In Guymon it is cheaper to buy a house than to rent one. My first house was 1000 sq ft. My mortgage was like $700 a month. Similar houses in Guymon were renting for $1000
In Guymon it is cheaper to buy a house than to rent one. My first house was 1000 sq ft. My mortgage was like $700 a month. Similar houses in Guymon were renting for $1000
- Joined
- May 14, 2020
- Messages
- 7,408
- Reaction score
- 23,276
I had an interesting situation with this loan...
I sold a home in Phoenix back in 1984. Interest rates for VA loans back then were in the neighborhood of 13% vs about 15% to 17% for conventional loans. I was young and stupid and didn't know anything and let the buyer assume my loan. Fast forward to this week, 37 years later...
We're paying $200k for the new home. We wanted to put $75k down and finance $125k. VA tells me I can't do it because I have no "basic eligibility". OK...explain that. VA tells me, 37 years later that the buyer defaulted on the loan he assumed in 1985. The bank foreclosed and sold the house and VA took a hit of $5700 and change. I'm responsible for that since I let the knucklehead assume my loan. This is the first time I've heard of it. I was never contacted or informed about the foreclosure and the subsequent debt to the VA. It doesn't get reported and it doesn't affect credit and basically no one knows about it outside of the VA unless you try to finance another home with a VA loan.
The kicker is this... If I want a loan for less than $145000, no go unless I pay off the $5700. However...borrow $145001 and it's OK. It's called "secondary" or "extended" entitlement. It just seems insane.
In no world...except for the government...does telling someone who technically owes you money that they can't borrow a small amount of money from you. But if you want to borrow a larger amount of money they feel you're good for it.
So since the interest rate came in so low we're gonna put a little less down and use the extra to have a whole-house backup generator installed.
I sold a home in Phoenix back in 1984. Interest rates for VA loans back then were in the neighborhood of 13% vs about 15% to 17% for conventional loans. I was young and stupid and didn't know anything and let the buyer assume my loan. Fast forward to this week, 37 years later...
We're paying $200k for the new home. We wanted to put $75k down and finance $125k. VA tells me I can't do it because I have no "basic eligibility". OK...explain that. VA tells me, 37 years later that the buyer defaulted on the loan he assumed in 1985. The bank foreclosed and sold the house and VA took a hit of $5700 and change. I'm responsible for that since I let the knucklehead assume my loan. This is the first time I've heard of it. I was never contacted or informed about the foreclosure and the subsequent debt to the VA. It doesn't get reported and it doesn't affect credit and basically no one knows about it outside of the VA unless you try to finance another home with a VA loan.
The kicker is this... If I want a loan for less than $145000, no go unless I pay off the $5700. However...borrow $145001 and it's OK. It's called "secondary" or "extended" entitlement. It just seems insane.
In no world...except for the government...does telling someone who technically owes you money that they can't borrow a small amount of money from you. But if you want to borrow a larger amount of money they feel you're good for it.
So since the interest rate came in so low we're gonna put a little less down and use the extra to have a whole-house backup generator installed.
I hope it stays decent until Q3 2022. Framers are still working on my house. Congrats on the awesome rate.
It’s cheaper to buy most places. I could rent my house for $1600-1800 right now, but if you were to buy it it would cost you $1300 a month. I honestly wish I knew this stuff sooner. But it is intimidating tying yourself down to one place for the next 15-30 years with no way out other than selling. For someone who hasn’t done it before it sounds like a huge ordeal.
That was my deal through my 20s and early 30s. I can't stand feeling stuck somewhere. Job, house, debt, etc. all make me want to crawl out of my skin and move somewhere else. It was worth it to my sanity to rent then because I also tended to get head hunted to a different location every 3-5 years.
Now, with a family and a wife that needs to have the security of an anchor location, we built a house that we will be in for at least the next 15 years until kids are out of school and the parents in law still live 2 doors down. It seems easy to justify when the trade off is seeing my family happy with their foundation. How things change as we grow up, haha.
I sure would like to see interest rates go up!
Get a basic savings account back up to 3 or 4%.
Naturally home loans would need to be higher as well.
Hopefully that would drive down property values and help save folks money on property taxes too! Me especially!
Get a basic savings account back up to 3 or 4%.
Naturally home loans would need to be higher as well.
Hopefully that would drive down property values and help save folks money on property taxes too! Me especially!
Similar threads
