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[Lexvol]

The housing market is sucking wind right now, but this is a great buyer's market. There are people out there desperate to unload houses right now.

I finally unloaded one this weekend. FISBO. It took me about three months with a $10 sign in the yard. It wasn't the bloodbath I expected to take, but it wasn't the cash cow I had hoped for either. In fact, it was probably close to a fair correction. All in all I was pleased with the results. I sold an empty house in three months, without having to pay any commission.

 

[utvolpj]

The zero down loans are unbelievable. I remember the last mortgage I did when I said I wanted to put 20% down to avoid PMI and the broker looked at me like I was crazy.

I did a zero down on my current house just because I didn't want to wipe out everything I had in the bank at the time (no PMI). I am very close to paying the 20% off (got it under $5k now) so it didn't really hurt. It did take some discipline though.

 

[Lexvol]

I did a zero down on my current house just because I didn't want to wipe out everything I had in the bank at the time (no PMI). I am very close to paying the 20% off (got it under $5k now) so it didn't really hurt. It did take some discipline though.

If you are close to 20% you should pay for an appraisal at this point. You may already have the 20% based on what you have paid + appreciation.

 

[Lexvol]

The zero down loans are unbelievable. I remember the last mortgage I did when I said I wanted to put 20% down to avoid PMI and the broker looked at me like I was crazy.

PMI is like throwing money in the trash can. There are several ways around it. Explore 90/10 or 80/20 equity lines before you sign on with PMI.

 

[utvolpj]

If you are close to 20% you should pay for an appraisal at this point. You may already have the 20% based on what you have paid + appreciation.

That's a good point. We talked about doing it to free up some money for renovations we're making. The houses around me just don't seem to be dropping much.

 

[WA_Vol]

If you buy a house do a 15 yr mortgage, instead of a 30. For about $300 more a month I am playing my house off in 15 yrs instead of 30 yr.

 

[Lexvol]

If you buy a house do a 15 yr mortgage, instead of a 30. For about $300 more a month I am playing my house off in 15 yrs instead of 30 yr.

That is the only real way to build equity quickly in today's housing market.

 

[JTrainDavis]

PMI is like throwing money in the trash can. There are several ways around it. Explore 90/10 or 80/20 equity lines before you sign on with PMI.

Agreed, though i do have it. The time was right, and i love my place, last house on a dead end, horse farm all around me, but the down payment wasn't there. Rather than wait, we bought the place, and I'm glad i did. But got a decent rate (30Y, 5.25% fixed), due to having a decent amount of good credit, So not feeling as if I'm the grocery bagger buying a McMansion bracket. Wasted $31 a month? Yes, of course. But it's a drop in the bucket compared to having the place, and letting the dogs run free.

 

[Lexvol]

Agreed, though i do have it. The time was right, and i love my place, last house on a dead end, horse farm all around me, but the down payment wasn't there. Rather than wait, we bought the place, and I'm glad i did. But got a decent rate (30Y, 5.25% fixed), due to having a decent amount of good credit, So not feeling as if I'm the grocery bagger buying a McMansion bracket. Wasted $31 a month? Yes, of course. But it's a drop in the bucket compared to having the place, and letting the dogs run free.

Absolutely. Sometimes it is certainly worth the extra, but when the PMI hits triple digits, other options might be considered.

 

[JTrainDavis]

The housing market is sucking wind right now, but this is a great buyer's market. There are people out there desperate to unload houses right now.

Nice Colonial next to me on about 3/4 acre, nice pool and yard, if anyones interested! They're chasing their tails, trying to get 270 for it. Trying to unload the debt and make something happen, though i'd be surprised if they got 205.

The moral of the story is: If it's a great deal, there is always a catch. I hear the "Free Laptop" and "Free Xbox 360" ads at night on the radio when I'm in bed. The mortgage deals people jumped on were the same thing. Sure, you get an XBox for free, after you sign up for Columbia House DVD's and CD's, Omaha Steaks, and Schwan's home delivery, and take 4 people to the movies 3 times, in that order. By then, you have spent $900 total, enough for 2+ Xbox's.

 

[Lexvol]

Nice Colonial next to me on about 3/4 acre, nice pool and yard, if anyones interested! They're chasing their tails, trying to get 270 for it. Trying to unload the debt and make something happen, though i'd be surprised if they got 205.

The moral of the story is: If it's a great deal, there is always a catch. I hear the "Free Laptop" and "Free Xbox 360" ads at night on the radio when I'm in bed. The mortgage deals people jumped on were the same thing. Sure, you get an XBox for free, after you sign up for Columbia House DVD's and CD's, Omaha Steaks, and Schwan's home delivery, and take 4 people to the movies 3 times, in that order. By then, you have spent $900 total, enough for 2+ Xbox's.

The moral of the story: right now, if you are buying go very low on your first offer.

 

[JTrainDavis]

Absolutely. Sometimes it is certainly worth the extra, but when the PMI hits triple digits, that other options might be considered.

Here in CT there is a program for first time homebuyers, with the 0 down, with the PMI going to the CHFA fund, keeping the wheels of the program turning. A good thing, as they are pretty honest with people, with employment histories, credit, and income. If you can't afford something, they tell you in no uncertain terms that you can't.

But, alot of people call 1-800-DITECH without consulting an attorney first, or asking others what they did. Honestly, i don't know why in hell someone would even call about an ad run on Daytime TV that says "No money this month? No Problem! You can pay as much as you feel like each month for the first 60 months!!" But, unfortunately, they do.

 

[JTrainDavis]

The moral of the story: right now, if you are buying go very low on your first offer.

My friend got a house up the road, crappy lot (inside of a circle, so a small yard before the one behind his) for 159. they were asking 179, they took his offer 2 days after.

Needs an Oil Heater, to be payed for by the current owner, but the agent must have said "Get the fork out of Dodge now, or it'll be less" to the owner.