Crunk Times, My friend.....Crunk Times

[IamDeMan 5,000+ posts]

But did you have the opportunity of 100% financing with no PMI?

I thought you said you could only do 90 with no PMI. I must have misread.

 

[mokedaddy 5,000+ posts]

I get your point now....you are advocating that I negotiate 10% of appraisal fees...and then try to get them to pay closing costs as well. I was just interested in the math behind the whole thing.

exactly. //content.invisioncic.com/y282845/emoticons/biggrin.gif.d71a5d36fcbab170f2364c9f2e3946cb.gif

 

[mokedaddy 5,000+ posts]

OH never mind. No street cred for threats from him. That douches 12th name wasn't anymore worthy than the rest.

That was before I even knew who it was. But I thought it was pretty funny regardless.

 

[IamDeMan 5,000+ posts]

NM I see you saidborrow 100% of the 90% of appraised.

Whereas I borrowed 90% of the full appraisal.

 

[WhoSayWho? 5,000+ posts]

lol....the whole thing rides on my ability to negotiate within 10% of appraised value.
I am considering hiring an agent. I am unsure. I am thinking the seller's agent would be more likely to pressure their client into accepting a lower price if they knew they would get the entire commission.

The good part is that you do not pay for the agent -- the seller does if they have it listed. At least that is the way it works here.

Do not use the seller's agent. That creates a conflict of interest that is impossible to overcome.

 

[mokedaddy 5,000+ posts]

What is the disadvantage to this balloon deal? I must ask about this....

The disadvantage is if you cant sell or make the balloon payment. Not dissimilar to the reason the housing market is in shambles right now.

 

[mokedaddy 5,000+ posts]

NM I see you saidborrow 100% of the 90% of appraised.
Whereas I borrowed 90% of the full appraisal.

Yes you paid 10% down Im guessing and probably paid close to the appraisal amount. He is trying to pay 0 down. To do so he must be able to buy the house for 90% of appraisal.

 

[mokedaddy 5,000+ posts]

Wait, what do you mean? Why sell? What balloon payment? Is that something that hits you at the end of the 7th year like leasing a car or something?

At the end of your 10 year mortgage you must pay off the rest of the mortgage. The 10 years is only a partial payment of the total amount and you owe the rest once the 10 years is up.

 

[mokedaddy 5,000+ posts]

I see. So it is like a car lease. Hrmm. I don't want to move again in 5 years. //content.invisioncic.com/y282845/emoticons/crap.gif.7f4dd41e3e9b23fbd170a1ee6f65cecc.gif

You are probably better off getting a traditional 15 or 30 year mortgage.

 

[mokedaddy 5,000+ posts]

You can't refinance?

Yeah you can but its a chance you take, like Flip said who knows what the interest rate will be like in 10 years.