Current Events > Boy is buying a house way more expensive than it looks

(+) Yeah! (+)

List price looks good (despite house prices outpacing income). Oh wait, you gonna pay so much more!

Lender: yea, you paying alot already, we wanna make you pay more to escrow also.

I can see why most millennials don't own homes.

darkphoenix181 posted...

List price looks good (despite house prices outpacing income). Oh wait, you gonna pay so much more!

Lender: yea, you paying alot already, we wanna make you pay more to escrow also.

I can see why most millennials don't own homes.

Lol you haven't even gotten to the end of the surprise fees
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marthsheretoo posted...

Lol you haven't even gotten to the end of the surprise fees

Such as?
I already got estimate and rate lock.
Signed to have appriasal done. Etc.

I guess one is that I gotta pay this years tax bill despite not living in the house for the whole year.
I get credits back, but initially gotta pay it.

closing/realtor fees bruh. enjoy.
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That is why you shop around to find a good lender.

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RIP boy is buying

EvalAngell posted...

closing/realtor fees bruh. enjoy.

Those are what I meant in the op.

Yea my area is the most expensive in canada next to Vancouver, homes start at $800,000 to 2 million
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You don't have to do escrow, you do have to pay peoperty taxes and insure your house as long as you're making payments on it.

But yes, there are other costs to owning a home rather than renting
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pls posted...

That is why you shop around to find a good lender.

As I understand it, almost all lenders gonna require escrow unless you pay a fee to waive it.
What did I say that makes you think I did not do this and have a bad lender?

apocalyptic_4 posted...

Yea my area is the most expensive in canada next to Vancouver, homes start at $800,000 to 2 million

I really do not understand how housing markets like this even exist. Is everyone a doctor or engineer in Vancouver?

It makes no sense

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Escrow is just the money for taxes and and home insurance

it should be the same everywhere

EDIT: are you confusing it with PMI?

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Solid Snake07 posted...

You don't have to do escrow, you do have to pay peoperty taxes and insure your house as long as you're making payments on it.

But yes, there are other costs to owning a home rather than renting

Have you done so without paying a fee?

https://www.washingtonpost.com/realestate/major-lender-allows-borrowers-to-go-without-escrow- accounts/2018/07/31/52cc9c58-9413-11e8-a679-b09212fb69c2_story.html

Traditionally, borrowers granted waivers from mandatory escrow accounts have had good to excellent credit scores and substantial down payments often 20 percent or more. Opening the door to escrow-free status for borrowers who dont fit this profile is raising eyebrows in the mortgage field. Michael Fratantoni, chief economist for the Mortgage Bankers Association, told me it would be a troubling development if large numbers of new buyers with subpar credit opted out of escrow accounts.

Waivers of escrow requirements are possible for borrowers who meet lenders criteria on financial capacity and credit, subject to a fee often one-quarter of a percent of the loan amount.

tamagucci posted...

RIP boy is buying

PMI shot up 97%

TheGoldenEel posted...

Escrow is just the money for taxes and and home insurance

it should be the same everywhere

EDIT: are you confusing it with PMI?

Not PMI.

Lenders want you to escrow full year worth of insurance payment at closing.

For a poor millennial, this would clean out their bank account.
And they won't be able to waive it if they are a poor millennial, because they would need to put 20% down, have good credit and pay a fee.

PMI would be a concern as well though, as they wouldn't be putting down the 20%.

https://www.buzzfeednews.com/article/annehelenpetersen/millennials-homeowners-mortgage-buying-house-apartment

Yeah you gotta take closing costs into account when buying. If the sellers are desperate they will sometimes pay, but usually will not.
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darkphoenix181 posted...

Not PMI.

Lenders want you to escrow full year worth of insurance payment at closing.

For a poor millennial, this would clean out their bank account.
And they won't be able to waive it if they are a poor millennial, because they would need to put 20% down, have good credit and pay a fee.

PMI would be a concern as well though, as they wouldn't be putting down the 20%.

Home insurance is less than $1000 a year. I think my yearly premium is like $650

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A good buying agent will help you roll closing costs into your purchase price

A good mortgage lender will help get you the best possible rate

But yeah the extra costs suck for sure
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origination fees are bullshit
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FursonaNonGrata posted...

A good buying agent will help you roll closing costs into your purchase price

A good mortgage lender will help get you the best possible rate

But yeah the extra costs suck for sure

Rolling into the price is oof. More interest to pay out.

I locked my rate in at a really good time.
It just went back up. Got a really low one.

But if you mean in general, you pay more to have a lower rate.
For example, I asked another lender to see if they could beat the costs of the one I got a rate lock with.

In order to have the same rate, he charged 1000 fee. The other fees where cheaper, but that made it almost balance out to match first lender.

So yes, a poor millennial could add 1000 to purchase price to reduce the rate....
But all that interest gonna hurt eventually.

Zangulus posted...

Theyre planning on making a microhome community in my town. 500-900sqft.

Starting at $250,000.

Wow.

Hairistotle posted...

i don't imagine i'll ever buy a house. i've accepted that luxuries like that will not be something available to me

:'(

darkphoenix181 posted...

I locked my rate in at a really good time.
It just went back up. Got a really low one.

what's your rate?

i just bought my third house in march this year
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The Trent posted...

what's your rate?

i just bought my third house in march this year

3.375

solid
you did really good
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The Trent posted...

solid
you did really good

I more or less got lucky.

Start of October the rates dipped.

Now they on upswing.

Just happened to be when I found one I wanted to offer on.

I was expecting 3.5, which isn't bad.

For someone who has never bought a house, what are the average rates?

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darkphoenix181 posted...

FursonaNonGrata posted...

A good buying agent will help you roll closing costs into your purchase price

A good mortgage lender will help get you the best possible rate

But yeah the extra costs suck for sure

Rolling into the price is oof. More interest to pay out.

I locked my rate in at a really good time.
It just went back up. Got a really low one.

But if you mean in general, you pay more to have a lower rate.
For example, I asked another lender to see if they could beat the costs of the one I got a rate lock with.

In order to have the same rate, he charged 1000 fee. The other fees where cheaper, but that made it almost balance out to match first lender.

So yes, a poor millennial could add 1000 to purchase price to reduce the rate....
But all that interest gonna hurt eventually.

Shoulda phrased it better, I meant that a buying agent will generally be able to roll *half* or so of the closing fees etc. into the price if theyre good at negotiating with the seller. I just got 3.25% locked in. So ~3-4k in costs at that rate doesnt mean too much to me, especially if Im gonna refinance down the road. The market is fuckin wild right now though, I feel lucky to have most of the hard shit in the transaction behind me.
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AlCalavicci posted...

For someone who has never bought a house, what are the average rates?

They change every day.

You have to go through a process with lender who will tell you what they can give you.

Looks like average is up to 3.75 again though from quick google.

Last month it was around 3.5 and dipped to 3.3 ish at end of last month beginning of this one.

There are a lot of "hidden fees" just in buying the house, etc, but I was pretty excited when it was all said and done and my mortgage payment was less than I was paying for rent every month.

...but then you start having to make repairs and random stuff like that, ugh. ;_;
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The Top Crusader posted...

There are a lot of "hidden fees" just in buying the house, etc, but I was pretty excited when it was all said and done and my mortgage payment was less than I was paying for rent every month.

...but then you start having to make repairs and random stuff like that, ugh. ;_;

Yeah, its the down payment thats the problem, but in many cases you can get a lower mortgage payment than rent at a comparable, or better house

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'bout to start the process myself, OP. Wife and I signed a building contract on a lot in a new housing development. House is getting built now. If we go with their preferred lender, though, they cover closing costs at least.
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Zangulus posted...

Theyre planning on making a microhome community in my town. 500-900sqft.

Starting at $250,000.

Jesus Christ

We just bought a 3200 square foot house (6 bed, 3 bath) for 257,000

Sellers paid all closing too which was unexpected since a bunch of our friends have recently purchased and they all had to pay closing.

Also, closing costs are such bullshit.

"Alright so we need to replace this person's name with your name, that'll be $500 please"
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Tired-Insomniac posted...

Jesus Christ

We just bought a 3200 square foot house (6 bed, 3 bath) for 257,000

Sellers paid all closing too which was unexpected since a bunch of our friends have recently purchased and they all had to pay closing.

Also, closing costs are such bullshit.

"Alright so we need to replace this person's name with your name, that'll be $500 please"

That is a good price.
Was house on the market a long time?

What state?

darkphoenix181 posted...

https://www.buzzfeednews.com/article/annehelenpetersen/millennials-homeowners-mortgage-buying-house-apartment

Interesting read. I live at home and am saving up and learning to invest. I never intended to be a homeowner but it will be a possibility in the coming years. Talking about money with other friends, honestly, I don't feel at all guilty about what I have compared to them. In this day and age, you can't do it alone, you need to leverage what you have available to you and you have to start researching on finances because saving alone isn't going to cut it in this day and age.
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darkphoenix181 posted...

That is a good price.
Was house on the market a long time?

What state?

Nebraska, near Omaha.

And yeah it was on the market for nearly three months. They originally asked for 280,000 though which was way more than it's worth (appraised at 260k), but bumped it down to 259 and it stayed on the market for about three weeks before we saw it.

We looked at 24 houses counting this one. Would have looked at nearly 50, but so many of them would end up under contract the same day they were listed so we couldn't even look at them, and several we liked ended up being sold for thousands above asking price. We were worried there were problems with this house to keep it on the market for so long but...

-great neighborhood
-great location
-pre-inspected, and they fixed almost everything that came up on inspection, including a brand new roof that was paid for out of pocket because it was bad due to age, not damage

I was prepared to offer 265 and ask for half of closing, our realtor said the sellers were closing on a house in Utah in a few weeks so might be desperate, so he said let's offer 257, ask them to pay all closing, and fix the remaining items in the inspection report and see what they counter with

And they accepted that offer. We were completely blown away.
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mortgage, cool
interest, cool
maintenance, inconvenient but expected

but **** taxes and especially hikes in taxes
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Meanwhile you can buy a crack house in detroit for 100 dollars out the door.

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Middle hope posted...

Meanwhile you can buy a crack house in detroit for 100 dollars out the door.

Seller would just come back later and rob you.

Oh and if you or anyone in your family is currently or has ever served in the military you're eligible for membership at Navy Federal Credit Union, which has a 0% down, no-PMI mortgage. That's what we did.

The interest rate is a bit higher (ours is 4.75%) but I mathed it out and our payment without the PMI is slightly lower than what a payment would have been if we got a normal 3% down mortgage and had to pay PMI...and we wouldn't have been able to keep our money in savings.
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Zangulus posted...

Yeah. Like no yard either. They want to put 30 of them, including some that are work/home buildings, on 1.7 acres.

Yards are basically a thing of the past anyways tbh. You can drop a million here and get a darn nice house but yard? Lol no. People build to lot size these days. Which is idiotic and lame but oh well.

Id rather have an ok older house (still a half million) on a decent sized lot than the shit getting built nowadays.

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Tired-Insomniac posted...

Jesus Christ

We just bought a 3200 square foot house (6 bed, 3 bath) for 257,000

Sellers paid all closing too which was unexpected since a bunch of our friends have recently purchased and they all had to pay closing.

Also, closing costs are such bullshit.

"Alright so we need to replace this person's name with your name, that'll be $500 please"

Who needs 3200 sq feet? Seriously.

900 honestly aint bad unless you got a bunch of kids. Its enough for a single, a couple, or one kid. People are weird these days though wanting as much square footage as possible.

Then again Im weird compared to most people cause Id rather be out doing shit.

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CanuckCowboy posted...

Who needs 3200 sq feet? Seriously.

900 honestly aint bad unless you got a bunch of kids. Its enough for a single, a couple, or one kid.

people with stuff need space

gf and I just upgraded from a 1050 sq ft to a 1900 sq ft + walk up attic because we simply didnt have space for our stuff. We also enjoy having a guest bedroom now for friends and family and have room to expand once we start a family

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