USCHO Fan Forum
This is a sample guest message. Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!
-
The USCHO Fan Forum has migrated to a new plaform, xenForo. Most of the function of the forum should work in familiar ways. Please note that you can switch between light and dark modes by clicking on the gear icon in the upper right of the main menu bar. We are hoping that this new platform will prove to be faster and more reliable. Please feel free to explore its features.
Rep Retirement Lodge 119: Legands of the Foopers
- Thread starter bigmrg74
- Start date
- Status
Re: Rep Retirement Lodge 119: Legands of the Foopers
You probably pay more in property taxes in your luxurious gated community than I do on tuition.
Greyeagle,
I don't think bb_dl is some bigwig who can afford to send his two kids to private schools, so he'll likely have to finance the house like the rest of us peons.
You probably pay more in property taxes in your luxurious gated community than I do on tuition.
bigblue_dl
Armed
Re: Rep Retirement Lodge 119: Legands of the Foopers
I guess I shouldn't complain. I got the place so cheap that I'll be paying the same amount per month on my mortgage as I did for rent previously, and that includes PMI. Then if my sister moves into one of my spare bedrooms, like she plans on, I'll get some rent back also. So I'm really not too worried about it, as long as I can get the 30 year with the bathroom the way it is.
Re: Rep Retirement Lodge 119: Legands of the Foopers
Does it include homeowner's insurance? Mine is escrowed (i.e. part of my mortgage payment) and adds a little over $20 per month.
Make sure you get a reasonable amount from her for that room - $300 / month minimum.
If you paid $100k under the last appraised value, you should be fine. How much do you think it'll cost to do the bathroom? You should start talking to contractors about it now to get an idea - depending on exactly how much needs to be done, you could easily be paying $10k for that (if you made it a 3/4 bathroom and just put in a shower rather than an actual tub, you could save a lot of money that way FWIW).
Re: Rep Retirement Lodge 119: Legands of the Foopers
My guess is you will not have a problem. Regular mortgage or FHA? Usually FHA loans have more stipulations about things like bathrooms. We didn't have any problems getting ours via the original FHA loan and the house (115 years old now) needed a lot of plumbing & electrical work. Of course that was 18 years ago, but we have refinanced several times, including once where we took out ~$100K in equity, and never had an issue with the appraisal/inspection process. In fact, the last time we thought the over- appraised it.
My guess is you will not have a problem. Regular mortgage or FHA? Usually FHA loans have more stipulations about things like bathrooms. We didn't have any problems getting ours via the original FHA loan and the house (115 years old now) needed a lot of plumbing & electrical work. Of course that was 18 years ago, but we have refinanced several times, including once where we took out ~$100K in equity, and never had an issue with the appraisal/inspection process. In fact, the last time we thought the over- appraised it.
Hammer
We'll be back.
Re: Rep Retirement Lodge 119: Legands of the Foopers
The last appraisal is out the window, unless it was done very recently (like, within the last couple months or so).
At 4.35%, paying on a 15 year schedule, it's going to take you 47 payments to get that balance to under 80% of the original loan amount. Keep that in mind.
I don't think you're going to have a problem getting the mortgage, but getting rid of the PMI is going to take longer than you think.
The last appraisal is out the window, unless it was done very recently (like, within the last couple months or so).
At 4.35%, paying on a 15 year schedule, it's going to take you 47 payments to get that balance to under 80% of the original loan amount. Keep that in mind.
I don't think you're going to have a problem getting the mortgage, but getting rid of the PMI is going to take longer than you think.
Last edited:
Re: Rep Retirement Lodge 119: Legands of the Foopers
Paying on a 30 yr schedule will take far longer than 4 years to pay off PMI. His best bet would be to commit 10% principal right off and then prepay another 5% over the next 2-3 years and get an appraisal towards the end of 2012. If he's lucky, home prices will climb slightly in that timeframe and make up the gap between the 15% or so of principal he will have paid at that time and the 80% LTV.
Example:
$100k start price / $10k down / $5k additional principal paid through 2012 = 0.85 LTV
If the place gains 5% in value, new price = $105k and with $85k remaining on the loan, LTV = 0.809... he'd only have to pay another $1k to get rid of PMI instead of $5k.
Paying on a 30 yr schedule will take far longer than 4 years to pay off PMI. His best bet would be to commit 10% principal right off and then prepay another 5% over the next 2-3 years and get an appraisal towards the end of 2012. If he's lucky, home prices will climb slightly in that timeframe and make up the gap between the 15% or so of principal he will have paid at that time and the 80% LTV.
Example:
$100k start price / $10k down / $5k additional principal paid through 2012 = 0.85 LTV
If the place gains 5% in value, new price = $105k and with $85k remaining on the loan, LTV = 0.809... he'd only have to pay another $1k to get rid of PMI instead of $5k.
Last edited:
bigblue_dl
Armed
Re: Rep Retirement Lodge 119: Legands of the Foopers
I was thinking $350 + utilities for the room. Which is a good deal for her and still takes a good chunk out of the mortgage. Of course, at $350 she will be expected to cook and clean.
The bathroom is nearly done, only finishing work to do. Tiling and sheetrock and then installing fixtures. We are estimating about $3000. But I will do that myself, with some help from my family and friends. Within my family we have plenty of experience doing this kind of work.
Yes, it will be escrowed.
I was thinking $350 + utilities for the room. Which is a good deal for her and still takes a good chunk out of the mortgage. Of course, at $350 she will be expected to cook and clean.
The bathroom is nearly done, only finishing work to do. Tiling and sheetrock and then installing fixtures. We are estimating about $3000. But I will do that myself, with some help from my family and friends. Within my family we have plenty of experience doing this kind of work.
I'm thinking it will be a regular mortgage, it sounded like we wanted to avoid FHA for the reasons you said, it might be tougher to get one with the unfinished bathroom.
Hammer
We'll be back.
Re: Rep Retirement Lodge 119: Legands of the Foopers
What I was saying is that taking the 30 year loan, and paying it on a 15-year schedule, would get him to just under 80% of the original loan in 47 payments. Paying it on a 30 year schedule puts him at 119 payments.
Obviously the bigger chunk he can throw down now, the quicker he's going to get rid of the PMI.
What I was saying is that taking the 30 year loan, and paying it on a 15-year schedule, would get him to just under 80% of the original loan in 47 payments. Paying it on a 30 year schedule puts him at 119 payments.
Obviously the bigger chunk he can throw down now, the quicker he's going to get rid of the PMI.
Hammer
We'll be back.
Re: Rep Retirement Lodge 119: Legands of the Foopers
At 5% down, and paying on a 15-year schedule you're under 80% LTV in 38 payments. At 10%, it's 27 payments, and at 15% down you're there in 15 payments.
At 5% down, and paying on a 30-year schedule you're under 80% LTV in 98 payments. At 10%, it's 73 payments, and at 15% down you're there in 41 payments.
Again, your best bet is probably paying this thing off on a 15-year schedule.
At 5% down, and paying on a 15-year schedule you're under 80% LTV in 38 payments. At 10%, it's 27 payments, and at 15% down you're there in 15 payments.
At 5% down, and paying on a 30-year schedule you're under 80% LTV in 98 payments. At 10%, it's 73 payments, and at 15% down you're there in 41 payments.
Again, your best bet is probably paying this thing off on a 15-year schedule.
Ralph Baer
Let's Go 'Tute!
Re: Rep Retirement Lodge 119: Legands of the Foopers
Sorry to hear that.
Good Morning, again.
The phone call came. Grandma passed away this morning. Now the waiting game until I have to drive to Exit 1 in North Dakota.
Sorry to hear that.
Re: Rep Retirement Lodge 119: Legands of the Foopers
There's also the question of how much his PMI is going to be - if it's a relatively small amount (<$50 per month), his incentive to prepay / do the appraisal is far lower than if the PMI is running him closer to $100 a month (which is what mine was and was why I prepaid aggressively to get rid of it).
I refinanced into a 15 yr FHA loan - and there are many restrictions on it - but it doesn't much matter to me because I'm not going to be dumping this property until after I pay it off (and even then I might not sell it). The two positives about FHA loans are the required amount down is tiny, and the appraisal is good for a whopping 6 months. Private appraisals have potentially zero shelf life because if you're shopping lenders, one might not accept what the other's appraiser said.
That makes more sense - I thought you were saying it like he took a 15 yr mortgage (which he isn't doing).
Which is a strong argument for higher down payment + some prepayment of the loan + an appraisal 2-3 years down the line.
There's also the question of how much his PMI is going to be - if it's a relatively small amount (<$50 per month), his incentive to prepay / do the appraisal is far lower than if the PMI is running him closer to $100 a month (which is what mine was and was why I prepaid aggressively to get rid of it).
I refinanced into a 15 yr FHA loan - and there are many restrictions on it - but it doesn't much matter to me because I'm not going to be dumping this property until after I pay it off (and even then I might not sell it). The two positives about FHA loans are the required amount down is tiny, and the appraisal is good for a whopping 6 months. Private appraisals have potentially zero shelf life because if you're shopping lenders, one might not accept what the other's appraiser said.
bigblue_dl
Armed
Re: Rep Retirement Lodge 119: Legands of the Foopers
There is a reason I had to get a cheap house, it is all I could afford!
Honestly, I don't think I'm going to be able to start off on a 15-year schedule. I have to get through some student loan re-payments and pay off my pickup before I am able to commit more to paying off the mortgage ahead of schedule.
There is a reason I had to get a cheap house, it is all I could afford!
JF_Gophers
2147483647
Re: Rep Retirement Lodge 119: Legands of the Foopers
I think you should get a ridiculously low ARM and then in 5 years have it go up causing you to not be able to afford the payments and having to sell at a huge loss or be foreclosed on.
Everyone's doing it!
I think you should get a ridiculously low ARM and then in 5 years have it go up causing you to not be able to afford the payments and having to sell at a huge loss or be foreclosed on.
Everyone's doing it!
Hammer
We'll be back.
Re: Rep Retirement Lodge 119: Legands of the Foopers
Right. He takes the 30, and pays it like a 15. That way, if something unforseen happens, he's not held to that 15-year amount, but he does have that equity built up in the place.
Well, if he puts up the 15% and pays the 15-year amount, the PMI is gone in less than 2 years anyway, and he doesn't need to mess with the appraisal in 2012, when rates certainly won't be as low as they are now.
Re: Rep Retirement Lodge 119: Legands of the Foopers
Hammer, I was advocating 10% down, not 15%. If he was going all the way to 15%, doing an appraisal at any point would be pointless as he's already so close to the 80% threshold. In any event, he can't keep up with the 15 yr payments, so my suggested approach might work best for him - 10 down / 5 over the next ~3 years followed by an appraisal to see if his new value has climbed enough to get him the rest of the way.
A 15 yr schedule would require you to basically double what is going to principal. Without knowing the particulars of your mortgage amount, I can't say what that would be, but it'd be somewhere on the order of $200 / month to keep pace with the 15 yr amortization. A compromise would be to take your tax savings from the interest deduction / points paid and apply all of it to principal. Depending on exactly what your deduction is / what your marginal tax rate is, this could be over $1000 annually. It's not quite enough to keep pace with a 15 yr schedule, but it'll help.There is a reason I had to get a cheap house, it is all I could afford!
Hammer, I was advocating 10% down, not 15%. If he was going all the way to 15%, doing an appraisal at any point would be pointless as he's already so close to the 80% threshold. In any event, he can't keep up with the 15 yr payments, so my suggested approach might work best for him - 10 down / 5 over the next ~3 years followed by an appraisal to see if his new value has climbed enough to get him the rest of the way.
Last edited:
Hammer
We'll be back.
Re: Rep Retirement Lodge 119: Legands of the Foopers
Then the best thing you can do for yourself is put as much as you can right now. You're not likely to get a better rate down the road, so once you get the other things paid off, pay down that principal as best as you can. And if your sister moves in, that amount goes straight to the mortgage along with your regular payment.
Honestly, I don't think I'm going to be able to start off on a 15-year schedule. I have to get through some student loan re-payments and pay off my pickup before I am able to commit more to paying off the mortgage ahead of schedule.
There is a reason I had to get a cheap house, it is all I could afford!
Then the best thing you can do for yourself is put as much as you can right now. You're not likely to get a better rate down the road, so once you get the other things paid off, pay down that principal as best as you can. And if your sister moves in, that amount goes straight to the mortgage along with your regular payment.
Re: Rep Retirement Lodge 119: Legands of the Foopers
obviously you want to get those other loans paid off first, but toss some extra money at your mortgage any chance you get. If you toss an extra $100 a month, that's $1200 a year, or roughly an extra payment. Once you get your student loans and pickup paid off, be a little more aggressive with it. Don't go nuts, obviously, but be as aggressive as you can.
And no matter what, take advantage of Obama. If he is willing to forgive all these people under water, make sure you go under water!
Honestly, I don't think I'm going to be able to start off on a 15-year schedule. I have to get through some student loan re-payments and pay off my pickup before I am able to commit more to paying off the mortgage ahead of schedule.
There is a reason I had to get a cheap house, it is all I could afford!
obviously you want to get those other loans paid off first, but toss some extra money at your mortgage any chance you get. If you toss an extra $100 a month, that's $1200 a year, or roughly an extra payment. Once you get your student loans and pickup paid off, be a little more aggressive with it. Don't go nuts, obviously, but be as aggressive as you can.
And no matter what, take advantage of Obama. If he is willing to forgive all these people under water, make sure you go under water!
Hammer
We'll be back.
Re: Rep Retirement Lodge 119: Legands of the Foopers
To put it into round numbers, on a $100,000 loan, at 4.35%, a 30 year payment is $497.81. The 15 year payment is $757.35. Adjust those numbers accordingly as they relate to your situation. That does not take into account PMI or escrow.
To put it into round numbers, on a $100,000 loan, at 4.35%, a 30 year payment is $497.81. The 15 year payment is $757.35. Adjust those numbers accordingly as they relate to your situation. That does not take into account PMI or escrow.
- Status