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Well, we bought a house!


MrMeanGreen

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I've finally decided it's that time in life to buy a house. I've got two kids (five and two), been married eight years, have three cars, and a very good job. I'm missing that one thing, the homeownership.

 

So, I'd applied for a mortgage and been had accepted (thanks to BIG PAPA for that) through Alan Benjamin Mortgage. However, I found a better deal through my bank, 5/3. They have a program called the Good Neighbor plan, and it's for first-time homeowners with good credit and who are existing 5/3 customers.

 

So, I went in and signed the mortgage papers Friday at the bank, and the sellers accepted our offer on the house at the same time. We close on the 27th of February, with a move date of March 14th. However, if our paperwork gets finalized earlier, the sellers will close earlier and we can move sooner.

 

The mortgage we got is pretty badass. It's a 5.675 fixed rate and no money down. The bank pays 100% of everything, and all we need to come up with is $695 for the bank fees and $430 for the first year's mortgage insurance. The contract on the house includes $1000 from the sellers to pay for these fees ($295 of the $695 we get back at closing). The contract included the fees paid by seller, all window coverings (blinds, etc), all appliances, and a one year warranty. Even better, after all was said and done and after all costs, the bank owes us $49 to buy this house after all credits were applied!

 

We ended up paying $129,900 for the house (built in 1989, when I first moved out here), which was appraised at $143,000. The payments after the mortgage, property taxes, and insurance come out to be $912/month (only $90 more than our current apartment). The people living there have a dissolusion pending a divorce, and can't finalize their divorce and move away from each other until the house is sold. They were desperate and we stepped in. We did an offer, they made a counter-offer, and we made another. Ultimately, we came out on top and got the house. I'm really happy, and so is Tina. Here's some pics and info on the place:

 

http://www.columbuscomputing.com/pics/newhouse.jpg

 

So all and all, I'm very excited. On top of that, I get the den to myself to entertain people after CR meets and such, setup my PCs and network, and it's connected to the garage :D

 

I'll need people to possibly help me move when that time comes around. I'll see how much it is for movers first before deciding. But this is about 3-4 weeks away at the going rate smile.gif

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Originally posted by Mensan:

Awesome Ant. If you can, and I address this to everyone, do everything you can to get a 15 year mortgage, no more. It doesn't cost much more, and you pay SO much less in interest, not to mention your equity skyrockets.

Werd.

 

Just an example. This is just for the principle and interest portion, and I used www.bankrate.com, which has a pretty cool amortization table, web-based, program.

 

Scenario 1: $100,000 loan, 6%, 30 year. If you make every minimum payment, the payment will be $600, you will pay $115,000 in interest, and you have the house paid down twenty percent after 10 years and 6 months.

 

Scenario 2: $100,000 loan, 6%, 20 year. If you make every minimum payment, the payment will be $716, you will pay $72,000 in interest, and you have the house paid down twenty percent after 6 years and 4 months.

 

Scenario 2: $100,000 loan, 6%, 15 year. If you make every minimum payment, the payment will be $843, you will pay $52,000 in interest, and you have the house paid down twenty percent after 4 years and 3 months.

 

Congratulations on the house, looks nice. Despite even looking at the difference, it’s easy to sometimes justify the lower payment amount, or being able to buy a nicer house right now. A lot of people in that situation will probably refinance to a shorter loan down the road when the can afford a higher house payment. At least he’s not ‘throwing’ away money on an apartment, and it sounds like he already has quite a bit of equity in the house, simply from the payment price.

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It's in the Indian Creek subdivision off of Lancaster Avenue, near Broad. I showed TJ the other night on the way home from Geeros and he liked it. So if his senile ass likes it, it can't be all bad graemlins/grin2.gif

 

Sorry Adam, I had to settle on something that offered not only a garage, but an interior to entertain people and the house with the three car garage had no basement.

 

Joel, don't clog the toilet tongue.gif

 

Eli, I'll look into it. But my brother got the 15 year and I'm not too sure about it. I'll talk to my bank Monday and see what they can come up with.

 

Everyone else, thanks for everything smile.gif

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