Home Owners Thread

[lewisfk]

^^ I understand what your saying, but I want my corvette now! Not when I'm in my late 40 to mid 50 age range. I chose a 30 year mortgage due to the lower cost monthly, because I wanted to do major upgrades like solar, tankless water heater, and heat my pool.

Just hit one year as a homeowner. My credit jumped up as well.

[MADE]

Originally Posted by lewisfk

^^ I understand what your saying, but I want my corvette now! Not when I'm in my late 40 to mid 50 age range. I chose a 30 year mortgage due to the lower cost monthly, because I wanted to do major upgrades like solar, tankless water heater, and heat my pool.

Just hit one year as a homeowner. My credit jumped up as well.

Tankless water heater is the ish. Instant hot water, its common everywhere except here. Now if I can only get a heated tub, and a heated toiler seat like the Japanese Id be set.

My next $$ upgrade is a Generac standby generator. If I retire here and get a real job I plan to double up my payments and do that.

This MD is the first place I could realistically afford a home, so I decided to buy my first house. Its not a bad price, considering the amount of land and sq ft I got. When I watch HGTV I cringe for those prices I'd never by a home.

[simmode1]

Originally Posted by MADE

When I watch HGTV I cringe for those prices I'd never by a home.

I'm glad it's not just me.

[Silverbullet]

Originally Posted by dbeiler

For those of you who haven't yet bothered doing the math on 30yr vs 15yr mortgages:

Median U.S. home price is roughly $200,000. Dude A and Dude B each save up enough cash to cover 20% down and closing costs.

Dude A chooses a 30yr mortgage for the remaining $160,000 with (today's average) interest rate of 4%. His monthly mortgage payment is $764.

Dude B chooses a 15yr mortgage for the remaining $160,000 with (today's average) interest rate of 3.3%. His monthly mortgage payment is $1128.

After the first 5 years:
Dude A has paid
$15,284 towards his principle
$30,556 in interest
He still has 25 years of payments and a remaining balance of $144,716.

Dude B has paid
$44,825 towards his principle
$22,855 in interest
He still has 10 years of payments and a remaining balance of $115,175.

Over the course of their respective mortgage payoffs:
Dude A will pay a whopping total of $114,991 in interest alone!
Dude B will pay a total of $43,069 in interest.

Dude B buys a brand new Corvette with the $70K he saved on his mortgage.
He lives happily ever after. The end.

*all numbers courtesy of www.creditkarma.com

There is no right or wrong choice when it comes to your financing, they are just simply options for different goals, but when it comes to 15 yr financing, i think its just plain silly. Having money TODAY is more powerful. Leverage as much as you can. This is what the wealthy does.

Your simulation is not wrong in numbers, however let me add an extra variable. The $250 Dude A saved, can be invested in the market. Putting in $250 a month into a balanced portfolio will easily pay off all of the interest paid over the whole mortgage. Sure, not everyone is going to do this, but having that extra spending cash gives Dude A more options in terms of buying power.

Also, I know i said your simulation is not wrong, but it is. You're comparing the total amount of interest paid in two scenarios. One of them is 15 years later than the other. We can assume a 2% inflation each year. Compounding inflation. See where I am going with this?

[dbeiler]

Originally Posted by Silverbullet

There is no right or wrong choice when it comes to your financing, they are just simply options for different goals, but when it comes to 15 yr financing, i think its just plain silly. Having money TODAY is more powerful. Leverage as much as you can. This is what the wealthy does.

Not really sure what you mean by this. Care to elaborate with some calculations?

Originally Posted by Silverbullet

Your simulation is not wrong in numbers, however let me add an extra variable. The $250 Dude A saved, can be invested in the market. Putting in $250 a month into a balanced portfolio will easily pay off all of the interest paid over the whole mortgage. Sure, not everyone is going to do this, but having that extra spending cash gives Dude A more options in terms of buying power.

I'm afraid that's a huge miscalculation. Keep in mind, Dude B saves $70K IN INTEREST ALONE. There is no way investing $250 a month can gain you $70K IN INTEREST ALONE in 15 years. That would average out to a gain of $388 a month in interest. Impossabru!

Originally Posted by Silverbullet

Also, I know i said your simulation is not wrong, but it is. You're comparing the total amount of interest paid in two scenarios. One of them is 15 years later than the other. We can assume a 2% inflation each year. Compounding inflation. See where I am going with this?

You are correct, my calculations don't reflect inflation.

[Silverbullet]

Putting $350 into investments, sorry not $250. $350 monthly into the market after about 15 years will project $148k in today's value, $80k from interest and dividends in today's value.

That $70k saved in interest is and always will be $70k reguardless what year it is in the future.

I'm using a portfolio calculator on my phone, but I'm sure you can find a well rounded compounding calculator on the internet.

When i said having the money today is more powerful because it can be leveraged, i mean that money you have now can be used to purchase something now. You can leverage it by using that money as a down payment for another loan for another house, or like i mentioned before, a market portfolio. Its how you turn $20k into $500k+




Like i said, there is no right or wrong choice. Not everyone has the interest of making more with their money, some people just want a simple life and not deal with having a loan under their name. I was treating the model as an investment house. When it comes to buying a house as a home, there is more emotional elements in play.

[Flicktitty]

figured i would bump this up again, Just closed on our first house a couple weeks ago, so far i'm loving it, lot's of plans for both the house and the garage!

[CrimsonRockett]

That's a nice looking house.

Congrats!

[DertyDan]

yeah, awesome house! super fast and furious style. i wish this thread was more active! i got approved to buy a house once.... then i decided to go to final bout

[exitspeed]

Originally Posted by Flicktitty

figured i would bump this up again, Just closed on our first house a couple weeks ago, so far i'm loving it, lot's of plans for both the house and the garage!

Nice place. Where are you about?


Update on the house we bought last year. Stuck about $50k into it so far. So much work. Changed the entire floor plan on the first floor (moved the bathroom, laundry, kitchen, garage door entrance, etc), replaced every piece trim and floor board in the house, replaced stair rails and posts, did landscaping, and on and on.

Part of the kitchen.




The neighbors call our tree the tree of the neighborhood.



My back yard. 1 Acre. I built that table out of barn beams and white oak. It weighs about 500lbs.


I'll post some more up another time.

[Lees_Garage]

Exitspeed, love the house and the tree!

[JesusFreakDrifter]

Fuck! You fellas are going in. I absolutely love figures. This makes me anxious now to get started in the home buying process

[tricky_ab]

Hey exitspeed, I'd love to comment on how much I like your house, but the pictures are not showing up for me

[exitspeed]

Originally Posted by tricky_ab

Hey exitspeed, I'd love to comment on how much I like your house, but the pictures are not showing up for me

Huh weird. They're on my google photos. That might be why.

[gbaby2089]

Yup, I can't see your photos either exitspeed.

@flicktitty, looks super nice!

[Silverbullet]

that is a fantastic garage!

[ZenkiKid]

Thread bump.

Fiancee and I are gonna get pre-approval next week (or the week after) to see where we stand regarding our goal of entering the market to buy this time next year.

Scared of the results but I am hoping that our only issue is our down payment. We both have very good credit scores and pretty low debt so my fingers are crossed.

[exitspeed]

Finally got around to posting pics people can see. We gutted the entire kitchen, first floor bath, laundry and moved the whole kitchen around. We had to change the location of the inside garage door too. Nothing was untouched (except the upstairs bathroom which is next). We painted every room, removed and replaced every piece of baseboard, window and door trim, outlet and light fixture in the house. Its never ending. We bought the house for $225k stuck about $50k into it so far. Just appraised for $325k. There's an acre lot, with a side woods and a lake about 100 yards away.

When we bought it. Looking from the living room to the kitchen.


The little kitchen and laundry room. There's also a bathroom there.


Work.


Work.


Work.




Cabinets in and new oak floors stained.


Kitchen mostly done. We were still waiting for the rest of the island trim (you can see a couple of the edges of the trim aren't finished).


Here are the sliding doors. Pics below on the work on those.


The barn wood I used for the chalk board frame.


This was the dining room.


Built this playhouse for the kids for Christmas.


100 year old doors. 9' TALL!


Cut them down to standard door height, changed the glass to be horizontal and refinished the,


Old stair rails and spindles.


New posts, rails, spindles.


Living room when we bought it.


Now. From the other way looking towards the front of the house.


We put in new fans throughout the house. But thought they were sorta boring.


I bought new glass bowls, drilled holes, painted the parts underneath and put in Edison bulbs. Boom, custom one-of-a-kind modern fans.


Fireplace as of right now. Doing a barn beam mantle soon.


Backyard. I built that outdoor dining table so we could eat outside.


And the money shot. "The Tree of the Neighborhood"as the neighbors call it, in all its Fall glory.

[lunchmeat]

Damn that's nice

[MightyMouse13]

My wife and I have asked this question many times. We're not completely broke, but not rich either. When we began our house search we set the budget at $100k and found almost nothing. Cost of living here is low too. it definitely is an eye opener watching those hgtv shows.


Sent from my iPhone using Tapatalk

[simmode1]

Great job on the reno! I like what I'm seeing so far... especially the budget numbers.

Originally Posted by MightyMouse13

My wife and I have asked this question many times. We're not completely broke, but not rich either. When we began our house search we set the budget at $100k and found almost nothing. Cost of living here is low too. it definitely is an eye opener watching those hgtv shows.


Sent from my iPhone using Tapatalk

Yeah, you gotta take HGTV with a grain of salt. That stuff is for entertainment. I think did a quick and simple search in Tallahassee and found tons of houses under between $40 & $120k. You have to so really strategic with the criteria you're searching for or you come up empty handed. Not sure exactly what you're looking for, but good luck on your search. My wife and I are in the same boat. Exploring the NACA program now to see if that gives us any advantages.

[silverarrow27]

^Renovation definitely looks good. You're talented to do all that work yourselves.

Same here, been spending the last month looking at homes and all I find are really crappy 50s, 60s, and 70s homes that needs LOTS of updating for $250k. The 80s and 90s homes for the $250k range just have some weird ass plans, don't know what the hell the designers/architects were thinking of back then.

[exitspeed]

Originally Posted by silverarrow27

^Renovation definitely looks good. You're talented to do all that work yourselves.

Same here, been spending the last month looking at homes and all I find are really crappy 50s, 60s, and 70s homes that needs LOTS of updating for $250k. The 80s and 90s homes for the $250k range just have some weird ass plans, don't know what the hell the designers/architects were thinking of back then.

We actually hired a contractor to do the kitchen since we moved the kitchen, bathroom and Landry room around. Too much electrical asked plumbing to do it myself. But the rest of there house I did.

The homes from there 90's are shitty quality most of the time too.

[hobbs]

Ugh...all of these nice houses in this thread. I can't wait to get to the point in my life to where I'm able to settle down and buy a house.

[tricky_ab]

Great looking house exitspeed! I love the kitchen the most...

Originally Posted by exitspeed

We actually hired a contractor to do the kitchen since we moved the kitchen, bathroom and Landry room around. Too much electrical asked plumbing to do it myself. But the rest of there house I did.

The homes from there 90's are shitty quality most of the time too.

Yeah, I can attest to the quality dropping in the 1990+ houses... My current house is a new build (3 years old) and there's some legit head scratching moments I've come across.

Last one was when I was mounting a TV and the studs were spaced out differently. It's laughable till you realize that we are talking about a house that's worth $569K...

[gbaby2089]

^Ouch. My wife & I are looking for something small, built between 1900 and 1960 and with a fair amount of land.

Not a chance we find it.

[CrimsonRockett]

Originally Posted by MightyMouse13

My wife and I have asked this question many times. We're not completely broke, but not rich either. When we began our house search we set the budget at $100k and found almost nothing. Cost of living here is low too. it definitely is an eye opener watching those hgtv shows.

Originally Posted by simmode1

Great job on the reno! I like what I'm seeing so far... especially the budget numbers.

Yeah, you gotta take HGTV with a grain of salt. That stuff is for entertainment. I think did a quick and simple search in Tallahassee and found tons of houses under between $40 & $120k. You have to so really strategic with the criteria you're searching for or you come up empty handed. Not sure exactly what you're looking for, but good luck on your search. My wife and I are in the same boat. Exploring the NACA program now to see if that gives us any advantages.

I wish houses in CA were $120k.

HGTV throws numbers around for reno's that are laughable at times. Maybe it's the city/state they're remodeling in, but there's no way in hell you would get as much as they get done here in CA.

Currently shopping for our second house with a max purchase price of around $600k.

[exitspeed]

Originally Posted by CrimsonRockett

I wish houses in CA were $120k.

HGTV throws numbers around for reno's that are laughable at times. Maybe it's the city/state they're remodeling in, but there's no way in hell you would get as much as they get done here in CA.

Currently shopping for our second house with a max purchase price of around $600k.

I've said for a decade that the costs on those shows isn't accurate because they have sponsors (Wayfair, etc). So they get all the accessories that would cost you and I $5k. Same with building materials and everything else.

[Corbic]

Originally Posted by exitspeed

I've said for a decade that the costs on those shows isn't accurate because they have sponsors (Wayfair, etc). So they get all the accessories that would cost you and I $5k. Same with building materials and everything else.

Hit or miss. Some of the costs they are spending blows my mind. Buy house for 700k, spend 160k renovation, list for 900k.

The pro flippers obviously have a ton of industry connections and are not shopping at Home Depot. It's just like car parts. Most shops/retailers are getting parts for 30-40% under retail.

[ZenkiKid]

Fiancee and I got pre-approved and now were just honestly window shopping.

Nothing is currently out there that we want, especially for the price.