Home buying thread

  • Guest, it's time once again for the hotly contested and exciting FoH Asshat Tournament!



    Go here and fill out your bracket!
    Who's been the biggest Asshat in the last year? Once again, only you can decide!

moonarchia

The Scientific Shitlord
20,900
37,881
Don't do this. It's almost certainly cheaper to rent or downsize than lose an unnecessary 10% of your retirement.
I won't be emptying it, but it is the only way I will be able to get 20% down for the condo. Better to take a small beating on the 401k than to pay PMI for 15 years. If we get a decent offer on our house here I will get 1/3 of the capital gains, which I would use to fill this year's IRA and the rest back into the 401k.
 

Sanrith Descartes

Veteran of a thousand threadban wars
<Aristocrat╭ರ_•́>
41,351
107,244
I won't be emptying it, but it is the only way I will be able to get 20% down for the condo. Better to take a small beating on the 401k than to pay PMI for 15 years. If we get a decent offer on our house here I will get 1/3 of the capital gains, which I would use to fill this year's IRA and the rest back into the 401k.
Its not just the 10% penalty, its also the income tax on the added revenue you realize this year. Its also the unintended consequence of lost gains if the market has finally found its legs and moves higher.

How much do you need to eliminate the PMI?
 

Asshat wormie

2023 Asshat Award Winner
<Gold Donor>
16,820
30,963
PMI is not that large of a payment and just pay extra to get to 80% principal to equity faster. Or look for a loan that allow smaller down payment but with higher interest rate. Or consider taking a loan against the 401k. Or borrow from family. Or do anything other than early withdrawal of the 401k.
 
  • 3Like
  • 1Truth!
Reactions: 3 users

moonarchia

The Scientific Shitlord
20,900
37,881
PMI is not that large of a payment and just pay extra to get to 80% principal to equity faster. Or look for a loan that allow smaller down payment but with higher interest rate. Or consider taking a loan against the 401k. Or borrow from family. Or do anything other than early withdrawal of the 401k.
What would be the point of a loan against the 401k? That would still be money I would have to pay back with interest. And no other options at this point.
 

Sanrith Descartes

Veteran of a thousand threadban wars
<Aristocrat╭ರ_•́>
41,351
107,244
What would be the point of a loan against the 401k? That would still be money I would have to pay back with interest. And no other options at this point.
10% penalty to the IRS goes away and the interest you pay on the loan goes to yourself.
 
  • 3Like
Reactions: 2 users

Asshat wormie

2023 Asshat Award Winner
<Gold Donor>
16,820
30,963
What would be the point of a loan against the 401k? That would still be money I would have to pay back with interest. And no other options at this point.
Its better than taking an early withdrawal? There are no penalties nor tax implication nor opportunity costs, just more interest payments. Or just take a few hundred dollar a month hit and pay PMI for a couple of years while aggressively paying down the mortgage.
 

Jysin

Ahn'Qiraj Raider
6,259
3,970
What would be the point of a loan against the 401k? That would still be money I would have to pay back with interest. And no other options at this point.
Because you are then avoiding PMI, the loan itself is coming from yourself and the interest you pay is also to yourself. Plus no 10% penalty, etc etc
 
  • 2Like
Reactions: 1 users

Sanrith Descartes

Veteran of a thousand threadban wars
<Aristocrat╭ರ_•́>
41,351
107,244
Because you are then avoiding PMI, the loan itself is coming from yourself and the interest you pay is also to yourself. Plus no 10% penalty, etc etc
And a loan doesnt count as income.
 
  • 2Like
Reactions: 1 users

Rais

Trakanon Raider
1,275
631
Finally wrapped it up. We closed this morning. Now comes the move across the country. Escape from LA is real now. Saw this morning it's 10 degrees there and 2 feet of snow at the house. Already excited.
 
  • 2Like
Reactions: 1 users

Lanx

Oye Ve
<Prior Amod>
60,067
131,363
Finally wrapped it up. We closed this morning. Now comes the move across the country. Escape from LA is real now. Saw this morning it's 10 degrees there and 2 feet of snow at the house. Already excited.
lulz do you even own a winter jacket? columbia is having half off winter stuff
 

Rais

Trakanon Raider
1,275
631
I have one from when I would go skiing at Big Bear here. Other than that I have shorts and 3 pairs of jeans.
 

Falstaff

Ahn'Qiraj Raider
8,311
3,165
Finally wrapped it up. We closed this morning. Now comes the move across the country. Escape from LA is real now. Saw this morning it's 10 degrees there and 2 feet of snow at the house. Already excited.
When are you moving? February is the worst month and it’s cold as shit but we haven’t gotten more than 6 inches of snow all winter. North of the city got a bit more than south by me but two feet? Someone is fucking with you it’s nowhere near that.
 

fred sanford

<Gold Donor>
1,549
4,351
Do you have to follow your parents? On a personal level I get it but on a financial level those kinds of moves don't make much sense. Unless they need you to care of them, I'd stay put. And if that's the case why are they moving away lol.

Part of me had the ideas of moving before retirement but in light of the economy I've gone old school. The house I'm in is nice enough to live in until I croak. Only possible move I'll make is if we downsize when the kids leave.
 

Rais

Trakanon Raider
1,275
631
When are you moving? February is the worst month and it’s cold as shit but we haven’t gotten more than 6 inches of snow all winter. North of the city got a bit more than south by me but two feet? Someone is fucking with you it’s nowhere near that.
Moving in 2 weeks. It looked like 2 feet in the backyard, but it was on facetime. So most likely looks worse than it is. Paying people to do it all. They can be cold, I didn't get to where I am now in life to suffer physically lol.
 

Sanrith Descartes

Veteran of a thousand threadban wars
<Aristocrat╭ರ_•́>
41,351
107,244
Moving in 2 weeks. It looked like 2 feet in the backyard, but it was on facetime. So most likely looks worse than it is. Paying people to do it all. They can be cold, I didn't get to where I am now in life to suffer physically lol.
If this is your first actual winter up north, then just expect it is going to suck balls and not in a good way. The bright side is each one after the first will suck a little less. Its supposed to be 6 degrees here tomorrow. I will most likely break out a jacket from the closet.
 

Sanrith Descartes

Veteran of a thousand threadban wars
<Aristocrat╭ರ_•́>
41,351
107,244
SouthWest Florida is basically a no-go zone now with the amount of houses with serious flood damage from the storm.
 

TJT

Mr. Poopybutthole
<Gold Donor>
40,698
102,080
SouthWest Florida is basically a no-go zone now with the amount of houses with serious flood damage from the storm.
What are you talking about bro? Sounds like prime discount time if you're willing to wait a few to fix it as contractors get freed up.
 
  • 1Like
Reactions: 1 user