Me and my husband are saving 10,000 for a down payment. We already have 5,000 and saving another 5,000 this year so we can hopefully purchase next year. This is great info!
Yeah I'm 24 and I'm doing that too. I want a 10.000 (€ ) down payment. Obviously for now, I'm a singular buyer which is harder but still, I've been advised to save for initial entry fees/ down payment
Thanks for sharing. If you would have waited to save up enough money for 20% down, the same house would cost more by the time you had that saved up. You did a great job. Great interest rate too.
Thank you! I’ve totally thought about that! If we would have waited for our down payment the house would have cost more and our interest rate would have been up to a full percent higher (which is what I was quoted when I looked at refinancing this year). So in the long run it definitely will be cheaper since we bought earlier before we had the big down payment normally recommend.
@@PenniesNotPerfection yep and if you are in the house 3 years from know you can see if it will appraise at a level where you can drop the mortgage insurance.
I bought a home with a family member when I was 18. I swore to never do that again. I was able to purchase my home, on my own, but it was an FHA loan. I refinanced about a year ago and got rid of it!! I wouldn’t change a thing. I could not afford my house nowadays and I love it!
Thank you for sharing real numbers and your story. So much more helpful than a *we bought our first house EMPTY HOUSE TOUR* haha! Hoping to buy this spring!
I like that it’s helping people realize closing costs add up! We had our seller pay a lot of it and depending on the market you are in that’s always an option.
This is an incredibly helpful video for me! My husband and I are hoping to buy a house or townhouse this year for only a little more than your house was- so the numbers are similar enough to start thinking about. Thank you so much!
Curious about what we pay each month? Watch the next video: Our Mortgage Monthly Statement & Balance + 2 EASY Ways To Payoff The Mortgage Faster ruclips.net/video/BTdozy98Eq4/видео.html
Oh boy. My friend bought a townhouse for 137k in 2016 and sold it in 2019 for 170k. Now it might be worth 200k! I don't want to wait super long to buy my first house since prices are increasing. So i think my plan now is to put some to car loan and some to 3 month emergency fund then after emergency fund is saved, then I'll put that towards a down payment for an house. Love my mom but i want to own a property!
OMG! I bought my house at the same time :). I agree with you that the interest rates and houses went WAY up since then! It is crazy how much they went up. Great Video!
I feel super lucky that we bought at that time. We actually live in a neighborhood that’s listed in all those “top ten hottest markets” lists I’ve seen online which is crazy to me how much houses in our area have gone up in price.
This is SO helpful as we just put in an offer on a house on Saturday and got it accepted tonight! The condo that we are about to purchase is about the same price to. Thank you for sharing this information!
My townhome is worth $40,000 more now than it was 5 years ago when I purchased it. I was not financially prepared either. My credit was good but I have a butt load of credit card debt. No money for a down payment at all, so I got the state of Ohio to pay it for me with their down payment assistance program and went with a conventional loan. With the assistance, I had no options for the interest rate. Yours is awesome. Mine is 4.25%. Thanks for sharing your story!
Sounds like you did well with what you had! I love those first time home buyer programs states offer. My friend used it in our state but we did not qualify.
Awesome, Amazing, Wonderful video! Thank you so much for being transparent, honest and showing the numbers for what they are (versus what 'could' be the situation). THIS WAS SO HELPFUL! I've now subscribed and look forward to learning more with you!
Totally a good watch, we are Dave Ramsey weirdos and we are in BS3b and currently saving 20% down. Seeing the closing cost helps me plan more for that so thanks.
It has been but I'm so thrilled it is still helping people! I'm planning to do a few more new home buyer videos because it's a topic I'm super passionate about especially after helping several family members walk through buying their first house this year!
Thank you. This is the best explanation and really helps me to understand fees and costs associated with buying a home. Good luck and thank you again for this AMAZING breakdown🤗
Good plan! It's definitely going to slow and you might get a great deal. We bought at a good time for interest rates and our area and I definitely would not buy currently.
I went no downpayment FHA and paid $9 k closing for a $257k home. I did DP assistance with 0% internet or $75/month. Million combinations to get it done you’ll never know until you do it yourself. These videos are so helpful to get some basic knowledge but each individual process is so unique
oh! THANK YOU! I had an epiphany this morning and it told me to stop looking for new apartments, get a house!!!! I came on here and your video was posted on my birthday so I definitely feel guided landing here. Been hunting for a long time and the rent here is stupid, like 3 bedrooms rent in a good neighborhood is $2,600. I live in Brooklyn, New York, here I am having lunch, I almost choked at the cost of your house. Here, a sensible sized house is $600k. Even the rent that I am paying in a converted 2 bed GARAGE is $1,850. Thank you for the tips!!!!! Useful as ever!
We definitely got in at a good time since our house is now worth about $260k, but markets vary so much!! The numbers still apply for you just scaled up. Hopefully you have a higher income in Brooklyn too!
thank you for this! I mostly started my budget journey to financially get myself in order to afford my first home. I had no idea all of these fees were associated with purchasing so this is helpful. Seems like I will need about 30k here in California. LOL
Yes there are so many fees for closing! Some you can shop around for the best prices and get the number down a bit. I can’t imagine trying to buy in California!
Those fees are heartbreaking. And most of these house ain’t even worth it. Thanks for this breakdown. I feel like it’s hard to know how and where to save money. Who will tell you that? It’s very frustrating.
Waaaiiitttt what is this! I’m just seeing this!! Ahh I need to sleep but this one is going in my watch later playlist. Haha. I’ll be commenting again soon as soon as I see this cause I want to go through this in about a year or so!! 🙌🏽👍🏽
A Merry Life nice seller taking care of some of the closing cost! Oh wow I didn’t know PMI doesn’t fall off, and Daamn 3% interest rate 🙌🏽. Awesome especially when rates are supposed to be going up still!
This is a great video, thank you for sharing. This is giving me a lot to think about and more information to research. All of those fees really add up and it seems overwhelming.
This was a very helpful video, especially about the FHA side of it. I appreciate you giving all the costs and fees. Some don’t want to say what they paid, but it’s so helpful to know what I’d be getting into. I want to buy a house but getting rid of debt to lower my debt to income ratio. I don’t want to pay more then $120,000 for a house $130,000 max. I was going to get s 203k loan but trying to avoid the monthly PMI you can’t get rid of.
It's actually public record to see what people paid for a property so if someone knows your address they can find out what you paid for the home. Of course, they might not know how much you put down but that's why I wanted to share the info so people get a better idea of the nuts and bolts of an FHA loan.
@@PenniesNotPerfection I'm curious to know which loan is better. FHA or conventional? Or does it truly depends on the interest? I want to buy a home; however, I want to make sure I've have enough money saved to cover down payment & additional fees like closing cost & lawyer fees. This will be my first home purchase.
@@ashfitrn Conventional is better! If you can get to 5% or 10% you can likely get a conventional loan. Then at 20% the PMI can be dropped. With FHA now you can never get rid of PMI and it sucks. Definitely aim for conventional loan and wait longer to save up if you can.
I like to hear other people's stories as well. I'm in the beginning stages of this process now but I'm doing something totally different than most people. Stay tuned 😉
Great video! Real life examples make understanding a new concept much easier for many people. Another point of view on PMI...Your PMI which frustrates you, also allowed the lender to take a chance on you and your husband and ultimately lead to your wealth-building (equity in your home). Yes, ideally you would have liked 20% down, but would you have been able to save at the same rate your home as appreciated in the past few years (did you say $30,000)? In a strange kind of way, your PMI is actually an investment in YOU, which gets paid to the lender!
Not to mention even if they had the 20 percent downpayment already saved. Going FHA low money down would let them invest that savings elsewhere like in stocks for example and have the oppertunity to get a better return on that savings long term.
Thank you! I felt really good about it at the time even if we wasn’t following the traditional personal finance advice of 20% down. Looking at rates and home prices now two years later it really was a good time to buy.
Great video! We bought our 2nd house the same time you bought. We are in the same boat, great interest rate and house prices are up. It was a good time to get in a house.
It really was fantastic for those reasons! So while I wish we had more of a down payment, our interest rate was great. We got into our neighborhood at the right time too and the price per square foot here has jumped a ton!
You got a great deal! So glad it didn’t end up being a bad deal. Next time you buy a house , if you get a loan, you buy title insurance for your lender, buy it for yourself also. If you pay off the the loan the title insurance is gone if you don’t get your own policy. Example- you buy a forever home, you decide to get a 15 year loan, then pay it off in 10 years. Mr Sellers missing wife crawls out of the woodwork and says I’m entitled to my share of $100,000. She sues you. if the mortgage is paid off there is no title insurance. If you have your own policy either the title company pays the money due for you or defends their work in court. I guess it could work differently in different states, but this is true in Maryland & Virginia. So check your state. It is a one time fee for you of $500-1500 due at closing and usually you have to buy it at closing. But check your state laws. I’m writing without my glasses so if I misspelled or missed a word, pls excuse me.
I live in Toronto and buying a single home or some townhouses cost $800,000 to $1,000,000.........Condos that are 2 bedroom and bath go for $500,000+ in good investment areas......I would do anything to buy my first home for your price!!! Down payment for us is going to be around $25,000 to $30,000 for 10 - 15%. Thank you for all the info and tips! Btw all other parts of Ontario homes go for $300,000 to $600,000 for nice well kept home to nice new homes (modest).
It’s definitely harder in certain cities. If you were honest that you’d do anything, you’d move. But that is not what people in expensive cities want to hear so I hope you can figure out how to save up and make it work! Most of the nice homes in my area go for $200,000-$400,000 we just bought a small house at a good time. Our house is by far the smallest of anyone we know in friend and family circle. But, we are happy in it and obviously paid less!
A Merry Life, On A Budget yess absolutely!!! If I could work in other parts of Ontario I would but I can’t with my job and my bf has a one of a kind job that if he moves he won’t have the same opportunity. We’re looking on the outskirts of the city and commuting in as a result. If we could we would pack up and move but our jobs rely on us staying in the area. Been saving up for 5 years now. Hopefully in the next year or so we can finally start buying a home.
I find this interesting because I’m in the process of buying a home. I wanted to put 15,000.00 down but my lender told me to keep that in the bank: because for every 1000.00 you put down it only lowers your mortgage 4.25. To keep the rest for reserve. So that is what I did. And when ever I want I can make a extra payment. We shall see how this works lol waiting on closing now! Wish me luck!
You know, I know this video, and others talking about house and mortgage costs and tips and tricks and I still didn't do the smart thing and watch any of them. I was so ready to just get my house, that I definitely spent more than I really should have. I also got preapproved through USAA for $20,000 as a down payment and then when I went to get the loan approved was told that I would need another $20,000 to put down, not including closing costs. Doing it alone also really hurt, and just made the process not the best time.
Thank you!!!!!!! It’s crazy how professional can explain it. While you still have the 🤔😫💭 face and thoughts lol I understood that in a matter of 13:55 thank you! I’m excited for my first house toooooo!☺️
Thanks for making this video. I usually don’t see the break down of it all expense wise. My man and I plan on buying our first house soon Year 2019 we plan on saving then Year 2020 buying
Definitely. We bought then and took an FHA loan with PMI for that reason... our home is now valued at about $80,000 more. We do plan to buy again in 2021 or 2022 so we will be wading into these crazy prices!
OMG 😮 I thought I was only going to need a down payment but with all these fees I’m going to need much more. It won’t be until I’ve paid off my student loans though. So happy you made this video!
This information was very helpful! It's rare to get to the nuts and bolts of first time homebuying. The closing costs and fees blew me away and was a real eye opener, so I will definitely be saving up more aggressively for a bigger down payment. For me, it just makes sense to buy my first home as a starter home because I'm single with no kids, but live in a high cost area and pretty soon I will be priced out of the renting market! Thank you for sharing this!
Thank you for your help When you got your house it was hard for sellers to accept your offer since you have FHA ? We are trying to buy a house but is so disappointing it looks like buy a house with FHA is not attractive for sellers 😣. I wish I can find a house not too expensive but it looks like with FHA we might have better change to buy a new one 😔
It was not, but it has gotten MUCH MUCH HARDER for FHA buyers since 2020. It's not attractive for sellers now since it's a seller's market and there are so many cash and conventional loan offers which are much easier to go through so it's less risky for a seller. Right now in 2021 it's unfortunately a bad time for FHA loan buyers and I'm sorry it's so hard. The best option is probably to keep saving up and working on your credit to try and position yourself as a more attractive buyer.
Yes, I purchased our home before the new law was set in place that pmi must stay on for the life of the loan. It was very difficult to have it pmi removed because everyone there was not aware that I had the loan before the new law. It took months of back and forth with them. But what I did was send a certified letter to the corporate office with the old law, my mortgage statement and that they must remove Pmi. The next month $178 was removed from my mortgage payment each month. It was so frustrating..
That does sound frustrating!!! Way to go getting it removed though! I looked at refinancing to get rid of our monthly PMI earlier this year but because interest rates have gone up we wouldn’t have saved any money and paid more in interest so we are just keeping the PMI for the time being and hope to start attacking our mortgage next year or in 2020.
Your video help me and my wife out a lot your numbers are pretty similar to the price of the house we are getting ready to purchase thank your for the advice
I'm watching some more of your videos as I took time off of RUclips so sorry for commenting on old ones. 😬 I'm wondering if you are refinancing now since interest rates are low? We bought our home for $90,900 and our interest was 5.4% in July 2018, crazy!!! My dad passed in December 2019 so I was able to pay our house off early 2020 when covid hit and I had to stop working. It was such a breath of fresh air not having the payment, we obviously still pay homeowners insurance once a year and county property taxes 2 times a year. Anyways thanks for sharing! I'm sure I'll comment on more. Giving you views and comments I would've given if I hadn't taken my RUclips break!! 🤣
Oh and we also went for a USDA loan so we had no down payment (we didn't know about closing cost either so what we had for a down payment went towards that!)
Sometimes it is actually worth paying a little more interest to do away with the PMI provided that your payment does not increase because interest is tax deductible and PMI is not. Something to consider.
Lots of people keep saying I’m saving up for a house. Is more then just that. You will need reserved money you don’t want to live check to check so if u can save 10-15k use atleast 7k or less on down and closing depending what price range you will still have around 7k in bank to keep u Gng while you save more. People think by saving for a down payment is all to it what about the months ahead ?
If you paid $9k off in 2 years, you paid more like $375/month to principal rather than $200 like you thought. That hopefully makes you feel better that more is going to principal!
In another video I share how I'm paying down our home faster. We actually have two ways we pay it faster with very little effort so that's why it's $375/month instead of $200! The normal payment would only have it paying $200 a month. You can see the video here: ruclips.net/video/BTdozy98Eq4/видео.html
200 a month for 2 years is $4800. If u guys have paid of 9800 more than 200 a month has to be going to ur loan. What blows my mind is 1200 a month for 2 years is $28,800.
Unfortunately mortgages are interest heavy up front so yes only a couple hundred goes to principal. I will be posting a mortgage payoff update soon to show how much we’ve paid off after 3 years.
Here's how we've paid more to the principal: ruclips.net/video/BTdozy98Eq4/видео.html We have two easy strategies we are using to pay more to the principal each month.
Me and my husband are saving 10,000 for a down payment. We already have 5,000 and saving another 5,000 this year so we can hopefully purchase next year. This is great info!
That’s a great goal and really reasonable! I hope your home purchase goes well!
Yeah I'm 24 and I'm doing that too. I want a 10.000 (€ ) down payment. Obviously for now, I'm a singular buyer which is harder but still, I've been advised to save for initial entry fees/ down payment
Great job saving up 10,000! That will be a good start.
Save more . especially if house older alot of unknown be ready for anything.
You should put at least a 20% down payment.
I’m so glad you actually broke it down and out numbers because that gives people a better idea of what to expect! Thank you so much!!!
Thanks for the breakdown! This is such a valuable lesson broken down with actual paperwork! Great video!
So glad you found it helpful! I know I wish I had seen and understood the paperwork before we bought out home so I'm happy to share!
Thanks for sharing. If you would have waited to save up enough money for 20% down, the same house would cost more by the time you had that saved up. You did a great job. Great interest rate too.
Thank you! I’ve totally thought about that! If we would have waited for our down payment the house would have cost more and our interest rate would have been up to a full percent higher (which is what I was quoted when I looked at refinancing this year). So in the long run it definitely will be cheaper since we bought earlier before we had the big down payment normally recommend.
@@PenniesNotPerfection yep and if you are in the house 3 years from know you can see if it will appraise at a level where you can drop the mortgage insurance.
I'm thinking about this too.
I bought a home with a family member when I was 18. I swore to never do that again. I was able to purchase my home, on my own, but it was an FHA loan. I refinanced about a year ago and got rid of it!! I wouldn’t change a thing. I could not afford my house nowadays and I love it!
Thank you for sharing real numbers and your story. So much more helpful than a *we bought our first house EMPTY HOUSE TOUR* haha! Hoping to buy this spring!
Haha those are weird to me! I’d rather see houses decorated anyway. I hope you find the perfect house this spring!
I still have the papers on our first home in 1999! This is great and helpful for new home buyers. Wonderful for excellent credit scores guys! 👏🎉
Woah the amount you paid for the closing cost!! 😳 Thanks for putting everything in perspective
I like that it’s helping people realize closing costs add up! We had our seller pay a lot of it and depending on the market you are in that’s always an option.
This is an incredibly helpful video for me! My husband and I are hoping to buy a house or townhouse this year for only a little more than your house was- so the numbers are similar enough to start thinking about. Thank you so much!
Curious about what we pay each month? Watch the next video: Our Mortgage Monthly Statement & Balance + 2 EASY Ways To Payoff The Mortgage Faster ruclips.net/video/BTdozy98Eq4/видео.html
Oh boy. My friend bought a townhouse for 137k in 2016 and sold it in 2019 for 170k. Now it might be worth 200k! I don't want to wait super long to buy my first house since prices are increasing. So i think my plan now is to put some to car loan and some to 3 month emergency fund then after emergency fund is saved, then I'll put that towards a down payment for an house. Love my mom but i want to own a property!
OMG! I bought my house at the same time :). I agree with you that the interest rates and houses went WAY up since then! It is crazy how much they went up. Great Video!
I feel super lucky that we bought at that time. We actually live in a neighborhood that’s listed in all those “top ten hottest markets” lists I’ve seen online which is crazy to me how much houses in our area have gone up in price.
This is SO helpful as we just put in an offer on a house on Saturday and got it accepted tonight! The condo that we are about to purchase is about the same price to. Thank you for sharing this information!
CONGRATS!!!! That is super exciting! Glad I could help a tiny bit. :) Can't wait to see your minimalist condo home tour! :)
My townhome is worth $40,000 more now than it was 5 years ago when I purchased it. I was not financially prepared either. My credit was good but I have a butt load of credit card debt. No money for a down payment at all, so I got the state of Ohio to pay it for me with their down payment assistance program and went with a conventional loan. With the assistance, I had no options for the interest rate. Yours is awesome. Mine is 4.25%. Thanks for sharing your story!
Sounds like you did well with what you had! I love those first time home buyer programs states offer. My friend used it in our state but we did not qualify.
Awesome, Amazing, Wonderful video! Thank you so much for being transparent, honest and showing the numbers for what they are (versus what 'could' be the situation). THIS WAS SO HELPFUL! I've now subscribed and look forward to learning more with you!
Thanks!
In the process of buying now. Thank you for sharing
Totally a good watch, we are Dave Ramsey weirdos and we are in BS3b and currently saving 20% down. Seeing the closing cost helps me plan more for that so thanks.
Yes plan for more! So smart to save 20%!
I know it has been a long time since this video was posted, but thank you for sharing!
It has been but I'm so thrilled it is still helping people! I'm planning to do a few more new home buyer videos because it's a topic I'm super passionate about especially after helping several family members walk through buying their first house this year!
Thank you. This is the best explanation and really helps me to understand fees and costs associated with buying a home. Good luck and thank you again for this AMAZING breakdown🤗
Glad it was helpful!
A video I didnt know I need. Looking to buy a house within 2 years or when the market crashes lol great video!
Good plan! It's definitely going to slow and you might get a great deal. We bought at a good time for interest rates and our area and I definitely would not buy currently.
I went no downpayment FHA and paid $9 k closing for a $257k home. I did DP assistance with 0% internet or $75/month. Million combinations to get it done you’ll never know until you do it yourself. These videos are so helpful to get some basic knowledge but each individual process is so unique
Yes it is! Also many places have down payment assistance and things that are localized. No one fits all situation.
oh! THANK YOU! I had an epiphany this morning and it told me to stop looking for new apartments, get a house!!!! I came on here and your video was posted on my birthday so I definitely feel guided landing here. Been hunting for a long time and the rent here is stupid, like 3 bedrooms rent in a good neighborhood is $2,600. I live in Brooklyn, New York, here I am having lunch, I almost choked at the cost of your house. Here, a sensible sized house is $600k. Even the rent that I am paying in a converted 2 bed GARAGE is $1,850. Thank you for the tips!!!!! Useful as ever!
We definitely got in at a good time since our house is now worth about $260k, but markets vary so much!! The numbers still apply for you just scaled up. Hopefully you have a higher income in Brooklyn too!
I love your honesty! Love it. Prepay interest, wow, those little fees really do add up. Thank you for sharing this.
Thank you! They really do add up. I appreciate you watching!
Thank you for posting this! Trying to buy in the next 2 or 3 years and now I know to save more after we pay off our debt.
Definitely save as much as possible! It will help so much!
Jesus Christ!!! Omg! I’m overwhelmed! I appreciate you sharing this info, not everyone does.
That’s why I did! I hope it helps! Let me know if you have more questions!
thank you for this! I mostly started my budget journey to financially get myself in order to afford my first home. I had no idea all of these fees were associated with purchasing so this is helpful. Seems like I will need about 30k here in California. LOL
Yes there are so many fees for closing! Some you can shop around for the best prices and get the number down a bit. I can’t imagine trying to buy in California!
Same
Those fees are heartbreaking. And most of these house ain’t even worth it. Thanks for this breakdown. I feel like it’s hard to know how and where to save money. Who will tell you that? It’s very frustrating.
Waaaiiitttt what is this! I’m just seeing this!! Ahh I need to sleep but this one is going in my watch later playlist. Haha. I’ll be commenting again soon as soon as I see this cause I want to go through this in about a year or so!! 🙌🏽👍🏽
Hahah your comments are the best! I can’t wait to hear what ya say after you watch it!
A Merry Life nice seller taking care of some of the closing cost! Oh wow I didn’t know PMI doesn’t fall off, and Daamn 3% interest rate 🙌🏽. Awesome especially when rates are supposed to be going up still!
This is a great video, thank you for sharing. This is giving me a lot to think about and more information to research. All of those fees really add up and it seems overwhelming.
Thank you for sharing real numbers. It's SO helpful! 💜💜💜
Glad it is helpful! I find real numbers really do help!
This was a very helpful video, especially about the FHA side of it. I appreciate you giving all the costs and fees. Some don’t want to say what they paid, but it’s so helpful to know what I’d be getting into. I want to buy a house but getting rid of debt to lower my debt to income ratio. I don’t want to pay more then $120,000 for a house $130,000 max. I was going to get s 203k loan but trying to avoid the monthly PMI you can’t get rid of.
It's actually public record to see what people paid for a property so if someone knows your address they can find out what you paid for the home. Of course, they might not know how much you put down but that's why I wanted to share the info so people get a better idea of the nuts and bolts of an FHA loan.
@@PenniesNotPerfection I'm curious to know which loan is better. FHA or conventional? Or does it truly depends on the interest? I want to buy a home; however, I want to make sure I've have enough money saved to cover down payment & additional fees like closing cost & lawyer fees. This will be my first home purchase.
@@ashfitrn Conventional is better! If you can get to 5% or 10% you can likely get a conventional loan. Then at 20% the PMI can be dropped. With FHA now you can never get rid of PMI and it sucks. Definitely aim for conventional loan and wait longer to save up if you can.
You have great handwriting. B-)
Thank you so much!
I like to hear other people's stories as well. I'm in the beginning stages of this process now but I'm doing something totally different than most people. Stay tuned 😉
Fun! There are so many people doing alternative things now and going without mortgages, buying tiny home, etc. Good luck!
I would like to know how you are doing it
Well I'm tuned 3 years later, plenty of time llol
So glad I found this video. THANK YOU FOR SHARING!!!
So glad it was helpful!
Very helpful girl. This is so important to know. Thanks so much for sharing this. Awsome video, and love your hand writing
So glad it was helpful!!
Great video! Real life examples make understanding a new concept much easier for many people. Another point of view on PMI...Your PMI which frustrates you, also allowed the lender to take a chance on you and your husband and ultimately lead to your wealth-building (equity in your home). Yes, ideally you would have liked 20% down, but would you have been able to save at the same rate your home as appreciated in the past few years (did you say $30,000)? In a strange kind of way, your PMI is actually an investment in YOU, which gets paid to the lender!
Not to mention even if they had the 20 percent downpayment already saved. Going FHA low money down would let them invest that savings elsewhere like in stocks for example and have the oppertunity to get a better return on that savings long term.
This is a great share for new house buyers. It sounds like you learned a lot and have great plans for your future. Congratulations🌟🌟🌟🌟🌟
Thank you! Yes I learned a ton that I can apply to the next house!
This is right on time needed this!
Wowza! You guys got a really great deal!!! And it is a really great strategy to start small and build up as you can afford it. Good job, you guys!
Thank you! I felt really good about it at the time even if we wasn’t following the traditional personal finance advice of 20% down. Looking at rates and home prices now two years later it really was a good time to buy.
Wow we’re currently looking for a home to buy, so thanks so much for sharing this ! Love your breakdowns on these videos ! 💜
Glad it helped! Good luck with your house hunting!!
Thank you for all the information. I really respect you being so open about this information. Thanks for the help
I’m just glad it can help people see how it works!
ohh man! this is gunna be very helpful for us!
We want to buy a house soon!
Great video! We bought our 2nd house the same time you bought. We are in the same boat, great interest rate and house prices are up. It was a good time to get in a house.
It really was fantastic for those reasons! So while I wish we had more of a down payment, our interest rate was great. We got into our neighborhood at the right time too and the price per square foot here has jumped a ton!
Totally agree! I had no idea what I was doing buying my first house. Didn’t even know what PMI was, but I sure am paying it now! 🤦🏻♀️
Hahah yesss I knew about PMI in a general sense but didn’t quite know enough. I know I won’t be paying it on our next home!
Nice video! The purchase price is so good! Makes me wanna leave California 😆
Great Video...I been watching all your budget videos.... but never comment....love your videos very helpful☮️❤️👍
Thank you!! I’m glad they can be helpful. I truly hope they are, even if people just learn from our mistakes.
Thank you so much for the actual numbers!
I love how real you are about your process.
Thank you! I hope it helps other people because things like buying a home can feel really intimidating.
This was amazing, thanks for the breakdown.
Excellent breakdown! Good insight into a real world scenario. Thanks!
Thanks, glad it helped!
In 2019 i refi’d my 170k loan to a 15year/2%. Increased my monthly 46.00 it gets paid down 10k/year plus anything extra i put on principal
Thank you for sharing real numbers and the break downs
Hope it helps!
You got a great deal! So glad it didn’t end up being a bad deal. Next time you buy a house , if you get a loan, you buy title insurance for your lender, buy it for yourself also. If you pay off the the loan the title insurance is gone if you don’t get your own policy. Example- you buy a forever home, you decide to get a 15 year loan, then pay it off in 10 years. Mr Sellers missing wife crawls out of the woodwork and says I’m entitled to my share of $100,000. She sues you. if the mortgage is paid off there is no title insurance. If you have your own policy either the title company pays the money due for you or defends their work in court. I guess it could work differently in different states, but this is true in Maryland & Virginia. So check your state. It is a one time fee for you of $500-1500 due at closing and usually you have to buy it at closing. But check your state laws. I’m writing without my glasses so if I misspelled or missed a word, pls excuse me.
Thanks!
I live in Toronto and buying a single home or some townhouses cost $800,000 to $1,000,000.........Condos that are 2 bedroom and bath go for $500,000+ in good investment areas......I would do anything to buy my first home for your price!!! Down payment for us is going to be around $25,000 to $30,000 for 10 - 15%. Thank you for all the info and tips! Btw all other parts of Ontario homes go for $300,000 to $600,000 for nice well kept home to nice new homes (modest).
It’s definitely harder in certain cities. If you were honest that you’d do anything, you’d move. But that is not what people in expensive cities want to hear so I hope you can figure out how to save up and make it work! Most of the nice homes in my area go for $200,000-$400,000 we just bought a small house at a good time. Our house is by far the smallest of anyone we know in friend and family circle. But, we are happy in it and obviously paid less!
A Merry Life, On A Budget yess absolutely!!! If I could work in other parts of Ontario I would but I can’t with my job and my bf has a one of a kind job that if he moves he won’t have the same opportunity. We’re looking on the outskirts of the city and commuting in as a result. If we could we would pack up and move but our jobs rely on us staying in the area. Been saving up for 5 years now. Hopefully in the next year or so we can finally start buying a home.
Totally understand! Hopefully y’all can find a nice house you can afford with a reasonable commute!
House Buying is so intimidating! We have bought 2 so far (one being a rental property). Thanks for the video!
You are so welcome!
This was so educational and makes buying a home approachable for me. Thank you.
Yes thank you so much for sharing! This helps a bunch! ❤️
I’m so glad!! Let me know if you have any questions!
I find this interesting because I’m in the process of buying a home. I wanted to put 15,000.00 down but my lender told me to keep that in the bank: because for every 1000.00 you put down it only lowers your mortgage 4.25. To keep the rest for reserve. So that is what I did. And when ever I want I can make a extra payment. We shall see how this works lol waiting on closing now! Wish me luck!
Hope it works out for you! Congrats on buying a home!
Do you mean interest lowered to 4.25? I know I've heard this with car loans only decreasing the payment $100 for every $1000 more down.
their origination fee is a % of the loan amount, putting more $ in their commission.
I really appreciate this video thank you.
Great job breaking everything down.
thank you!
Awesome thumbnails and video, wish to see more like this! 👍🏻
Glad you like them!
You know, I know this video, and others talking about house and mortgage costs and tips and tricks and I still didn't do the smart thing and watch any of them. I was so ready to just get my house, that I definitely spent more than I really should have. I also got preapproved through USAA for $20,000 as a down payment and then when I went to get the loan approved was told that I would need another $20,000 to put down, not including closing costs. Doing it alone also really hurt, and just made the process not the best time.
Thank you for sharing in such great detail! Super helpful to get a general idea!
Thank you!!!!!!! It’s crazy how professional can explain it. While you still have the 🤔😫💭 face and thoughts lol I understood that in a matter of 13:55 thank you! I’m excited for my first house toooooo!☺️
Yay! I’m excited for you!
This was very helpful.. thank you for breaking everything down !!!
Thank you! I appreciate you watching!
Thanks for the breakdown ❤️
Awesome video. Very informative for future home buyers. Thanks
Thanks for making this video. I usually don’t see the break down of it all expense wise. My man and I plan on buying our first house soon Year 2019 we plan on saving then Year 2020 buying
Glad it was helpful! It’s definitely something to keep in mind for when you are closing. Good luck in your saving and home buying journey!!
You did a great job explaining Everything, Also you’re so lucky you bought it four years ago. Look at the prices now in 2021
Definitely. We bought then and took an FHA loan with PMI for that reason... our home is now valued at about $80,000 more. We do plan to buy again in 2021 or 2022 so we will be wading into these crazy prices!
@@PenniesNotPerfection Nice, Good luck!
OMG 😮 I thought I was only going to need a down payment but with all these fees I’m going to need much more. It won’t be until I’ve paid off my student loans though. So happy you made this video!
You’ll definitely need more! And the more you have the better you will feel. And with no student loans you will feel even better about your home!
This is so helpful and thank you for sharing
Glad I could help!!
This information was very helpful! It's rare to get to the nuts and bolts of first time homebuying. The closing costs and fees blew me away and was a real eye opener, so I will definitely be saving up more aggressively for a bigger down payment. For me, it just makes sense to buy my first home as a starter home because I'm single with no kids, but live in a high cost area and pretty soon I will be priced out of the renting market! Thank you for sharing this!
I'm glad it helped! I think it's easy to underestimate the fees and extras beyond just the down payment. I hope you find the perfect starter home!
Thank you for your help When you got your house it was hard for sellers to accept your offer since you have FHA ? We are trying to buy a house but is so disappointing it looks like buy a house with FHA is not attractive for sellers 😣. I wish I can find a house not too expensive but it looks like with FHA we might have better change to buy a new one 😔
It was not, but it has gotten MUCH MUCH HARDER for FHA buyers since 2020. It's not attractive for sellers now since it's a seller's market and there are so many cash and conventional loan offers which are much easier to go through so it's less risky for a seller. Right now in 2021 it's unfortunately a bad time for FHA loan buyers and I'm sorry it's so hard. The best option is probably to keep saving up and working on your credit to try and position yourself as a more attractive buyer.
We've been wanting to buy a house for several years and wanted to save enough for at least 20% down. It's hard to find something like that!
Congrats on homeownership Me and my husband working towards this
Wow ! I bought a house $230,000 and my down payment was roughly $8000. Plus closing $8000.. and put payment is under $1300 a month.
Nice!
Great video.I just removed Pmi this year I have a FHA loan as well. I
Oh really? How? Was your loan before they did pmi for the life of the loan?
Also I love your mortgage payoff videos!
Thank you..
Yes, I purchased our home before the new law was set in place that pmi must stay on for the life of the loan. It was very difficult to have it pmi removed because everyone there was not aware that I had the loan before the new law. It took months of back and forth with them. But what I did was send a certified letter to the corporate office with the old law, my mortgage statement and that they must remove Pmi. The next month $178 was removed from my mortgage payment each month. It was so frustrating..
That does sound frustrating!!! Way to go getting it removed though! I looked at refinancing to get rid of our monthly PMI earlier this year but because interest rates have gone up we wouldn’t have saved any money and paid more in interest so we are just keeping the PMI for the time being and hope to start attacking our mortgage next year or in 2020.
I love your hand writing
Thank you for this video!!
You’re welcome! Glad I could help!
Your video help me and my wife out a lot your numbers are pretty similar to the price of the house we are getting ready to purchase thank your for the advice
I’m so glad! That’s exactly why I wanted to share it. Good luck with your home purchase.
Great information...thanks for sharing!
Thank you! I love your mortgage payoff videos!
Thank you for making this Video its very helpful First time home buyers
Glad it was helpful!!
I was also preapproved for 250k and I couldn’t believe it! I bought in the summer of 2017 and my home was 158k the year prior. I got it for 183k.
Thanks for sharing. Super informational and inspiring!
Thank you!!
I'm watching some more of your videos as I took time off of RUclips so sorry for commenting on old ones. 😬 I'm wondering if you are refinancing now since interest rates are low? We bought our home for $90,900 and our interest was 5.4% in July 2018, crazy!!! My dad passed in December 2019 so I was able to pay our house off early 2020 when covid hit and I had to stop working. It was such a breath of fresh air not having the payment, we obviously still pay homeowners insurance once a year and county property taxes 2 times a year. Anyways thanks for sharing! I'm sure I'll comment on more. Giving you views and comments I would've given if I hadn't taken my RUclips break!! 🤣
Oh and we also went for a USDA loan so we had no down payment (we didn't know about closing cost either so what we had for a down payment went towards that!)
Beautiful friend,u do great job,thanks for sharing,love it😍👍👌
Thank you! 🤗
Thank you for sharing, this is very helpful.
So glad!0
This video is pure gold thanks
I watched your video while playing a board game and it was so fun☺️😆👍
Thank you so much for this!! I needed this so much!!
So glad it helped!
158k??? Where does she live? I couldn’t imagine this in CA :(
Yeah I couldn’t imagine it in Cali either! I live in Tennessee in a decent but not “top” neighborhood.
I also live in CA! My mouth literally dropped open at that 158K! the new homes built in my neighborhood start at a “low starting point of 2mil” 😑
158k o.o looking to buy a dump for 460k lol I’m so jealous
Thank You So Much For THIS VIDEO !!! 😫😫😫
Glad it helped!
Great video and information!! Thanks
Sometimes it is actually worth paying a little more interest to do away with the PMI provided that your payment does not increase because interest is tax deductible and PMI is not. Something to consider.
We refinanced to drop PMI. You have to refinance to drop PMI from an FHA loan.
Great video. I would love to see a home tour
I’ll add it to the list!! I think we actually have most rooms half way done after two year lol.
Lots of people keep saying I’m saving up for a house. Is more then just that. You will need reserved money you don’t want to live check to check so if u can save 10-15k use atleast 7k or less on down and closing depending what price range you will still have around 7k in bank to keep u Gng while you save more. People think by saving for a down payment is all to it what about the months ahead ?
Nope that’s why I make videos encouraging people to do more than just focus on one aspect. There is a lot more to it.
Pennies Not Perfection yes
If you paid $9k off in 2 years, you paid more like $375/month to principal rather than $200 like you thought. That hopefully makes you feel better that more is going to principal!
In another video I share how I'm paying down our home faster. We actually have two ways we pay it faster with very little effort so that's why it's $375/month instead of $200! The normal payment would only have it paying $200 a month. You can see the video here: ruclips.net/video/BTdozy98Eq4/видео.html
200 a month for 2 years is $4800. If u guys have paid of 9800 more than 200 a month has to be going to ur loan. What blows my mind is 1200 a month for 2 years is $28,800.
Unfortunately mortgages are interest heavy up front so yes only a couple hundred goes to principal. I will be posting a mortgage payoff update soon to show how much we’ve paid off after 3 years.
Here's how we've paid more to the principal: ruclips.net/video/BTdozy98Eq4/видео.html
We have two easy strategies we are using to pay more to the principal each month.
For 159k your house looks Awsome. A house like that in cali would be about 400-500k
For sure. And this was a few years ago so our house is now about $275,000. 😬
Very informative. Thanks 👍
Glad it helped! Thanks for watching and commenting! :)
Wish there were good homes in that price range in the DC area....
We are grateful to live in an affordable city for sure!
Very helpful information thank you very much!
Glad it was helpful!