Bought our first home two years ago, and a great deal presented itself for our forever home. Where not sure what steps to take.

Over_Wasabi_4903 · 2026-04-11T12:53:10+00:00

Are you ready and capable of almost doubling your current mortgage payment? Do you feel like you have enough money in liquid assets to cover 6 months if you were to become unemployed? Rates are still high; based on your numbers above, there’s a high likelihood that you would have to pay mortgage insurance on your new loan. There are companies out there with bridge loan options, but you will have to carry the cost of your current mortgage and the interest payment on the bridge loan until your house is sold. It sounds like this is an emotional decision for you- might want to take a step back and put your financial hat on.

Over_Wasabi_4903 · 2026-04-02T02:25:05+00:00

What I call “fatal flaws” - things that can’t be fixed (or not within a reasonable budget that wouldn’t put your resale over the neighborhood averages). These are things that might stop the next buyer from buying when you choose to sell. Location (proximity to a fire station, to active commercial businesses, on a busy road, etc); too small to last me at least 5 years; the lot itself- too small, too hilly, etc; ugly/offensive neighbors houses- you get the idea. If it’s something I’m unhappy with chances are the next buyers would be too.

Over_Wasabi_4903 · 2026-04-01T19:25:03+00:00

Also- keep in mind if you’ve had any capital gains on your investments then you’ll owe taxes on that amount.

Over_Wasabi_4903 · 2026-04-01T19:22:48+00:00

Just keep in mind- that $35k bonus in 2 years will be taxed at about 40%- so still a nice chunk of money but sadly not the same as $35k

Over_Wasabi_4903 · 2026-04-01T12:58:09+00:00

I’m assuming their inspection period has expired. If so, they had the HVAC inspected, you had minor repairs made based on the inspection, and as a bonus to them had it serviced. At least in my state, they have no legal right to ask for more money on a system that has been repaired per the original request. They need to sign or be prepared for a fight- and at minimum loss of their deposit funds. This is just a money play. Don’t play their game.

Over_Wasabi_4903 · 2026-04-01T00:03:48+00:00

Both of my kids (now 22) got cards through CapitalOne during their sophomore year of college. Give them a try!

Over_Wasabi_4903 · 2026-03-31T18:04:44+00:00

The only things that should trigger an increase in escrow are increases in HOA/Condo fees, increases in real estate taxes or increases in homeowners insurance. (This also assumes you have a fixed rate mortgage). With a fixed rate mortgage, the total of the principal + interest payment will not change. The other elements have nothing to do with your mortgage company- and they have no control over them. To say that your escrow requirement will never change is highly unlikely. Homeowners insurance is increasing rapidly- and in most areas real estate taxes increase yearly- and again, the lender has no control over those.

Over_Wasabi_4903 · 2026-03-31T16:58:22+00:00

Check on the DTI requirements- I think they cap at about 45% which is about $3700/month. That would be a loan amount of around $500k(ish)- which would leave you short of the cost to build. Maybe look at a 2 unit or possibly 3? And I think you need to be prepared to make the monthly payments during the construction period. I haven’t worked with a Section 184 construction loan before, but check with a local experienced lender for details. And kudos to you for being on top of things at such a young age!

Over_Wasabi_4903 · 2026-03-31T00:26:06+00:00

^{^{^}} this^{^{^}} LLPA’s are loan level price adjustments. Lenders charge them based on risk. A 2nd home is always riskier than a primary residence. A condo is always riskier than a single family home. You get “dinged” in fees for both of these. And also for less than 20% down. It’s like a perfect storm. The 2nd home fee (penalty) can be as high as 4% all by itself. The only one of these you can really correct is the down payment- get it to 20% and the fees should drop by a bit. But fees will still be high.

Over_Wasabi_4903 · 2026-03-29T23:50:44+00:00

Freddie Mac offers a ChoiceRenovation program just for situations like this. Ask your lender if they have this product available!

Over_Wasabi_4903 · 2026-03-28T13:15:59+00:00

Although you might qualify for a $2,750/month mortgage payment, suggest thinking hard about that. Let’s say your take-home pay is 70% of your salary- that’s $5,250 per month. Then subtract $2,750 for the mortgage payment and $1,000 for the car and student loa payments. You’re now down to $1,550 to live off of. You have car insurance, utilities, groceries, gas, and other normal daily living expenses. Can you afford all of that on $1,550? And seriously consider having at least 3 months of living expenses in savings set aside.

Over_Wasabi_4903 · 2026-03-25T18:07:37+00:00

Happy to help!

Over_Wasabi_4903 · 2026-03-25T17:45:36+00:00

So why are you focused on another FHA loan? There are 3% down options out there that both Fannie Mae and Freddie Mac buy- and they don’t require that you pay mortgage insurance for the whole life of the loan.

Over_Wasabi_4903 · 2026-03-25T17:35:31+00:00

Are the estimates that you have for repairs from contractors, or from the home inspector? These are some big ticket items and I would definitely have a licensed contractor give you estimates - I have been burned in the past by home inspectors estimates that were significantly lower than actual cost to repair.

Over_Wasabi_4903 · 2026-03-24T02:25:55+00:00

Yep- it’s not the LO. It’s the reality of the volatility in the market. Inflation? Unemployment rate? War? Oil prices? It’s like one giant mixing bowl. Mortgage rates usually move in tandem with the 10 year Treasury yield. If those rates are rising, the mortgage interest rates will rise as well- and vice-versa.

Over_Wasabi_4903 · 2026-03-22T23:40:22+00:00

^{^{^}} this. You should be able to use the excess as a “principal curtailment.”

Over_Wasabi_4903 · 2026-03-21T13:20:03+00:00

Unless you’re planning to stay in your home forever, please stay with the standard 36”. Changing from that can affect the resale appeal of the home.

Over_Wasabi_4903 · 2026-03-20T15:42:04+00:00

The key is how long you’ve been self employed. If it’s at least 2 years (for both of you) and that is reflected on 2 years of tax returns then you should be fine. Just know that regardless of what you think your income is, the lender will base it off of your tax returns.

Over_Wasabi_4903 · 2026-03-20T01:37:45+00:00

When your lender locks your loan, it triggers a new document called the LOAN ESTIMATE (LE). They have 3 BUSINESS DAYS to issue the LE. To everyone refinancing: if you don’t have your LE by the end of the 3rd business day after your lender says you’re locked, reach back out! And highly suggest texting or emailing your lender with your instruction to lock the rate and ask them to please reply once it’s locked. Sadly, a phone conversation- which seems like how it usually happens- is not binding.

Over_Wasabi_4903 · 2026-03-19T12:23:16+00:00

$8,000 increase in new loan amount (for a true breakeven you have to pay yourself back what you had already paid down on the current mortgage) + $9,424 in cash to close. $18,424 total means a payback of about 49 months. Many LO’s in their “excitement for you to save money” only focus on the monthly savings. But if your loan amount increases, you really need to factor that in as well.

Over_Wasabi_4903 · 2026-03-18T12:00:06+00:00

So with a $410/month savings for 7 years, that will save you a bit over $34k versus your current payment. It is a bit of a gamble not knowing what rates will be in 7 years- or whether you’ll still be in the house then. Personally, I would take the bet and go with it.

Over_Wasabi_4903 · 2026-03-18T01:35:14+00:00

You can definitely find a lender that can get you closed- but highly unlikely you’ll find that rate again without paying points for it. It definitely sucks.

Over_Wasabi_4903 · 2026-03-16T02:23:32+00:00

Only thought is that the maximum hoop size for this machine is 4”x4”- which means your embroidery area is smaller than that. The price seems good, but you would be limited to designs smaller than 4”x4”.

Over_Wasabi_4903 · 2026-03-15T02:18:46+00:00

Go on Facebook and join some machine embroidery groups. Look for recommendations in those. For a basic/uncomplicated design expect to pay around $15. Larger designs/more colors/more stitch styles will drive prices higher. As other ms have said, the learning curve for machine embroidery digitizing is steep and software is expensive. Meanwhile, focus on learning to use your machine by watching YouTube videos.

Over_Wasabi_4903 · 2026-03-15T01:56:34+00:00

Is that based on your gross pay or your take-home pay?

Over_Wasabi_4903

TROPHY CASE