Re: Totally OT: financial advisor
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Joined: Apr 2005
Posts: 552
aficionado
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aficionado
Joined: Apr 2005
Posts: 552 |
Zero... LOL... I would definitely prefer to pay nothing down. In fact I could probably afford 5% down, and with another 2-3% closing costs, I would be left without any money in my bank. Besides, how much difference would 5% make in terms of monthly payments with a 300-350K loan anyway??!! The bad thing is that I am spoiled with my current apartment: 960 sf for a one-bedroom is awesome. Great view from 18th floor as well. So you can see, I have a very tough comparison base when looking for a house.
We will probably actively look for a mortgage in January. Our objective is to find a home before our lease is due on March 31st. And, if we cannot find a good mortgage or home, we can spend another year here.
Axiom M60s, QS4s, VP100 Onkyo TX-SR804 Oppo 970HD
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Re: Totally OT: financial advisor
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Joined: Oct 2005
Posts: 156
veteran
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veteran
Joined: Oct 2005
Posts: 156 |
I think you bring up a great point. In addition to saving up for a down payment for a house, credit scores must be built up. But I figure for many of us in this hobby, we probably do a good job of using our credit cards.
-J
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Re: Totally OT: financial advisor
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Joined: Sep 2005
Posts: 317
devotee
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devotee
Joined: Sep 2005
Posts: 317 |
kcarlile, my girlfriend is a Financial Advisor for Smith Barney. pm me if you want to. she might be able to help you out or put you in touch with someone in your area. let me know.
Last edited by NEW2AXIOM; 12/14/05 04:55 PM.
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Re: Totally OT: financial advisor
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Joined: May 2002
Posts: 104
veteran
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veteran
Joined: May 2002
Posts: 104 |
Thyname - 5% can make a difference in your mortgage payments (alhtough 10-20% is much better), as does the type of loan - sit down with your sig other and figure out what the real cost of owning versus renting would be. Make sure you factor your tax savings out of what your are paying for your mortgage.
For example, my wife and I were paying $1300/month for our rental 2 bed + den apt (Chicago). 2.5 years ago, we bought a 2 bed condo for 283k with 5% down. Between our two loans and condo fees we pay approx $1800/month principle and interest. Last year, after our first full tax year, we received $3700 income tax return. So our net per month payment is about $1500.
While it's still more then what we paid in rent, it is significanlty less than what we have (hopefully) earned in equity: Our niegborhood has been averaging 10% appreciation/year and a unit a floor below us recently sold for $330,000. We are looking to sell in April or May and should be able to use the equity and capital gains from our sale to cover the 20% down on an actual house in the burbs.
I think the thing that really convinced us to buy is we sat down with our accountant, and using rate quotes we received from lenders (0 down, 5 down, fixed, ARM) we looked at hypothetical scenarios and picked one that would allow us to purchase and still save a bit on the side. Renting was still a possible choice down to the end.
Good luck!
DL
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Re: Totally OT: financial advisor
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Joined: Apr 2005
Posts: 552
aficionado
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aficionado
Joined: Apr 2005
Posts: 552 |
Great advice, thanks. We definitely have to do some thinking, and calculations with a mortgage broker. Great thread this one, I learned a lot!
Axiom M60s, QS4s, VP100 Onkyo TX-SR804 Oppo 970HD
Rotel RB-1080/RCD-1072 REL Q150E sub, PS 3
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Re: Totally OT: financial advisor
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Joined: May 2002
Posts: 10,654
shareholder in the making
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shareholder in the making
Joined: May 2002
Posts: 10,654 |
Very good, DL, and note that since you'll have used it as your principal residence for about three years, there'll be no capital gains tax to pay on the sale($500,000 exclusion for couple who've owned and used it as their principal residence for at least two of the five years before the sale).
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