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ISO: Mortgage & Student Loan Advice
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Date: July 14th, 2014 9:26 PM Author: dark wonderful office Buying $330k house in tertiary market. $150k salary. $150k in student loan debt @~7%. Have $90k in liquid savings.
Was thinking about doing the traditional 20% down 30 yr fixed, but does it make sense to make a smaller down payment, or even do an interest-only or ARM? No plans to move again soon, but not otherwise committed to the area so wouldn't be surprised if I move again in 7 years, so locking in a rate may not do me a lot of good. |
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Date: July 14th, 2014 9:31 PM Author: Supple idiot whorehouse I'm shocked you can even get a mortgage with $150k in student debt. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932359) |
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Date: July 14th, 2014 9:33 PM Author: dark wonderful office Lol, i could only put 5% down and still get it (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932374) |
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Date: July 14th, 2014 9:33 PM Author: Supple idiot whorehouse This is exactly what's wrong. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932376) |
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Date: July 14th, 2014 9:35 PM Author: dark wonderful office I also have an 800+ credit score (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932393) |
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Date: July 14th, 2014 9:35 PM Author: Milky Internal Respiration Property He only has $60K in net debt. His income covers that 2.5x over
To a bank he's a great credit |
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Date: July 14th, 2014 9:34 PM Author: autistic buck-toothed stage headpube Just pay $650k for a 330k house. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932390) |
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Date: July 14th, 2014 10:08 PM Author: Ruddy school cafeteria you are a fool to not take the 90K and pay down your student loans. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932628) |
Date: July 14th, 2014 9:35 PM Author: Supple idiot whorehouse Why are you interested in buying at all? (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932399) |
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Date: July 14th, 2014 9:51 PM Author: dark wonderful office Sick of renting. I can get a much better house for at worst the same monthly payment, likely lower. Unlikely to be a bad financial decision, decent chance houses will actually start appreciating again and could actually be a good decision. But a lot of it is sick of paying lazy landlords to rent subpar places (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932540) |
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Date: July 14th, 2014 10:05 PM Author: Razzle-dazzle Ape Foreskin Not a reason to buy a house. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932607) |
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Date: July 14th, 2014 10:10 PM Author: light institution Learn to value the optionality of your lease.
Also did you read the Everything Bubble thread? Ur way too late here (most likely). |
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Date: July 14th, 2014 9:47 PM Author: Submissive startling area volcanic crater If I were in your position I would pay down 50K of your loan principal, you clearly are on the fence about moving in the near future. Unless you have a tie to your location like you want to 100% move back or have all your family in the area I would rather make a meaningful step towards retiring a debt with interest like that (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932507) |
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Date: July 14th, 2014 9:54 PM Author: Supple idiot whorehouse I wouldn't do interest only or ARM, but I would do the lowest fixed rate possible with the smallest down payment possible, and use some cash to pay down student debt instead. You're basically trading higher interest debt for lower interest debt that way. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932554) |
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Date: July 14th, 2014 9:57 PM Author: Milky Internal Respiration Property TITCR (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932572) |
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Date: July 14th, 2014 10:05 PM Author: light institution This. If the choice is between a 20 percent down payment or taking out 10 percent more at 4.4 and paying PMI for a while that's a no brainer compared to knocking off another $30k of student loan debt at 8 percent.
Ignore everything other than 15 or 30 year fixed. |
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Date: July 14th, 2014 10:10 PM Author: Ruddy school cafeteria twist: don't buy a house and pay down the loans. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932635) |
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Date: July 14th, 2014 10:19 PM Author: Heady Fighting Rehab Alpha What if the student loan interest was at like 3%?
Same advice? |
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Date: July 14th, 2014 10:20 PM Author: Supple idiot whorehouse Obviously no, since he's never going to get a mortgage at 3% or lower (def not 30, prob not 15). (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932688) |
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Date: July 14th, 2014 10:56 PM Author: light institution Of course not. At even money it's of course not. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932930) |
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Date: July 14th, 2014 10:52 PM Author: Cerise arousing menage why the FUCK haven't you refinanced. youre pissing away money for no reason. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932897) |
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Date: July 14th, 2014 10:57 PM Author: light institution That was after he owned the home. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932931) |
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Date: July 14th, 2014 11:00 PM Author: Cerise arousing menage SOFI (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932965) |
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Date: July 15th, 2014 7:50 AM Author: dark wonderful office Tell me more about refi student loans (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25934856) |
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Date: July 15th, 2014 8:15 AM Author: Cerise arousing menage Have one of your irl bros give you a referral. You both get a hundred bucks on sofi. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25934872) |
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Date: July 14th, 2014 10:57 PM Author: ocher church building Like others said, you need to trade your non-dischargeable loans at 7% for a dischargeable one at 4%. with 90k in cash/equivalents, youre paying over 500/mo in insurance for that liquidity.
what you should do is renegotiate or buy a cheaper house at no more than 300k including closing/loan costs, add the 150k to the principal, and put down 20% (=90k). this is best case scenario and will only work to the extent you get an appraisal higher than the purchase price. if you need to work for another 2-3 months to leave 10k in your checking after all this, then wait until then. |
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Date: July 14th, 2014 10:58 PM Author: light institution I don't think they allow this anymore. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932952) |
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Date: July 14th, 2014 11:00 PM Author: ocher church building of course they do - the lenders dont care if you fold in other debt as part of the mortgage loan. of course, if you try to discharge through bankruptcy court within the look back period, youll get fraudulent conveyance pwned. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25932964) |
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Date: July 15th, 2014 7:59 AM Author: dark wonderful office What happens when I sell the house (assuming it hasn't appreciated a ton by then)? Do I just have a 4% loan with the bank for the balance? (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25934859) |
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Date: July 15th, 2014 8:29 AM Author: Ruddy school cafeteria This guy doesn't know what the fuck he's talking about. You can't do that on a purchase. Do not buy this house until you debt is paid. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25934878) |
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Date: July 15th, 2014 11:14 AM Author: ocher church building you're retarded - as long as he can get the appraisal value higher than the purchase price, he can use the excess proceeds (which are secured against the value of the house) to pay down his other debt
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Date: July 15th, 2014 11:34 AM Author: dark wonderful office How would the appraisal be $100k+ higher?
Also, what happens if i sell the house? Do I keep the excess loan with the bank? |
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Date: July 15th, 2014 12:24 PM Author: dark wonderful office ... (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25935866) |
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Date: July 15th, 2014 1:03 PM Author: ocher church building there are ways to boost an appraisal but it could cut the other way if the seller wants to boost the purchase price along with it.
if you do a short sale, you'll likely need to get lender's consent to release the lien, which probably wont happen and they could sue you for the deficiency, and most purchasers are not going to be willing to buy an encumbered property.
didn't say the plan is not without its risks. if you care less about the non-dischargeability, just refi the student loans through a private lender to at least get the 7% down to something more reasonable. |
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Date: July 14th, 2014 11:00 PM Author: Bearded selfie library XO is filled with NOWIG/AG pillow fucking roommate haver renters who cannot possibly fathom finding a LTR with a girl who would want to marry them, much less having to be an actual man and find a home to raise a family. This is way beyond their expertise, so don't be swayed by all of the NOBUY faggots here.
The best time to buy was about 3 years ago when rates and housing prices were equally low, so no you're probably paying 10% more then you would have then. If you plan on staying in this house 7+ years, it is a good neighborhood with houses nicer and less nice than yours, the schools are good, commute is decent, it is not out of range of the comps and you like the fucking place, then buy it. |
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Date: July 15th, 2014 7:49 AM Author: dark wonderful office Yeah, I'm buying a house. I am interested in different mortgage options and ways to refi the student loans (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25934854) |
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Date: July 15th, 2014 8:30 AM Author: Ruddy school cafeteria You will regret this when you are laid off next recession and get foreclosure pwnd and still have your student loans. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25934883) |
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Date: July 15th, 2014 8:58 AM Author: dark wonderful office Ehh, that's unlikely and I'd still have to pay rent somewhere (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25934922) |
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Date: July 15th, 2014 8:30 AM Author: Sadistic Personal Credit Line How the hell did a bank give 330k to someone with 150k in unsecured debt @ 7% wtf (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25934880) |
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Date: July 15th, 2014 9:01 AM Author: dark wonderful office I'm kind of amazed at how ignorant posters are about mortgages. I could easily borrow $400k+ if I wanted to. I even emailed the mortgage guy and asked if I needed to do anything to ensure I get the lowest rate or otherwise strengthen my application, and he wrote back saying my application was already incredibly strong and any improvement in my credit or debt to income ratio couldn't possibly impact my loan. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25934932) |
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Date: July 15th, 2014 11:05 AM Author: Aromatic kitchen cr. banks don't even blink at this.
i am honestly ignorant about "refi'ing" student loans, because it was my understanding that doing so forfeits the forbearance and other benefits that keeping them gov't provides. is this not the case? |
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Date: July 15th, 2014 11:07 AM Author: dark wonderful office That was my understanding, but I haven't looked into it in quite some time (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25935443) |
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Date: July 15th, 2014 10:58 AM Author: dark wonderful office ... (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25935394) |
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Date: July 15th, 2014 11:09 AM Author: charcoal costumed clown You'll want to run the numbers on the PMI to be sure, but I think TCR is to put 5-10% down, pay off the loans ASAP, and then make extra principal payments on the mortgage to get to 20% equity and lose the PMI payment. (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25935445) |
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Date: July 15th, 2014 5:48 PM Author: dark wonderful office .... (http://www.autoadmit.com/thread.php?thread_id=2618987&forum_id=2#25937975) |