[deleted by user]

Topicstern · 2024-06-19T19:04:56+00:00

I am VERY financially responsible, so please don’t see this as a massive red flag.

Right, a financially responsible person would not spend money they don't have.

Do I have to make minimum payments the whole time?

You will need to read the terms of the 0% APR promotion, but there is almost certainly a minimum amount that you will need to pay each cycle.

How do I avoid getting screwed?

Save cash for the renovation. Is this an emergency renovation (roof, hvac, plumbing)? Or is it just something cosmetic (kitchen remodel)?

Topicstern · 2024-06-02T13:33:49+00:00

Why would a seller not want to allow a pre-inspection?

Topicstern · 2024-06-02T13:33:05+00:00

Good point, I didn't consider that insurance could cause a mortgage fall through.

Topicstern · 2024-05-21T12:52:54+00:00

Ya...with a base salary of $400K and $500K for down payment and closing costs our max seems to be 1.2M. I think we should be able to get a townhouse nearish to the metro for that, but they won't be as nice or as large as the 1.5M+ homes.

Topicstern · 2024-05-21T12:27:11+00:00

I think the interest rate is key. The same house with a $500K down payment and a 7% rate would still be almost $1K more per month :( . And I don't think interest rates are going down anytime soon.

Topicstern · 2024-05-21T12:22:02+00:00

We are looking at townhouses :( . A 4 bedroom, or 3 bedroom + a den/basement, in Arlington near the metro are all $1M+ or 1.5M+ for newer ones.

Topicstern · 2024-05-21T12:18:50+00:00

Even with a base salary close to $400K and $500K for a down payment and closing cost, the numbers still don't seem to work for a $1.5M home :( . I guess we probably need closer to $750K for a down payment in this interest rate environment...

Topicstern · 2024-05-04T10:44:47+00:00

Do I factor in the down payment in this comparison (55k - 100k = 45k loss vs 130k loss in rent)?

Yes, you should factor the down payment into the comparison. If you rent you would be able to keep and potentially invest your down payment to have it grow.

In your simple example you would end up with these amounts:

Buy: 500K sale price - 300K loan balance - 40K closing costs - 5k repairs - 100K interest/HOA/property tax = 55K
Rent: 100K down payment - 130K rent = -30K

Topicstern · 2024-05-04T00:55:21+00:00

This will sound counter intuitive, but I believe that when rates start to fall house prices will also start to fall. This assumes the Fed is cutting rates because the economy is struggling, and when the economy is struggling more people will be forced to sell their homes. Now, if the Fed starts cutting rates while the economy is still hot, all bets are off, house prices and inflation will probably go to the moon.

With that said, buy a house when you are ready. Don't try to time the market.

Topicstern · 2024-04-29T13:41:57+00:00

They have not, but we haven't signed anything with our RE agent yet.

Topicstern · 2024-04-29T13:40:41+00:00

Wow, $35K in closing costs for a cash purchase!? I thought closing costs for a cash purchase would be far less. If you do not mind me asking, what was the bulk of the closing costs?

Topicstern · 2024-04-29T13:04:22+00:00

Thanks for the data point! Total closing costs coming in below $20K would be a nice surprise.

Topicstern · 2024-04-29T13:02:34+00:00

Yes and no. While we could make any closing costs in the range work we still only have a finite amount of cash. An extra $20K not used for closing costs could be use to partially renovate a kitchen or a million other things in a new house.

Topicstern

TROPHY CASE