max and the agent was telling us he does a lot of foreclosure properties and was actually going to handle an eviction early next week. he was saying that the prices are obviously lower and most are in disrepair, but it would be a normal mortgage. i also don't think these were auctions, just normal sales. maybe re/max bought the property from the bank already? who knows? i didn't think to ask the guy, and it's an odd coincidence that i read this post tonight.

Yeah, thats the "short sale"... bank is trying to sell it before foreclosure to get as much money as possible

[JPMNICK]

Yeah, thats the "short sale"... bank is trying to sell it before foreclosure to get as much money as possible

true, forclosures costs banks a lot of money because while no one is living there they have to pay maint. and taxes.

[MobCounty]

Where can I find high cap rates with concrete tilt up construction and a good tenant pool?

Thanks!
MC

[FUNKMAN]

i thought the real estate market was at a stalemate now between buyers and sellers. the buyers have bidded too low for too long and the sellers have decided to not take the very low bids or have taken their houses off the market

i'm not sure about it but if it is the case it surprises me that interest rates although still low 'compared to the height they've been in the past few decades' are inching higher. I would think if they dropped the interest rates again to where they were like 4 3/4 then houses would begin to sell again. buyers would be willing to go a little higher due to a lower interset rate and the seller wouldn't feel like they're getting such a bad deal...

[MellySmelly]

Just get ahold of Bruno Curby, the best real estate agent in town. tljc2000@hotmail.com
and I'm not just saying that because we like to make out!!!! lol

[Tenbatsuzen]

Quite honestly, call me Shooter McGavin, but I really don't give a shit about the previous owner on a foreclosure. You couldn't make the payments. I can. Fuck you, bop, now it's mine.

It's not my fault you can't properly handle your money and you overbought on a house.

That's why I'm watching the market. I'd like a new construction, but if there's a foreclosure deal that's more local and more financially feasible, I'd rather do that.

[sailor]

Quite honestly, call me Shooter McGavin, but I really don't give a shit about the previous owner on a foreclosure. You couldn't make the payments. I can. Fuck you, bop, now it's mine.

It's not my fault you can't properly handle your money and you overbought on a house.

That's why I'm watching the market. I'd like a new construction, but if there's a foreclosure deal that's more local and more financially feasible, I'd rather do that.

i don't think anyone was cryin' over the foreclosed folks. we were just talkin' of knockin' on complete strangers' doors before any foreclosure, with insider info.

[Tenbatsuzen]

i don't think anyone was cryin' over the foreclosed folks. we were just talkin' of knockin' on complete strangers' doors before any foreclosure, with insider info.

Sorry, I was just smiling at the mental picture of me moving into a new house while a poor pathetic family is being kicked to the curb. I would fully expect myself to be wearing a green foil jacket and I'll have a black manservant with a sleeveless jacket following me around.

Everybody's got a price. Hahahahahahahaha.

[JPMNICK]

Sorry, I was just smiling at the mental picture of me moving into a new house while a poor pathetic family is being kicked to the curb. I would fully expect myself to be wearing a green foil jacket and I'll have a black manservant with a sleeveless jacket following me around.

Everybody's got a price. Hahahahahahahaha.

i could not do it. I could not be moving my new shit in while someone else's family was being kicked out.

[JPMNICK]

i thought the real estate market was at a stalemate now between buyers and sellers. the buyers have bidded too low for too long and the sellers have decided to not take the very low bids or have taken their houses off the market

i'm not sure about it but if it is the case it surprises me that interest rates although still low 'compared to the height they've been in the past few decades' are inching higher. I would think if they dropped the interest rates again to where they were like 4 3/4 then houses would begin to sell again. buyers would be willing to go a little higher due to a lower interset rate and the seller wouldn't feel like they're getting such a bad deal...

they can not drop the rates because the mortgage backed securities are commanding a higher price now that so many people are over-extended on their houses. so all these people who have a ARM loan that resets in 2007 and 2008 are at a very high risk of defaulting. also, they are tightening the lending standards on subprime borrowers, which means less people who are able to get mortgages.

[Tenbatsuzen]

i could not do it. I could not be moving my new shit in while someone else's family was being kicked out.

That's because you actually have a soul.

Meanwhile, I'd be videotaping them crying on the curb, posting it on youtube, and adding sound effects, America's Funniest Home Videos style.

[Tenbatsuzen]

i could not do it. I could not be moving my new shit in while someone else's family was being kicked out.

And FWIW, it doesn't work that way. Usually the other tenants are clear of the house for a few weeks before people move in.

[JPMNICK]

That's because you actually have a soul.

Meanwhile, I'd be videotaping them crying on the curb, posting it on youtube, and adding sound effects, America's Funniest Home Videos style.

you should hire a 2nd moving van and tell them you will pay for it, have them load all their shit into it, and then just have the van drive away with all their possesions.

[JPMNICK]

And FWIW, it doesn't work that way. Usually the other tenants are clear of the house for a few weeks before people move in.

not when they do not pay the bills. they just sit there until someone else shows up. what the hell do they care, they do not have anywhere else to go.

watch A&E they have that show where the flip houses. sometimes they buy forclosures and show up, with the title to the house, and the people are still there making breakfast.

and what is FWIW

[Tenbatsuzen]

you should hire a 2nd moving van and tell them you will pay for it, have them load all their shit into it, and then just have the van drive away with all their possesions.

With them chasing after it like Rerun in the credits of "What's Happening".

[Tenbatsuzen]

not when they do not pay the bills. they just sit there until someone else shows up. what the hell do they care, they do not have anywhere else to go.

watch A&E they have that show where the flip houses. sometimes they buy forclosures and show up, with the title to the house, and the people are still there making breakfast.

and what is FWIW

Well, that's gentrification.

(For what it's worth)

[Don Stugots]

it is none of your business why i know this but, when your house is foreclosed on:

it takes a while before it is finally foreclosed on, about a year, year and a half
the house is sold at auction
you can still be living there
it is up to the new owner to get you out (you do have squatters rights at that point)
they cannot toss you into the street
you do not get to move in while the old owner is at the curb
as little contact with each party as possible
Matty is a heartless prick then wonders why people dont like him

also, it has nothing to do with the color of your skin.

[angrymissy]

not when they do not pay the bills. they just sit there until someone else shows up. what the hell do they care, they do not have anywhere else to go.

watch A&E they have that show where the flip houses. sometimes they buy forclosures and show up, with the title to the house, and the people are still there making breakfast.

and what is FWIW

Yep, if they decide to stay, they automatically become legal tenants once the house is bought. You then have to evict them and hope they don't totally destroy the house. You can't just call the cops and say "get these people out of my house!"

[JPMNICK]

Yep, if they decide to stay, they automatically become legal tenants once the house is bought. You then have to evict them and hope they don't totally destroy the house. You can't just call the cops and say "get these people out of my house!"

yea it's kind of a fucked up system. It's not like when you buy a car, the old owner can just sit it in and refuse to leave. Also, it's not like these people did not know their house was going to be taken, they have not paid a bill in months, they had plenty of time to get the fuck out. usually it is just that they can not afford that house, but they can afford an apt or something.

[Recyclerz]

That's because you actually have a soul.

Meanwhile, I'd be videotaping them crying on the curb, posting it on youtube, and adding sound effects, America's Funniest Home Videos style.

If you think you might have the personality disorders necessary to be successful in the field of foreclosure entrepeneur, a good test would be to rent House of Sand & Fog. If you can chuckle your way through that flick then I say you have found your vocation.

Warning: It does have Ben Kingsley in it so you may run afoul of the Pests, and Jennifer Connely barely gets naked but she is at a peak of "damaged girl hot" so you have that to recommend it.

[JPMNICK]

from money.cnn.com



The Realtors also reported that the median price of an existing home sold in the month was $223,700, down 2.1 percent from a year earlier. It marked the tenth straight month that the price has shown a year-over-year decline. Until the current slump in home prices began a year ago, it had been 11 years since home prices showed a year-over-year decline in the closely watched report.

The glut of homes for sale on the market rose 5 percent from April to 4.4 million homes, leaving an 8.9-month supply of homes for sale on the market. The number of homes for sale is now 23 percent above year-ago levels, while the months' supply, based on the sales pace and the inventory, is nearly 40 percent above a year year earlier.

[Fat_Sunny]

Here Is A Real Estate Question:

If You Learned That Tenbatsuzen Had Bought The House Next To Yours, Would You Sell Your House And Move, Even If It Meant Taking A Huge Loss?

[walking joint]

i live in Nassau County and check mlsli all the time. it doesn't seem prices are dropping in my town yet. the crazy part is the cheaper houses are selling first and just being knocked down to build much bigger ones. crazy to think people are paying $500K just to knock it all down. the people i see having the most trouble selling are on the higher end of the listings. maybe its the fact that my town is also full of old people and there isn't much risk of foreclosure.

[Tenbatsuzen]

Here Is A Real Estate Question:

If You Learned That Tenbatsuzen Had Bought The House Next To Yours, Would You Sell Your House And Move, Even If It Meant Taking A Huge Loss?

I had actually considered moving next door to Jeff and Missy, and then they suddenly bolted for Long Island.

[Snacks]

i live in Nassau County and check mlsli all the time. it doesn't seem prices are dropping in my town yet. the crazy part is the cheaper houses are selling first and just being knocked down to build much bigger ones. crazy to think people are paying $500K just to knock it all down. the people i see having the most trouble selling are on the higher end of the listings. maybe its the fact that my town is also full of old people and there isn't much risk of foreclosure.

that is happening all over NY and NJ. In my town almost everywhere you look a brand new house is going up and an older one is being knocked down. about 5 houses away they bought the house for $375k (the house was falling apart) They knocked it down, and built a monster of a house. I knew one of the builders and he told me the total cost of the new house was going to be $400k. So thats 775k to buy, knock down and build.

Another guy I know bought a house for $500k on a double lot. He knocked down the house and spent 1 million to build a 7000 square foot house on the property. he must know what he doing or that it was worth it b/c he own a real estate office in town.

[FUNKMAN]

Home Sales Hit Slowest Pace in Four Years

http://money.aol.com/news/articles/_a/home-sales-hit-slowest-pace-in-four/20070625100809990002?ncid=NWS00010000000001

[JPMNICK]

Home prices in 10 major U.S. cities dropped at the fastest pace in 16 years in the 12 months ending in April, according to Standard & Poor’s Case-Shiller home price index released Tuesday.

Home prices in 10 cities fell 2.7% year-over-year, the largest decline since September 1991. Meanwhile prices in 20 cities dropped a record 2.1% year-over-year. The 20 city index is more comprehensive, but its history only goes back to 2001.

Price appreciation has slowed for 17 consecutive months.

[bigredd]

One thing they're not making any more of is land and land prices with or without houses or buildings on it ARE NOT going to get any cheaper. It's almost always better to buy than to rent. Don't get me wrong; I love renters. I make money off of renters every month. I know three families right now that are paying three seperate mortgages and they're all in my name. Every month they pay me money to keep a roof over their heads meanwhile paying off my debt, making me a profit and increasing my net worth every single month. Increase YOUR OWN net worth, not mine or some other greedy butthole. God bless renters; I've rented many a place in my day but my advice to anyone is to buy if you can but buy smart; do your research before you buy.

[furie]

Free Foreclosure Seminar
June 29, 2007 - July 01, 2007
at the Jacob Javits Center

[zathrus]

tenbat.
i don't know if this will be of any help, but this is the website that i went to for foreclosures


www.realtytrac.com

[Tenbatsuzen]

Mortgage questions:

1) If you are getting a "starter home" that you're planning to fix and flip, should you get an interest-only mortgage?

2) If you're getting a home you can see staying in for 10-15 years, should you get an 80/20 or a 30-year fixed?


I mean, what are the benefits between interest only, 80/20, and just a regular ol' fixed rate?

[Tenbatsuzen]

tenbat.
i don't know if this will be of any help, but this is the website that i went to for foreclosures


www.realtytrac.com

Thanks J. I'll give it a look.

[angrymissy]

Mortgage questions:

1) If you are getting a "starter home" that you're planning to fix and flip, should you get an interest-only mortgage?

2) If you're getting a home you can see staying in for 10-15 years, should you get an 80/20 or a 30-year fixed?


I mean, what are the benefits between interest only, 80/20, and just a regular ol' fixed rate?

I would never, ever consider interest only, or any type of mortgage where your payment adjusts.

You'll only be interest only for 1-5 years, depending on the loan. Your payment will then skyrocket because the loan will reamortize to include the principal for those years that was not paid. Also, some of those loans have adjustable interest rates, which can also change your payment.

The housing market is tanking because of these shady types of loans. People's payments adjust, they can no longer handle it, and go into foreclosure.

I have an 80/20 loan, it has nothing to do with rates, you just have one mortgage for 80% of the loan (traditional mortgage loan and one for 20% of the loan (covers the down payment to avoid PMI, and has a higher interest rate). We have a fixed rate on both loans.

Brokers were trying to sell us all types of shady loans when bought this house, I'm very glad we went with a fixed rate loan, because at least I know what I'm paying will not change.

[Crispy123]

I mean, what are the benefits between interest only, 80/20, and just a regular ol' fixed rate?
Interest Only:
Borrowers with fluctuating incomes may value the flexibility the IO mortgage gives them. When their finances are tight, they can make the IO payment, and when they are flush they can make a substantial payment to principal.

Interest-only mortgages are for borrowers who have a valid use for a lower initial required payment, and are prepared to deal with the consequences.

If the borrower exercises the interest-only option every month during the interest-only period, the payment will not include any repayment of principal. The result is that the loan balance will remain unchanged.

The 80/20 option:
Combination first mortgages for 80% of sale price or value and second mortgages for 10%, 15%, or 20%. The purpose is to avoid mortgage insurance, which is required on first mortgages that exceed 80% of value.

The smaller the difference in rate between the two mortgages, the greater the advantage of the combination relative to the single loan.

Shorter term loans pay down the balance faster than longer term loans. Since the second mortgage has a higher rate than the first, the faster the second is paid off relative to the first, the greater the advantage of the combination compared to the single loan.

Because the combination loan enjoys a larger tax write-off, the combination is most advantageous for borrowers in the highest tax bracket.

With one loan closing, closing costs should be the same for one loan or two. But if the second mortgage is from a different lender and requires a separate closing, the combination will have higher closing costs.

Fixed Rate:
An FRM is a mortgage that has no provision for changing the interest rate. Hence, the rate stated in the note is fixed for the entire term of the loan.

Usually, the term "FRM" also means that the payment is fixed for the life of the loan and pays it off over the term. This should be (but usually isn’t) called a "level-payment fully amortizing FRM" to distinguish it from other types of loans that have a fixed rate but not a fixed payment.

A fixed-rate mortgage can also have a rising payment. The version in the US is called a "graduated payment mortgage", or GPM. They appeared in the early 80s and are still available from a few lenders. See Graduated Payment Mortgages.

The interest-only version of a fixed-rate mortgage also does not have fixed payments. Borrowers begin paying only the interest, which declines if they voluntarily pay any principal, until the end of the interest-only period. At that point, the payment jumps and it becomes a level-payment fully amortizing FRM. See Interest Only Mortgages.

By prevailing practice, the term "FRM" without any modifiers means a mortgage with a fixed rate and level payments that fully pay off the balance. For example, on a $300,000 30-year 6% FRM, the monthly payment is $1798.66. If the borrower makes that payment every month for 30 years, the 360th payment will reduce the balance to zero.

[JPMNICK]

if you really plan on buying a starter house and leaving it soon, the Interest Only may not be a bad option. the problem with it is that if you stay in the house longer than expected, which happens a lot, as Missy said you will face a ballooning payment. also if you buy at the peak of the market, and in the next 2 years prices drop, you have paid nothing into the principal, so when you go to sell you could actually wind up owing money.

As for a 80/20, you have to weigh the benefits of doing it vs. paying PMI. if the interest you will spend is more than how much PMI will cost you, then it might make sense just to take out PMI.

[angrymissy]

exactly - by not paying anything to principal, you're taking a big gamble that the house will appreciate enough to let you either break even or make a profit when you sell.

[JPMNICK]

exactly - by not paying anything to principal, you're taking a big gamble that the house will appreciate enough to let you either break even or make a profit when you sell.

yea it is way to risky for me. I am like you missy, I need to know exactly what the payments are going to be

[Tenbatsuzen]

Right now, I'm currently focusing on reducing my credit card and other debt that was amassed while I was poor. This was a debt that was amassed over 7 years; At the rate I'm paying off, I should be out of the hole I'm in within a year. (I think I finally paid off that round of drinks I bought everyone at Bar 9 in 2003, whoo!)

I am also saving the same amount of money that I'm using to pay off the debt to save for a house. (i.e. X amt goes towards debt, y amt goes towards house, x=y)

I've invested all the money I've saved so far into a high-rate savings account, and continue depositing into that account. I originally was going to put it into a CD, but the CD rates and the savings account rates were generally the same, and at least the savings account gives you liquidity if you need it. Plus I wasn't sure if you could put more money into a CD after it's opened, I knew I could do that with a savings account. If anyone wants to correct me on this, feel free.

So another question I wanted to bring up is this:

In order to save for a house, should I dedicate more money from the total that I'm using for debt reduction plus house saving to save for the house, or just stay the course?

[walking joint]

i own my second house now and chose a fixed rate both times. never wanted to worry about a rising payment. the first house i was paying a PMI...it was like $100 or so a month....i thought i read recently though you can work/roll the PMI amount into your mortgage and end up paying only a few dollars each month instead. anyone know anything about that? i put down more then 20% on my second house, so its not a worry to me anymore, but the article i read mentioned how mortgage companies won't bring the roll option up when giving loans. i wish i had known about it, so maybe it will help someone here.

[Tenbatsuzen]

Yeah, the more I think about it, the more I'm thinking about the 80/20 loan - and using the money we have saved to start paying the loans instead of throwing a lump sum down and being completely cash poor - because I don't think there is a way we can generate a 20% down payment at this point.

[JPMNICK]

i would be putting every dollar i had into the CC debt because the interest rates are so high. the 5% you earn on the savings account is lost to the 14-20% you pay to the CC company.

[Tenbatsuzen]

i would be putting every dollar i had into the CC debt because the interest rates are so high. the 5% you earn on the savings account is lost to the 14-20% you pay to the CC company.

Most of the debt is in a zero percent mode until next year, and then goes to a fixed rate below the national average.

[JPMNICK]

Most of the debt is in a zero percent mode until next year, and then goes to a fixed rate below the national average.

well then in that case I would pay off all non-zero debt, and make sure all the other debt will be paid off before the fixed rate kicks in. I would not pay a CC one penny more than I had to. CC interest makes me sick, and what they do to people is disgusting. I would put off buying a house for a year or so just to get all your CC bills to zero. This also helps with your credit score and might help you get a better rate on a mortgage

[walking joint]

i've actually never owned a credit card in fear of not paying them off and having to pay so much in interest. if i don't have the money, i'm not buying it...unless car/house type item.

[JPMNICK]

i've actually never owned a credit card in fear of not paying them off and having to pay so much in interest. if i don't have the money, i'm not buying it...unless car/house type item.

same here. I have never carried a balance on a CC. any big purchase i make i save the money 1st, then pay for the item on a CC to get the points and get some extra protection

[Tenbatsuzen]

i've actually never owned a credit card in fear of not paying them off and having to pay so much in interest. if i don't have the money, i'm not buying it...unless car/house type item.

As Missy will explain, it's probably better to carry at least 1 or 2 cards and keep a low balance on them then have no cards at all. FICO scores and such.

Having a $300 balance on a card for one year at the national average is 36 dollars, less than 3 dollars a month. It's a tradeoff you need to have better credit.

In my quest to pay down my CC debt, I combined everything onto one card, but I left enough on the other cards so they are still shown as open lines of credit. I'm also negotiating with the CC companies to drop my APRs, which they will do because they don't want to lose my business.

[Tenbatsuzen]

well then in that case I would pay off all non-zero debt, and make sure all the other debt will be paid off before the fixed rate kicks in. I would not pay a CC one penny more than I had to. CC interest makes me sick, and what they do to people is disgusting. I would put off buying a house for a year or so just to get all your CC bills to zero. This also helps with your credit score and might help you get a better rate on a mortgage

From what Missy has explained to me, it's better to have very low CC debt (sub-1000 dollars) than no debt at all. I could be wrong, and she's the expert on this, but if you run a search on FICO on the board, it'll probably pop up.

[JPMNICK]

As Missy will explain, it's probably better to carry at least 1 or 2 cards and keep a low balance on them then have no cards at all. FICO scores and such.

Having a $300 balance on a card for one year at the national average is 36 dollars, less than 3 dollars a month. It's a tradeoff you need to have better credit.

In my quest to pay down my CC debt, I combined everything onto one card, but I left enough on the other cards so they are still shown as open lines of credit. I'm also negotiating with the CC companies to drop my APRs, which they will do because they don't want to lose my business.

yea i always find that crazy that when you call them they will lower your rate for you.

you should rent a movie called Maxed out, it is all about the CC industry, as well as housing and consumerism in general

[JPMNICK]

From what Missy has explained to me, it's better to have very low CC debt (sub-1000 dollars) than no debt at all. I could be wrong, and she's the expert on this, but if you run a search on FICO on the board, it'll probably pop up.

When they calculate your credit score, they use a ratio of available credit to how much is on the car. like if you have a 5000 limit and 500 on the card, your ratio is .1 or 10%

I would be interested to know if keeping a balance is better for your score. I always read and thought the more credit you have and the less outstanding money that is owed is a good way to raise your score. Also, the less accounts that have a balance the better.

[Justice4all]

Interest Only:
Borrowers with fluctuating incomes may value the flexibility the IO mortgage gives them. When their finances are tight, they can make the IO payment, and when they are flush they can make a substantial payment to principal.- This is VERY true. Most people forget that they do not have to pay ONLY the I/O amount. Good point to bring up

Interest-only mortgages are for borrowers who have a valid use for a lower initial required payment, and are prepared to deal with the consequences.- There really is very little consequences in a negative manner. Only if the house DECREASES in value, which does rarely happen.
If the borrower exercises the interest-only option every month during the interest-only period, the payment will not include any repayment of principal. The result is that the loan balance will remain unchanged.- Again very true...as long as the interest is being paid off your principle will not change. up OR down.

The 80/20 option:
Combination first mortgages for 80% of sale price or value and second mortgages for 10%, 15%, or 20%. The purpose is to avoid mortgage insurance, which is required on first mortgages that exceed 80% of value.- Ok you are a Broker or a Loan Officer aren't you.

The smaller the difference in rate between the two mortgages, the greater the advantage of the combination relative to the single loan.- A blended rate (take the first and second and figure out what the rate would be at a single loan). The larger the second loan size and rate, the higher the blended rate would be.

Shorter term loans pay down the balance faster than longer term loans. Since the second mortgage has a higher rate than the first, the faster the second is paid off relative to the first, the greater the advantage of the combination compared to the single loan.- 1*Yes but see below for more of an Indepth explination

Because the combination loan enjoys a larger tax write-off, the combination is most advantageous for borrowers in the highest tax bracket.

With one loan closing, closing costs should be the same for one loan or two. But if the second mortgage is from a different lender and requires a separate closing, the combination will have higher closing costs.- Usually this is true, but many Second Mortgage lenders have very little closing costs (if any)

Fixed Rate:
An FRM is a mortgage that has no provision for changing the interest rate. Hence, the rate stated in the note is fixed for the entire term of the loan.- True

Usually, the term "FRM" also means that the payment is fixed for the life of the loan and pays it off over the term. This should be (but usually isn’t) called a "level-payment fully amortizing FRM" to distinguish it from other types of loans that have a fixed rate but not a fixed payment.

A fixed-rate mortgage can also have a rising payment. The version in the US is called a "graduated payment mortgage", or GPM. They appeared in the early 80s and are still available from a few lenders. See Graduated Payment Mortgages.

The interest-only version of a fixed-rate mortgage also does not have fixed payments. Borrowers begin paying only the interest, which declines if they voluntarily pay any principal, until the end of the interest-only period. At that point, the payment jumps and it becomes a level-payment fully amortizing FRM.- 2* Ok see below for explination #2.

By prevailing practice, the term "FRM" without any modifiers means a mortgage with a fixed rate and level payments that fully pay off the balance. For example, on a $300,000 30-year 6% FRM, the monthly payment is $1798.66. If the borrower makes that payment every month for 30 years, the 360th payment will reduce the balance to zero.

All good points, but they only scratch the surface as far as mortgages go.

there are A paper, Alt-A and Sub prime.
Several different kinds of arms, (1month, 6month, 1,2,3,5,7,10 year)
you also have those MTA (Moditied Treasury Arm) with those low start rates of 1.90% and such. (I will explain to anyone who wants to hear about those loans)
Also you have fixed rate loans of 40,30,20,15 and 10 years.

Which brings me into explination #1.
If you choose a shorter term loan your payments will INCREASE. Most loans are based on a 30-year ammortization period. If you take that 300,000.00 loan and reduce it by 10 years then that means you will have to pay it off 20 years and not 30.
The advantage is you usually always get a lower rate with the shorter term fixed rates.
30 Year fixed will get you 6.50% but 20 year fixed would get you 6.25%, a 15 year would get you 6% and so on.
But the payments would still be greater.
300,000.00 Mortgage
30 year fixed payment at 6.50%- $1897 per month principle AND interest payment (P&I)
20 year fixed at 6.25%- $2193 per month P&I
15 year fixed at 6%-$2532
and so on.
THESE ARE JUST EXAMPLES...these are not what 'todays rates are'. (sorry had to put that in)

explination #2.
if you do a 30 year fixed with a 10 year interest only this is what happens.

you have the CHOICE to make the interest only payment for the first 10 years. If you choose to do so then when the 10th year is done the mortgage will be at a payment of whatever you locked it in for at the time of the closing (let's say 6.50%)
So you pay interest only on a 300,000.00 mortgage for 10 years.
When it comes time to pay P&I the payment will adjust to pay it off in 20 years, not 30.
So for your 1st 10 years your payment would be $1625.00 per month I/O and then when the 10th year is up your payment will shoot up to $2237.

If anyone has any other questions feel free to PM me or shoot me an email.

I hope this helps with mortgage questions a bit.

[Justice4all]

From what Missy has explained to me, it's better to have very low CC debt (sub-1000 dollars) than no debt at all. I could be wrong, and she's the expert on this, but if you run a search on FICO on the board, it'll probably pop up.

Yes Missy is correct. If you have active and open credit is actually HELPS you instead of hurts you.
HOWEVER, it is only a help if the debt is 50% or less then the credit limit
So if you have a credit card with a 3000.00 limit try to keep the balance to 1500.00 or less and make those payments on time. If you are late with the mortgage or CC or car payments it will hit you HARD in your score.

Also lenders tend to look harshly on any missed payments in the last year to two years when doing either a re-finance or purchase.

[Tenbatsuzen]

Yes Missy is correct. If you have active and open credit is actually HELPS you instead of hurts you.
HOWEVER, it is only a help if the debt is 50% or less then the credit limit
So if you have a credit card with a 3000.00 limit try to keep the balance to 1500.00 or less and make those payments on time. If you are late with the mortgage or CC or car payments it will hit you HARD in your score.

Also lenders tend to look harshly on any missed payments in the last year to two years when doing either a re-finance or purchase.

Let me ask a question.

Let's say you have three credit cards, and all of them have a limit of 1000 dollars.

If you carry 800 on one card, 100 on a second card, and 100 on a third card, you are at 1/3 of your TOTAL credit limit, but you're at 80 percent of your credit limit on one card.

Is that a bad thing?

[Justice4all]

Let me ask a question.

Let's say you have three credit cards, and all of them have a limit of 1000 dollars.

If you carry 800 on one card, 100 on a second card, and 100 on a third card, you are at 1/3 of your TOTAL credit limit, but you're at 80 percent of your credit limit on one card.

Is that a bad thing?


Now THAT one I do not know about, but I will call the credit company we use and ask them on monday morning (unless someone else works for one here and can answer that question)

I do know that most lenders like to see more then just 1000.00 of limit on a card. They would want to see 2 years straight of a large limit card. (Like 2000.00 or higher)

[Tenbatsuzen]

Now THAT one I do not know about, but I will call the credit company we use and ask them on monday morning (unless someone else works for one here and can answer that question)

I do know that most lenders like to see more then just 1000.00 of limit on a card. They would want to see 2 years straight of a large limit card. (Like 2000.00 or higher)

The 1000 limit was just an example. Trust me, if it took me a year to pay off 1000 dollars of credit card debt, I'd really hate myself.

[JPMNICK]

The 1000 limit was just an example. Trust me, if it took me a year to pay off 1000 dollars of credit card debt, I'd really hate myself.

or you would still be working in radio

[Tenbatsuzen]

I've learned, in looking for houses, that i have a habit of falling in love with houses that are always about 50K out of our price range.

It's ridiculous. I've seen 3 houses that I absolutely LOVED, and each one of them was all around the same price.

bleah.

That being said, I'm getting a crash course in how much taxes can suck. I found a house that was actually 15K below our price range ceiling, but the taxes on the place were 10,000 a year.

[Tenbatsuzen]

or you would still be working in radio

It's fucking hysterical because it's true

[Justice4all]

Sorry Matt, I did not find out yet. It has been a nightmare at work for me this week.
I will try to get it for you asap.

[Tenbatsuzen]

Sorry Matt, I did not find out yet. It has been a nightmare at work for me this week.
I will try to get it for you asap.

Take your time dude. No worries.

Like I said, I don't plan to get pre-authorized until the debt is considerably much more down than it is now.

[sailor]

fyi - google maps just added real estate search in case anyone cares.

[Marc with a c]

Let me ask a question.

Let's say you have three credit cards, and all of them have a limit of 1000 dollars.

If you carry 800 on one card, 100 on a second card, and 100 on a third card, you are at 1/3 of your TOTAL credit limit, but you're at 80 percent of your credit limit on one card.

Is that a bad thing?

anything over 50% on a credit card will give you a hit on your credit score.

[Justice4all]

anything over 50% on a credit card will give you a hit on your credit score.

I was inclined to agree with you, but I just got off the phone with the credit company.

They said to keep your debt to 1/3 or less NOT 1/2 like I had thought.


So if you have a 1000.00 credit limit on your card do keep your card over $333.00. The higher is goes after that 1/3 the more of a hit to your credit score.

[CofyCrakCocaine]

So... if you never go over the limit you still get damaged on your score? Fucking bastards.

[Don Stugots]

here is a tip:

stop being in such a hurry. life is a journey, enjoy it. do not look to rush throw life checking things off like: college, married, house, kids.

[Justice4all]

So... if you never go over the limit you still get damaged on your score? Fucking bastards.


It's not EXACTLY like that CCC, they do not mind if you go over the 33%, but if it is getting higher and higher each month instead of going down, then it starts to hurt you.


Ex:
Credit Limit is 1000.00

July you have a 540.00 payment due.
August you have a 500.00 payment due
Sept you have a 450.00 payment due.

You pay off the minimum payment plus a little extra to help the principle go down but for all three months you have the limit over 33% so your credit will SLOWLY start to drop.

But if your payment due was more like 700.00 or 800.00 and it stayed like that for a lengthy amount of time, it would wind up hurting your score even faster.

[Justice4all]

here is a tip:

stop being in such a hurry. life is a journey, enjoy it. do not look to rush throw life checking things off like: college, married, house, kids.


True Don, but for some people finding funding for housing is something that cannot wait.

[Tenbatsuzen]

My dream house:

http://img256.imageshack.us/img256/3278/charlestone80ce8zj9.jpg

[JPMNICK]

My dream house:

http://img256.imageshack.us/img256/3278/charlestone80ce8zj9.jpg

what part of Georgia is that in?

[Tenbatsuzen]

what part of Georgia is that in?

It's Southern architecture, I know, but it also reminds me of a beach house, which is why I love it.

[Freitag]

So with Jim Cramer melting down last night, and American Home going into Bankruptcy, has the home market hit bottom yet or is it still falling?

I just don't want to be stuck with an 8% rate loan by this time next year.

[angrymissy]

So with Jim Cramer melting down last night, and American Home going into Bankruptcy, has the home market hit bottom yet or is it still falling?

I just don't want to be stuck with an 8% rate loan by this time next year.

We just refied, and our broker told us that we did it at the right time, rates are going to go up up up.

[Freitag]

We just refied, and our broker told us that we did it at the right time, rates are going to go up up up.

Well, re-fi rates are gonna go up, but what about 30-year fixed rates?

[angrymissy]

Well, re-fi rates are gonna go up, but what about 30-year fixed rates?

Jeff's brother is in the process of buying a place and the broker told him the same thing.

BTW - Jeff sent me Jim Cramer flipping out, hysterical:

http://www.youtube.com/watch?v=SWksEJQEYVU

[mendyweiss]

Trying to time the market has never worked in stocks or real estate.
Get your finances in order, find your house in your price range and buy it !!

[ShapopoJoe]

My dream house:

http://img256.imageshack.us/img256/3278/charlestone80ce8zj9.jpg

Love the dream house.....good taste!

[Justice4all]

We just refied, and our broker told us that we did it at the right time, rates are going to go up up up.

Sadly, yes they are are are....about a .25% jump every other week. But it will be slowing soon.

[Freitag]

Sadly, yes they are are are....about a .25% jump every other week. But it will be slowing soon.

Lemme ask you this...

What about getting a 40-year, and then waiting a year, and then re-fi into a 30 year?

[angrymissy]

Lemme ask you this...

What about getting a 40-year, and then waiting a year, and then re-fi into a 30 year?

Just remember, you will pay closing fees for both loans.

[Justice4all]

Well, re-fi rates are gonna go up, but what about 30-year fixed rates?

Ok the only difference between re-fi rates and purchace/rate and term refinance rates is how much of the house you are re-financing.

If your house has (usually) a 70% or lower LTV then there is no difference in the rates.

If your house has a 80% LTV odds are you have MAYBE a .5% higher rate then if you were to do a purchase.

Most every loan program is based off of the 10-year treasury bill. So keep your eyes on that to see if there will be raising/lowering rates.

Right now if you wanted to buy a house and pay NO reduction points you could most likely (with good credit and decent income) get a rate of 6.75% on a 30-year fixed (that is NOT a quote, just the best rates going right now in NJ). But each loan is different rate wise.
If you have a LIBOR Arm you would have a better rate on a 5 year arm, instead of a 30 year fixed.

If you choose to pay the discount points you can get it down to 6.25% on the 30 year fixed.


Right now it is a BUYERS market. (LISTEN UP MATTY!!!) Real Estate pricing is FALLING fast and with rates still somewhat low if you are thinking about buying a house, now would be a good time to start looking.


Missy I am curious to see how much increase your house value was from the the purchase to the re-fi you just did. Is the housing market hitting you area of NY the same as here?

[Justice4all]

Lemme ask you this...

What about getting a 40-year, and then waiting a year, and then re-fi into a 30 year?


Missy is right....you would be paying for closing costs both times.
My advice is either pay the points (one point= 1% of the loan amount) and get the lowest rate for a 30 year fixed and stay in it...
OR
Pay the points, get the lowest rate in a 40 year and stay in it.

The only time you would re-fi a year later is if you had an ARM what was about to adjust
OR you had shitty credit and wound up getting a horrible rate and waited a year to clean up your credit, that way when you do re-fi a year later your credit is better and you get a better rate.


The difference between a 30 year and a 40 year (payment wise) is about 100.00 less a month for a 40 year fixed (on average). But...if you choose the 40 year fixed it is usually a higher rate. So if you get a 6.75% on a 30 year odds are your 40-year will be a 7% to a 7.25%.


Hope that helps

[Justice4all]

So with Jim Cramer melting down last night, and American Home going into Bankruptcy, has the home market hit bottom yet or is it still falling?

I just don't want to be stuck with an 8% rate loan by this time next year.

Oh yes....and you will NOT be paying those rediculously high rates like that anymore. Even with the decline in the real estate market they will never get that high again. MAYBE 7% to 7.25% but that is about as high as it would get.

8% would send the foreclosure market to the roof in 2-3 years

[Freitag]

Oh yes....and you will NOT be paying those rediculously high rates like that anymore. Even with the decline in the real estate market they will never get that high again. MAYBE 7% to 7.25% but that is about as high as it would get.

8% would send the foreclosure market to the roof in 2-3 years

Is 7 - 7.25 going to be for "average" or "good" credit? What about excellent credit?

The problem I'm faced with right now is that I do not have enough money for a 10 percent down payment right now, and I want to have that plus my debt reduced.

[Justice4all]

Is 7 - 7.25 going to be for "average" or "good" credit? What about excellent credit?

The problem I'm faced with right now is that I do not have enough money for a 10 percent down payment right now, and I want to have that plus my debt reduced.

Good credit is anything over 620.
Excellent credit is 700 or better.

You have more programs available with 700credit scores. (obviously)
You do not need 10% Down.
You can do an FHA loan (government) with only 3% down, It will have to be a Full doc (documentation) loan. Ie; show W-2, bank statements. paystubs, assetts and the like.

If you have 10% to put down, put down 5%, go conventional, get a 6.75% rate, use 3% towards closing costs (which is the avg.) and take the other 2% and pay down some credit cards.

[Tenbatsuzen]

I thought you were going to need all your documents anyway for a mortgage. You're telling me that if I have an excellent credit score, I have assets like cars, and I have minimized debt, and I show off my docs, I could get a really good loan? Wow.

I really cannot afford to do anything for a house right now. I'm basically locked into my lease, and I'm not going to have any wiggle room in breaking it for another 9 months or so. And besides, the financial situation I'm in right now allows me to pay down my debt + save for the house.

The problem is, houses in Jersey are just too fucking expensive.

[Bulldogcakes]

I thought you were going to need all your documents anyway for a mortgage. You're telling me that if I have an excellent credit score, I have assets like cars, and I have minimized debt, and I show off my docs, I could get a really good loan? Wow.

I really cannot afford to do anything for a house right now. I'm basically locked into my lease, and I'm not going to have any wiggle room in breaking it for another 9 months or so. And besides, the financial situation I'm in right now allows me to pay down my debt + save for the house.

The problem is, houses in Jersey are just too fucking expensive.

Yeah, you could (maybe not anymore after this sub prime crap) have even got a no document or no-income check loan. You just pay a higher rate. There's a million ways to skin a loan, the question really is what rate you'll get and the points. Also throw in how much you put down.
Remember the bank is looking at the house as much as they are looking at you. They are effectively buying that house, and you're paying them back. If you find a house that is a good deal, maybe below market for the area (fixer-upper) you could try to sell the agent or loan officer on that.

[Justice4all]

I thought you were going to need all your documents anyway for a mortgage. You're telling me that if I have an excellent credit score, I have assets like cars, and I have minimized debt, and I show off my docs, I could get a really good loan? Wow.

I really cannot afford to do anything for a house right now. I'm basically locked into my lease, and I'm not going to have any wiggle room in breaking it for another 9 months or so. And besides, the financial situation I'm in right now allows me to pay down my debt + save for the house.

The problem is, houses in Jersey are just too fucking expensive.


Nope, you can do a Stated/Stated and still get the same rates as a full doc IF your Credit scores are 720 or higher.
Stated/Stated means you state both your income AND your assets. But keep it within reason.
If you are a teacher and claim you make 300,000 a year, that will look suspicious, but if you claim you make 80,000.00 that is alot more doable.

And houses are not as expensive as they were 6 months ago. Prices are going in YOUR favor.
So when your lease is coming up start looking.

[Justice4all]

If you find a house that is a good deal, maybe below market for the area (fixer-upper) you could try to sell the agent or loan officer on that.

BDC that is not necc. true. The appraisal will tell all you need to know. If you wind up buying a house that is below market value the Bank/Lender will want to know why.

It is the lender who you need to explain things to, not the agent or loan officer.

[Freitag]

Question: Would you buy a house without a basement?

[Jujubees2]

Question: Would you buy a house without a basement?


Of course not. Then you would have to build your own bomb shelter.

Seriously, I've never lived in a house without a basement so I don't think I would.

[Justice4all]

Question: Would you buy a house without a basement?

Matty. having a basement is a good and sometimes bad thing.

The obvious good points are that it adds for more storage. You can convert it to another room, like a den or a bar or something similar.

But some of the downsides are that it adds value to the home so as a homebuyer something with a basement might be a bit out of range budget wise.
Also, they DO have a tendency to flood (why do you think so many homes down the shore do not have one). And if they did flood insurance would be required.

My parents have a finished basement that flooded wayyyyyyyyy back in 1982. The water only came up about 3-4 inches but did significant damage to some items we had down there. It does not take much water to do some damage.

But...as a personal preference, I would want a basement too.

[DiabloSammich]

Matty. having a basement is a good and sometimes bad thing.

The obvious good points are that it adds for more storage. You can convert it to another room, like a den or a bar or something similar.

But some of the downsides are that it adds value to the home so as a homebuyer something with a basement might be a bit out of range budget wise.
Also, they DO have a tendency to flood (why do you think so many homes down the shore do not have one). And if they did flood insurance would be required.

My parents have a finished basement that flooded wayyyyyyyyy back in 1982. The water only came up about 3-4 inches but did significant damage to some items we had down there. It does not take much water to do some damage.

But...as a personal preference, I would want a basement too.




Using good common-sense, proven construction methods, and new technologies such as battery backup sump pumps and daylighting your french drains, there is no excuse for a modern basement to flood.

If you are having your house built and have a say in the elevation that the house is set at (and you should, it's your house) you will never have a problem with a house being too high out of the ground. You will 9 times out of 10 have a problem with it being too low.

If you are buying an already built house, the simplest thing to check for is proper grading away from the house.

That being said, I've lived in houses with and without basements. I can never see myself living in a house without a basement again.

[Freitag]

Said house without a basement was built in 1994 and is near a brook/creek deal.

[Thebazile78]

Said house without a basement was built in 1994 and is near a brook/creek deal.

The first floor could flood in a severe enough rain because the water table is so close to the surface.

And with all the nasty rain we've been having, I strongly suspect that it would happen more often than not.

It happens all the time at Dad's and they have a creek out back.

[JPMNICK]

Said house without a basement was built in 1994 and is near a brook/creek deal.

The first floor could flood in a severe enough rain because the water table is so close to the surface.

And with all the nasty rain we've been having, I strongly suspect that it would happen more often than not.

It happens all the time at Dad's and they have a creek out back.

i am going to read into this a little.

he likes it, she hates it.

[Freitag]

i am going to read into this a little.

he likes it, she hates it.

Haven't even seen it. Was put on the market a few days ago, pics aren't even up. My father told me to avoid houses without basements, so I just opened it up for discussion.

Most of the houses my real estate person has been sending me has been crap. I don't think she grasps the concept of "We Don't Like Ranches".

[JPMNICK]

Haven't even seen it. Was put on the market a few days ago, pics aren't even up. My father told me to avoid houses without basements, so I just opened it up for discussion.

Most of the houses my real estate person has been sending me has been crap. I don't think she grasps the concept of "We Don't Like Ranches".

haha i never understand why real estate agents never listen.

i would not buy a house without a basement, they are so versatile. my parents basement went from storage, to an extra room for me and my sister to have friends over in, to a poker room / drinking area in college, back to a storage room now for me and my sister's shit that does not fit in our apartments

[Freitag]

God Bless New Jersey.

4 bedroom. 2.5 bathroom. Center hall colonial. BEAUTIFUL architecture. Good schools. PERFECT location.

RIGHT IN OUR PRICE RANGE.

Property taxes... $11000 a year!

Jesus Christ.

[Earlshog]

God Bless New Jersey.

4 bedroom. 2.5 bathroom. Center hall colonial. BEAUTIFUL architecture. Good schools. PERFECT location.

RIGHT IN OUR PRICE RANGE.

Property taxes... $11000 a year!

Jesus Christ.


I feel ya... We pay that much in taxes, have no property, and the schools blow.

Fuckin Jersey

[Thebazile78]

i am going to read into this a little.

he likes it, she hates it.

Not really; I'm just a geology buff and would avoid anything near a creek/stream because of the proximity of the water table to the ground surface . . . and the fact that building on a floodplain is rarely a good idea.

[Justice4all]

Using good common-sense, proven construction methods, and new technologies such as battery backup sump pumps and daylighting your french drains, there is no excuse for a modern basement to flood.

If you are having your house built and have a say in the elevation that the house is set at (and you should, it's your house) you will never have a problem with a house being too high out of the ground. You will 9 times out of 10 have a problem with it being too low.

If you are buying an already built house, the simplest thing to check for is proper grading away from the house.

That being said, I've lived in houses with and without basements. I can never see myself living in a house without a basement again.

Ah yes but I have seen cases where the pump could not keep up with the water (although they ARE rare, but it has happened) And I have also seen some Sum-pumps break down. But overall...yes you can avoid it from happening.

Originally Posted by Thebazile78
The first floor could flood in a severe enough rain because the water table is so close to the surface.

And with all the nasty rain we've been having, I strongly suspect that it would happen more often than not.

It happens all the time at Dad's and they have a creek out back.


You can actually check town records to see how many times the property has been flooded since the house was built. Also you can ask the homeowner *if you are interested in buying it* the Real Estate Agent should know also about that. It might not be as often as you think.


Matty, where are you looking for property? If you are not happy with your agent I am sure i could recommend someone who WILL listen to exactly what you want in a home.

Hit me up on PM if you want some help.

Earls....I know some places opening up that might give you more room for your buck. hit me up too if you want.




Just trying to help.

[Tenbatsuzen]

So we went to our first open house today.

I was really impressed with the Realtor, so much so that I emailed her about her services in finding us a house since our current realtor is insane.

The area we are looking at has good schools and low taxes, it's a decent location.

I'm seeing a lot of houses without basements.

[Justice4all]

Matty, what area are you looking again?
I actually was at an open house in Brick with no basement. It was a split level. Nice house though. It was in move in condition. Good sized backyard and an above ground pool.

But going to open houses is a good thing, it gives you a good idea at the kind of house you will be looking for.

[Freitag]

We're looking in MonOc counties currently.

Couple of questions:

1) What's the difference between septic and public water, and can you convert to public water if you don't want to deal with septic?

2) What's the difference between using propane and natural gas?

3) If a house came with Oil heat, in this day and age, would you convert to gas?

[Jujubees2]

We're looking in MonOc counties currently.

Couple of questions:

1) What's the difference between septic and public water, and can you convert to public water if you don't want to deal with septic?

2) What's the difference between using propane and natural gas?

3) If a house came with Oil heat, in this day and age, would you convert to gas?

1) I assume you're speaking of sewage and you can switch to public if they have service where you live. Septic tanks can cause problems when they become old and/or overflow.

2) Natural gas is piped to your house. Propane has to be delivered by truck to a tank at your house.

3) Absolutely. You can get some good deals from the gas comp. if you switch over. Natural gas is much cleaner and you never have to worry about your tank running low.

[Justice4all]

1) I assume you're speaking of sewage and you can switch to public if they have service where you live. Septic tanks can cause problems when they become old and/or overflow.

2) Natural gas is piped to your house. Propane has to be delivered by truck to a tank at your house.

3) Absolutely. You can get some good deals from the gas comp. if you switch over. Natural gas is much cleaner and you never have to worry about your tank running low.

Juju is dead spot on with all of them.
I would rather use sewage if you HAVE an option. Some houses only come with septic. Ask about it when you look for/at a house.

If you are looking in Ocean and Monmouth counties then PM me. I have an agent who I work with. She is REALLY good. She works out of Pt. Pleasent. which is central to the area you are looking for.

[Freitag]

Thanks for the info. I figured that's what propane was; I've seen some houses with some big-ass tanks on the side.

Not a fan of oil heat at all. It just surprises me seeing houses built in the late 90's with septic.

Thanks for the offers of RE agents and everything. I appreciate it, but I've got someone cool for the time being. Basically, all I do is search the MLS's and give the agent numbers. She sets up the appointments.

[PhishHead]

Septics depend on the town, for Instance all houses in the Hamptons are Septic. The main reason people like septic is because you do not have to pay sewer charges and it saves some money for them.

But if you do buy a house with a septic and want to hook it to the sewer if you are able to, it will cost you alot of money, my sister did it in her house in Michigan (which was built in 2003 but sewer was not available to them yet) and it cost them roughly 20k.

[Thebazile78]

Septics depend on the town, for Instance all houses in the Hamptons are Septic. The main reason people like septic is because you do not have to pay sewer charges and it saves some money for them.

But if you do buy a house with a septic and want to hook it to the sewer if you are able to, it will cost you alot of money, my sister did it in her house in Michigan (which was built in 2003 but sewer was not available to them yet) and it cost them roughly 20k.

What if you compare that to replacing your septic system?

The house where I grew up was built in the '40s as a "summer home" ... my parents had to replace the entire system in the '80s because we'd gone full-year (and we were a family of 5, going on 6, rather than the elderly couple - Dad's grandparents - who'd owned the home previously) ... I should think that was a significant cost, maybe in the same neighborhood as $20K in today's money.

It could get more expensive if the septic system wasn't well maintained, or if you have other issues...Dad's house now has municipal water, but no sewage hookup (not available) so they're stuck with a septic tank. The tank is overloaded from volume AND it's being crushed by tree roots, so replacement will be very pricey. I don't know what the replacement estimate was, but I wouldn't be surprised if it started in the $20K's.

[Freitag]

Here's a question...

3BR House with 1-car garage and basement (unfinished) is at 1650 SQ Feet.

4BR House with no garage (garage was converted into a playroom) and no basement is 1850 sq. feet.

Are unfinished basements and garages figured into the square footage?

the 4BR house felt a bit cramped, and we're seeing the 3BR house tomorrow. But I'm thinking the smaller house might be less cramped.

also:

a 100x100 lot is a quarter acre, correct?

[PhishHead]

from my experience an unfinished basement or a garage is not factored into the square footage unless they have been made into livable quarters.

[DiabloSammich]

Here's a question...

3BR House with 1-car garage and basement (unfinished) is at 1650 SQ Feet.

4BR House with no garage (garage was converted into a playroom) and no basement is 1850 sq. feet.

Are unfinished basements and garages figured into the square footage?

the 4BR house felt a bit cramped, and we're seeing the 3BR house tomorrow. But I'm thinking the smaller house might be less cramped.

also:

a 100x100 lot is a quarter acre, correct?


Close enough, an acre is a little over 43,000 sq.ft.

But keep in mind minus the house, garage, driveway doesn't leave much yard area. Quarter acre sounds a lot bigger than it actually is.

[Freitag]

Close enough, an acre is a little over 43,000 sq.ft.

But keep in mind minus the house, garage, driveway doesn't leave much yard area. Quarter acre sounds a lot bigger than it actually is.

I'm doing a driveby tomorrow, and it appears the quarter acre backs into a conservation area thats wooded.

But you're right - quarter acre is small. I'm looking for at least a half.

[Justice4all]

What if you compare that to replacing your septic system?

The house where I grew up was built in the '40s as a "summer home" ... my parents had to replace the entire system in the '80s because we'd gone full-year (and we were a family of 5, going on 6, rather than the elderly couple - Dad's grandparents - who'd owned the home previously) ... I should think that was a significant cost, maybe in the same neighborhood as $20K in today's money.

It could get more expensive if the septic system wasn't well maintained, or if you have other issues...Dad's house now has municipal water, but no sewage hookup (not available) so they're stuck with a septic tank. The tank is overloaded from volume AND it's being crushed by tree roots, so replacement will be very pricey. I don't know what the replacement estimate was, but I wouldn't be surprised if it started in the $20K's.

If you are moving into a house that has septic then I would STRONGLY reccomend you get a home inspection done. And make sure you let it be known that if the septic needs to be replaced that either THEY do it before you move in or they reduce the price of the house for whatever the amount it will take for YOU to have it replaced. I have seen that done before.
If there is sewage check to see if there have been any problems when it rains alot. I have also seen houses in the shore area have bad backups when it rains...but then again these are homes that are right up on the shore...further inland they rarely have that problem

Matty, for YOUR question...
3BR House with 1-car garage and basement (unfinished) is at 1650 SQ Feet.

4BR House with no garage (garage was converted into a playroom) and no basement is 1850 sq. feet.

Are unfinished basements and garages figured into the square footage?

the 4BR house felt a bit cramped, and we're seeing the 3BR house tomorrow. But I'm thinking the smaller house might be less cramped.

NO a garage and an unfinished basement is NOT included in the Square footage. Only what is considered living space.

you are right to think that sometimes the 3br might be more open space then the 4br.

Also don't be afraid to think long term. The average time a first time homeowner is in his/her/their first house is 5 years.

[Tenbatsuzen]

Update:

I was correct in my assumption, the 3BR was less cramped than the 4BR, even though the 3BR was originally a 4BR. (They converted one of the rooms, don't ask).

So.

We saw some houses today, and I'm surprised how different everything feels when you see it in real life vs. the MLS listings.

Lots of crappy, old neighborhoods with nice houses dotting the crap.

[Tenbatsuzen]

Realtytrac. Good site, or a ripoff?

[Justice4all]

never used it before.
if you have a realtor then let HER/HIM do the work for you.
If you want...try FSBO.com or ForSaleByOwner.com
those are houses not listed by real estate agents. You might see a house here and there that you may like.

Give it a shot.

[JimBeam]

My wife and I are having a townhouse built in Danbury CT and were recently extended a mortgage from Countrywide ( the builders lender of choice ) for a 7 year/ARM @ 5.25%.

That's a pretty good deal compared to some other offers but what we are onvioulsy conncerned about is what the rate would be if we were still there after 7 years.

How big of a jump would it make.

We are not doing anything w/ interest only and would be paying principal and interest.

I've been told that if we don't plan on living there for 30 years that I shouldn't take a 30 year fixed.

We do plan on being out I'm sure withing 5 years or so but in case we don't and that 7 years goes by we don't wanna have a mortgage that doubles.

Do you think the 7 year ARM @ 5.25 % is worth the risk ?

They've told me that a 10 year ARM is actually higher than both the 7 ARM and 30 fixed.

[Justice4all]

Actually the average time a new homeowner is in their house is about 5 years.

That is a very good rate from Countrywide, just be careful on the service side. They are somewhat shakey when it comes to crossing the finish line. But if you have a 7 year ARM for 5.25% I say go for it.

A 5 year arm can get you about 5% but that is not that big of a difference (unless you have a loan for over 350,000+)

And yes the 10 year arms are higher in rate (slightly) then the 7 year. In fact, 10 Years are closest to the 30 year fixed. (in rates)

It's up to you to not take a 30 year fixed, but I think you are playing it pretty smart. You are doing what I would suggest you do.
I usually put people in a 5 year arm, have them buy their rate down. If they do, they get the lowest rate that way...which I think as of right now is 4.875% (on the 5 year ARM)

Again, it sounds like you are playing it smart.

And in case you did not know....Countrywide is going to be bought out by Bank of America. (if it hasn't happened yet)

[JimBeam]

What's funny is my buddy had gotten me an offer for a no fee mortgage from BOA but what they weren't charging me in fees they were making up for, and them some, in the discount points.

To be honest it's all very confusing/overwhelming and i work in Finance. LOL

The one thing that was good w/ the no fee was that they weren't charging us PMI but Countrywide is.

I also have to see why Countrywide is charging me for a title search on a brand new complex.

Any ideas on that ?

[Justice4all]

Tell y ou what...I am going to shoot you a PM...look for it. (doing it now)

[angrymissy]

My wife and I are having a townhouse built in Danbury CT and were recently extended a mortgage from Countrywide ( the builders lender of choice ) for a 7 year/ARM @ 5.25%.

That's a pretty good deal compared to some other offers but what we are onvioulsy conncerned about is what the rate would be if we were still there after 7 years.

How big of a jump would it make.

We are not doing anything w/ interest only and would be paying principal and interest.

I've been told that if we don't plan on living there for 30 years that I shouldn't take a 30 year fixed.

We do plan on being out I'm sure withing 5 years or so but in case we don't and that 7 years goes by we don't wanna have a mortgage that doubles.

Do you think the 7 year ARM @ 5.25 % is worth the risk ?

They've told me that a 10 year ARM is actually higher than both the 7 ARM and 30 fixed.

It depends on whether or not you are willing to take a risk, however slight it may be.

If by any chance your townhouse does not appreciate in 7 years, or you don't gain enough equity, your payment could increase substantially, and you won't be able to refinance or sell to cover the loan and get out. ARM's resetting are one of the main reasons of the current so-called "housing crisis" right now.

They tried to sell us an ARM when we bought two years ago for a lower payment, and I am so glad we took the fixed. The market is so volatile right now that I can at least take comfort in the fact that my payment will stay the same.

If the payment went up, would you be able to cover it? It's hard to say what could happen in 7 years.

[Justice4all]

It depends on whether or not you are willing to take a risk, however slight it may be.

If by any chance your townhouse does not appreciate in 7 years, or you don't gain enough equity, your payment could increase substantially, and you won't be able to refinance or sell to cover the loan and get out. ARM's resetting are one of the main reasons of the current so-called "housing crisis" right now.

They tried to sell us an ARM when we bought two years ago for a lower payment, and I am so glad we took the fixed. The market is so volatile right now that I can at least take comfort in the fact that my payment will stay the same.

If the payment went up, would you be able to cover it? It's hard to say what could happen in 7 years.


Missy the odds that a condo or townhouse will NOT appreciate in 7 years time is very remote. I always tell my clients that the average increase rate is 3% for each year. Yes it can happen but the odds are more in the favor of it increasing, not decreasing over that time.

ARMS are a good deal if you do not plan on living in that house for more then 5-7 years. The average time you live in your first home is 5 years. And the floor rates are alot better on an ARM then a fixed. What the agent/Loan officer SHOULD emphasize is that you will have to refinance in 5 or 7 years so you can get more stability again.

For some people, like you and Jeff, a 30 year will be the kind of stability that some people like. Peace of mind and all that. But as long as you remember that you always can refinance at any time to get out of the loan, an ARM is not as scary.

Just make sure that there is no Pre-Payment penalty. Those last usually for 3 years. That means you are locked into that loan for 3 years or less and if you want out of it they charge you 2% of the rest of the loan amount.

[Freitag]

I mentioned this in the Frequent Flyer thread, but it bares mentioning here:

Apparently Continental offers you onepass miles on a few things:

1) 1250 miles per 10k financed if you go through one of their brokers, including Chase, Citi, etc. They also use Lending Tree.

This is the biggie:

2) 3000 miles per 10K of the PURCHASE PRICE if you use one of their REALTORs. No strings, as far as I can tell (so far) - but that's a laaaaaarge amount of FF miles.

So if you were buying a 350K house with a 50K downpayment, you could get almost 150K OnePass miles, which is a roundtrip first class ticket to Hawaii at any time.

[Freitag]

I actually think getting an ARM at this point may not be such a bad idea because with property values being driven down, your equity + the value of the house would potentially make a re-fi in four years VERY easy, at least, IMHO. I was looking at ARMs even though I'm firmly in the fixed camp.

Countrywide is very shady and they are the #1 reason we're in the subprime mess to begin with. They are getting absorbed by BOA so it's something you have to be aware of.

I actually took a look at a new construction the other day. It's gotten so bad that one of their incentives is now a 4.99 fixed APR. I would have jumped on it because Liz liked the house we saw so much but it was less than a fifth of an acre.

Plus, the lot they were going to put us in wasn't developed AT ALL, which means that there would be a lot of construction going on around us, especially since the plan is for Liz to work at home.

[Justice4all]

I actually think getting an ARM at this point may not be such a bad idea because with property values being driven down, your equity + the value of the house would potentially make a re-fi in four years VERY easy, at least, IMHO.(*a) I was looking at ARMs even though I'm firmly in the fixed camp.

Countrywide is very shady and they are the #1 reason we're in the subprime mess to begin with. They are getting absorbed by BOA so it's something you have to be aware of.(*b)

I actually took a look at a new construction the other day. It's gotten so bad that one of their incentives is now a 4.99 fixed APR. I would have jumped on it because Liz liked the house we saw so much but it was less than a fifth of an acre.

Plus, the lot they were going to put us in wasn't developed AT ALL, which means that there would be a lot of construction going on around us, especially since the plan is for Liz to work at home.

*A-Good way to look at it. I would always recommend an ARM to someone who would be re-financing in less then 5 years. Unless of course you are putting more then 25% down and have enough money to buy down the rate as well. And when you DO refi in say...4 or 5 years your value will be on the rise again and equity will not be a problem. It seems that you and Liz know what you are doing. Good to know.

*B- Cuntrywide IS shady. I have closed ZERO loans with them mostly because their sevicing SUCKS. And they needed a line of credit of 11.5 BILLION to bail themselves out of trouble last year. Bank of America gave them about 4 billion to help out...which lead (to no ones surprise at that point) to the buy-out.

[EffMeBoobs]

Not to change the subject or anything, but we're neighbors. I noticed you said Danbury and now you're in Somers, I'm not that far in Carmel. In a couple of years we plan on buying in Mahopac because the school system is wonderful there and the taxes are still Putnam county not Westchester. We live in a condo now. Good luck with everything! My wife and I are having a townhouse built in Danbury CT and were recently extended a mortgage from Countrywide ( the builders lender of choice ) for a 7 year/ARM @ 5.25%.

That's a pretty good deal compared to some other offers but what we are onvioulsy conncerned about is what the rate would be if we were still there after 7 years.

How big of a jump would it make.

We are not doing anything w/ interest only and would be paying principal and interest.

I've been told that if we don't plan on living there for 30 years that I shouldn't take a 30 year fixed.

We do plan on being out I'm sure withing 5 years or so but in case we don't and that 7 years goes by we don't wanna have a mortgage that doubles.

Do you think the 7 year ARM @ 5.25 % is worth the risk ?

They've told me that a 10 year ARM is actually higher than both the 7 ARM and 30 fixed.

[JimBeam]

One of the guys explained a little more to be about the ARM aprt and I think I kinda understood it.

He said that even withthe adjusted, if I took it at say 5.25, its capped so the most it could ever go up is twice that amount, meaning it'd never go higher than 10.5.

The jargon he used was capped a 5/2/5 or something.

Also said that w/ the adjusted there is a chance you'll actually get a better rate in if you stay past the number of years.

That was very top line how he explained it to me but it made a little more sense.

I think I just noticed that Chase, who I do my banking with, offers a non money down 30 year fixed.

Not sure what kinda rates they'd get for that but I may look into it for comparison's sake.

[Justice4all]

One of the guys explained a little more to be about the ARM aprt and I think I kinda understood it.

He said that even withthe adjusted, if I took it at say 5.25, its capped so the most it could ever go up is twice that amount, meaning it'd never go higher than 10.5.

The jargon he used was capped a 5/2/5 or something.

Also said that w/ the adjusted there is a chance you'll actually get a better rate in if you stay past the number of years.

That was very top line how he explained it to me but it made a little more sense.

I think I just noticed that Chase, who I do my banking with, offers a non money down 30 year fixed.

Not sure what kinda rates they'd get for that but I may look into it for comparison's sake.


5/2/5 means it adjusts every 5 months, it will go no higher then 2% of the previous amount and it caps off at 5% greater then the amount you signed on for.

for example: you sign onto a 5 year arm for 5.25%. Your rate will begin to adjust in month #61 (the start of year 6) and will change every 5 months. It can increase the first time to 7.25% but NO higher. It can only go up to 10.25% No higher.

[mendyweiss]

5/2/5 means it adjusts every 5 months, it will go no higher then 2% of the previous amount and it caps off at 5% greater then the amount you signed on for.

for example: you sign onto a 5 year arm for 5.25%. Your rate will begin to adjust in month #61 (the start of year 6) and will change every 5 months. It can increase the first time to 7.25% but NO higher. It can only go up to 10.25% No higher.
I'm impressed that you can make sense at 3:40 A.M. !!!!

[Freitag]

Banking with Chase - Not sure what kinda rates they'd get for that but I may look into it for comparison's sake.

Jim:

I know that Continental offers miles if you do business with Chase on a mortgage, I believe you get 1250 miles for every 10K you finance, but you have to start the process through the continental website.

If you are looking into chase, there's no reason why you can't swing a free flight out of it too.

PM me for more details...

[Justice4all]

I'm impressed that you can make sense at 3:40 A.M. !!!!

Thanks! When you do this for more than 4 years you start to recite it in your sleep!

[JimBeam]

So I looked into the Chase mortages and they weren't any good compared to the others I was offered.

I wanted to look into a non money down 40 year one but my wife and I's debt to income wasn't good enough.

Not sure what kinda interest rate that'd be anyway.

Would've been nice to take the money we are using for the down payment and use it to pay down some other debts.

Ended up taking a 30 year for 6.125%.

Gonna be about $2300 a month so that's not too bad.

[Tenbatsuzen]

So I looked into the Chase mortages and they weren't any good compared to the others I was offered.

I wanted to look into a non money down 40 year one but my wife and I's debt to income wasn't good enough.

Not sure what kinda interest rate that'd be anyway.

Would've been nice to take the money we are using for the down payment and use it to pay down some other debts.

Ended up taking a 30 year for 6.125%.

Gonna be about $2300 a month so that's not too bad.

40 year deals are crushers - you pay 10 more years of interest...

[JimBeam]

I was thinking that as well but I figured we'd probably refinance at some point anyway.

[Tenbatsuzen]

I was thinking that as well but I figured we'd probably refinance at some point anyway.

Yeah, but I would think a re-fi would be harder on a 40 year because your equity is low low.

[Justice4all]

Yeah, but I would think a re-fi would be harder on a 40 year because your equity is low low.



Well that all depends on how much money you decide to put down.

Jim, if you are looking for no money down that is 100% financing. And I do not know ANYONE who is doing that now. After the real estate and mortgage market crashed most, if not all, of the lenders pulled their 100% finance loans from their programs. Too many people were not only losing equity on their homes but with the lowering house prices, were in the red. Mortgages were more then the value of the house.

I suggest you put at least 5% down and get a loan that way. I would not suggest 100% financing.

Matty is right, the 40 year fixed is basically a loan with a 40 year mortgage and not 30. Basic reason? To lower your payment by about 100.00 a month while remaining in a fixed loan. However, the 40 year fixed rates are always higher then the 30 year. So do not think if you get a 6.125% on a 30 year then you will also get that in a 40 year. Odds are it would be 6.625% or higher.

[Freitag]

30-year fixed rate mortgages are now LOWER than a 5/1 ARM.

Holy cow.

5.66% average for 30 year, 5.81 average for ARM.

Yikes.

[JPMNICK]

30-year fixed rate mortgages are now LOWER than a 5/1 ARM.

Holy cow.

5.66% average for 30 year, 5.81 average for ARM.

Yikes.

yea but the rate means nothing to most people, the payment is going to be lower per month on the ARM which is why people still get them

[Freitag]

JPM, on a 5.81 average for the ARM, the payments will still be higher than the fixed.

5.81 is what the rate STARTS at, I thought...

[PhishHead]

wow a double post over an hour later.

[JPMNICK]

using the rates you posted on a 375,000 loan amount the payments are like below.

I/O would be 1815

30 yr fixed would be 2167.01

so you save about 250 dollars per month on the mortgage, and both are fixed payments for 5 years.

[Freitag]

using the rates you posted on a 375,000 loan amount the payments are like below.

I/O would be 1815

30 yr fixed would be 2167.01

so you save about 250 dollars per month on the mortgage, and both are fixed payments for 5 years.

Why are we bringing I/O rates into this? The numbers I quoted was for a standard 5/1 ARM, not a 5/1 I/O ARM.

People who get I/O's are usually home flippers, I thought, who just want a quick loan to sell off the house.

[Justice4all]

yea but the rate means nothing to most people, the payment is going to be lower per month on the ARM which is why people still get them


Not true at ALL Nick. Most people do care about the best rate. They know it means lower payments.

As of right now, on an A paper loan (meaning, you have credit over 680 and have good income) the 30 year fixed, paying no points, can get you 6%-5.875%.

A 5/2/5 Arm will get you 6.25% (roughly) with NO points.


HOWEVER, if you choose to pay the points the lowest you would get on a 30 year right now is 5.375%.
The lowest on a 5 year arm? 5%.
Arms always have a better floor rate then 30 year fixed.

[Snacks]

Not true at ALL Nick. Most people do care about the best rate. They know it means lower payments.

As of right now, on an A paper loan (meaning, you have credit over 680 and have good income) the 30 year fixed, paying no points, can get you 6%-5.875%.

A 5/2/5 Arm will get you 6.25% (roughly) with NO points.


HOWEVER, if you choose to pay the points the lowest you would get on a 30 year right now is 5.375%.
The lowest on a 5 year arm? 5%.
Arms always have a better floor rate then 30 year fixed.

how about showing the difference in monthly payments. what would be the payment on 6% compared to a payment with 5.35%? Use $400,000 as the borrowed amount. tell me the monthly payments for both rates.

[JPMNICK]

how about showing the difference in monthly payments. what would be the payment on 6% compared to a payment with 5.35%? Use $400,000 as the borrowed amount. tell me the monthly payments for both rates.

this was my point. no one cares about an arbitrary rate number, it means nothing to them. they care about how much comes out of their paycheck. i know the rate is what control the payment, but no one cares about the percentage.

[Justice4all]

how about showing the difference in monthly payments. what would be the payment on 6% compared to a payment with 5.35%? Use $400,000 as the borrowed amount. tell me the monthly payments for both rates.

Sure thing!
How about I base it on a 380K loan? That is a 400,000 purchase with 5% down.

380K mortgage
at 6%- P&I payments are 2278.29
at 5.500%- 2157.60
at 5.375%- 2127.89

and if you went with a 5 year arm and payed the points
5%- 2039.92


So in this case....1% is a 200 dollar difference in payment.

[JimBeam]

So I had verbally locked in w/ 6.125% last Friday but they called me on Monday to tell me that they neglected to get the physcial address of the property and couldn't lock me im w/o it.

Actually turned out better for me since the rates came down a bit this week so now I'm locled at 5.825%

I don't know how it effects my monthly payments and closing costs yet but I doubt it's much.

Saving some money either way so that can't be bad.

[Tenbatsuzen]

So I had verbally locked in w/ 6.125% last Friday but they called me on Monday to tell me that they neglected to get the physcial address of the property and couldn't lock me im w/o it.

Actually turned out better for me since the rates came down a bit this week so now I'm locled at 5.825%

I don't know how it effects my monthly payments and closing costs yet but I doubt it's much.

Saving some money either way so that can't be bad.

You got a quarter point cut off... that's no small potatoes.

[Justice4all]

You got a quarter point cut off... that's no small potatoes.

Odds are that might mean a 50.00 a month difference in the mortgage payment. roughly speaking.

And to be able to get under 6% is a good thing. Be pleased!

[Tenbatsuzen]

Odds are that might mean a 50.00 a month difference in the mortgage payment. roughly speaking.

And to be able to get under 6% is a good thing. Be pleased!

Yeah, that's about 600 bucks a year - that's a plane ticket to something warm.

[Justice4all]

Yeah, that's about 600 bucks a year - that's a plane ticket to something warm.


OR....if invested properly...that could grow to about 6 or 7K in 5 years. Maybe even more.
Or he could also pay more towards the principle at the end of every year and reduce it even more.

If you pay one extra payment every year towards your principle it will reduce the amount of years you will pay off your mortgage by about 5 less years.

a 30 year fixed will become a 25 year fixed.

[Tenbatsuzen]

I have to share, this is too good:

I'm shopping for a home in Central NJ. There's some decent houses.

I saw this one and decided to take a peek:

http://img406.imageshack.us/img406/8797/house1pv9.jpg

It's a nice colonial. Nice frontage, etc. bedrooms, bathrooms, etc.

What's inside, you say?

HORROR BEYOND BELIEF.

http://img340.imageshack.us/img340/7126/house2xg3.jpg

OK, this isn't so bad. It looks like Grandma's house. I can deal with this.

But wait...

http://img442.imageshack.us/img442/8181/house3qw3.jpg

Oh, this is gonna go south in a hurry...

Hey, I need a home office...

http://img267.imageshack.us/img267/5109/house5ll8.jpg

Where are the kids gonna sleep?

http://img412.imageshack.us/img412/7383/house7vx0.jpg

Oh, and this carpet is just full of awesome:

http://img180.imageshack.us/img180/1075/house4ds7.jpg

Seriously. Do people NOT WATCH THE FUCKING NEWS? How this is a horrible housing market? How can you seriously put a house on the market that's nice on the outside and straight out of the late 70's to mid-80's on the inside and charge a premium? What part of NEUTRAL COLORS is hard to understand?

I'm gonna keep an eye on this house. No way it sells anywhere NEAR it's asking price.



I clicked on one and got a really, really rude shock.

[Fallon]

Hey, it looks great for parties.

http://img256.imageshack.us/img256/6025/b4b78452a03949fe82ceb8cqf9.jpg

http://img340.imageshack.us/img340/4966/bncmb6.jpg

[Tenbatsuzen]

Hey, it looks great for parties.

http://img340.imageshack.us/img340/4966/bncmb6.jpg

Hey, there's Liz and I, second and third from right!

[Justice4all]

I have to share, this is too good:

I'm shopping for a home in Central NJ. There's some decent houses.

I saw this one and decided to take a peek:

http://img406.imageshack.us/img406/8797/house1pv9.jpg

It's a nice colonial. Nice frontage, etc. bedrooms, bathrooms, etc.

What's inside, you say?

HORROR BEYOND BELIEF.

http://img340.imageshack.us/img340/7126/house2xg3.jpg

OK, this isn't so bad. It looks like Grandma's house. I can deal with this.

But wait...

http://img442.imageshack.us/img442/8181/house3qw3.jpg

Oh, this is gonna go south in a hurry...

Hey, I need a home office...

http://img267.imageshack.us/img267/5109/house5ll8.jpg

Where are the kids gonna sleep?

http://img412.imageshack.us/img412/7383/house7vx0.jpg

Oh, and this carpet is just full of awesome:

http://img180.imageshack.us/img180/1075/house4ds7.jpg

Seriously. Do people NOT WATCH THE FUCKING NEWS? How this is a horrible housing market? How can you seriously put a house on the market that's nice on the outside and straight out of the late 70's to mid-80's on the inside and charge a premium? What part of NEUTRAL COLORS is hard to understand?

I'm gonna keep an eye on this house. No way it sells anywhere NEAR it's asking price.



I clicked on one and got a really, really rude shock.

Wow that was one of the worst interiors in a house I have seen in a while. It looked like they had NO idea where to go decoration wise. Eeeeesh!

But....if the colors were something to more your style....did the rooms have enough space for you? Did you like the shape of the bedroom and did they have enough bathrooms ect. ect.?
Yes I would put a low bid on the house. When they ask "Why?" tell them that you will need to do some MAJOR renovating to the interior to make it to the way you want it.

How is the neighborhood? Nice quiet street?

[Jujubees2]

Love the mirrors on either side of the fireplace. Reminds me of the mirrored wall that was in my house when we bought it. What a pain it was to take it down.

[zathrus]

if its a good price, nice neighborhood, ect. I would get a credit card for home depet/lowes and go to town.

[Freitag]

There's a house in the same neighborhood with a pool for the same price point. And it's a LOT nicer.

Incidentally, even though I love working with my hands, I don't think I could quantify my first house being a fixer-upper. I'm already going to be commuting an hour each way for work in most of the locations that I'm looking in, so that doesn't exactly leave a lot of time to work on it.

I can understanding redecorating/painting one or two rooms, but this is a massive, massive project.

Just from the looks of the pictures, this is more than just repainting. It's removing wood paneling from at least five rooms + repainting, recarpeting or re-flooring all the rooms, removing wallpaper, and then pretty much demolishing the entire family room.

Not worth it. And the pics on the listing didn't even show the bathrooms, which I can imagine is an even worse nightmare.

[JPMNICK]

that house will be 20% cheaper in 6 months. i was just buying a house and i bailed on it becuase there was some things in the inspection that were expensive to fix. the home owner did not want to budge to much on the price so i punched out. lets see how long it sits. i will offer 40k less in 6 months if it is still there.

[Tenbatsuzen]

http://img245.imageshack.us/img245/1764/514291121009a7dju8.jpg

[JPMNICK]

http://img245.imageshack.us/img245/1764/514291121009a7dju8.jpg

see if you can negotiate those chairs into the price of the house. i would go as high as 11k for them. they make the room

[mendyweiss]

http://img245.imageshack.us/img245/1764/514291121009a7dju8.jpg
And People Say People From Jersey Have No Taste ! Ha

[Freitag]

The weirdest thing is that these houses I'm showing you are relatively newer - they were all built in the mid-80's. It's very disenheartening to see two houses in the same town and the same neighborhood to look that nice on the outside and that horrible on the inside.

[Tenbatsuzen]

Well, I found something, good neighborhood, good land...


Needs a lot of work.

It was built in the 70's and hasn't been updated since then.

[Justice4all]

any pics???

[JimBeam]

Those purple chairs look like they came off of the set of some 70's talk show.

They're even arrnaged like that.

Somebody tried to pull a Kramer and run their own talk show sans cameras.

[FUNKMAN]

those purple chairs got a nice open area for farting...

possible rimming capabilities too

[Freitag]

Bump.

So what do I need to take with me if I'm going to get pre-qualified?

[MobCounty]

Bump.

So what do I need to take with me if I'm going to get pre-qualified?

Income tax records, and all the ways you can think of to prove you make money w-2, 1099's etc. Proof you are employed, first paycheck, last paycheck. Proof of previous employment, w-2's help. Several bills with your identity and current address (they want to make sure you are you).

Also have a stable, and steady savings account with a good chunk of money in it. It's also wise to have 20% downpayment ready.. If you own more than 20% of the house you can avoid PMI (mortgage insurance). PMI in our area is around 300 bucks a month, wasted if you ask me.

Keep in mind mortgage costs get around 2% of the cost of the house. So be prepared to have a few extra grand on hand too..

[Freitag]

Besides Bankrate.com, is there any reputable site to go to get a listing of current bank's mortgage APRs? I'm starting to look to get prequalified, and I want to know what options I have out there.

[A.J.]

I have to share, this is too good:

I'm shopping for a home in Central NJ. There's some decent houses.

I saw this one and decided to take a peek:

http://img406.imageshack.us/img406/8797/house1pv9.jpg

It's a nice colonial. Nice frontage, etc. bedrooms, bathrooms, etc.

What's inside, you say?

HORROR BEYOND BELIEF.

http://img340.imageshack.us/img340/7126/house2xg3.jpg

OK, this isn't so bad. It looks like Grandma's house. I can deal with this.

But wait...

http://img442.imageshack.us/img442/8181/house3qw3.jpg

Oh, this is gonna go south in a hurry...

Hey, I need a home office...

http://img267.imageshack.us/img267/5109/house5ll8.jpg

Where are the kids gonna sleep?

http://img412.imageshack.us/img412/7383/house7vx0.jpg

Oh, and this carpet is just full of awesome:

http://img180.imageshack.us/img180/1075/house4ds7.jpg

Seriously. Do people NOT WATCH THE FUCKING NEWS? How this is a horrible housing market? How can you seriously put a house on the market that's nice on the outside and straight out of the late 70's to mid-80's on the inside and charge a premium? What part of NEUTRAL COLORS is hard to understand?

I'm gonna keep an eye on this house. No way it sells anywhere NEAR it's asking price.



I clicked on one and got a really, really rude shock.

Looks like a job for....

http://cache.viewimages.com/xc/2547591.jpg?v=1&c=ViewImages&k=2&d=17A4AD9FDB9CF1934A2752006EF5F0EDCD1EBBF89B55D5CB 5A5397277B4DC33E

[Tenbatsuzen]

I think we found something. Wait for it...

[Freitag]

OK, so we found a house.

I was asked about comps and stuff - there's a GLUT of houses in the town we are looking in. I had an idea of a bid to put in, but I'm not sure, with this current market, where the bid should be.

Any sites besides Trulia where I can find this out?

[JPMNICK]

OK, so we found a house.

I was asked about comps and stuff - there's a GLUT of houses in the town we are looking in. I had an idea of a bid to put in, but I'm not sure, with this current market, where the bid should be.

Any sites besides Trulia where I can find this out?

the best way is to have a good RE agent who can help you price the bid. shoot really low, see what they come back with

[Freitag]

the best way is to have a good RE agent who can help you price the bid. shoot really low, see what they come back with

I looked at the comps, and the sold prices are in the neighborhood over the past two years are close to what the listing prices are right now. Only about plus or minus 5k differential.

My only issue with a lowball offer is pissing off the homeowner.

[JPMNICK]

I looked at the comps, and the sold prices are in the neighborhood over the past two years are close to what the listing prices are right now. Only about plus or minus 5k differential.

My only issue with a lowball offer is pissing off the homeowner.

check how many DOM has it been? if they have been sitting on it for a while, a lowball is not that bad.

and comps from 2 years ago mean nothing. drop 10% at least off of it

[Freitag]

check how many DOM has it been? if they have been sitting on it for a while, a lowball is not that bad.

and comps from 2 years ago mean nothing. drop 10% at least off of it

Define "a while" - a month? two months?

We are very attractive homebuyers. We have no contingencies. I can break my lease at any time with 60 days notice.

[JPMNICK]

Define "a while" - a month? two months?

We are very attractive homebuyers. We have no contingencies. I can break my lease at any time with 60 days notice.

a while is anything over 120-150 days. one to two months they are still testing the market.

see if your RE agent can sort the list by DOM, and then lowball the ones who have been on for a while.

[Recyclerz]

I don't know if this came up earlier in the thread but www.zillow.com is a pretty good ball park estimator of value.

Also a lot of economic studies have shown that homeowners (still living in their house) tend to stick to the remembered high prices in the neighborhood; real estate agents want to take any reasonable offer to get their commissions earlier, they generally don't want to hold out for the highest offer. A lowball offer of 10% lower than asking shouldn't be insulting and may work.

[Freitag]

I don't know if this came up earlier in the thread but www.zillow.com is a pretty good ball park estimator of value.

Also a lot of economic studies have shown that homeowners (still living in their house) tend to stick to the remembered high prices in the neighborhood; real estate agents want to take any reasonable offer to get their commissions earlier, they generally don't want to hold out for the highest offer. A lowball offer of 10% lower than asking shouldn't be insulting and may work.

We'll see, I'm going to talk with my dad tonight as well.

I used city-data.com (great forums, BTW!) and trulia.

[Tenbatsuzen]

So

I just put an offer in on a house.

Let's see what happens.

[Freitag]

So

I just put an offer in on a house.

Let's see what happens.

Bid was rejected with no counter offer.

I took turns getting yelled at by both my real estate agent and my parents this weekend, which was such a joy. My agent yelled at me because she thought I was bidding too low (which I kind of agreed with) and my parents yelled at me because I immediately just wanted to put a final (higher) bid in of "this is my price, take it or leave it".

bleah.

I really want the house, but I have no clear idea of what the true value of it is. And how bad the situation is gonna get.

[Freitag]

So...

I bought a house!!

[angrymissy]

Did you close?

[Freitag]

Did you close?

Under contract. Still have inspections and stuff to get done, but I don't foresee any major problems. (the place is less than 15 years old) The three major hurdles left are inspection, appraisal, and mortgage, I believe.

We had to push closing because our apartment would only let us out of our lease after 60 days... and we couldn't afford both the house payment + the apartment.

[Freitag]

And I should correct this to say that "WE" bought a house. Not "I" bought a house.

[A.J.]

So...

I bought a house!!

And I should correct this to say that "WE" bought a house. Not "I" bought a house.

Congratulations to you! (plural you).

[JPMNICK]

congrats to the both of you!

[Freitag]

Bah!

I locked my rate in at 6 and the rate has now dropped to 5.75.

Boooooo.

[Jujubees2]

Welcome to the wonderful world of home ownership. Now get a paint brush and get to work.

[JPMNICK]

Bah!

I locked my rate in at 6 and the rate has now dropped to 5.75.

Boooooo.

haha shit happens. Do not sweat it to much. You will feel worse in a couple of weeks when it is down to 5.5 due to this Fannine/Freddie thing. and then in a year when it is at 6 3/8 you will feel better again

[Freitag]

Continuing in a series:

"HORRIFICALLY UGLY INTERIORS"

http://www.glorianilson.com/20809974

Outside? Beautiful! Inside? Not so much!

[JPMNICK]

Continuing in a series:

"HORRIFICALLY UGLY INTERIORS"

http://www.glorianilson.com/20809974

Outside? Beautiful! Inside? Not so much!

it's not that bad, it is just HGTV

500 bucks worth of paint and it would be pretty good

[Tallman388]

Wow you've got some painting to do. Could be worse though.
Is that wallpaper or tile in the kitchen?

[futool]

Continuing in a series:

"HORRIFICALLY UGLY INTERIORS"

http://www.glorianilson.com/20809974

Outside? Beautiful! Inside? Not so much!

Is that the one your getting / put a bid on?
It's only a few minutes from my office in Red Bank.

[Freitag]

That's not mine. I'm just looking at some other places while I'm bored at work.

Liz and I have SOME painting to do, but not much. Just the master and guest bedrooms.

One of the reasons we liked the place we got is that it hardly needed work.

[Freitag]

So...

My mortgage is at 6 percent. rates could potentially fall to 4.5%. I take it there's no chance of me refinancing as I've only made one payment on the home, right?

[JPMNICK]

So...

My mortgage is at 6 percent. rates could potentially fall to 4.5%. I take it there's no chance of me refinancing as I've only made one payment on the home, right?

depending on the bank, you have to be in for a certain amount of time before you can refinance

[Tazz]

I see rates now where I can save a full percentage point. I have only been paying my mortgage for 8 months, but I am not locked in to anything.

Is it worth looking? Are there huge closing costs associated with refinancing?

[angrymissy]

My bank wanted $5k closing costs for a refi. Fuck that.

Also have to make sure you don't have a prepayment penalty.

[Freitag]

Mortgage rates have now hit 3.875 for a 30 year fixed with no points.

[Zorro]

I see rates now where I can save a full percentage point. I have only been paying my mortgage for 8 months, but I am not locked in to anything.

Is it worth looking? Are there huge closing costs associated with refinancing?

If you've only been in your mortgage 8 mos you'd have to drop at least a point before it becomes a good idea to even look. The bank may not charge points, but you'll have (not inclusive) attorney fees, appraisal fees, mortgage taxes and title fees. They may eat up any savings. Prepayment penalties are rare on fixed rate mortgages, but you can always ask.

Before you do anything get answers to the above questions. Otherwise they'll pull a credit report and thats' neve good unless necessary.

[Tenbatsuzen]

If you've only been in your mortgage 8 mos you'd have to drop at least a point before it becomes a good idea to even look. The bank may not charge points, but you'll have (not inclusive) attorney fees, appraisal fees, mortgage taxes and title fees. They may eat up any savings. Prepayment penalties are rare on fixed rate mortgages, but you can always ask.

Before you do anything get answers to the above questions. Otherwise they'll pull a credit report and thats' neve good unless necessary.

boss.... you're answering a question from almost 2 years ago...

[Jujubees2]

In the process of refinancing from a 6% (25 year) to a 3.75 (ten year). Closing costs suck but I was able to include them in the refi as well as a home improvement loan I took out for a new kitchen and even with all that it's not going to be much more per month than I'm paying now and I'll be paid off in ten years (still have about 17 years left on the 25 year loan)

[Tenbatsuzen]

In the process of refinancing from a 6% (25 year) to a 3.75 (ten year). Closing costs suck but I was able to include them in the refi as well as a home improvement loan I took out for a new kitchen and even with all that it's not going to be much more per month than I'm paying now and I'll be paid off in ten years (still have about 17 years left on the 25 year loan)

I'm actually doing a straight up rate mod. They drop the rate to the current rate for a one-time fee. I'll save a boat load of cash every month.

[Zorro]

boss.... you're answering a question from almost 2 years ago...

Guess I'm not pay attention guy.

...how much is the one time fee to adjust the rate

[Zorro]

In the process of refinancing from a 6% (25 year) to a 3.75 (ten year). Closing costs suck but I was able to include them in the refi as well as a home improvement loan I took out for a new kitchen and even with all that it's not going to be much more per month than I'm paying now and I'll be paid off in ten years (still have about 17 years left on the 25 year loan)

Why is the guy that says... "I'll be able to pay off my mortgage in two and a half years" popping into my head?

[Serpico1103]

In the process of refinancing from a 6% (25 year) to a 3.75 (ten year). Closing costs suck but I was able to include them in the refi as well as a home improvement loan I took out for a new kitchen and even with all that it's not going to be much more per month than I'm paying now and I'll be paid off in ten years (still have about 17 years left on the 25 year loan)

This didn't make sense to me. A much shorter term (25 down to 10) for a greater amount (added closing costs and home improvement loan) doesn't equal to much more per month(even considering the lower rate)?

I used a simple mortgage calculator: 100,000 at 6% for 25 years- $644 per month
100,000 at 3.75% for 10 years- $1000 per month
add closing and home improvement 120,000 at 3.75% for 10 years- $1200 per month

I just used an extra $20K for the example. Is my math wrong?

$193K,$120K ,$144K total amount of payments for each loan respectively.

[Jujubees2]

This didn't make sense to me. A much shorter term (25 down to 10) for a greater amount (added closing costs and home improvement loan) doesn't equal to much more per month(even considering the lower rate)?

I used a simple mortgage calculator: 100,000 at 6% for 25 years- $644 per month
100,000 at 3.75% for 10 years- $1000 per month
add closing and home improvement 120,000 at 3.75% for 10 years- $1200 per month

I just used an extra $20K for the example. Is my math wrong?

$193K,$120K ,$144K total amount of payments for each loan respectively.

What I should say its that it's not going to be much more than what we pay now for the original mortgage plus the home improvement loan (two separate payments). The two combined now are about $2000/month and the new mortgage will just a tad over that.

[Freitag]

Guess I'm not pay attention guy.

...how much is the one time fee to adjust the rate

1 point.

[Justice4all]

1 point.

Of the original loan amount or the current loan amount?