Home Owners Thread

[Agamemnon]

Originally Posted by turbronegro

Who said anything about the world being blamed?

No one did. I'm implying that that the person in your example is to blame.

[DrtyRat]

Originally Posted by turbronegro

So, how does a 30 year old guy with two or three kids who makes $60k a year and still has school loans save up enough for a down payment on a home loan? Let's say his wife works part time and the youngest child is in daycare (mortgage payment in some states). How is that realistically possible for him to do?

FHA, it's what my wife and I did for our first home. With fha loans you'll only have to put 3% down, but be ready to have over 10k when it's all said and done(closing cost,etc). The downside is PMI(private mortgage insurance) that you have to pay until you have 20% equity in the house. For reference I had 2 kids at the time and made similar money with no school debt but my son was in private school and we took care of my mother in law financially.

[RalliartRsX]

Originally Posted by Agamemnon

He doesn't. Sounds like this hypothetical person made some life choices early on that is preventing him from from saving. That's not the world's fault.

^This

As I mentioned turbronegro, unless your hypothetical friend were dead set from a very early age or just ended up playing his cards right, making the right life choices, etc in regards to buying a house, it will be a tough road to climb in regards to saving and their family/personal situation..

As I said, its really fucked up how prohibitive they make it for a regular working class individual from buying a house. 80% of the people can easily support a reasonable mortgage. Its the effing downpayment that no one can afford.......

The banks screwed us, all these regulations got put in place, and somehow after all this, all the new regulations did was make sure the big banks don't fail and take everyone down with them. Which means, they are covered and we are still fucked from a buyers perspective......Unless loaded as a human

[RalliartRsX]

Originally Posted by DrtyRat

FHA, it's what my wife and I did for our first home. With fha loans you'll only have to put 3% down, but be ready to have over 10k when it's all said and done(closing cost,etc). The downside is PMI(private mortgage insurance) that you have to pay until you have 20% equity in the house. For reference I had 2 kids at the time and made similar money with no school debt but my son was in private school and we took care of my mother in law financially.

This as well

However, in a hot market the problem with a FHA is not only the exorbitant cash you need to have on hand, the loan itself takes almost twice as long to process and you are up against straight up cash overs, 2 week closing dates and no contingencies,

Nothing against FHA as in most cases, it is like any other loan and as you have proven, it works! However it is heavily market and seller dependent

[Silverbullet]

Originally Posted by turbronegro

So, how does a 30 year old guy with two or three kids who makes $60k a year and still has school loans save up enough for a down payment on a home loan? Let's say his wife works part time and the youngest child is in daycare (mortgage payment in some states). How is that realistically possible for him to do?

I have to admit thats a tough financial position to be in, having 3 kids. I have never been in that situation, but I can tell you if theres any periods in your life that you feel like you are stuck, remind yourself that there are people who have walked that road, changed their circumstances, completely owned up to it, hustled hard and are killing it now, and I bet they have advise to give to their "young 30 yr old self" step by step if he were to do it over again.

This can be used as a metaphor for anything in life but in business, having a good mentor is basically the cheat code to succeeding.
I just got off a 3 hour phone call with a mentor that gave me free advise (he normally charges $300/hr for his coaching clients so im super grateful that hes a talker lol). Where his knowledge comes from his 20+ experience and the mastermind groups for his business that he pays close to $100k to be in. Even if my call wasn't free, I would be happy to pay his rate bc where I am in my business (that i think is a challenge), he can tell me exactly what I need to do to take it to the next level bc hes been there and seen so many others take teh same path.

So I don't have the exact answer for that 30 year old with the 3 kids, but I feel like the answer will likely be to increase his cashflow income significantly.

[turbronegro]

I asked that question because i feel like that is the average middle class man. Wether he's to blame isn't of any importance, it's the fact that its reality.

I myself only have one kid and Im fixed already, I can't fathom raising more than one kid lmfao.

[spooled240]

Originally Posted by RalliartRsX

1) A significant part of the stimulus package of 08, which is allowing us the flourishing economy we currently enjoy almost a decade since the stock market collapse, is benchmark rate (which was zero up until 2015). Again I ask, if the feds knew it was detrimental, why would they increase rates?? The feds have a fair amount of confidence the markets will not be needing a helping hand and are slowly pulling back. It is a fine line they walk as although we are mostly out of the recession and job growth has remained steady, inflation is still fairly low. In addition, although feds have raised the rate to 1.25%, the rates still remain historically low, so I would highly suggest one buy a house now. Interest rates will only go up from here.

I recommend a fantastic article in the NYTimes which discusses this very topic. It does a proper job breaking down why the feds raised interest rates in the past several years. its a good concise read
Why the Feds raised Rates

2) House prices have never dropped (barring the financial collapse of 2008). They have stabilized but they will never drop as home prices themselves are one of the many bi products of inflation. So if you are banking on housing prices dropping or the stock market crashing being a few reasons preventing you from buying a home, you will never own a home at any rate......The banks themselves just completed a financial collapse faux scenario to replicate 08, and they all mostly did well and weathered the storm.
In addition, housing prices increased in the early 2000s due to simply supply and demand. Demand was driven by an individual (for example) making minimum wage buying several properties with sub prime loans that a ballooned a few years later. That, in addition to unscrupulous practices by the banks (wrapping super high risk loans in a low risk package) and the limited regulation on the market is essentially what drove house prices up and what eventually cause the collapse.

3)Speculation. When talking large sums of money, speculation is not something I would delve into. If I am about to drop $30K of my hard earned money for a down payment, I better be sure I know the risks and have done the math on either end

Im just skeptical of just how good the american ecomomy will be doing in the near future. Political turmoil, a severely divided country and the exhausted remedy of low interest rates being present for the past 8+ years have got me worried

Originally Posted by Silverbullet

I have to admit thats a tough financial position to be in, having 3 kids. I have never been in that situation, but I can tell you if theres any periods in your life that you feel like you are stuck, remind yourself that there are people who have walked that road, changed their circumstances, completely owned up to it, hustled hard and are killing it now, and I bet they have advise to give to their "young 30 yr old self" step by step if he were to do it over again.

This can be used as a metaphor for anything in life but in business, having a good mentor is basically the cheat code to succeeding.
I just got off a 3 hour phone call with a mentor that gave me free advise (he normally charges $300/hr for his coaching clients so im super grateful that hes a talker lol). Where his knowledge comes from his 20+ experience and the mastermind groups for his business that he pays close to $100k to be in. Even if my call wasn't free, I would be happy to pay his rate bc where I am in my business (that i think is a challenge), he can tell me exactly what I need to do to take it to the next level bc hes been there and seen so many others take teh same path.

So I don't have the exact answer for that 30 year old with the 3 kids, but I feel like the answer will likely be to increase his cashflow income significantly.

There are options for the middle class guy with 3 kids making 60k a year. Go study for a few IT certs and go do a 6 figure contract overseas. You make 120k cash in one year and have the skills amd experience to make 60k+ after that.

I do ask though, where do you guys find mentors? I could use one.

Sent from my SM-G935T using Tapatalk

[Agamemnon]

Originally Posted by turbronegro

Wether he's to blame isn't of any importance, it's the fact that its reality.

A reality he created for himself.

Originally Posted by spooled240

Im just skeptical of just how good the american ecomomy will be doing in the near future.

It depends on what you want to get out of home ownership. Are you wanting a home just as an investment and potentially growing wealth? Or is it because you want a place to call your own? A place that after a long hard day, you have your own sanctuary.

[spooled240]

Originally Posted by Agamemnon

It depends on what you want to get out of home ownership. Are you wanting a home just as an investment and potentially growing wealth? Or is it because you want a place to call your own? A place that after a long hard day, you have your own sanctuary.

I just dont want to be upside down on a house. High mortgage payments and negative equity the worst of both worlds.

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[Agamemnon]

Originally Posted by spooled240

I just dont want to be upside down on a house. High mortgage payments and negative equity the worst of both worlds.

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I hear what you're saying. You just have to ride it out. Prices bounce back.

[lunchmeat]

Originally Posted by spooled240

There are options for the middle class guy with 3 kids making 60k a year. Go study for a few IT certs and go do a 6 figure contract overseas. You make 120k cash in one year and have the skills amd experience to make 60k+ after that.

I do ask though, where do you guys find mentors? I could use one.

Sent from my SM-G935T using Tapatalk

I did that...kinda. Been a field tech for damned near 20 years, got sick of the shit pay. Got my security+ and landed a security analyst position. Overnight $25k/yr raise. Going for the certified ethical hacker certification next year, working on Linux+ right now. Within two years I'm looking at adding another $25k a year. And maybe going for a bachelor's degree in info sec. Shit pays well man.
Sure as hell helps with my $1200 monthly mortgage payment and two rug rats.

Sent from my HTC One using Tapatalk

[exitspeed]

Going to have some updated pics soon.

Just put in a fire pit and a 22' flagstone patio around it (connecting to my existing concrete patio).

I'm about halfway done with a new outdoor kitchen island that's 10' x 6'.

Fuck yeah.

But man I need a break. I FUCKED my elbow up (tennis elbow I guess) doing that patio. Laying 4500lbs of a stones (some 200-300lbs a piece) with very little help is HARD. Of all the projects I've done after remodeling two homes, that was physically THE hardest project I've done. Hardscaping is no joke.

[lewisfk]

I would love to see detail pics, I want to close in my back patio.

[SSJ-S15]

Originally Posted by DrtyRat

FHA, it's what my wife and I did for our first home. With fha loans you'll only have to put 3% down, but be ready to have over 10k when it's all said and done(closing cost,etc). The downside is PMI(private mortgage insurance) that you have to pay until you have 20% equity in the house. For reference I had 2 kids at the time and made similar money with no school debt but my son was in private school and we took care of my mother in law financially.

With 3% down you'll pay the PMI for the entire life of the loan, it will never fall off

[DrtyRat]

Originally Posted by SSJ-S15

With 3% down you'll pay the PMI for the entire life of the loan, it will never fall off

Not sure where you're getting your info from but we did it in 5yrs.

[RalliartRsX]

Originally Posted by SSJ-S15

With 3% down you'll pay the PMI for the entire life of the loan, it will never fall off

LOL!

Sarcasm

[SSJ-S15]

Originally Posted by DrtyRat

Not sure where you're getting your info from but we did it in 5yrs.

I've been in mortgage lending for 15 years

Old FHA guidelines stated that MIP will fall off after reaching 78% loan to value and a minimum of 5 years in the loan

The rules have now changed that with less than a 10% down payment it is on there the life of the loan, or with 10% or more it is on there for a minimum of 11 years, and then reaching 78% loan to value

[gbaby2089]

What.

I bought a house.
I put 3% down.
My PMI stops at 20% equity.

[DrtyRat]

Originally Posted by SSJ-S15

I've been in mortgage lending for 15 years

Old FHA guidelines stated that MIP will fall off after reaching 78% loan to value and a minimum of 5 years in the loan

The rules have now changed that with less than a 10% down payment it is on there the life of the loan, or with 10% or more it is on there for a minimum of 11 years, and then reaching 78% loan to value

I take it back-you are right. I bought my house prior to 2013 and was told that when we pay down 20% of the loan value it will drop off, but since then if you put down <10% you keep it for the life of your loan however it you can always refinance into a conventional loan if the home value increases enough and then drop the pmi

[the shocker]

Originally Posted by gbaby2089

What.

I bought a house.
I put 3% down.
My PMI stops at 20% equity.

How it is where I live in canada. Except minimum 5% for a first time home buyer.

[SSJ-S15]

Originally Posted by gbaby2089

What.

I bought a house.
I put 3% down.
My PMI stops at 20% equity.

If you have an fha loan it's not coming off

[gbaby2089]

Originally Posted by SSJ-S15

If you have an fha loan it's not coming off

Not an FHA loan.

[SSJ-S15]

Originally Posted by gbaby2089

Not an FHA loan.

If it was a Fannie Mae (conventional) 3% down you'll be set once you hit the 20% equity mark

[gbaby2089]

Not sure if it was Fannie-Mae, but yep. Conventional 3% down, PMI off at 20%.

Almost got a GREAT interest rate, but my lending agent f'd up the paperwork so I was somehow forced to wait a week and in the meantime the going rate jumped a bunch.

Still a good rate, just not a GREAT one.

[SSJ-S15]

Originally Posted by gbaby2089

Not sure if it was Fannie-Mae, but yep. Conventional 3% down, PMI off at 20%.

Almost got a GREAT interest rate, but my lending agent f'd up the paperwork so I was somehow forced to wait a week and in the meantime the going rate jumped a bunch.

Still a good rate, just not a GREAT one.

What rate if you don't mind me asking?

[Silverbullet]

Originally Posted by spooled240

. Go study for a few IT certs and go do a 6 figure contract overseas. You make 120k cash in one year and have the skills amd experience to make 60k+ after that.

I know tech is the sexy thing in the media at the moment, but the most valuable skill out there is selling. The highest paid profession is a salesman. We have this perception of a sales man, that lying sleezball. Those make mediocure at best. A good one is about understanding the client, and connecting their needs to the right solution. I have friends that in are in their early 20s (that i look up to and learn from) that pull mid 6 figs a month because they understand the secret sauce: serving people, serving a greater cause.

Originally Posted by spooled240

I do ask though, where do you guys find mentors? I could use one.

Many different ways. You live in SoCal, ther are tons of successful ppl in your area but the easiest is go to a Tony Robbins or any other self development seminar. It will change your life. From the knowledge, exercises, and the people you will meet- it'll hit you that the 99% of the masses are literally on auto-pilot sleepwalking through life.
Unleash the Power within is the cheapest seminar and is catered for the general population.
There are other programs that range from 6k to 75k from there on. I know those sound like big numbers to most ppl, and you can easily say "well shit, I can buy another set of rims, turbo upgrades, ect ect for 10k", but understand theres a place for spending to consume/splurg, and spending to invest in yourself, and I'd be willing to bet all those successful ppl in SoCal know the difference.

Good luck buddy, i think you'll do great. By just asking the question, you've started the process already.

[gbaby2089]

Originally Posted by SSJ-S15

What rate if you don't mind me asking?

Was supposed to be 4 flat, I'm in the mid/high 4 range now

[DrtyRat]

Originally Posted by Silverbullet

I know tech is the sexy thing in the media at the moment, but the most valuable skill out there is selling. The highest paid profession is a salesman. We have this perception of a sales man, that lying sleezball. Those make mediocure at best. A good one is about understanding the client, and connecting their needs to the right solution. I have friends that in are in their early 20s (that i look up to and learn from) that pull mid 6 figs a month because they understand the secret sauce: serving people, serving a greater cause.


Many different ways. You live in SoCal, ther are tons of successful ppl in your area but the easiest is go to a Tony Robbins or any other self development seminar. It will change your life. From the knowledge, exercises, and the people you will meet- it'll hit you that the 99% of the masses are literally on auto-pilot sleepwalking through life.
Unleash the Power within is the cheapest seminar and is catered for the general population.
There are other programs that range from 6k to 75k from there on. I know those sound like big numbers to most ppl, and you can easily say "well shit, I can buy another set of rims, turbo upgrades, ect ect for 10k", but understand theres a place for spending to consume/splurg, and spending to invest in yourself, and I'd be willing to bet all those successful ppl in SoCal know the difference.

Good luck buddy, i think you'll do great. By just asking the question, you've started the process already.

I usually despise when ppl quote a lengthy post just to give it a thumbs up, but this one deserves it.

[SSJ-S15]

Originally Posted by gbaby2089

Was supposed to be 4 flat, I'm in the mid/high 4 range now

30 year fixed rates have dropped into the high 3's now with 720 credit scores are higher, might be worth looking into a refinance.

[RalliartRsX]

Originally Posted by SSJ-S15

30 year fixed rates have dropped into the high 3's now with 720 credit scores are higher, might be worth looking into a refinance.

From what I understand, aren't there certain stipulations as to how soon one can refinance after purchasing a home??

I wonder if gbaby falls into that window (if there is a window that is)??

I know when we bought, once we sold our initial home, we could refinance immediately as
1) The new house would be our primary residence
2) The proceeds from the initial house would be used for refinancing closing costs (which I think is BS as you have to pay closing costs twice...but that's an entirely separate discussion......)