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I'm thoroughly amused that this has morphed into a home-buying advice thread. But I'll throw my 2 cents into it and just let BenzS55 ignore it.
He could do an FHA loan with just 3.5% down. If he spends $200k on a house, he'd only be looking at $7000 down plus closing costs. There is up front MIP of 1.75% which is almost always financed with the loan. Then monthly MIP at an annual rate of .85%. On an FHA loan, the monthly MIP stays with the loan forever, but that likely wouldn't matter as this likely wouldn't be the house he'd die in....although you never know with his track history of goofiness.
We can do FHA loans down to a 580 middle credit score for the lowest borrower. I assume your scores suck, so you might be looking at a rate of around 4.5%. In that case, on a $200k purchase price, you'd be looking at a monthly payment of $1132 (including monthly MIP) plus escrow for tax & insurance. Insurance would likely be around $75/mo, but I have no clue how much taxes are in your area. Take your annual property taxes and divide by 12, then add that much to the total to figure your total monthly payments. In IL, we get completely fukked on taxes, so my escrow payments for property taxes and insurance are higher than my mortgage payments. I'm assuming that is not the case in your area as we are the highest in the entire country.
The positive with FHA financing is that the loans are assumable. This means that if rates shoot through the roof and he wants to sell in the future, another qualified buyer could assume his mortgage at his low rate. Then they'd have to just come up with the difference via money down or a 2nd mortgage. This could be a huge selling point in the future. Conventional loans are not assumable.
That is awesome, professional advice. I think Benz55 read it and just heard the voice of the teacher in a"Peanuts" cartoon. But I found it interesting.
I forgot all about FHA. I haven't qualified in so long I can't remember. These days my only exposure to FHA is in buying the repos after they blow themselves up (financially that is, though to see the houses you'd sometimes wonder).
Man I must say its funny to see how this whole thread has gone. My wife said to me a while ago what are you doing on your phone? I said watching a show... She said I don't hear nothing, I replied well it's more like reading a book. She said really what is it? I said I think it's titled "Salvaged Title." She said what's it about...I said well...
Its about a guy who fixes a salvage title car, but then goes into screen plays and then some guys get into it and cut each other down with out any cursing and keep it as G rated as possible. She said must be funny I see you giggling over there... I said I don't know why my dumb A** just keeps sitting here reading it but it is interesting to hear this guy Dave and NYC go at it!!! BUT THE BEST THING IS ITS A TRUE STORY AND THERE IS NEW EPISODES TO THE BOOK EVERY NIGHT....LMAO
On the serious note: I have been in banking a little over 10 years I run 22 banks in North Alabama, have a huge State Farm business with my wife and like to think I know a lot about life, but now not only do I get learn about my W221 now I get to hear economic predictions about the economy and basically everything about mortgage loans which refreshed back memories of my mortgage days at the bank. I will say this that you all have given him great advice about what to do with life in regards to getting a home and his options, regardless to how you viewed his car idea and you argue you all still keep trying to give advice and good advice. If you can't run with one of these ideas that some of these guys have given you then don't post in here anymore. I'm not skilled in fixing my car but I am skilled in making money, and these guys advice who have been in the business for 26 years know what they are talking about....
If you can predict all of the gas prices and mortgage rates for some people on here that's great but I'm set when it comes to that, I AM HOWEVER INTERESTED IN WHEN JESUS IS COMING BACK. So if you have any predictions on that even though the bible specifically states that no man shall no the time when he will return and that he will come like a thief in the night THEN please by all means let that be the next topic lol. I will be interested to know predictions. This is too much I'm dying over here.
Last edited by jawilliams07; 06-23-2016 at 10:45 PM.
That is awesome, professional advice. I think Benz55 read it and just heard the voice of the teacher in a"Peanuts" cartoon. But I found it interesting.
I AM HOWEVER INTERESTED IN WHEN JESUS IS COMING BACK. So if you have any predictions on that even though the bible specifically states that no man shall no the time when he will return and that he will come like a thief in the night THEN please by all means let that be the next topic lol. I will be interested to know predictions. This is too much I'm dying over here.
With the f'ed up state of the world, how godless it's become, and the loss of almost all morals, my guess would be sooner rather than later.
Originally Posted by Mike5215
Sucks because how the F am I supposed to write mortgage lending into the script?
I have some great stories back from my broker days. I'm sure that the script could really be juiced up. Let me sleep on it.
Man I must say its funny to see how this whole thread has gone. My wife said to me a while ago what are you doing on your phone? I said watching a show... She said I don't hear nothing, I replied well it's more like reading a book. She said really what is it? I said I think it's titled "Salvaged Title." She said what's it about...I said well...
Its about a guy who fixes a salvage title car, but then goes into screen plays and then some guys get into it and cut each other down with out any cursing and keep it as G rated as possible. She said must be funny I see you giggling over there... I said I don't know why my dumb A** just keeps sitting here reading it but it is interesting to hear this guy Dave and NYC go at it!!! BUT THE BEST THING IS ITS A TRUE STORY AND THERE IS NEW EPISODES TO THE BOOK EVERY NIGHT....LMAO
On the serious note: I have been in banking a little over 10 years I run 22 banks in North Alabama, have a huge State Farm business with my wife and like to think I know a lot about life, but now not only do I get learn about my W221 now I get to hear economic predictions about the economy and basically everything about mortgage loans which refreshed back memories of my mortgage days at the bank. I will say this that you all have given him great advice about what to do with life in regards to getting a home and his options, regardless to how you viewed his car idea and you argue you all still keep trying to give advice and good advice. If you can't run with one of these ideas that some of these guys have given you then don't post in here anymore. I'm not skilled in fixing my car but I am skilled in making money, and these guys advice who have been in the business for 26 years know what they are talking about....
If you can predict all of the gas prices and mortgage rates for some people on here that's great but I'm set when it comes to that, I AM HOWEVER INTERESTED IN WHEN JESUS IS COMING BACK. So if you have any predictions on that even though the bible specifically states that no man shall no the time when he will return and that he will come like a thief in the night THEN please by all means let that be the next topic lol. I will be interested to know predictions. This is too much I'm dying over here.
I read this to my wife last night we loao!!
What if, bear with me. Jesus was a Jewish man, and when the Jews offed him via ponchos pilot, they had the the bible made as a religion for the gentiles. Why though? Perhaps to put the masses into shackles while they make scheckles? Perhaps so under thier control a large part of the world could be overtaken under the name of another religion? Perhaps I should stop saying perhaps?
What if, now bear with me. When we die, we continue to live on along with Time. But we move into the fifth dimension from the fourth?
Last edited by mercedesbenzs55; 06-24-2016 at 10:07 PM.
What if, bear with me. Jesus was a Jewish man, and when the Jews offed him via ponchos pilot, they had the the bible made as a religion for the gentiles. Why though? Perhaps to put the masses into shackles while they make scheckles? Perhaps so under thier control a large part of the world could be overtaken under the name of another religion? Perhaps I should stop saying perhaps?
What if, now bear with me. When we die, we continue to live on along with Time. But we move into the fifth dimension from the fourth?
I just happened to have a picture of ponchos pilot for your reference:
And I've always been a fan of The Fifth Dimension. No need to take a step backwards.
Be very careful buying property. If you are buying to fix and flip, you need to treat it like a business and make sure you understand it well before wading in. There are plenty of paper and online resources. Most people get burned on their first few flips.
If you are buying to invest, a home is a terrible investment for most people, although they either don't realize it or won't admit it. If you have serious issues with renting (which often makes more financial sense) and feel you must own for personal, emotional reasons, then take the plunge.
If you can find an overlooked, underpriced fixer, like your car, you may do ok. Fixing a house can be a hell of a lot easier than several of the S550 repairs you managed on your own.
If you are buying to invest, a home is a terrible investment for most people, although they either don't realize it or won't admit it. If you have serious issues with renting (which often makes more financial sense) and feel you must own for personal, emotional reasons, then take the plunge.
This is true in some cases. In most markets home appreciation is slow and modest.
but for many people who simply can't manage the discipline to save and invest, buying a home and paying it off is their only hope for retirement.
I agree with NYC, but in the PNW buying a home is a no brainer if you can afford it. My house has gone up 30% in the last 2 years that I have owned it. In Seattle we have an urban growth boundary that prevents spec building and keeps the prices high. All the tree huggers up here will never allow that to expand. Portland does not have this, thus the reason the housing crash was so bad down there. It is still a pretty hot market though. The bigger problem is all the dum dums that think home equity is an ATM machine.
I agree with NYC, but in the PNW buying a home is a no brainer if you can afford it. My house has gone up 30% in the last 2 years that I have owned it. In Seattle we have an urban growth boundary that prevents spec building and keeps the prices high. All the tree huggers up here will never allow that to expand. Portland does not have this, thus the reason the housing crash was so bad down there. It is still a pretty hot market though. The bigger problem is all the dum dums that think home equity is an ATM machine.
The funny thing is that Chicago is the most competitive market in the country for interest rates, but housing prices are nowhere near their 2007 highs out here. We are around 2000-02 pricing levels out here after dropping to early 1990's levels at the bottom in 2009. We never got the big bounce that most other areas of the country got. I'm guessing it has to do with being in the highest taxed state in the nation with by far the most corrupt politicians. Is it any surprise that Obama and Hillary hail from Chicago? The Democrats have completely ruined our once great state over the last 30+ years. Over $130 billion in the hole with most of it being unfunded public pension debt. And sending a budget to the governor with another $7 billion deficit. It's getting close to the time to follow the other 130k or so people who leave IL permanently every year. Texas sounds nice!
03-28-2016, 07:21 PM
