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This is a sub-selection from Income Tax question

Badger3k
We Don't Need No Stinkin Badgers
Premium Member
join:2001-09-27
Franklin, OH

Badger3k to drew

Premium Member

to drew

Re: Income Tax question

said by drew:

On a $200k+ note, I'm paying $116/mo for PMI.

And pardon my language, but PMI is fucking bullshit.

After 5 years or when you get 78% LTV you should be able to request to have it removed. I think on loans after 2000 (or some date and year) the banks are supposed to automatically remove it on reaching the LTV. Hard to do now that home values are still shit.

drew
Radiant
Premium Member
join:2002-07-10
Port Orchard, WA

drew

Premium Member

5 years relies upon valuation.

»www.mtgprofessor.com/a%2 ··· (ii).htm

PMI is a racket for the banks. I purchased in 2007. PMI will be gone... in a long, long time.
Bob4
Account deleted
join:2012-07-22
New Jersey

Bob4

Member

That's what you get for buying more than you can afford.
H_T_R_N (banned)
join:2011-12-06
Valencia, PA

H_T_R_N (banned)

Member

said by Bob4:

That's what you get for buying more than you can afford.

I was going to say the same thing. PMI is so the banks\lending institution can cover the loss when the buyer realizes in a year or so that he can't afford the house he talked himself into.
Bob4
Account deleted
join:2012-07-22
New Jersey

Bob4

Member

Always put at least 20% down in cash. If you can't do that, you really can't afford to buy the property.

When I bought my house, loan-to-value ratio was 70%. Now it's 25%.

CylonRed
MVM
join:2000-07-06
Bloom County
·Metronet

CylonRed to H_T_R_N

MVM

to H_T_R_N
said by H_T_R_N:

said by Bob4:

That's what you get for buying more than you can afford.

I was going to say the same thing. PMI is so the banks\lending institution can cover the loss when the buyer realizes in a year or so that he can't afford the house he talked himself into.

We did not have 20% but we could easily afford the house - had PMI for about 2.5 years so the above is not necessarily true.

Warzau
Premium Member
join:2000-10-26
Naperville, IL

Warzau to Badger3k

Premium Member

to Badger3k
I think by law the company has to remove it @ 78%.

hitachi369
Embrace Your Rights
Premium Member
join:2001-10-03
Cincinnati, OH

1 recommendation

hitachi369

Premium Member

78% and 5 years for a FHA. Some government loans require PMI for the entire loan. The truth and lending will tell you when/if it will be removed automatically from your loan, unless it is an ARM.

AVD
Respice, Adspice, Prospice
Premium Member
join:2003-02-06
Onion, NJ

AVD to Bob4

Premium Member

to Bob4
said by Bob4:

When I bought my house, loan-to-value ratio was 70%. Now it's 25%.

When I bought my house, the LTV was exactly 80%. Now its about 105%

Warzau
Premium Member
join:2000-10-26
Naperville, IL

Warzau to hitachi369

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to hitachi369
ahhh!

AVD
Respice, Adspice, Prospice
Premium Member
join:2003-02-06
Onion, NJ

AVD to hitachi369

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to hitachi369
My refi has the pmi built into the loan.
Bob4
Account deleted
join:2012-07-22
New Jersey

Bob4 to AVD

Member

to AVD
said by AVD:

said by Bob4:

When I bought my house, loan-to-value ratio was 70%. Now it's 25%.

When I bought my house, the LTV was exactly 80%. Now its about 105%

Onion isn't what it used to be. (I lived there from 1962 to 1981.)
H_T_R_N (banned)
join:2011-12-06
Valencia, PA

H_T_R_N (banned) to CylonRed

Member

to CylonRed
said by CylonRed:

said by H_T_R_N:

said by Bob4:

That's what you get for buying more than you can afford.

I was going to say the same thing. PMI is so the banks\lending institution can cover the loss when the buyer realizes in a year or so that he can't afford the house he talked himself into.

We did not have 20% but we could easily afford the house - had PMI for about 2.5 years so the above is not necessarily true.

You could afford to throw money away on PMI but couldn't save enough to put a proper DP down. OK.. You wouldn't be looking to buy a bridge would you?
H_T_R_N

H_T_R_N (banned) to AVD

Member

to AVD
said by AVD:

said by Bob4:

When I bought my house, loan-to-value ratio was 70%. Now it's 25%.

When I bought my house, the LTV was exactly 80%. Now its about 105%

OUCH!! Bought at 75% 10 years ago, 4 more years and it will be 0.0%

CylonRed
MVM
join:2000-07-06
Bloom County
·Metronet

CylonRed to H_T_R_N

MVM

to H_T_R_N
It was not for long that wqe had PMI and we had just gotten married. I did not want to buy - the wife did.

We could easily afford the house - we bought less than the idiot finance guy said we could afford. When I lost my job and I had to start paying off my student loans we were still able to pay for the house and not lose it.
H_T_R_N (banned)
join:2011-12-06
Valencia, PA

H_T_R_N (banned)

Member

said by CylonRed:

It was not for long that wqe had PMI and we had just gotten married. I did not want to buy - the wife did.

We could easily afford the house - we bought less than the idiot finance guy said we could afford. When I lost my job and I had to start paying off my student loans we were still able to pay for the house and not lose it.

2.5 years of throwing money away, any amount of money, is silly to me. To each his own I guess.

CylonRed
MVM
join:2000-07-06
Bloom County
·Metronet

CylonRed

MVM

You need not worry about it - wife wanted the house and we were not likely to be able to save up enough for the 20% with house prices going up at the time (and my wife's Masters Degree payments coming up). We would always be chasing the 20% till years and 2 kids later.

Be completely different if we bought more house than we could afford - but we didn't.

AVD
Respice, Adspice, Prospice
Premium Member
join:2003-02-06
Onion, NJ

AVD to H_T_R_N

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to H_T_R_N
said by H_T_R_N:

You could afford to throw money away on PMI but couldn't save enough to put a proper DP down. OK.. You wouldn't be looking to buy a bridge would you?

house and income "should" appreciate faster than the penalty the PMI introduces.

Draiman
Let me see those devil horns in the sky
join:2012-06-01
Kill Devil Hills, NC

Draiman to Bob4

Member

to Bob4
said by Bob4:

Always put at least 20% down in cash. If you can't do that, you really can't afford to buy the property.

When I bought my house, loan-to-value ratio was 70%. Now it's 25%.

Not true at all. I make more money in the stock market then my house so I want to put in as little as possible. If you can't manage money then sure dump as much as you can into your house so you don't spend it. For those of us who can manage money well we'll skip that mistake.

AVD
Respice, Adspice, Prospice
Premium Member
join:2003-02-06
Onion, NJ

AVD

Premium Member

These days the house loan is the cheapest money you can borrow.

Draiman
Let me see those devil horns in the sky
join:2012-06-01
Kill Devil Hills, NC

2 edits

Draiman

Member

said by AVD:

These days the house loan is the cheapest money you can borrow.

Exactly. You can get 3.5% on the loan and make 6-9% in the market. It doesn't take rocket science to do that math.

You can use the extra interest to pay down the loan faster if you want and end up paying the note off faster that way.

AVD
Respice, Adspice, Prospice
Premium Member
join:2003-02-06
Onion, NJ

AVD

Premium Member

My co worker just re-fi'ed for 2.75%

Draiman
Let me see those devil horns in the sky
join:2012-06-01
Kill Devil Hills, NC

Draiman

Member

said by AVD:

My co worker just re-fi'ed for 2.75%

I could have refi'ed at 2.5% but anything under around 3.5% is points. Most places let you buy up to 4 points or 1% down on the rate. A point costs 1% of the loan value at closing and reduces the interest rate by .25%. That's on a conventional 30 year fixed note. I keep ARM's on my rentals and those have been 2.5-2.75% for the last 2-3 years now. The 30 year has never been under 3%.

»ycharts.com/indicators/3 ··· age_rate

AVD
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join:2003-02-06
Onion, NJ

AVD

Premium Member

He says no points and the broker absorbed the closing costs.

Draiman
Let me see those devil horns in the sky
join:2012-06-01
Kill Devil Hills, NC

3 edits

Draiman

Member

said by AVD:

He says no points and the broker absorbed the closing costs.

3.31% is the lowest rate between 1976 and now on the 30 year fixed.

When you do a no closing cost loan they ADD to the rate. Normally between 1/8 or 1/4 of a point. They aren't in business to lose money so there is no 'absorbing' happening. If they got sub 3% with no points and no closing cost it was an ARM. Those rates are around 2.5-6% right now so adding 1/8 or 1/4 point for no closing costs would make it 2.75% no points no closing cost.

»ycharts.com/indicators/5 ··· age_rate