Mortgage Experiences & PMI

[OffshoreDrilling]

:wtc:^

 

[Yaj Yak]

No, that's just PMI. And million dollar home doesn't carry the same prestige here as it does in Chicago. People hear million dollars and they're like "Oh that's nice! You bought a guest home for your nanny!".

well... because it's different also, yes your money doesn't necessarily get you as much house, but monthly payment v. monthly payment, it's not as lopsided as that sounds....


case in point... $460k 1350 square foot house here in bumfuck... $2595 a month.

https://www.redfin.com/IL/Mchenry/28774-W-Manitoba-Trl-60051/home/17744479

$605,000 1500 square foot house somewhere near [MENTION=396]Mike K[/MENTION] maybe hopefully for the purposes of this comparison that i made up

https://www.redfin.com/CA/Laguna-Niguel/29985-Monticello-St-92677/home/4883861

$2742 a month.

$145,000 more house value, for only $147 more a month... you'd save that in your heat bill living out there

 

[Yaj Yak]

in4thehouseipostedouttherebeinginthehood

 

[Yaj Yak]

fuck that area.

1.1 million dollars for this shit.

https://www.redfin.com/CA/Venice/1130-Electric-Ave-90291/home/6742256


im out. fuck this. i don't want to play redfin anymore.



fucking illinois property taxes.

$600k house, $12k a year in taxes... $3270 a month payment.

https://www.redfin.com/IL/Mchenry/1642-N-Riverside-Dr-60050/home/17846284

$875k house, 3900 a year in taxes... $3664 a month payment...

$275,000 more house for $394 a month more.

but fuck. such a pooop $875k house.

i think i'd rather deal with seasons here, and cock bag politicans than live in commiefornia

 

[cacicgtp7]

Or you could live anywhere else in the country besides IL or CA!

 

[Angus]

If that duel loan doesn't work out, I would suggest getting a loan with a seperate PMI payment instead of those loans that claim to have no PMI. They have pmi, but it's built into the cost of the loan so you're paying for it no matter what.

If you have a seperate pmi, then you can do things to gain equity in the home (renovate, extra payments, etc.) to get to the level where you can have the pmi removed in a shorter period of time.

That's what I ended up doing, but I bought cheap in a nice neighborhood and a home that needed a lot of cosmetic updating - which I can do myself.

 

[Yaj Yak]

Or you could live anywhere else in the country besides IL or CA!

well yeah and that.

 

[nytebyte]

PMI is nothing more than a scam by the lenders to milk more money from you.

Back when I bought my first house, if a lender insisted on having PMI, I told them to go F themselves and looked elsewhere. I eventually found one that would waive it, and no, it wasn't built into the loan somehow.

I also didn't want my property tax payments escrowed into the loan since I planned on paying those directly. If you plan to not escrow the property taxes, don't allow the lender charge you an "escrow waiver fee", which is yet another bullshit charge meant to milk money from you.

 

[Ti28]

fuck that area.

1.1 million dollars for this shit.

https://www.redfin.com/CA/Venice/1130-Electric-Ave-90291/home/6742256


im out. fuck this. i don't want to play redfin anymore.

That's a joke from redfin right?

1.1mil and you get a Airstream!

 

[willizm]

You know, I wanted to get a big house in naperville and all that crap but i'm glad I bought a foreclosed house with 35% down for dirt cheap in north plainfield. The neighbors house just sold for twice what I owe on this house and I have more space, hardwood, remodeled kitchen, etc that we did when we bought the house. House payment a month including escrow is $1068 not including the additional I pay toward principal. It's nice to have equity in something and can make it on a single income and support a family. I guess what I'm getting at is it seems like everyone gets caught up with what they "could afford" instead of what is sensible and thinking about those payments over the long term.

 

[Primalzer]

I would have saved 20% down going into it before just to not pay PMI. Back in the day, I believe you could do something goofy like get 2 loans to pay for the house, one at 80% and other other at 20%. This would "trick" the system into thinking you don't need PMI, but I don't think they do this anymore.

They do. It's a piggyback loan. So you can do 80% on Mortgage 1, 15% on Mortgage 2 and then 5% down. I don't know if that works out to be cheaper or more expensive though.

As far as saving, I'd love to but a) 20% down of what we're buying is the cost of a house in Chicago and b) the market is moving upwards so fast out here that I'd never catch up with housing prices. By the time I have 20% down of the current price that amount will end up being 15% of the then current price. No bueno.

I just went through the mortgage process, and maybe Illinois is different, but I had to sign a whole mess of waivers to state that the down payment was NOT a loan that needed to be repaid, and they went back to months to see where I had gotten it. My parents gifted me some money, and they went back and made THEM prove that it wasn't part of a loan that needed to be repaid.

Also, I put down about 12.5%, and my PMI is $44/month

 

[99PONTIACGP]

Not sure if mentioned In the 2 pages.... but, FHA now requires PMI for lifetime of loan.

My house is an FHA loan and they changed to lifetime after we bought the house. Since the house value went up, we were considering refinancing to conventional to get rid of the PMI, but the rate would be higher than what were paying now.

 

[blakbearddelite]

I just went through the mortgage process, and maybe Illinois is different, but I had to sign a whole mess of waivers to state that the down payment was NOT a loan that needed to be repaid, and they went back to months to see where I had gotten it. My parents gifted me some money, and they went back and made THEM prove that it wasn't part of a loan that needed to be repaid.

Also, I put down about 12.5%, and my PMI is $44/month

I went through the same thing in 2013. I had to prove from where the down payment came and that it was not a loan. I used some inheritance to assist with the down payment.

 

[99PONTIACGP]

I "gifted" my girlfriend (now fiance) our down payment.

 

[Tim]

Nah. It's something more complex with a conventional. From what I know, FHA gives a double hit with upfront PMI and regular PMI on less than 20% loans.

^^^This

I have an FHA loan and I get fucked in the ass for $200+ per month in PMI. But supposed to automatically fall off after 5 years? We refinanced in 2012 I believe.

Homeownership is a fuckin' sham.

 

[Turk]

Then sell your house.

 

[Yaj Yak]

refi?

 

[Tim]

Then sell your house.

With all the equity they said I would get? Ha! Sham.

 

[willizm]

I went through the same thing in 2013. I had to prove from where the down payment came and that it was not a loan. I used some inheritance to assist with the down payment.

Same here. The origin of that money can't be from a loan and you have to prove that you've had that amount of money for like 60 or 90 days so that if you did take a loan out it would should on your credit report so the lender would see it.

 

[Primalzer]

I went through the same thing in 2013. I had to prove from where the down payment came and that it was not a loan. I used some inheritance to assist with the down payment.

Yeah, looks like you can't do some of the tricks that some have used in the past. Another popular scheme was to have the sellers pay the downpayment...had to sign more waivers to state I wasn't exchanging anything else with the sellers as well beside the house.

 

[Turk]

With all the equity they said I would get? Ha! Sham.

So what you're saying is you trusted a sales person and didn't do your own research. Not a sham.

 

[Tim]

So what you're saying is you trusted a sales person and didn't do your own research. Not a sham.

What I am saying is I bought a house 7 years ago that has not appreciated in value.

I am just an average working class slob. I don't claim to be an expert, just saying that my first homebuying experience has been disappointing to say the least.

 

[Yaj Yak]

has it depreciated?

 

[Tim]

has it depreciated?

I don't have any official appraisals, but based on recent sales comps, I would say I believe so.

 

[Primalzer]

The first few years you build very little equity in a home...if your house hasn't appreciated, but hasn't decreased in value, you should have your down payment plus whatever you paid to principle as equity. Yeah it won't be much, but if your house hasn't appreciated and you haven't done anything to the house to appreciate the value, you can't expect the price to just magically increase...the bubble burst on that in 2008...