Thinking of buying a house

[Bob Sacamano]

What are your guys' thoughts on the process.

 

[jeebus]

It is annoying, but with how cheap homes and credit is your a fvcking idiot not to. $600 bucks for a $125,000 loan, on a home that rents for $1200? Yea do that.

 

[bbgun]

For a semi-decent house, you need to put a lot of money down to get a mortgage these days.

 

[Bob Sacamano]

Yeah, I saw in the range of at least 19,000 as a down payment.

Saw a sweet house right next to the water, selling for a shade under 200k.

It's out in the sticks, but wtf ever.

 

[marionbarberthe4th]

Good thing you got all that credit

 

[Bob Sacamano]

I can stock it with a load of electronics.

 

[Midswat]

I have lots of thoughts on the process. Thank you for asking.

 

[Bob Sacamano]

Question for Midswat the Great

I have no idea what the fuck ARM is. Does that stand for Adjustable Rate Mortgage? What does that even mean?

 

[Bob Sacamano]

I have lots of thoughts on the process. Thank you for asking.

OK, Gay Al.

 

[dbair1967]

I have no idea what the fuck ARM is. Does that stand for Adjustable Rate Mortgage? What does that even mean?

You have ARM's and fixed rate mortgages. Depending on how long you plan to stay there, one could be significantly better than the other. Stay away from short term ARM's though.

 

[Midswat]

I have no idea what the fuck ARM is. Does that stand for Adjustable Rate Mortgage? What does that even mean?

As you said, adjustable rate mortgage. Stay away from them unless you're in the house you plan on staying in for 10+ years.

 

[bbgun]

lots of nice deals in Detroit

 

[jeebus]

For a semi-decent house, you need to put a lot of money down to get a mortgage these days.

Internet, the place for shitty advice

 

[Bob Sacamano]

You have ARM's and fixed rate mortgages. Depending on how long you plan to stay there, one could be significantly better than the other. Stay away from short term ARM's though.

As you said, adjustable rate mortgage. Stay away from them unless you're in the house you plan on staying in for 10+ years.

OK, but what does it mean?

 

[Bob Sacamano]

lots of nice deals in Detroit

Such a shame. That was once a vibrant, lovely home in a thriving Jewish community. Probably.

 

[junk]

An ARM usually ties the interest rate to some sort of index based upon credit markets. I think there is usually a period where the interest rate is guaranteed not to change, but after that period expires, the rate can fluctuate based upon market.

I'm not sure I'd even consider an ARM these days. Interest rates probably can't go much lower. Odds are that the rate will go up over the length of your mortgage.

 

[peplaw06]

OK, but what does it mean?

Adjustable interest rate. They can change the rate on you if the rates go up. The incentive to do it is that you can usually get a lower rate at the inception of the note than a fixed rate mortgage. But the risk is that later it could go higher than your fixed rate. However, like junk said, fixed rates are pretty low now, so you'd be risking more with an ARM right now. They'll go up at some point.

And I bought my first house three years ago and didn't have to come up with any money down. Do your homework on lenders. If you have good credit, you can likely find a lender who will let you in with zero down or a low down payment.

But buying a house can be a great investment. One or two shrewd housing purchases can be a game changer if you sell them at the right time. If you're going to be in one place a long time, it makes too much sense to earn money than flush it with rent on a leased house/apartment.

 

[Theebs]

I bought my house in 04 at the peak of the crummy banking/mortgage industry doing some of the shitiest things you have ever heard to get people to buy houses they couldnt afford, on the low end the real estate agents and lenders make a commission and at the top the assholes that run the entire financial markets in this country made billions through cdo's and default swaps. They bankrupted the people and the country for there own greed. Dbair blamed the whole thing on a democrat from mass......

anywhoo.......ARM's can be good if your careful. I paid a little extra down and got a 7 year ARM set off the LIBOR. After 7 years I was going to refinance but the damn thing is so low it makes no sense, so currently every april 1st my rate is set for a 12 month period. It is down again from last year at this time.

The jackasses tried repeatedly to sell my wife on a house we couldnt afford thankfully she understood what I was telling her.

So look into the arm if it makes sense and I do reccomend the libor if you can get it for X amount of years locked in like I did for 7.

If you have poor credit or do not have the 20% down you will probably have to pay Private Mortgage Insurance, if virginia has that...once you reach a certain percentage in equity you wont have to pay anymore.

Fixed rates are low and if you can get a good one on a 15 year loan that is still the best way, but not all ARM's are bad. Just dont take one that can change by the month etc...

 

[dbair1967]

I bought my house in 04 at the peak of the crummy banking/mortgage industry doing some of the shitiest things you have ever heard to get people to buy houses they couldnt afford, on the low end the real estate agents and lenders make a commission and at the top the assholes that run the entire financial markets in this country made billions through cdo's and default swaps. They bankrupted the people and the country for there own greed. Dbair blamed the whole thing on a democrat from mass......

...

Yes Theebs its true, your crooks on the democrapic side are largely to blame for the housing crisis and are defintiely at the root of why so many bad loans were given out.

Read the fucking real news and quit listening to dipshit retards like Keith Olberman and Chris Matthews to learn whats really going on. All this is well documented.

 

[Theebs]

Yes Theebs its true, your crooks on the democrapic side are largely to blame for the housing crisis and are defintiely at the root of why so many bad loans were given out.

Read the fucking real news and quit listening to dipshit retards like Keith Olberman and Chris Matthews to learn whats really going on. All this is well documented.

Get a life.