Home buying thread

Cad

Sheriff Cad

scientia potentia est
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Noodlemod_sl said:
What's a combo loan?

Another additional detail, my credit was 2 points shy of qualifying for some loan type that eliminated PMI - if I were to refi and my credit was higher (it is), would that also come into play?
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One loan for 80% of value, second loan for remaining % so you don't have any loans over 80%, eliminating PMI.

Higher credit rating could qualify you for the combo loan where you didn't before, don't know. I have good-credit privilege.
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Noodleface

Noodleface

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I wasn't actively monitoring my credit, someone opened a couple cell phones in my name and didn't pay them. They're removed now but it came too late in the process, so I Just said fuck it
 
Arative

Arative

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I wasn't thinking points, I was thinking like if the going rate was 3.5%, you're rate would be 3.75%, the bank would make money selling the loan with the higher rate and they would pay pmi instead of you. I think its called lender paid pmi?
 
Noodleface

Noodleface

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Arative_sl said:
I wasn't thinking points, I was thinking like if the going rate was 3.5%, you're rate would be 3.75%, the bank would make money selling the loan with the higher rate and they would pay pmi instead of you. I think its called lender paid pmi?
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I'm not sure, I actually think we got locked in at a comparatively higher interest rate than we'd get now. I'm only doing this because the guy is a friend and he was solid when he helped us buy our house. If it's bullshit I'll just not proceed. I'll probably post whatever she says here.
 
meStevo

meStevo

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It's called premium pricing or something, we were offered $4k in closing credit to move from 4.125 to 4.375 for example.
 
A

a_skeleton_03

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Khane_sl said:
But this is what we do in the USA. We've been sold on the idea that buying a house is ALWAYS a good investment when in reality it almost never is.
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Except I am paying only $150/mo more in order to not rent and be able to customize my house to the comfort level I want. That alone is worth all the money I can afford.
 
K

Kedwyn

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Jysin_sl said:
This. If you have all that money to pay up-front PMI (nothing but an insurance). Why not just put it towards your 20% down (principle) to get rid of PMI and wasted money altogether?
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Hardly.

http://www.bankrate.com/finance/mort...insurance.aspx

How long do you think it will take someone putting 5% down to get to 20% equity in a normal market? Much longer than 2.5 - 3 years.

If you're in a situation where you'll be paying PMI then you're best option is to pre pay it unless you are planning on selling it in 3 years. Obviously not all loans are equal and not all programs are the same.
 
Khane

Khane

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a_skeleton_03_sl said:
Except I am paying only $150/mo more in order to not rent and be able to customize my house to the comfort level I want. That alone is worth all the money I can afford.
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Cherry picking the original quote. You aren't "investing" in a house. You're buying a home that you plan on staying in long term.
 
Khane

Khane

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No it isn't nonsense, seems like you're falling hook line and sinker as well. Doing a new build, customizing it for extra cash, and planning on moving in 4 years? That's not an investment at all. Though I guess if you don't see it as an investment, but rather luxury spending (which it is), then it's neither here nor there.
 
meStevo

meStevo

I think your wife's a bigfoot gus.
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Holy fuck USAA insurance is expensive. Quotes for our new place are 700-900. USAA's quote comes in at $3k before $1400 in discounts (alarm system, 13+ years as a member, 5+ years w/ no claims, bundled w/ auto). A lot of their liabilities are inflated with minimal options ($300k house, can't go below $450k in dwelling coverage due to rebuild costs, etc).
 
Noodleface

Noodleface

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I know that's the current theme but if there's anything to celebrate it's paying off a mortgage. I know with money bags in your vault it's tough to relate to the common folk
 
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