For all of you guys who are homeowners or newly owned

[dales]

Re: For all of you guys who are homeowners or newly owned

So basically if we go the FHA route and put down, say 8%, we'll pay PMI in perpetuity on the loan. The only way we can stop the PMI payments is to refinance once we hit the 20% threshold.

Is that accurate?

Yes, that's correct. You can still get a conventional loan and pay PMI and that does get cancelled automatically at 78% LTV or you can request in writing when you're at 80% LTV. FHA is for people who might not qualify for a conventional loan because of various issues including low down payment, credit that's not "good," etc. So, of course, FHA loans have higher interest rates than conventional ones.

Keep in mind that house appreciation factors into LTV when you refinance. If you buy a house and the appraised value on it goes up if/when you refinance, that counts towards lowering your LTV percentage. If you hit the 80% mark there, you don't pay PMI on the new mortgage.

[23]

Re: For all of you guys who are homeowners or newly owned

PMI does not drop off after 10 years for FHA. The rules changed last year. If you put less than 10% down, PMI never goes away on that loan. You can refinance when your LTV reaches 80% and have it removed, however.

Here's the PDF from HUD on it.

Didn't know it changed, but like mgo, I got my place in 2012 so mine will.

[Stu]

Re: For all of you guys who are homeowners or newly owned

Anyone have a recommendation for a home security system? I've seen a lot of horror stories about ADT and their monthly costs are outrageous. I'm OK installing the system myself but want to make sure it's a reputable company.

[23]

Re: For all of you guys who are homeowners or newly owned

Not sure exactly myself because there are a lot out there. Some area specific...I didn't go with adt either... too much money and I got more for less with someone else.

Just ask a few people around you with homes who they use. I got recommended someone from another homeowner...and it's been just fine.

One day a guy came to the house asking me to switch and he'd upgrade us to lcd screens and a few more things but the wife freaked out so I passed.... man she wasn't thinking lol.

Anyway it won't be hard....good luck

[jeremym480]

Re: For all of you guys who are homeowners or newly owned

Anyone have a recommendation for a home security system? I've seen a lot of horror stories about ADT and their monthly costs are outrageous. I'm OK installing the system myself but want to make sure it's a reputable company.

I would look for a local company first.

That's what we did and while it may be a little more expensive, it seems to be worth it.

Pro's
- They're a local company and if I have a problem I can sit down and speak to someone face to face.
- The times where we've actually had our alarm accidentally go off, they've called us within 30 seconds.
- We haven't had a single false alarm in 2+ years
- If there is a problem with your system, then they will send one of their techs out to fix it. No outsourcing.

Con's
- Probably more expensive

You should be able to find reviews online and the companies may even have things like FB pages where you can see peoples complaints.

Good luck.

[ScoobySnax]

Re: For all of you guys who are homeowners or newly owned

PMI does not drop off after 10 years for FHA. The rules changed last year. If you put less than 10% down, PMI never goes away on that loan. You can refinance when your LTV reaches 80% and have it removed, however.

Here's the PDF from HUD on it.

This is true. We went FHA and closed a month or so before the new rule went effective. Once we get to 80% LTV, it'll go away. There's really no reason to go FHA anymore. I'd just save up the 20% to go the conventional route.

[Fresh Tendrils]

Re: For all of you guys who are homeowners or newly owned

Some banks (I had no luck with mortgage companies) have their own 100% financing loans, but they are typically 5-year ARMs. I qualified about $17k less for that compared to a Rural Development.

[aukevin]

Re: For all of you guys who are homeowners or newly owned

Anyone have a recommendation for a home security system? I've seen a lot of horror stories about ADT and their monthly costs are outrageous. I'm OK installing the system myself but want to make sure it's a reputable company.

I've used Monitronics for 12 years now and don't have any real complaints. When the alarm has gone off, they did their job. I think I pay about $30 a month for the monitoring. The only thing I have to do with them is keep them from charging me for extra stuff. For example, at my old house when I went cell phone only, they had to redo their alarm system since the phone line was removed. They wanted to charge me for the new service they would have to put in and I said I no because I could get it free if I went somewhere else. Then again when I moved to my new house they wanted to charge me for a new touchpad and I said the same thing to them. Basically they would just extend my contract and give me all the stuff I wanted for free.

[Stu]

Re: For all of you guys who are homeowners or newly owned

Thanks guys. I can't seem to find a monitoring company around here for less than $45 ish a month so I think I am going to buy and install the system myself.

[23]

Re: For all of you guys who are homeowners or newly owned

That's about right

[Chizzypoof]

Re: For all of you guys who are homeowners or newly owned

If anyone is thinking about doing a 5-year ARM just make sure that by year 3 you have an exit strategy so you can move on it by year 4.

I went from ARM to FHA w/PMI and now finally got to a Traditional. Thanks in large part to the ridiculous prices out here.

[RockinDaMike]

Re: For all of you guys who are homeowners or newly owned

I just got 3 hectares of land here in El Nido, I'm super excited. It's about 100 meters away from an amazing beach and across the water is Manny Paquiaos Island.

Building a house is gonna be way down the road since the surrounding area is not developed but I'm sure I'll make a hut or something to keep wake or surfboards there.

Beside the resort I'm working on I'll be setting a small house, pretty much a condo sized home for me and my gf so we can be right in the middle of everything.

What's nice is material and labor is cheap, parents built a 1200 Sq meter home for less than 22 grand.






Sent from my GT-N7100 using Tapatalk

[Redacted01]

Re: For all of you guys who are homeowners or newly owned

I'm joining the club. Part of the reason I haven't been posting anywhere near what I used to. Started designing and building a house in suburban Des Moines. Costs are starting to add up, but I'm good on an 80/20 with decent terms and rates. If rates play nice, can probably even get it down some more by winter when I get into my 60-day window.

My only problem so far has been talking them down on add-ons. They use quality materials, but some things seem marked up more than other builders around here that build in their range. You get the big stuff in and then find all the little ticky-tack changes add up so cutting the costs initially is a big deal.

[ScoobySnax]

Re: For all of you guys who are homeowners or newly owned

That's almost with every builder man. It's like the stuff you expect to cost a lot is actually affordable. It's the small stuff that will get you. In Texas that's an everyday practice.

Margins on new homes is ridiculously high for builders. That's why I negotiated so hard for additional upgrades.

[SuperBowlNachos]

Re: For all of you guys who are homeowners or newly owned

I wish I was where I was now during the housing bust. A house in my town now is on the market for an average of three days. A small, $120,000, 3 bedroom house rents for $1,400+ a month.