Skip to main content

Does PMI make sense for us?

My wife and I found a new build in the suburbs that we love, but don’t have 20% to put down. The home is $590K and our total annual household income is ~$285K. We feel comfortable affording the home from a monthly cost standpoint, but only have ~$50K in savings, primarily due to paying too much for our recent wedding. Other info that may or may not be relevant:

  1. Credit score is 800+
  2. We own an apartment in Chicago worth ~$280K that I bought 4 years ago and we’d like to keep to rent out due to the 3% interest rate.
  3. Outside of the current mortgage, we have a $300/month car payment for 16 more months and a few thousand left in student in loans. Otherwise, no debt.
  4. House would be ready in 8-10 months and I think we realistically could save ~$40-50K in that timespan due to my wife receiving a 20K bonus in March (already factored into total household income).
  5. We are in our early 30s.

From reading other posts here, it seems like PMI isn’t the end all be all that my parents think it is. Does PMI make sense for us, or should we wait a year or so until we build up our savings?

submitted by /u/JTB1418
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1as5a7w/does_pmi_make_sense_for_us/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

Obtaining a real estate license as a hobby?

Hello, I am 24 years old - 2 years out of college and I have my main job. I was looking to get a real estate license (in California if location matters) as a hobby/for fun since I like real estate ever since I was in high school. In the past 2 years, I would go to open house in the weekends to look at homes for fun. I don’t plan to practice real estate full time as I have my main job but I am curious are there any benefits to this? In the future, I plan to own multiple properties and have rentals, so I was wondering if getting a real estate license can help me with it? Thanks submitted by /u/AlohVera [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1f0qx9i/obtaining_a_real_estate_license_as_a_hobby/
Post a Comment
Read more

Advice? Moved out of my primary residence and now renting

I moved out of the house I own in August 2021, I lived there for 8 years, I have been renting an apartment the past 3 years and renting out my house. My current tenant is moving out in September. I seem to have just missed the living 2 years out of 5 years rule for being exempt from capital gains tax and my house being a primary home. Any advice on what the best thing to do would be moving forward? Continue to rent out my house? I'm happy with my rental, but wouldn't mind buying another property down the road. I could sell my house down the road and try to do a 1031 exchange? Moving back in my house isn't ideal because it's an hour away from where I currently live. I could take a HELOC perhaps and try to buy another property and continue renting for the long term? I do have a 2.4% mortgage rate on the house so I don't mind keeping it for a while. Thanks for everyone's advice. submitted by /u/Ok-Top-7859 [link] [comments] source https://www.reddit.co...
Post a Comment
Read more