|
Author
|
Topic: house loan q?
|
losbadgts
¯
Member # 4394
|
posted
 
 
So just got approved. And been looking at some homes. But what do you guys recommended. FHA or conventional?
--------------------
Why pretent someone u are not, everyone else could see it.
Posts: 3625 | From: redwood city | Registered: Apr 2004
| :
|
|
|
|
SLOWBACK 67
¯
Member # 6348
|
posted
quote:
Originally posted by 135.0:
Conventional, FHA pmi for life bruh
Been fighting with my wife about PMI and FHA Loans. I personally only want do a traditional loan but everyone's circumstances are different. If you manage to buy a home at it's lowest point a few years ago, you most likely have over 20% equity into your home.
Lastly don't let the loan officer talk you into having them pay off your PMI and adjusting your interest rate in the process. Cause now your stuck paying more over the life of the loan opposed to the time it takes to acquire 20% equity.
--------------------
Originally posted by turbo50:
I have no intenions of keeping anyones parts or taking anyones money.
Posts: 8582 | From: Vallejo | Registered: Dec 2005
| :
|
|
adower
¯
Member # 5955
|
posted
quote:
Originally posted by losbadgts:
So just got approved. And been looking at some homes. But what do you guys recommended. FHA or conventional?
Conventional. I would only do tha if youre sure you are only going to be in that house for a few years. Sell get equity and put 20% down on the next one.
--------------------
98 Cobra
Griggs
S Trim
HRE
Posts: 3327 | Registered: Aug 2005
| :
|
|
losbadgts
¯
Member # 4394
|
posted
quote:
Originally posted by adower:
quote:
Originally posted by losbadgts:
So just got approved. And been looking at some homes. But what do you guys recommended. FHA or conventional?
Conventional. I would only do tha if youre sure you are only going to be in that house for a few years. Sell get equity and put 20% down on the next one.
Thats my goal. Since im buying a home about 50 minutes away from work.
--------------------
Why pretent someone u are not, everyone else could see it.
Posts: 3625 | From: redwood city | Registered: Apr 2004
| :
|
|
1996 GT
I'm Joe Yates
Member # 4992
|
posted
3.5% vs 5% isn't shit more down. FHA charges twice in PMI upfront which is almost 2% or maybe more of the loan amount which they tack on no to the loan. Plus the monthly which is higher than conventional, and when you go pay the fucker off they charge a full months worth extra if you don't pay it off by the 1st of the month. You'll get more money back from a conventional loan 10x out of 10x if you plan on upgrading later. Just don't pay any points and take a higher rate vs lower rate if that's the case. FHA is for suckers
Posts: 9308 | Registered: Oct 2004
| :
|
|
|
|
5.t0es
¯
Member # 5864
|
posted
you can always do the fha if you do not have the extra cash down. Now fha MIP (monthly ins premium) stays on for the life of the loan, You can always hope the market goes up and rates stay similar and refinance out to a conventional at a later date.
fha cons: mip for life, expensive appraisal, strict home criteria,upfront costs. The mip can add upwards of 300 a month to your payment
fha pros: 3.5 down
Posts: 2990 | From: eb | Registered: Jul 2005
| :
|
|
97cobra209
¯
Member # 11376
|
posted
quote:
Originally posted by adower:
quote:
Originally posted by losbadgts:
So just got approved. And been looking at some homes. But what do you guys recommended. FHA or conventional?
Conventional. I would only do tha if youre sure you are only going to be in that house for a few years. Sell get equity and put 20% down on the next one.
Then again this is how many people lost thier homes when the market bubble went pop!!
--------------------
2011 GT/CS 5.0
Posts: 872 | From: Stockton | Registered: Oct 2011
| :
|
|
venomous99
¯
Member # 1917
|
posted
very simple, if you have the cash required to get into a non FHA loan go that route.
why? as already mentioned, lower rates, no pmi, way more loan options, relatively easier loan closing.
the reality is most folks dont have 20% cash down(~100k plus on an avg bay area home) so theyre left with limited options..FHA or just rent.
--------------------
MKII Q7
89LX
Posts: 4811 | From: dc | Registered: Oct 2002
| :
|
|
1996 GT
I'm Joe Yates
Member # 4992
|
posted
quote:
Originally posted by venomous99:
very simple, if you have the cash required to get into a non FHA loan go that route.
why? as already mentioned, lower rates, no pmi, way more loan options, relatively easier loan closing.
the reality is most folks dont have 20% cash down(~100k plus on an avg bay area home) so theyre left with limited options..FHA or just rent.
Conventional requires 5% down not 20% anymore... 5% vs 3.5% is a no brainer just wait a month or two to save up for a better option.
--------------------
http://i.magaimg.net/img/257w.png
Posts: 9308 | Registered: Oct 2004
| :
|
|
venomous99
¯
Member # 1917
|
posted
quote:
Originally posted by 135.0:
quote:
Originally posted by venomous99:
very simple, if you have the cash required to get into a non FHA loan go that route.
why? as already mentioned, lower rates, no pmi, way more loan options, relatively easier loan closing.
the reality is most folks dont have 20% cash down(~100k plus on an avg bay area home) so theyre left with limited options..FHA or just rent.
Conventional requires 5% down not 20% anymore... 5% vs 3.5% is a no brainer just wait a month or two to save up for a better option.
yeah if thats the case itll come down to what gets u the better rate as one will be looking at pmi regardless. that said, i wouldnt let PMI stop you from buying especially if the market is down(which it isnt now) as rise in home value can get u back to above the equity level for no PMI on a refi. those that bought in 2012 are seeing lots of benefits from a down market that now has jumped 20-30% since then...that means those w/ PMI back then likely could refi without needing PMI.
[ 2014-10-27, 12:36 PM: Message edited by: venomous99 ]
--------------------
MKII Q7
89LX
Posts: 4811 | From: dc | Registered: Oct 2002
| :
|
|
losbadgts
¯
Member # 4394
|
posted
Thanks guys great info.
--------------------
Why pretent someone u are not, everyone else could see it.
Posts: 3625 | From: redwood city | Registered: Apr 2004
| :
|
|
1996 GT
I'm Joe Yates
Member # 4992
|
posted
Both conv and FHA has pmi but the fha pmi is for as long as you own the loan, conventional you can get an appraisal and remove pmi later without a new refi. A lot of brokers are convincing people to go FHA because they know they have to redo/refi the loan later to get rid of the PMI. More refis equals more commissions for them!
Posts: 9308 | Registered: Oct 2004
| :
|
|
Gnari-Garage
CAFords OG
Member # 3164
|
posted
If you have the money, than do a 30 year fix. If you don't than your only option is an FHA. Just remember on an FHA loan you will pay insurance on the loan @125-200$ a month. On the same loan, you will not pay that if you put 20% down.
--------------------
2017 McLaren 570GT
2019 Audi S5
2017 Tundra 7" Lift, 37" Tires
Posts: 4017 | From: 916-sacramento | Registered: Aug 2003
| :
|
|
Gnari-Garage
CAFords OG
Member # 3164
|
posted
quote:
Originally posted by adower:
quote:
Originally posted by losbadgts:
So just got approved. And been looking at some homes. But what do you guys recommended. FHA or conventional?
Conventional. I would only do tha if youre sure you are only going to be in that house for a few years. Sell get equity and put 20% down on the next one.
This is a good idea, but by the time you have equity in your home, it means the house prices have gone up. This theory doesn't really work. You should never buy a home with the idea of "oh I'll sell it in a few years". What the value drops? This is how many people got into trouble.
I have two rental properties and I'm hoping to buy another one next year. I have plenty of equity in either houses to refinance and pull money out for a down payment, but Its just a bad idea IMO. I don't recommend this to anyone.
--------------------
2017 McLaren 570GT
2019 Audi S5
2017 Tundra 7" Lift, 37" Tires
Posts: 4017 | From: 916-sacramento | Registered: Aug 2003
| :
|
|
Infamous5.0
CAFords OG
Member # 1745
|
posted
put 20% down with a conventional loan and you wont ever have to worry about pmi (not mip as someone called it)
--------------------
To be or not to be
Posts: 2340 | From: Bay Area | Registered: Aug 2002
| :
|
|
hurting your feelings
¯
Member # 13641
|
posted
Pay cash an own it outright
Posts: 1830 | From: In front of the bank with a 45 an a ski mask | Registered: Jun 2014
| :
|
|
i
¯
Member # 12534
|
posted
Fixed rate mortgage
Posts: 1901 | From: Sacramento | Registered: Nov 2012
| :
|
|
|
|
venomous99
¯
Member # 1917
|
posted
pay cash...put down 20%...easier said than done if youre tryign to buy in the bay area. shiet...is this is the same crowd trying to figure financing for a 30year old fox?
![[Wink]](wink.gif)
[ 2014-10-27, 02:40 PM: Message edited by: venomous99 ]
--------------------
MKII Q7
89LX
Posts: 4811 | From: dc | Registered: Oct 2002
| :
|
|
1996 GT
I'm Joe Yates
Member # 4992
|
posted
quote:
Originally posted by venomous99:
pay cash...put down 20%...easier said than done if youre tryign to buy in the bay area. shiet...is this is the same crowd trying to figure financing for a 30year old fox?
haha, maybe ed650 will co sign for some of these guys on their house.
--------------------
http://i.magaimg.net/img/257w.png
Posts: 9308 | Registered: Oct 2004
| :
|
|
hurting your feelings
¯
Member # 13641
|
posted
quote:
Originally posted by venomous99:
pay cash...put down 20%...easier said than done if youre tryign to buy in the bay area. shiet...is this is the same crowd trying to figure financing for a 30year old fox?
It comes down to money management some are better thing others at it.
Posts: 1830 | From: In front of the bank with a 45 an a ski mask | Registered: Jun 2014
| :
|
|
hurting your feelings
¯
Member # 13641
|
posted
quote:
Originally posted by 135.0:
quote:
Originally posted by hurting your feelings:
Pay cash an own it outright
lika chinese peoprrr
[LIST]
Or like old white people money.
Posts: 1830 | From: In front of the bank with a 45 an a ski mask | Registered: Jun 2014
| :
|
|
sic70stang
CAFords OG
Member # 4347
|
posted
I got lucky and put 20% down on a 15 year loan. Avoid that PMI at all costs!!
--------------------
The anti-crew
1987 rolling safety violation.
Posts: 6940 | From: California | Registered: Jul 2005
| :
|
|
Email this post to someone!
Printer friendly view of this Ford topic
