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#81
10-12-2005, 05:59 PM
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Re: buying real estate
[ QUOTE ]
[ QUOTE ] [ QUOTE ] OK, and at the end of that I have to repay the $200K right? [/ QUOTE ] Repay? [/ QUOTE ] I borrow $200K, pay $1200 per month for 30 years, then I have to pay the bank $200K, right? [/ QUOTE ] lmfao! No, you're paying off the $200k with your $1,200 monthly payments! At the end of 30 years, you will have paid like $500k including all the interest, and you will own the house outright. Of course, this isn't how it really works. You'll live there for 5 years or so and usually sell at a profit. You pay off the rest of the loan with the sale, and keep the appreciation as profit. As long as you live there more than 2 years, you don't have to pay taxes on this appreciation. 
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#82
10-12-2005, 05:59 PM
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Re: buying real estate
nothing up front to the broker; they are going to get paid a percentage of the loan once it is closed. You will have some upfront costs such as credit check real estate appriasal (once you find a property) and some other stuff like that. A lot of times you can work all these fees into the loan.
Do like the others say. Go find a reputable and trustworthy mortgage broker and realtor. They will walk you through it. If you can't find a broker find a realtor they will know brokers. Goodluck.
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#83
10-12-2005, 06:00 PM
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Re: buying real estate
Mortgage companies usually front load their loans, so the first payment will be 95% interest, 5% principal. After the halfway point this usually reverses. Of course, you always have the option to pay a higher amount at any one time, and you can usually tell the mortgage company what you want the extra to apply towards. If you paid 100K extra on your first payment of a 200K mortgage you would essentially turn your 30 year mortgage into a 15 year deal. Often times people with access to extra cash will refinance their loan, turning it into a 15 year mortgage for example, which results in a higher monthly payment but (obviously) less interest paid at the end of the loan.
Swede
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#84
10-12-2005, 06:01 PM
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Re: buying real estate
So does it really matter what % I put as a down payment? i.e in terms of getting the best rate of interest
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#85
10-12-2005, 06:02 PM
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Re: buying real estate
[ QUOTE ]
let's put it this way, what is step #1? [/ QUOTE ] Wait for a market correction. You'll be paying top dollar right now, esp in major cities. If you don't want to live w/ your parents rent. Also, you implied that you are not reporting your poker winnings to the IRS. Good for you (I don't blame you), but if you choose to evade (presumed significant) taxes it is best to avoid tying too much money up in non-liquid assets on the chance you get audited. While the risk of this is admittedly small, that will be small consolation if you get a Notice of Federal Tax Lien slapped on your ass. Also, a big reason to buy a house in the first place is the tax benefit, which will be of little use to you. If you do decide to buy, the best loan type is a no income verification loan, as previously stated. As long as you have a good down payment should be no problem.
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#86
10-12-2005, 06:07 PM
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Re: buying real estate
[ QUOTE ]
So does it really matter what % I put as a down payment? i.e in terms of getting the best rate of interest [/ QUOTE ] Well, if you wanted to put zero down, you won't get as good a rate as if you put 20% down. If you have less than a certain amount of equity in your home (20% down equals 20% equity right off the bat) you have to pay mortgage insurnace. You will want to make sure you put enough down to avoid this. And you can do all kinds of weird zero or little down loans that are structured in all kinds of crazy ways to allow just about anyone to buy a home. But you pay more for these in one way or another. So in conclusion, yeah, as long as you put the usual amount down, you're going to get the same rate as putting much more down.
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#89
10-12-2005, 06:11 PM
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Re: buying real estate
[ QUOTE ]
Owning = bad. Renting = Good. Take it from a very wealthy guy who just wants u to have a happy, carefree life. Indy [/ QUOTE ] In certain areas right now, this may be true, but in general it is awful advice.
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#90
10-12-2005, 07:17 PM
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Re: buying real estate
I virtually guarantee that he could get a loan. He might not be able to go to a bank and get one, but a private broker could get it done.
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