Crunk Flammable Jello Times

[6spdcoupe 5,000+ posts]

Was supposed to install my alarm today but didn't because of the rain. Instead my real estate agent dropped by and I may be making an offer on a place on Monday.

you didnt install it yet? //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

 

[6spdcoupe 5,000+ posts]

Nice...
I've done some looking around recently and I could buy a decent house for less than I am currently paying for my apartment.

I wish I would have known that 3 years ago...

Fortunately for you it wasnt that way three years ago. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

 

[Flipx99 5,000+ posts]

I wouldn't have time except for the weekends. Tomorrow is rainy and have no other place really. Plus, I have to work on this Monetary Policy thing...

 

[joetama 5,000+ posts]

Fortunately for you it wasnt that way three years ago. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

Ah Ha....

That is a very valid point... I would have lost my arse 3 years ago to today here in Cincinnati.

Where I grew up I seriously think about 1/3 of the town is for sale... I have never seen so many "FOR SALE" signs in my life...

 

[Flipx99 5,000+ posts]

Fortunately for you it wasnt that way three years ago. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

Depends...people who are able to hang in there will do okay.

The problem I have is that I will either have to do a baloon or an ARM to get in the house. Not that I need a teaser rate to get in, it's that balloon/ARMs get me out of paying PMI and only require 3% down. I could go fixed with an FHA but the PMI of ~$70/month knocks about $7,000 of the home price....and very few homes sell in that price range. It would take me years to save up 20% down and couldn't afford much house then.

I am hoping this house appraises for 10% more than the selling price and I can obtain 100% financing via a 10 year balloon. Otherwise I have to settle for this 3/1 ARM, which is okay until payment 49....then gets rather expensive. Since I will be paying extra every month, I should be in a position to refinance at that time, providing the house does not depreciate...And I should have enough equity to refinance into something fixed.

 

[6spdcoupe 5,000+ posts]

Ah Ha....
That is a very valid point... I would have lost my arse 3 years ago to today here in Cincinnati.

Where I grew up I seriously think about 1/3 of the town is for sale... I have never seen so many "FOR SALE" signs in my life...

Depressing isnt it? We lost $50k of equity in the past few months. //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif Knocked all the way down to $390k. //content.invisioncic.com/y282845/emoticons/crying.gif.ec0ebefe590df0251476573bc49e46d8.gif

 

[6spdcoupe 5,000+ posts]

Depends...people who are able to hang in there will do okay.

The problem I have is that I will either have to do a baloon or an ARM to get in the house. Not that I need a teaser rate to get in, it's that balloon/ARMs get me out of paying PMI and only require 3% down. I could go fixed with an FHA but the PMI of ~$70/month knocks about $7,000 of the home price....and very few homes sell in that price range. It would take me years to save up 20% down and couldn't afford much house then.

I am hoping this house appraises for 10% more than the selling price and I can obtain 100% financing via a 10 year balloon. Otherwise I have to settle for this 3/1 ARM, which is okay until payment 49....then gets rather expensive. Since I will be paying extra every month, I should be in a position to refinance at that time, providing the house does not depreciate...And I should have enough equity to refinance into something fixed.

Is 100% still available right now? Would you be attempting an 80/20,85/15? If so wouldnt that knock out PMI with showing 20 down?

 

[6spdcoupe 5,000+ posts]

BTW within the reason the house will appraise for whatever the agent tells them to. They already have a number before they get there. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif

No worries, being a national recession it will surely increase in time. Remember its a home/property .. they arent making any more of it.

 

[Flipx99 5,000+ posts]

Is 100% still available right now? Would you be attempting an 80/20,85/15? If so wouldnt that knock out PMI with showing 20 down?

80/320, etc, etc are next to impossible without going to a loan shark and paying 8%.

The only way I get 100% financing is that if this house sells for 10% less than it's appraised value. My credit is great, the only debt I have is my student loans, but the lack of downpayment essentially kills me.

I feel confident that the house may work out if there is no contract. A similar house that was not a forclosure sold for $143k, many similar houses are selling 133-135. While it isn't impossible to get this one at 10% off appraisal, it is not very likely....But I have 3-4% as a downpayment...so we shall see everything in the upcoming week.

I just know I will be rocking the headphones for a long time if this goes down.

 

[joetama 5,000+ posts]

Depressing isnt it? We lost $50k of equity in the past few months. //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif Knocked all the way down to $390k. //content.invisioncic.com/y282845/emoticons/crying.gif.ec0ebefe590df0251476573bc49e46d8.gif

My brother is thinking about buying up several of the houses and buildings and opening a strip bar...

He is going to call it "Cheeser's Teasers" or "The Church".

He likes the Church because guys can tell their wives "oh honey I'm just going to the church"

 

[Flipx99 5,000+ posts]

BTW within the reason the house will appraise for whatever the agent tells them to. They already have a number before they get there. //content.invisioncic.com/y282845/emoticons/wink.gif.608e3ea05f1a9f98611af0861652f8fb.gif
No worries, being a national recession it will surely increase in time. Remember its a home/property .. they arent making any more of it.

Actually, the scarce factor is not housing, ie the physical structure it's the land that people want. I was reading this article by the federal reserve that said since the 1975, the selling price of homes has went up some 270%, while the cost of building the structure has only increased 33%.

 

[6spdcoupe 5,000+ posts]

80/320, etc, etc are next to impossible without going to a loan shark and paying 8%.
The only way I get 100% financing is that if this house sells for 10% less than it's appraised value. My credit is great, the only debt I have is my student loans, but the lack of downpayment essentially kills me.

I feel confident that the house may work out if there is no contract. A similar house that was not a forclosure sold for $143k, many similar houses are selling 133-135. While it isn't impossible to get this one at 10% off appraisal, it is not very likely....But I have 3-4% as a downpayment...so we shall see everything in the upcoming week.

I just know I will be rocking the headphones for a long time if this goes down.

Now they are, yes. But a few years back it was a breeze for us. 80/20 with closing rolled in. Literally nothing out of pocket. Our intention was to use our 'downpayment funds' to recontruct some of the house and it worked out well. We went from 280k to 440k in a short time. Of course now its going back downhill, but with no plans of moving anytime soon Im confident it will rise again.

 

[6spdcoupe 5,000+ posts]

Actually, the scarce factor is not housing, ie the physical structure it's the land that people want. I was reading this article by the federal reserve that said since the 1975, the selling price of homes has went up some 270%, while the cost of building the structure has only increased 33%.

Agreed, my only point was that it would appraise correctly in your favor.

Also take into consideration while 33% raise in cost of building has occured, the demand for housing has also risen hence the raise in overall cost. Supply meet demand. Do I agree with it? No, but its the way the world works. //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

 

[Flipx99 5,000+ posts]

I would love to do an 80/20 at a decent rate...

Problem comes with contracted lending makes housing cheap...but it is cheaper because people can't move in...

I feel the next house will be much easier, as I will have equity as a form of downpayment.

 

[Flipx99 5,000+ posts]

Agreed, my only point was that it would appraise correctly in your favor.
Also take into consideration while 33% raise in cost of building has occured, the demand for housing has also risen hence the raise in overall cost. Supply meet demand. Do I agree with it? No, but its the way the world works. //content.invisioncic.com/y282845/emoticons/frown.gif.a3531fa0534503350665a1e957861287.gif

But it isn't the supply of houses...it's the supply of land where people want to live. It's a technicality I guess.