Interest rates will most likely go up a bit next year, so now would be the time to buy.
Paid the car off, finally!
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In some area of the country a house can appreciate more than 6-7% a year, therefore within 3 years the new homeowner can eliminate PMI when the new appraised value is more than mortgage balance by 20%.
No credit card debt here, a chunk of savings, and I owe about $5K on the Regal. The plan is to pay it off by next New Year's, then drive it sans payment for a year or two.
I haven't had car payments in years, but as of late, the repair bills are starting to stack up... one of these days the scales will tip and I'll cave in and buy something newer. Alas, I'm not crazy about most new cars out there, so that may effectively stop me from doing this.
Originally Posted By: HTSS_TR
In some area of the country a house can appreciate more than 6-7% a year, therefore within 3 years the new homeowner can eliminate PMI when the new appraised value is more than mortgage balance by 20%.
+1
Or the initial appraisal may come in higher than the purchase price/what the buyer is expecting, offsetting the need for PMI in part or in full. It's likely easier in this case to ask for the mortgage high, wait for the appraisal to come in and if one wants to avoid PMI, tell the bank you'll be paying a bit more for the down payment, or to make an upfront payment to fall below the PMI threshold.
We put down <=5% and the house over-appraised (IMO), we ended up paying $0 in PMI but had a heck of a fight trying to increase the mortgage past what we initially asked for.
In some area of the country a house can appreciate more than 6-7% a year, therefore within 3 years the new homeowner can eliminate PMI when the new appraised value is more than mortgage balance by 20%.
+1
Or the initial appraisal may come in higher than the purchase price/what the buyer is expecting, offsetting the need for PMI in part or in full. It's likely easier in this case to ask for the mortgage high, wait for the appraisal to come in and if one wants to avoid PMI, tell the bank you'll be paying a bit more for the down payment, or to make an upfront payment to fall below the PMI threshold.
We put down <=5% and the house over-appraised (IMO), we ended up paying $0 in PMI but had a heck of a fight trying to increase the mortgage past what we initially asked for.
Originally Posted By: Quattro Pete
I haven't had car payments in years, but as of late, the repair bills are starting to stack up... one of these days the scales will tip and I'll cave in and buy something newer. Alas, I'm not crazy about most new cars out there, so that may effectively stop me from doing this.
We are considering a new car...after replacing engine oil seals, timing belt, turbo oil line seals, intercooler hoses, right front driveshaft, brake hoses, and a blower motor on the XC this week, I am getting tired of turning wrenches...
For the OP: well done getting everything paid off. Now keep it that way!
Cheers,
I haven't had car payments in years, but as of late, the repair bills are starting to stack up... one of these days the scales will tip and I'll cave in and buy something newer. Alas, I'm not crazy about most new cars out there, so that may effectively stop me from doing this.
We are considering a new car...after replacing engine oil seals, timing belt, turbo oil line seals, intercooler hoses, right front driveshaft, brake hoses, and a blower motor on the XC this week, I am getting tired of turning wrenches...
For the OP: well done getting everything paid off. Now keep it that way!
Cheers,
I put down 5% in 2005 and didn't get PMI. But my gamble lost out--despite paying off 35% of the house's appraised 2005 value, in 2011 I refinanced (going from 6.125% down to 3% on a 15yr) and picked up PMI, as the assessed value dropped so much--I "owned" only 11%. [Thankfully I got rid of PMI in less than 2 years.] I'm still stuck here though, until I get more of the house paid off, as I'm a ways from 20% downpayment on the next one. [Need to move--bought too little house on the premise "oh it'll appreciate, then I can move into something bigger."]
Everything's a gamble. But boy does sitting on cash go a long ways to making something less of a gamble!
Everything's a gamble. But boy does sitting on cash go a long ways to making something less of a gamble!
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Originally Posted By: Astro14
Originally Posted By: Quattro Pete
I haven't had car payments in years, but as of late, the repair bills are starting to stack up... one of these days the scales will tip and I'll cave in and buy something newer. Alas, I'm not crazy about most new cars out there, so that may effectively stop me from doing this.
We are considering a new car...after replacing engine oil seals, timing belt, turbo oil line seals, intercooler hoses, right front driveshaft, brake hoses, and a blower motor on the XC this week, I am getting tired of turning wrenches...
For the OP: well done getting everything paid off. Now keep it that way!
Cheers,
Going to have to drive it a while longer to pay for all of those! Run it for a few more years!
Originally Posted By: Quattro Pete
I haven't had car payments in years, but as of late, the repair bills are starting to stack up... one of these days the scales will tip and I'll cave in and buy something newer. Alas, I'm not crazy about most new cars out there, so that may effectively stop me from doing this.
We are considering a new car...after replacing engine oil seals, timing belt, turbo oil line seals, intercooler hoses, right front driveshaft, brake hoses, and a blower motor on the XC this week, I am getting tired of turning wrenches...
For the OP: well done getting everything paid off. Now keep it that way!
Cheers,
Going to have to drive it a while longer to pay for all of those! Run it for a few more years!
I feel like you are me, 25 years ago!
Excellent job, keep up the great work and stay debt free.
Only thing I would finance is a home if I was you. Historically low interest rates won't last much longer. Try to buy an undervalued foreclosure, ditch the rent and build equity, you will be glad you did.
Ask several realtors "what is the most screaming deal you have out there right now?" and "what property has been listed the longest", and look online for foreclosures and auctions. Do the homework and save 10's of thousands!
Excellent job, keep up the great work and stay debt free.
Only thing I would finance is a home if I was you. Historically low interest rates won't last much longer. Try to buy an undervalued foreclosure, ditch the rent and build equity, you will be glad you did.
Ask several realtors "what is the most screaming deal you have out there right now?" and "what property has been listed the longest", and look online for foreclosures and auctions. Do the homework and save 10's of thousands!
Glad you got out from under the car payment, now save up some money to pay cash from here on out.
I haven't had a car payment since 1972.
Cash is KING!
I haven't had a car payment since 1972.
Cash is KING!
Well done!
I have never had a car loan, always paid cash (even if it had to be an old clunker)
Bought my first house when I was 18 ($1k down) ended up debit free by the time I was 30.
Without the Ball and chain of debit I was able to start my own business and have not looked back.
Life has been good!
I have never had a car loan, always paid cash (even if it had to be an old clunker)
Bought my first house when I was 18 ($1k down) ended up debit free by the time I was 30.
Without the Ball and chain of debit I was able to start my own business and have not looked back.
Life has been good!
I will absolutely run the XC a bit longer. It only has 180,000 miles on it! Which, for a Volvo, isn't that old. The paint and interior look new. There's no rust or corrosion, but it does require some maintenance now that it's entering the second half of its life.
I have better things on which to spend my money than interest on a depreciating asset.
This year, it was 3 in college. Next year, it will be 1 in college, 1 in grad school, 1 in med school....
I have better things on which to spend my money than interest on a depreciating asset.
This year, it was 3 in college. Next year, it will be 1 in college, 1 in grad school, 1 in med school....
I have bought 5 homes in the last 4 years. Nice ones, 2500-3000 sq.ft. brick ones in great school districts. They have generated incredible cash flow so far.
xBa380,
Great for you. Sounds like you are well on your way to a lifetime of financial security. Keep it up!
Great for you. Sounds like you are well on your way to a lifetime of financial security. Keep it up!
Originally Posted By: Jarlaxle
Dumping my house was the best thing I ever did. It was at the point where the taxes were as much as the mortgage. Not worth it.
Was you wife unhappy about selling the house and moving to an apartment ?
Dumping my house was the best thing I ever did. It was at the point where the taxes were as much as the mortgage. Not worth it.
Was you wife unhappy about selling the house and moving to an apartment ?
Originally Posted By: Jarlaxle
Dumping my house was the best thing I ever did. It was at the point where the taxes were as much as the mortgage. Not worth it.
Both the mortgage interest and the property taxes are deductible, rent is not. My house is paid off, my house taxes are about $4500 a year, or about $375 a month. If I rented a place like this it would be about $2500-3000 a month. How is ownership not a great deal? The additional benefit is your mortgage costs are static (unless you have an ARM), rent can and does go up with regularity. This same argument can be made for just about anything you might rent or lease vs. buy. It's not easy paying things off, it takes a disciplined commitment, but the financial rewards in doing so are tremendous.
Dumping my house was the best thing I ever did. It was at the point where the taxes were as much as the mortgage. Not worth it.
Both the mortgage interest and the property taxes are deductible, rent is not. My house is paid off, my house taxes are about $4500 a year, or about $375 a month. If I rented a place like this it would be about $2500-3000 a month. How is ownership not a great deal? The additional benefit is your mortgage costs are static (unless you have an ARM), rent can and does go up with regularity. This same argument can be made for just about anything you might rent or lease vs. buy. It's not easy paying things off, it takes a disciplined commitment, but the financial rewards in doing so are tremendous.
Can't buy a 1br apt
Condos (of any size) are overpriced even before HOA fees
A "house" here is laughably priced
Don't want to commute 2 hours a day to own a "home"
Happy renting
Owning doesn't always make financial or practical sense.
Condos (of any size) are overpriced even before HOA fees
A "house" here is laughably priced
Don't want to commute 2 hours a day to own a "home"
Happy renting
Owning doesn't always make financial or practical sense.
Originally Posted By: another Todd
Originally Posted By: Jarlaxle
Dumping my house was the best thing I ever did. It was at the point where the taxes were as much as the mortgage. Not worth it.
Both the mortgage interest and the property taxes are deductible, rent is not. My house is paid off, my house taxes are about $4500 a year, or about $375 a month. If I rented a place like this it would be about $2500-3000 a month. How is ownership not a great deal? The additional benefit is your mortgage costs are static (unless you have an ARM), rent can and does go up with regularity. This same argument can be made for just about anything you might rent or lease vs. buy. It's not easy paying things off, it takes a disciplined commitment, but the financial rewards in doing so are tremendous.
That's great and all but here taxes will cost $6K to $8K minimum baring complete dumps. Ours are about $7K, and could be rented for $1,800 a month. If you were talking about renting a place for $2,500 to $3,000, you could easily be talking about a minimum of $12K in taxes and could find taxes in the $18K to $22K if you want something newerish.
Given that someone might not be living in their home forever, it becomes easier to see IMO why buying isn't for everyone.
Originally Posted By: Jarlaxle
Dumping my house was the best thing I ever did. It was at the point where the taxes were as much as the mortgage. Not worth it.
Both the mortgage interest and the property taxes are deductible, rent is not. My house is paid off, my house taxes are about $4500 a year, or about $375 a month. If I rented a place like this it would be about $2500-3000 a month. How is ownership not a great deal? The additional benefit is your mortgage costs are static (unless you have an ARM), rent can and does go up with regularity. This same argument can be made for just about anything you might rent or lease vs. buy. It's not easy paying things off, it takes a disciplined commitment, but the financial rewards in doing so are tremendous.
That's great and all but here taxes will cost $6K to $8K minimum baring complete dumps. Ours are about $7K, and could be rented for $1,800 a month. If you were talking about renting a place for $2,500 to $3,000, you could easily be talking about a minimum of $12K in taxes and could find taxes in the $18K to $22K if you want something newerish.
Given that someone might not be living in their home forever, it becomes easier to see IMO why buying isn't for everyone.
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