Att'n Home owners! Is it worth it?

The flip side to that is owning a condo or townhome. Yes, you have a shared wall, but your association fee will cover having the lawn taken care of, the driveway and sidewalks plowed/shoveled, your roof, the siding/brickface/exterior of the home.

You just need to worry about maintaining everything inside. For something something like $20-25 a month I've got a service contract with a local repair company for my heating/cooling system... they'll come out once a year to tune-up and inspect the system, should it need parts- the parts are covered, plus I'm guaranteed same-day or next-day service should something go wrong during a cold snap in the winter or a heat wave in the summer.

 

We had our PMI eliminated by splitting the loan with an 80-15 and only 5% down payment. Two loans, one 80 percent, one 15 percent and bye-bye PMI.

 

Took a little longer than I thought, but we came to an agreement last night. Took about 15 phone calls of offers back and forth and then nearly two hours of fact to face discussions of non-monetary terms. Anyone know a good place where I can sell blood?

 

The rate of which you speak is about 5.41. Pretty low ... but, by year five, you will have paid 65K in interest and only 6,300 in principal. With closing costs of $5K, you'll have to hope for about 2 percent a year to get your head above water.

 

I bought my first home nearly two years ago. Greatest decision I've ever made, next to getting married. For me, first and foremost, there's the pride factor. I love making improvements inside and outside (more outside for me, inside for my wife). It can be work and it can be boring, but I kind of enjoy it.

The equity builds slowly, but one day in three-four years, I'm sure I'll look at the equity I've built up and my I'll smile. Then we can buy a better house with smaller payments than what we pay now.

 

Others already have made the point. If you're smart, it can be a GREAT investment.

It's also a wonderful time to be a buyer; in most markets, buyers aren't getting their asking price, and the tax deduction on interest and real estate taxes is a nice thing. I would never sign up for a 40- or 50-year mortgage; that's a rip-off.

 

Here's a question (and I hope this thread hasn't lost momentum):

Is a $30,000 inheritence better off in a bank gaining interest, or being used as part of a down payment on a house? Which is better, and why?

(God, I suck with money!)

 

I'll invest it for you... promise.

 

Story from a friend here in California:

Bought house in 1998 for $350,000 ($70k down). 30 yr mortgage at about $1700 per mo. Through a couple of refis, in 2007 has paid down about $25K in principal and unknown in interest (but interest is tax-deductible which means 40% is not taxed.) Got to sell in 2007, multiple offers in excess of $740k.

So in 9 years, gain of nearly $400k (totally tax free thanks to Clinton?) on initial investment of $70k.

That's not what happens every time, but if you choose a spot that has some limited space, housing appreciation is very likely in the long run. Always look to the long run, 5-10 years, not short term, 1-2 years.

Good luck.

 

Two refis in 9 years?

 

We made a little coin on one of our homes but are taking a break from ownership while we get resettled. Unless there is a decent-sized drop in prices in many areas, it is difficult to see how middle-income people will be able to buy their first houses without more of these crazy mortgage options (and 40-year terms are one).

 

My point exactly. Those I know who own a home have done so through the help of family. There is no friggin' way the middle-class folks can buy their first home any more. And I don't know if there will ever be a time again.