FWIW, agents get paid whatever percent you agree to. You do not need to pay them 3.5%. the 3.5 per agent in the transaction is just a base number they use. You could tell them your only going to pay them 1% if you want. ( that 3.5 is not ever usually paid on big $ houses).

As far as the loan. The best idea is to get a 30 year snd pay alittle extra each month towards the principle. You will pay off the loan of much quicker(save money like peteypab said). But if your strapped one month your not obligated to put the extra $ towards it.

My wife and I have bought 3 houses and sold one without s agent also. So if you have any questions feel free to ask.

Ps. Congrats Travis!

 

Easy now, don't forget about the time value of money there Pab. I'm sure you learned that in your Finance classes.

When you figure in about 3% per year inflation, then that 5.2% isn't such an eye-opening figure. A bank is taking a risk that the inflation doesn't go over 5.2% in the next 15-30 years.

 

This is the exact approach were taking - if we get our payment where we want it we will always be able to pay more each month and still keep our cars. Our ultimate goal is to get the car loans paid off 100% first - then go from there.

Thanks jer - yeah while i understand the mere basics of house buying it is quite overwhelming and to date has been a little frustrating but when we find the right house we will know I guess. I am really looking forward to when its over

 

I'm starting to pay off my debts now so I'll hopefully be ready to buy a house this year. I already paid off the 09 Corolla last month. Gotta pay off a few other debts and I'll be ready. Sadly the Evo will not be paid off. But a car and house payment won't be as much of an issue.

 

I do agree with you and, thats the only crappy thing about houses though.

The average rate of inflation is 3%. The average rate of pay increase is what, 3% also right? (i think haha)

basically homes are no longer a solid investment if you are planning to make money off of it.

My outlook is to purchase a place that i plan to stay in for a while ( if not the entire time of the mortgage) Only problem is you have no idea whats coming in 3 or 5 years from time of purchase.


13 payments left on the evo... think when its done, its gone. I like granite counter tops a lot!!

 

^^^^^
This

In today's mortgage environment I cannot find any logic in taking out a 15 year mortgage when you can effectively pay down principal on a 30 if you are so inclined.

Although it may not seem so at this time, you will likely not be in your "first home" for more than 5 years! When my wife and I were first married we thought we'd be in our home "forever" (ahh...the romance ) and we were gone in 3 years. Life changes!

Pittsburgh real estate market is a bit strange in the sense that people do not upgrade their homes that much. We looked at over 100 homes in our search and 90% still had gold fixtures, oak cabinets, laminate counters, and **** green carpet (well, maybe not all of the carpets were green)!

Point is that these homes still sold, so if you invest in upgrading your first home follow the golden rule of kitchens and baths so that you can recoup some money when you sell.

Final advice; get the BIGGEST garage you can

Good luck

 

Off topic and total shot in the dark: any locals know anyone selling a used t3 hta82, hta86, or pte 6262?

I know many of u are on other forums. If u find something, let me know I'll reward u with a naked picture of Richard Gere... Or twenty bucks or somethin

 

The only thing I see in this is the % of principle to interest ratio you pay.

When you have a $200,000 home taken out for 30 years (with a 5.2 since i used it before)

Interest for first payment is $866.67 and your principle is $231.56
It wont change if you take it out for 15 years, BUT your principle is now $735.84

I am not saying this is the correct route, but its the smart route.

If you are paying a little more each month (what is considered a little more? $25/$75/$100?) The total time to get that equilibrium between interest/principle comes in a mere 21 months with a 15 year VS 201 months in a 30 year. Now thats not exactly a double statistic like you would expect from going from a 15 year to a 30 year. Its not always the correct route but when your talking budget it may be something to consider. Me personally I would prefer to save the $110,000 over 15 years...

At that point, you could invest each month the money you would put in interest, and actually put it into an annuity or mutual fund with a maturity period of say 30 years? not only would you invest $110,000 but then you could collect dividends in the end, or not pay taxes on it if you want to transfer it into your 401 K...

 

I will look, and I will hold you to the picture of Dick

 

Hey trav, I have a good spreadsheet payment calculator if you want. If interested PM me your email

 

Those are really helpful... there is a website that has a income calculator also. It has a breakdown of taxes, monthly bills, gas, entertainment costs, etc etc.

you may think you have money since you make a bunch, but when you sit down and actually calculate all your bills (internet, phone, water, electric etc etc ) money goes bye buy bys super fast...

 

hey capt'n obvious when did u get in town........


Yes bills suck - once your graduate college life smacks you in the face pretty damn hard....First thing i did was create a budget and I stick to it religiously, no money is spent till my bills are paid in full. I live inside my means and when I do get yearly pay raises that extra money goes towards paying off debt - not add more just because i can afford more

 

hook a brotha up

 

See the attached sheet, Enjoy!

BTW, I retract my previous statement... Tokyo is bada$$ I finally got some time to explore, I saw several R32/33/34's, Evo's, and even a race prepped NSX on the street... pretty wild over here!!

 

The more you make, the easier it is to find things to spend it on , I have no idea how I was able to make it through college without any $???