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200k saved, looking to buy a 325k house, wut do? finance brahs GTFIH (98k reps)
05-21-2019, 03:59 PM
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#1
- adamsz
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200k saved, looking to buy a 325k house, wut do? finance brahs GTFIH (98k reps)
wut up misc
Gonna sell my house here in the coming months, and when it's all said and done I should have a bit over 200k in the bank. After I sell it I'm gonna look for a new house in the low 300ish range, say 325 for simplicity's sake.
BTW this is in Portland. The real estate market here is only going to keep going up forever basically.
What's the best way to go about financing the house?
1) put down 200k, with a 15 year fixed rate mortgage @ 3.66% which comes to about about $1272/month (nothing left over after expenses to invest really)
2) put down 200k, with a 30 year fixed rate mortgage @ 4.33% which comes to about $989/month (about $300/month to invest)
3) put down the standard 20% (65k) with a 15 year fixed rate mortgage @ 3.66, which comes out to $2248/month (135k in investments but need to take out $1000/month for mortgage)
4) put down the standard 20% (65k) with a 30 year fixed rate mortgage @ 4.33, which comes out to $1660/month (135k in investments but need to take out $360/month for mortgage)
5) something between 20-60% down payment which makes more sense given my take home pay
(all the money per month I quoted includes P&I, property taxes, and insurance)
Take home pay is about $2500/month (poverty brah checkin in, but zero debt). Living expenses are around $1200/month. If the bank wouldn't finance me with that low of an income I could get my parents to cosign.
Basically my questions are - is it better to get a 15% mortgage because of the lower interest rate, which you can generally beat with the stock market while investing your money?
Is it better to put down a smaller down payment and use that big bulk of left over money to earn potentially much more on the stock market which would pay for the difference? Or put down a much larger down payment so you have a lower mortgage payment?
If I did a smaller downpayment like 20% with a much higher monthly payment I might consider getting a roommate to offset the cost, but in general I'd like to avoid that because I fuking hate living with people unless it's a chick I'm seeing.
wut do
credit score is about 800 BTW
Gonna sell my house here in the coming months, and when it's all said and done I should have a bit over 200k in the bank. After I sell it I'm gonna look for a new house in the low 300ish range, say 325 for simplicity's sake.
BTW this is in Portland. The real estate market here is only going to keep going up forever basically.
What's the best way to go about financing the house?
1) put down 200k, with a 15 year fixed rate mortgage @ 3.66% which comes to about about $1272/month (nothing left over after expenses to invest really)
2) put down 200k, with a 30 year fixed rate mortgage @ 4.33% which comes to about $989/month (about $300/month to invest)
3) put down the standard 20% (65k) with a 15 year fixed rate mortgage @ 3.66, which comes out to $2248/month (135k in investments but need to take out $1000/month for mortgage)
4) put down the standard 20% (65k) with a 30 year fixed rate mortgage @ 4.33, which comes out to $1660/month (135k in investments but need to take out $360/month for mortgage)
5) something between 20-60% down payment which makes more sense given my take home pay
(all the money per month I quoted includes P&I, property taxes, and insurance)
Take home pay is about $2500/month (poverty brah checkin in, but zero debt). Living expenses are around $1200/month. If the bank wouldn't finance me with that low of an income I could get my parents to cosign.
Basically my questions are - is it better to get a 15% mortgage because of the lower interest rate, which you can generally beat with the stock market while investing your money?
Is it better to put down a smaller down payment and use that big bulk of left over money to earn potentially much more on the stock market which would pay for the difference? Or put down a much larger down payment so you have a lower mortgage payment?
If I did a smaller downpayment like 20% with a much higher monthly payment I might consider getting a roommate to offset the cost, but in general I'd like to avoid that because I fuking hate living with people unless it's a chick I'm seeing.
wut do
credit score is about 800 BTW
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation.
05-21-2019, 04:02 PM
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#2
05-21-2019, 04:03 PM
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#3
- nothingshocking
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I'd go with option 2 if I was in your shoes unless you foresee your income improving.
It's the only option where you have some financial flexibility after paying your mortgage and living expenses.
It's the only option where you have some financial flexibility after paying your mortgage and living expenses.
05-21-2019, 04:04 PM
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#4
- iwant2beswole
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Your income seems to low to take on the risk of beating your interest rate by investing. Why do you need to sell your house?
watchout your comments boyo ↓
05-21-2019, 04:05 PM
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#5
- pondus_levo
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- pondus_levo
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The less you borrow and the quicker you can pay it off, the less you spend overall.
And let me add, if you put 60% down on a house, there isn't a lender in the work that wouldn't give you a loan.
And let me add, if you put 60% down on a house, there isn't a lender in the work that wouldn't give you a loan.
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05-21-2019, 04:06 PM
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#6
05-21-2019, 04:07 PM
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#7
- DrFeeIGood
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- DrFeeIGood
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Holy fck @ poverty income LOL. OP you have no business owning a $325k home. Use that money to go back to school or start a business, you need a career. Also LOL @ having parents Co sign, it’s time to man up smh.
05-21-2019, 04:08 PM
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#8
- adamsz
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- adamsz
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Originally Posted By iwant2beswole⏩
It's in East Portland closer towards the suburbs. This has been a huge damper on my social life in the 5.5 years I've lived here because I'm about a 25-30 minutes from everything, including work. I want to live somewhat more centrally located with a shorter commute and nicer neighborhood.Your income seems to low to take on the risk of beating your interest rate by investing. Why do you need to sell your house?
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation.
05-21-2019, 04:10 PM
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#9
- adamsz
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Originally Posted By Beararms⏩
my thought was why pay rent when it would cover a mortgage and I would be building equity while doing it?Even with no debt I would still be hesitant to buy a house that expensive on your take home pay.
DECENT rentals start at around $1300-1400/month in Portland if you don't want to live in a chit hole.
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation.
05-21-2019, 04:13 PM
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#10
- andrewwkdude
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you only make 2500 a month. and you wanna buy a 300k house? Why? Imagine in 5 years or 15 years when you gotta buy a new roof. How much does it cost to heat a 300k house? air condition it? Does it have a big yard? Honestly Id just buy small, enjoy the 200k you have saved up. And live a totally stress free life in a small house.
You say you want a better social life. Why not just live in an apartment in the city for a year to see if its your thing. Instead of throwing all your money and meager income into a house that could potentially ruin you.
Idk man, asking your parents to cosign a loan to a house seems very selfish to me. You seem to be doing good for yourself, dont throw it all into a 300k house, that your just living paycheck to paycheck to payoff.
edit... why is portland so expensive? your telling me you cant find a nice 180k house somewhere that isnt a ****hole?
You say you want a better social life. Why not just live in an apartment in the city for a year to see if its your thing. Instead of throwing all your money and meager income into a house that could potentially ruin you.
Idk man, asking your parents to cosign a loan to a house seems very selfish to me. You seem to be doing good for yourself, dont throw it all into a 300k house, that your just living paycheck to paycheck to payoff.
edit... why is portland so expensive? your telling me you cant find a nice 180k house somewhere that isnt a ****hole?
05-21-2019, 04:15 PM
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#11
05-21-2019, 04:15 PM
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#12
- MyBaddBrah
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#4
Do you mean 30 year fixed mortgage rate? (not 30%)
You'll make the most money overall by paying the least up front, and drawing the mortgage out as long as possible. This lets you keep your capital that will yield you juicy gains.
I'd make you a spreadsheet to prove these misc retards wrong, but I got chit to do.
Do you mean 30 year fixed mortgage rate? (not 30%)
You'll make the most money overall by paying the least up front, and drawing the mortgage out as long as possible. This lets you keep your capital that will yield you juicy gains.
I'd make you a spreadsheet to prove these misc retards wrong, but I got chit to do.
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05-21-2019, 04:17 PM
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#13
05-21-2019, 04:17 PM
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#14
- LiftBigEatBig
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Those interest rates are quite high. What is your credit score?
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05-21-2019, 04:18 PM
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#15
05-21-2019, 04:18 PM
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#16
Originally Posted By iwant2beswole⏩
This. Any kind of financial instability will lead to you foreclosing on your house.Your income seems to low to take on the risk of beating your interest rate by investing. Why do you need to sell your house?
05-21-2019, 04:19 PM
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#17
- mrsloppyfist
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does the mortage has an option to pay it back sooner than say 20 years ?
for example I put 20% down.. im also allowed to add 25K a year towards mortgage
i beeen doing that for 4 years and just 1 year left now
this way i got the cheap rate at 20 years at 20% down with option to pay it back sooner which u can just add 25K a year towards it till its paid off
for example I put 20% down.. im also allowed to add 25K a year towards mortgage
i beeen doing that for 4 years and just 1 year left now
this way i got the cheap rate at 20 years at 20% down with option to pay it back sooner which u can just add 25K a year towards it till its paid off
05-21-2019, 04:19 PM
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#18
- adamsz
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Originally Posted By andrewwkdude⏩
$2500/month take home. I make around 44k a year but get raped in taxes.you only make 2500 a month. and you wanna buy a 300k house? Why? Imagine in 5 years or 15 years when you gotta buy a new roof. How much does it cost to heat a 300k house? air condition it? Does it have a big yard? Honestly Id just buy small, enjoy the 200k you have saved up. And live a totally stress free life in a small house.
You say you want a better social life. Why not just live in an apartment in the city for a year to see if its your thing. Instead of throwing all your money and meager income into a house that could potentially ruin you.
Idk man, asking your parents to cosign a loan to a house seems very selfish to me. You seem to be doing good for yourself, dont throw it all into a 300k house, that your just living paycheck to paycheck to payoff.
edit... why is portland so expensive? your telling me you cant find a nice 180k house somewhere that isnt a ****hole?
You say you want a better social life. Why not just live in an apartment in the city for a year to see if its your thing. Instead of throwing all your money and meager income into a house that could potentially ruin you.
Idk man, asking your parents to cosign a loan to a house seems very selfish to me. You seem to be doing good for yourself, dont throw it all into a 300k house, that your just living paycheck to paycheck to payoff.
edit... why is portland so expensive? your telling me you cant find a nice 180k house somewhere that isnt a ****hole?
New roofs aren't that bad if you know how to shop around. Just redid the roof on the house I'm bout to put on the market for for $3600. Granted it's a small ass house but still, I have no problem getting a handful of bids for every project and shopping around. Most people are dumb and just go with the first person they find. I'm fully aware of what living in a house you own entails having done it for the last 5.5 years.
Also a 300k house isn't gonna cost me much more if anything at all to live in compared to the house I'm living in now. The only difference is it will be located in a nicer neighborhood. My living expenses take all that stuff into account already.
I don't need to "try out" living more centrally located to see if it's my thing. I grew up in the inner city, and lived with my parents for 3 and a half years after college to save money to buy my first house. I know what it's like.
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation.
05-21-2019, 04:22 PM
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#19
- VTheKing
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Srs, consider sharing an apartment with a roommate then use the proceeds of your home to invest while youre able to not only live with your income but also add to your rainy day funds. I get that you want to not rot in the suburbs but you also gotta be realistic financially.
Even a yield as low as 5% on 200K is 10K yearly so tying all that money on a mortgage will deprive you of some much needed income.
Even a yield as low as 5% on 200K is 10K yearly so tying all that money on a mortgage will deprive you of some much needed income.
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05-21-2019, 04:22 PM
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#20
- adamsz
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Originally Posted By MyBaddBrah⏩
good catch, all those 15 and 30's should say year, not %. Thanks.#4
Do you mean 30 year fixed mortgage rate? (not 30%)
You'll make the most money overall by paying the least up front, and drawing the mortgage out as long as possible. This lets you keep your capital that will yield you juicy gains.
I'd make you a spreadsheet to prove these misc retards wrong, but I got chit to do.
Do you mean 30 year fixed mortgage rate? (not 30%)
You'll make the most money overall by paying the least up front, and drawing the mortgage out as long as possible. This lets you keep your capital that will yield you juicy gains.
I'd make you a spreadsheet to prove these misc retards wrong, but I got chit to do.
The bolded is basically the main question I have for this thread. I just don't know how to go about figuring it out because there's so many variables.
if u make the spreadsheet I'll rep u again off spread lol
Originally Posted By LiftBigEatBig⏩
800ish. Was 820 but those *******s just lowered it because they said I don't have enough active accounts and don't have any debt SMH. Payed off all my student loans already, always buy my cars with cash, own my house out right, and pay my 2 credit cards off in full every month.Those interest rates are quite high. What is your credit score?
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation.
05-21-2019, 04:24 PM
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#21
05-21-2019, 04:24 PM
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#22
- Destor
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Originally Posted By LiftBigEatBig⏩
American mortgage interest rates are higher in general than they are hereThose interest rates are quite high. What is your credit score?
05-21-2019, 04:26 PM
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#23
- BromanianDL
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The smartest thing is sell the house and rent a decent apartment in the location you want. Being a homeowner isn't that much fun, as you already know. Second best idea is a 50% down payment and a 15 year mortgage, which is about $1175 a month @3.66% plus property taxes, insurance, upkeep, hoa, etc. The US has never gone more than 10 years without a recession, until now. A recession and a stock market dip wouldn't be a surprise, no sense in gambling.
05-21-2019, 04:27 PM
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#24
- EDcellent
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Sounds like too much house for your income, I'd advise against it. I'd keep your house and just put up with the "decent" commute. If you had a 45min-1hr drive, I'd understand.
05-21-2019, 04:29 PM
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#25
- engj
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Originally Posted By Destor⏩
They also dont usually default to a 5 year fixed either, I always see 15-30yrs.American mortgage interest rates are higher in general than they are here
I just got 3.09% on a 5yr refi.
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05-21-2019, 04:31 PM
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#26
- adamsz
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Originally Posted By BromanianDL⏩
the money per month I quoted includes P&I, property taxes, and insurance. Not upkeep though and there aren't too many neighborhoods in the city that have HOAs here.The smartest thing is sell the house and rent a decent apartment in the location you want. Being a homeowner isn't that much fun, as you already know. Second best idea is a 50% down payment and a 15 year mortgage, which is about $1175 a month @3.66% plus property taxes, insurance, upkeep, hoa, etc. The US has never gone more than 10 years without a recession, until now. A recession and a stock market dip wouldn't be a surprise, no sense in gambling.
I see what you're saying about the recession though and have heavily considered it. My thought right now is kinda that like Seattle, SF and Vancouver, Portland's real estate prices are only going to go up from here on out in the long term. I don't think a major recession would cause a massive blow to a property value except maybe in the very short term.
I have considered selling the house, keeping the cash liquid, and waiting for a market crash then trying to invest at the bottom. Problem is it's pretty much impossible to time the markets. What if a crash doesn't happen for say 4 years and I'm just sitting with 200k and paying rent that whole time? Seems like a big gamble to me.
Awesome pics. Great size. Look thick. Solid. Tight. Keep us all posted on your continued progress with any new progress pics or vid clips. Show us what you got man. Wanna see how freakin' huge, solid, thick and tight you can get. Thanks for the motivation.
05-21-2019, 04:33 PM
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#27
05-21-2019, 04:33 PM
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#28
- janglingjack
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Portland sucks, man that city depresses me
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05-21-2019, 04:33 PM
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#29
- Destor
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Originally Posted By engj⏩
Yeh exactly, they can lock in a fixed rate for the entire life of their mortgageThey also dont usually default to a 5 year fixed either, I always see 15-30yrs.
I just got 3.09% on a 5yr refi.
I just got 3.09% on a 5yr refi.
Didn't even know that was a thing until a few months ago
05-21-2019, 04:37 PM
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#30
- wesleysh21
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Buy a Lamborghini and live with a roommate, social problems solved. #winning
ALL I ASK IS ALL YOU GOT FOR AS LONG AS IT TAKES
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