All About Mortgages

Bonaventure · August 13, 2023, 10:57:16 PM

With the birth of our son, my wife and I would like, at least one day, to have a bigger home.

We currently live in a small place, less than 1000 square feet. We have two dogs. Most days, I work from home (most days). She does not.

Considering the exorbitant interest rates, we do not see selling and getting another place anytime soon, at least the next 2-3 years.

We currently have a 3.35% rate. We put 3% down as a down payment.

Currently, we both have to work to pay the bills. By next year I should make enough to enable her to stay home full time.

I wonder if anyone here is in a similar situation?

drummerboy · August 14, 2023, 08:40:40 AM

Oh boy, only 3%? Not criticizing, but aren't you paying escrow insurance on top the mortgage? We were able to put the 20% for our house, but that was about 9 years ago and the market was nothing like today. We could easily sell our house for 3x what we paid. Crazy. And our house is the same size. Nothing wrong with a small house, utilities and taxes are low, so is maintenance. And you said in the other post you're minimalists, so a small house is keeping in that spirit too.

Bonaventure · August 14, 2023, 10:01:43 AM

Quote from: drummerboy on August 14, 2023, 08:40:40 AMOh boy, only 3%? Not criticizing, but aren't you paying escrow insurance on top the mortgage? We were able to put the 20% for our house, but that was about 9 years ago and the market was nothing like today. We could easily sell our house for 3x what we paid. Crazy. And our house is the same size. Nothing wrong with a small house, utilities and taxes are low, so is maintenance. And you said in the other post you're minimalists, so a small house is keeping in that spirit too.

PMI is about $200 per month. Shitty but nothing we can do about it.

james03 · August 14, 2023, 12:45:37 PM

No similar story, but something to plan for. The Fed can not keep rates high for another year. You're going to get a sweet spot coming up. When the economy crashes, houses will go on sale for a discount, or there will be foreclosure sales. At the same time, the Fed will drastically cut and start buying Treasuries, driving them back down. Which means cheap mortgages again.

So during this sweet spot crash, there will be great bargains. Your problem will be selling the existing house. Maybe you could rent it.

I think we have about a year until this unfolds.

OCLittleFlower · September 18, 2023, 12:58:53 AM

Quote from: Bonaventure on August 14, 2023, 10:01:43 AM
Quote from: drummerboy on August 14, 2023, 08:40:40 AMOh boy, only 3%? Not criticizing, but aren't you paying escrow insurance on top the mortgage? We were able to put the 20% for our house, but that was about 9 years ago and the market was nothing like today. We could easily sell our house for 3x what we paid. Crazy. And our house is the same size. Nothing wrong with a small house, utilities and taxes are low, so is maintenance. And you said in the other post you're minimalists, so a small house is keeping in that spirit too.

PMI is about $200 per month. Shitty but nothing we can do about it.

If your home has appreciated in value to the point that you now have 20 percent equity or more, you should be able to get PMI removed for the cost of an appraisal.

Greg · September 20, 2023, 12:14:06 AM

I'd lose the dogs.

I am not sure what people do in America but we pet sit for friends several times a year and they are always complaining about vet's bills. They ask us to pet sit to save on the kennel fees.

You will have more space, less clutter and more money.

I am always glad when they turn up to take their dog away. I was trying to write a report yesterday and the bloody thing was barking.

OzarkCatholic · September 25, 2023, 05:55:00 PM

We're in mid Missouri. It has its pros and cons.

Wife and I bought a 4 bedroom house for $139 in 2013.

After our son was born, her parents were looking to retire and travel. Decided to combine households, and get a house for $260. 4,500 square feet, 2 kitchens, and with her parents gone 5 months of the year, easy living. Quiet neighborhood within walking distance of grocers. Rented out the old property for a year, then sold when it became too much a hassle.

Do we give up some things to live the life we do? Yeah. But we're able to homeschool with good space,have never paid for childcare, and can travel at the drop of a hat (both WFH).

We've talked about moving closer to a community near a TLM, but need to wait until we can pay a significant amount upfront (50%+) or buy outright. With some lingering medical anomalies in the family, were pretty spendthrift and cash heavy, just biding our time.