PMI would be $1200 in your example, not $2500.
PMI would be $1200 in your example, not $2500.
In what reality is PMI close to a rent payment? It doesn’t seem like you know what you’re talking about.
I think you’re dramatically overestimating how much it will add to a mortgage to use this strategy. For example, let’s look at a $250,000 home - the average for my area.
If you put 20% down, your payment will be $1242/mo plus Property Taxes. Certainly cheaper than rent, but most folks don’t have $50,000 sitting around.
So let’s say you put $0 down and roll $9000 closing costs into your mortgage. Your monthly payment will be $1,843 of which only $214 is PMI. Still cheaper than the average rent in my area.
Even if you’re buying a $1mil home with this strategy, the PMI would only be $850/mo. Where are you getting that PMI would be close to a mortgage payment?? You seem to be regurgitating bad faith advice that keeps people scared of homeownership when the reality is that it’s an excellent move for many folks.
Reach out to your bank. If they have nothing, call your local credit unions.
I went thru USDA for my first home and they had similar constraints. Talk with your bank’s mortgage lender. It’s possible that an FHA loan would do you better.
In the US, if you’re a first time homebuyer you can buy a home with zero cash in hand. You can roll closing costs into the mortgage and have no down-payment. You’ll pay more out of pocket for a few years but in many areas it’s still cheaper than rent - and rent just keeps going up while a mortgage stays the same. Many states also have free programs where you can take a class and they’ll give you a grant towards buying a home.
Credit unions tend to have the best rates. Get into a credit union even if it’s just a secondary account that you toss $5 into each paycheck.
Also, there are programs through Fannie Mae and Freddie Mac for first time homebuyers that prioritizes them over investors. This is the easiest way to get into homeownership but the houses are usually fixer uppers.
Don’t sleep on the potato soft taco.
You seem to have misunderstood the assignment
Homeless at 18. First apartment at 20. Put myself through college going part time while working 2 jobs, 21-25. Bought my first home at 29. Hit 6 figures at 33. Now in the top 10% of earners in my city.
I had no one, no support network. Just me and a goal and strategic hard work every single day.
The tough part is I’m now in my mid 30s and have had very little life experience because all I’ve been doing is working. Never been on an airplane or have been on a vacation. No passport or friends or social life outside of 2 internet friends. It’s been tough to sit down and figure out what will actually make me happy now that I’ve achieved my life goals.
Honestly it might be worthwhile to just get a month of Microsoft 365 and use the web client. You can upload all of the files to OneDrive and open them in the web version of Word to do what you need. Nothing beats native compatibility in a project of this scope.
Late response, but Goblin Mode is wrapping yourself in a blanket and being entirely useless. Munching on snacks, gaming, watching shows, etc. Basically just winding down for the day.
I still use a Xena bookmark that I bought in 1997. It’s still in the plastic and has held up through hundreds of books. It’s one of my favorite things ❤️
I also have every reason to be unhappy and resentful. My life hack is to be ANGRY. I am determined to piss off all those who have wronged me by succeeding in life despite them. I went from homeless to 6 figures on pure spite and refuse to help anyone who fucked me over.
I’m one of those weirdos who is a morning person. I wake up at 5:30am daily ready to GO. But I tap out at 3pm and go into goblin mode for the rest of the day. I guess my logic is that I want to get everything done for the day so I can just relax and enjoy my evening.
I had a moment of excitement thinking this was a new announcement of a Switch release. I hope Nintendo decides to release Twilight Princess on a modern console someday.
Blajah doesn’t have downvotes, so I can’t downvote anyone and also can’t see if anyone downvotes me. It has helped me break free of the Reddit hivemind and truly be myself.
Both he and I are well off financially, so no need for a GoFundMe.
Calm down satan
Love this idea and absolutely adding this to the list
I worked at banks for most of my career and was engaged to the lead mortgage lender, and together we hosted quarterly free events for our community to show people how to get into homeownership. I suspect you’re lying in bad faith to try to scare people out of homeownership and push the agenda that Millennials and Gen Z can’t own a home. I encourage anyone reading this to do their own research and contact their bank’s mortgage team to determine if its feasible for them.
Over half of millennials are already homeowners, and I’d love to see that number go up.