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-   -   Home Buying/ Down payment (http://www.genmay.com/showthread.php?t=836451)

PrettyInPink 06-05-2011 08:31 AM

Home Buying/ Down payment
 
Basic question is: What % should you put for a down payment on a house?

I had always heard 20% and am saving like mad to try and get the 20% to buy a house in the next year or two. However, I have 3 people my age (25/26) who have bought houses and put anywhere from 5-9% down. This just seems like a bad financial idea to me. I know the housing market is a buyers market now but still. Thoughts?

By the way, a typical starter house in my area is around $300,000

U Caught The Gay 06-05-2011 08:33 AM

20%

Ask them what kind of loan they got at 5-9% down. It's probably a shitty loan with a high monthly payment, high interest, and awful terms.

If you have 20% you have more leverage.

Forever Domon 06-05-2011 08:35 AM

PMI is killer, id recommend doing 20% if you can. However, i would not recommend taking out a second loan to cover your down payment. If you arent there yet, just keep saving.

Its more conservative, but in my opinion you have the right idea, the savings of not paying PMI will make up for the difference in percentage very quickly.

Forever Domon 06-05-2011 08:36 AM

[QUOTE=U Caught The Gay;24774913]20%

Ask them what kind of loan they got at 5-9% down. It's probably a shitty loan with a high monthly payment, high interest, and awful terms.

If you have 20% you have more leverage.[/QUOTE]
these days, if you qualify, you can put down far less than 20, you'll just get stuck paying PMI, which is essentially a +1 point. So even if your rate is great around 4%, you'll be paying 5%

Vendetta 06-05-2011 08:59 AM

I'm certainly in the "prefer to rent" category and will be for a long time--but when I do eventually buy a house, it will be with 20%...if not more.

dbu8554 06-05-2011 09:01 AM

300k for a starter house? 40-80k out here in vegas

mikeawesome 06-05-2011 09:08 AM

i want to go buy a house in vegas right now

PrettyInPink 06-05-2011 09:30 AM

[QUOTE=dbu8554;24774917]300k for a starter house? 40-80k out here in vegas[/QUOTE]

Yeah....Metro Boston area

Viremia 06-05-2011 10:17 AM

Granted, I'm older than you and better established in my life, but I saved until I had 20%. Buying a house isn't something you do just to do it. It's a very serious investment.

And while rates may be low right now and home prices may be down, it isn't necessarily a great time to buy. Depending on where you intend to buy, it could be a great market or a really bad market. Many places in this country are still going through a double-dip housing recession. In short, prices are going to continue to fall and you could easily find yourself under water.

Just sayin'.

U Caught The Gay 06-05-2011 10:36 AM

[QUOTE=Viremia;24774991]Granted, I'm older than you and better established in my life, but I saved until I had 20%. Buying a house isn't something you do just to do it. It's a very serious investment.

And while rates may be low right now and home prices may be down, it isn't necessarily a great time to buy. Depending on where you intend to buy, it could be a great market or a really bad market. Many places in this country are still going through a double-dip housing recession. In short, prices are going to continue to fall and you could easily find yourself under water.

Just sayin'.[/QUOTE]
A house isn't an investment >> [url]http://patrick.net/housing/crash3.html[/url]

To the OP, read this: [url]http://www.iwillteachyoutoberich.com/buying-a-house/[/url]

tegandje 06-05-2011 12:18 PM

[QUOTE=Viremia;24774991]Granted, I'm old[/QUOTE]

I agree :D

I would hate to be under over half the value and be paying ultra mega payments

Viremia 06-05-2011 01:00 PM

[QUOTE=U Caught The Gay;24775011]A house isn't an investment >> [url]http://patrick.net/housing/crash3.html[/url]

To the OP, read this: [url]http://www.iwillteachyoutoberich.com/buying-a-house/[/url][/QUOTE]
99% of the time, a house is, not only an investment, but a good investment. Right now we (most of the country) are experiencing that 1%.

U Caught The Gay 06-05-2011 02:46 PM

[QUOTE=Viremia;24775197]99% of the time, a house is, not only an investment, but a good investment. Right now we (most of the country) are experiencing that 1%.[/QUOTE]
:tard:

Viremia 06-05-2011 03:27 PM

[QUOTE=U Caught The Gay;24775258]:tard:[/QUOTE]
that is an indefensible argument

you win

BlisterDick 06-05-2011 03:51 PM

[QUOTE=PrettyInPink;24774912]Basic question is: What % should you put for a down payment on a house?

I had always heard 20% and am saving like mad to try and get the 20% to buy a house in the next year or two. However, I have 3 people my age (25/26) who have bought houses and put anywhere from 5-9% down. This just seems like a bad financial idea to me. I know the housing market is a buyers market now but still. Thoughts?

By the way, a typical starter house in my area is around $300,000[/QUOTE]

It's 20%. However, if it's your first home you can get an FHA and will only have to put down as little as 3-5%


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