General Discussion

ohheckyeah

(9,314 posts)

42. If you purchased a home before you were ready

Wed Apr 24, 2013, 03:17 PM

Apr 2013

and the house was inflated in price that has nothing to do with putting down 20%. It's up to the to the home buyer to find a house that isn't inflated and to buy when they are financially stable and ready. If you want more equity add a bit to your payment every month.

20% down is way out of range for many people because of low salaries and the high cost of living. It's punitive for the low and middle economic classes.

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If you do not have 20% as a downpayment for buying a house you should rent. Period. [View all] srican69 Apr 2013 OP

These days saving up that much money is very difficult for most people Marrah_G Apr 2013 #1

Living in Mass... Working in Boston... Agschmid Apr 2013 #79

I'm apartment hunting in MA right now Marrah_G Apr 2013 #82

It does I am about to do the move home... Agschmid Apr 2013 #83

For young families, that might be a bit much. For me (single), I've always had 20% to put down. SharonAnn Apr 2013 #2

That's a great plan for destroying any possibility of personal wealth Orrex Apr 2013 #3

Original post makes sound economic sense IMHO. nt clarice Apr 2013 #6

Only in an economy wherein people are paid enough Warpy Apr 2013 #41

I was going to respond...then I saw your tagline quote. 'nuff said. nt clarice Apr 2013 #49

What does this mean in thread #3? Gin Apr 2013 #7

It means that poster likes to have quirky signature lines that make you look twice. nt Common Sense Party Apr 2013 #23

The downside is a complete decimation of any assets, and getting evicted from your house. dkf Apr 2013 #11

Better to have no assets and risk eviction anyway? Um. What? Orrex Apr 2013 #19

Seven Reasons to Put 20 Percent Down dkf Apr 2013 #32

Lovely. But still an arbitary and deliberate barrier to keep people from owning anything Orrex Apr 2013 #36

Excellent -- I couldn't have said it any better. srican69 Apr 2013 #40

With 20 percent down there is improved chances the bank will make appraisal fit sale price. we can do it Apr 2013 #56

Sure, if you have the 20%. geek tragedy Apr 2013 #65

How does a down payment safeguard the buyer in a down market? DotGone Apr 2013 #74

Beyond that, there are other options BlueStreak Apr 2013 #84

... NutmegYankee Apr 2013 #48

You're probably one of those people who thinks that $250K per anum isn't rich Orrex Apr 2013 #50

No reason for a personal attack. NutmegYankee Apr 2013 #54

I think it was just an example... cyberswede Apr 2013 #67

So I'm 30 years out of date? Orrex Apr 2013 #92

No 80's prices if you live in smaller towns in the south of midwest...... truegrit44 Apr 2013 #87

Plenty of homes for that price where I live. kcr Apr 2013 #90

I think it should be a self imposed rule wercal Apr 2013 #70

How is someone less trapped with a big downpayment than they would geek tragedy Apr 2013 #77

You really don't know? wercal Apr 2013 #85

But if you don't put the money down, you have that money in cash to pay the difference. geek tragedy Apr 2013 #86

You are making an assumption that one has the money in hand... wercal Apr 2013 #91

the perils of giving real estate advice is that geek tragedy Apr 2013 #98

Well I agree markets are very, very different wercal Apr 2013 #100

Actually, down markets are when down payments are the lowest in NYC. geek tragedy Apr 2013 #102

+1 n/t Agschmid Apr 2013 #80

I put down 20% and lost it all when the bank stole my house. tridim Apr 2013 #4

You've got it all wrong Orrex Apr 2013 #21

Feisty today... Agschmid Apr 2013 #81

And if you have 20% down, don't have to have mortgage insurance. sinkingfeeling Apr 2013 #5

When I can afford to rent... Wounded Bear Apr 2013 #8

Here's what I think. Right now, if I move I should buy with zip down because my Bluenorthwest Apr 2013 #9

why 20% why not 50% or 2%? bowens43 Apr 2013 #10

Income has not kept up with inflation to adhere to that old "rule". Lars39 Apr 2013 #12

This is the reason.... MAD Dave Apr 2013 #59

I hear ya, we've been trying to save and not getting anywhere. Lars39 Apr 2013 #75

We've got some.... MAD Dave Apr 2013 #95

Congratulations on landing a good union job! Lars39 Apr 2013 #103

Why blame shitty governments? This is capitalism fella.... socialist_n_TN Apr 2013 #99

I think you're projecting Mopar151 Apr 2013 #13

Whatever makes housing prices crash is fine with me. ;) reformist2 Apr 2013 #14

I disagree. ohheckyeah Apr 2013 #15

I disagree. Having people own their home has upaloopa Apr 2013 #16

You need a stable job supernova Apr 2013 #17

I always wished the money I paid in rent would go to pay for a piece of Cleita Apr 2013 #18

Pretty hard to do when wages suck like they do neverforget Apr 2013 #20

I think in 'normal' times with normal interest rates this makes sense however, snappyturtle Apr 2013 #22

Hardly.. if you can take advantage of low rates, you should Godhumor Apr 2013 #24

I bought my home (a duplex) in 1990 Blue_In_AK Apr 2013 #25

The 20% rule isn't designed to protect homebuyers, it's to protect lenders. JVS Apr 2013 #26

In many states, a mortgage is a personal obligation, so you can't walk away FarCenter Apr 2013 #72

I think... Rider3 Apr 2013 #27

That would mean no first-time home buyers, which would mean no home buyers at all. geek tragedy Apr 2013 #28

Err, whatever. a la izquierda Apr 2013 #29

Even if I had 20% to put down I wouldn't... Kalidurga Apr 2013 #30

I am a debt service to cash flow guy GitRDun Apr 2013 #31

I think bullshit. I didn't put down one red cent..... Little Star Apr 2013 #33

Haven't you heard, money is a concept, and can be changed to meet the situation.. CK_John Apr 2013 #34

first time home buyers need a break Mosby Apr 2013 #35

Isn't that more a rule for lenders, not borrowers? BlueCheese Apr 2013 #37

The direct advantage is that first-time buyers will much less for a starter home! Yo_Mama Apr 2013 #64

Nice drive-by. Orrex Apr 2013 #38

With wages depressed so far, it's nearly impossible to save that much Warpy Apr 2013 #39

It really depends on the market the individual is in. JVS Apr 2013 #44

If you purchased a home before you were ready ohheckyeah Apr 2013 #42

More paramters involved question everything Apr 2013 #43

The real answer is better wages, not easier access to credit. Yavin4 Apr 2013 #45

I did not put 20% down on any of the three houses that I purchased Gothmog Apr 2013 #46

I don't think it would have made a difference unapatriciated Apr 2013 #47

from the buyers perspective... discntnt_irny_srcsm Apr 2013 #51

If you have $50K and buy a house for $250K, you now have $30 K. FarCenter Apr 2013 #52

I totally disagree. We bought our first house 3.5% down FHA in 1993. we can do it Apr 2013 #53

I think average home prices in my area are about $750k. So that means a $150k down payment. With kestrel91316 Apr 2013 #55

My stepdad's VA loan was $100 down and $100/mo for 30 years hobbit709 Apr 2013 #57

10% would be sufficient Yo_Mama Apr 2013 #58

Houseing crash had little to do with the lower and middle class not putting money down davidn3600 Apr 2013 #60

my point is that a higher downpayment would have kept a good portion of the speculators out. and srican69 Apr 2013 #68

If that were the case NiteOwll Apr 2013 #61

That is nice, the other thing Cosmocat Apr 2013 #62

it's kind of unusual for people to have ~$100k of liquid assets 0rganism Apr 2013 #63

Until recently - it was unusual for people to buy ~500k houses srican69 Apr 2013 #66

Try buying a place in the NYC area for less than that. geek tragedy Apr 2013 #69

I know .. I live in the NYC Metro area too ... it wasnt this expensive in the 1990s srican69 Apr 2013 #71

How things have changed--western Crown Heights 2brs cost $650K now. nt geek tragedy Apr 2013 #73

$500k's a pretty standard average price for upper-midrange houses around here 0rganism Apr 2013 #94

unfortunately wet.hen88 Apr 2013 #76

my first house required a downpayment DesertFlower Apr 2013 #78

Not always tammywammy Apr 2013 #88

I disagree laundry_queen Apr 2013 #89

No. I had to pay $500 in earnest money, ecstatic Apr 2013 #93

It USED to be that way, everywhere SoCalDem Apr 2013 #96

If this were to become an actual rule gollygee Apr 2013 #97

Understanding home ownership Benton D Struckcheon Apr 2013 #101

It's much safer to be long inflation vs short inflation. geek tragedy Apr 2013 #104

It depends. SheilaT Apr 2013 #105

So anyone under the age of 30 will never own a home lol. Harmony Blue Apr 2013 #106