DCSportbikes.net  
» Help Support .NET!
DCSportbikes Premier Membership for 25$ per year. Discounts! Click here for full information.

Now available in the .NET Shop:



Get your DCSBN Gear!
» Shoutbox
Sorry, only registered users have the ability to use our real-time shoutbox to chat with other members.

Register now, it's free!
» Online Users: 516
0 members and 516 guests
No Members online
Most users ever online was 4,519, September 2, 2015 at 03:26 AM.
Go Back   DCSportbikes.net > Non-Sportbike Forums > Non-Sportbike Chat

Reply
LinkBack Thread Tools
Buy a house????
Unread
  (#1)
singin sweet home alabama
 
DvlsAdvc8's Avatar
 
Posts: 4,174
Join Date: March 6, 2006
Location: Huntsville, AL
Buy a house???? - June 16, 2006, 03:54 PM

Okay, so how exactly does anyone buy a house around here?

For what I'd want, I'm seeing prices in the 500k-700k range.

The general rules of thumb as I understand them, that significantly affect me (albeit, I've been in Mississippi for 7 years, and this is a whole different world up here):

1) banks don't want you to have a housing expense-to-income ratio greater than 28%.
2) To avoid paying private mortgage insurance, you must have 20% of the home price as downpayment.

So, for a $600,000 house, I'd need at least $120,000 minimum for downpayment plus closing costs, taxes and all that jazz. So that'd be a $480,000+ mortgage.

To fit that inside a 28% housing expense-to-income ratio, sitting with something like a $3000/mo. payment on that 30 yr $480,000 mortgage, you'd need a yearly income of about $130,000.

So you f'rs that have recently bought houses must be pulling down some mad dough. I can handle the downpayment, and the mortgage payment but that beating that damn ratio is several years of raises [ & a new job lol] away for my wife and I. So how do you do it?

I haven't spoken to a realtor or anything, I'm just doing some preliminary planning.


"No race has ever been won in the first corner, but plenty have been lost there."
  MySpace.com Page Send a message via AIM to Send a message via MSN to DvlsAdvc8  
Reply With Quote
Unread
  (#2)
Lurking
 
CrazyDaDa's Avatar
 
Posts: 1,172
Join Date: February 24, 2006
Location: Stafford aka thastyx
June 16, 2006, 04:02 PM

Makes me glad I bought my house back in 2001 before everything went crazy. It would be hopeless for me it I tried to buy anything nowadays.
  Send a message via AIM to Send a message via AIM to CrazyDaDa  
Reply With Quote
Unread
  (#3)
rdg
best avatar in the biz
 
rdg's Avatar
 
Posts: 2,097
Join Date: April 19, 2005
Location: me, the bike, or the crap that broke off?
June 16, 2006, 04:04 PM

What a lot of people do is take out a second loan to cover that first 20% to avoid paying the insurance cost.

Basically, though, you're fucked up here.
  Send a message via AIM to  
Reply With Quote
Unread
  (#4)
Suddenly Superstitious!!!
 
MudDawg's Avatar
 
Posts: 5,391
Join Date: August 25, 2004
Location: Dulles
June 16, 2006, 04:11 PM

You can get a house loan with 10% down. Get a second mortgage for the other 10% to avoid paying PMI.

Try further out...and off season. I'd expect to see some decent deals mid-winter.


I want my baby back, baby back, baby back....Chileeeeee's bay back...
  Send a message via AIM to Send a message via AIM to MudDawg  
Reply With Quote
Unread
  (#5)
WPNR
 
Phife's Avatar
 
Posts: 3,490
Join Date: April 29, 2003
Location: Haymarket Va.
June 16, 2006, 04:14 PM

Quote:
Originally Posted by MudDawg
You can get a house loan with 10% down. Get a second mortgage for the other 10% to avoid paying PMI.

Try further out...and off season. I'd expect to see some decent deals mid-winter.
Yep i'm waiting till like october.


-------------------------------------------------------------
ME!!!
http://www.dcsportbikes.net/photoplo...2_Yamahar6.jpg
  Send a message via AIM to Send a message via AIM to Phife  
Reply With Quote
Unread
  (#6)
singin sweet home alabama
 
DvlsAdvc8's Avatar
 
Posts: 4,174
Join Date: March 6, 2006
Location: Huntsville, AL
June 16, 2006, 04:22 PM

The downpayment isn't the worst thing for me. It's the 28% housing expense to income rule on a mortgage.

Does that not apply up here? I just need to get a 6 figure job.


"No race has ever been won in the first corner, but plenty have been lost there."
  MySpace.com Page Send a message via AIM to Send a message via MSN to DvlsAdvc8  
Reply With Quote
Unread
  (#7)
got lost on my way to.com
 
dreamone's Avatar
 
Posts: 55
Join Date: July 1, 2005
Location: herndon
June 16, 2006, 04:29 PM

ahh ive got a realtor.. and im looking at houses... i made ... well honestly kinda ridiculous money for a 24yr old.. so i can afford a 450k or so house..

but it just doesnt seem worth it.. 450k buys a shack around here it seems like.. my apartment is bigger the some of these places..

and dammed if i want that big of a chunk of my paycheck going into housing.. without being able to buy all my toys/vacations
  Send a message via AIM to Send a message via AIM to dreamone  
Reply With Quote
Unread
  (#8)
Groundhogs can play dead
 
tfinch's Avatar
 
Posts: 11,603
Join Date: November 25, 2002
June 16, 2006, 04:34 PM

28% housing to debt ratio seems way too low. You can talk to some mortgage guys without feeling obligated, just know that every one of them is going to want to run your credit (bad).


Tanya
  MySpace.com Page Send a message via AIM to  
Reply With Quote
Unread
  (#9)
You meet the nicest
 
WKDBLD's Avatar
 
Posts: 5,601
Join Date: June 3, 2003
Location: Alexandria
June 16, 2006, 04:45 PM

That 28% is just a guideline. Each lender sets their own figure and they have different ways of weighting all the factors. Credit score seems to be the biggest deal. I bought a house last year and was blown away by how much I qualified for. My realtor (and riding buddy) put me in touch with the loan lady in his office. She asked for my SSN (to look up credit score), salary, debt, and assets (401K for me). Within 5 minutes she gave me an amount that I qualified for.

I ended up getting 80% + 20% loans from the same company. Amazing.

PM me if you want my boy’s #. He’s really laid back and won’t pressure you to work with him, just give you the lady’s # who can tighten you up with solid numbers for your planning.


BECAUSE I GET OFF ON IT!
  Send a message via AIM to  
Reply With Quote
Unread
  (#10)
Suddenly Superstitious!!!
 
MudDawg's Avatar
 
Posts: 5,391
Join Date: August 25, 2004
Location: Dulles
June 16, 2006, 04:49 PM

Gaal is right. Find out what you would qualify for first. Then try to NOT go that hgih. You would end up being house rich and cash strapped.

Also look into doing an ARM. Most people go right for 30 year loans....but most never stay longer than about 8 years. No....I'm not kidding.


I want my baby back, baby back, baby back....Chileeeeee's bay back...
  Send a message via AIM to Send a message via AIM to MudDawg  
Reply With Quote
Unread
  (#11)
Playing with toys
 
N8RIDER's Avatar
 
Posts: 1,587
Join Date: May 14, 2005
Location: Western PWC
June 16, 2006, 05:07 PM

Or you can always hang tight until this market goes bust & banks end up foreclosing on folks that have monthly market gauged interest rates. Once that happens houses will be sitting around & banks will be willing to take loses just to offload em'. Of course, this depends on the market & it will not be pretty when it happens. Too many folks buying houses to try and flip em' and not enough people looking for residents = a buyers market once this all plays out (but this time will come).


#236
PSN - nate1213

RIP Storm May 29, 2009
  Send a message via AIM to Send a message via AIM to N8RIDER  
Reply With Quote
Unread
  (#12)
singin sweet home alabama
 
DvlsAdvc8's Avatar
 
Posts: 4,174
Join Date: March 6, 2006
Location: Huntsville, AL
June 16, 2006, 11:25 PM

Quote:
Originally Posted by tfinch
28% housing to debt ratio seems way too low. You can talk to some mortgage guys without feeling obligated, just know that every one of them is going to want to run your credit (bad).
Not debt ratio... its housing expense to income ratio. 28% is pretty standard in most of the country... I don't know about NoVA.

In other words, its what percent of your income is your mortgage payment. Most banks won't give you anything that would put you over 28%.


"No race has ever been won in the first corner, but plenty have been lost there."
  MySpace.com Page Send a message via AIM to Send a message via MSN to DvlsAdvc8  
Reply With Quote
Unread
  (#13)
singin sweet home alabama
 
DvlsAdvc8's Avatar
 
Posts: 4,174
Join Date: March 6, 2006
Location: Huntsville, AL
June 16, 2006, 11:28 PM

Quote:
Originally Posted by nate1213
Or you can always hang tight until this market goes bust & banks end up foreclosing on folks that have monthly market gauged interest rates. Once that happens houses will be sitting around & banks will be willing to take loses just to offload em'. Of course, this depends on the market & it will not be pretty when it happens. Too many folks buying houses to try and flip em' and not enough people looking for residents = a buyers market once this all plays out (but this time will come).
I was talking about this the other day with a co-worker. He spelled out a doomsday scenario like this, and that you just gotta have money in hand at the right time.

Me, I don't know... I generally don't put much faith in extreme predictions.


"No race has ever been won in the first corner, but plenty have been lost there."
  MySpace.com Page Send a message via AIM to Send a message via MSN to DvlsAdvc8  
Reply With Quote
Unread
  (#14)
Unicorn Rider
 
averagebrunette's Avatar
 
Posts: 1,157
Join Date: May 18, 2005
Location: Front Royal
June 16, 2006, 11:54 PM

I went WAY OUT to get a better deal and saved some cash. Your wife saw where i'll be living.. it's nice, just a hike to work everyday. For the record I don't make $130+k a year either and i'm doing it on a single income.


'15 Ducati 821 Monster
Miss my GSXR
  Send a message via AIM to  
Reply With Quote
Unread
  (#15)
singin sweet home alabama
 
DvlsAdvc8's Avatar
 
Posts: 4,174
Join Date: March 6, 2006
Location: Huntsville, AL
June 17, 2006, 12:23 AM

Quote:
Originally Posted by averagebrunette
I went WAY OUT to get a better deal and saved some cash. Your wife saw where i'll be living.. it's nice, just a hike to work everyday. For the record I don't make $130+k a year either and i'm doing it on a single income.
Yeah she said you had a great view... but that's too much of a daily haul for me. I've done that before, not going back.


"No race has ever been won in the first corner, but plenty have been lost there."
  MySpace.com Page Send a message via AIM to Send a message via MSN to DvlsAdvc8  
Reply With Quote
Reply


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Powered by vBadvanced CMPS v3.2.3


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO 3.6.0
vBulletin Skin developed by: vBStyles.com
All logos and trademarks in this site are property of their respective owner. The comments are property of their posters, all the rest © 2002-2010 by DCSportbikes.net. DCSportbikes.net is owned by End of Time Studios, LLC.