How did you come up with your down payment?

[geojen]

Re: How did you come up with your down payment?

My husband and I (fiancee at the time) sat down and figured out the maximum we could each save each month, and then we did it. We were both teachers at the time, and we saved a 5% down payment. I think we saved for a year and a half - hard to remember now. When we bought in 1997 we had an 80% 30-year first and a 15% 15-year second, avoiding PMI in the process. Since then we have refinanced to a 20-year fixed loan with about 17 years left to go.

Not to be rude, but were the payments for that 15% loan outrageous? My husband and I are looking to buy a home in a little over a year, and will probably able to scrape together about 5% for a down payment. We were thinking of piggybacking loans to avoid PMI, and I was just wondering how that worked for you...

[getforfree]

Re: How did you come up with your down payment?

A year after we bought the house, the value went up, so we had less then 80% owed compare to a house value. I called the mortgage company and asked them to remove PMI.

I had house appraised already. It took about 2 month and I had to call them almost every day, untill they finally did it. First, they were saying that it can't be removed because it just that the value went up, we didn't pay off the 20 %. So I had to send them a 2-page list of repairs and improvements that we did to out house and that's why it costs more now. Than they said, it has to be 22%. Fine, We had like 24% equity. But I had to remind that to them like 5 more times. Then they said, it takes 40 days for the process of removing PMI.

Some of their workers don't know basic math, so I told one of them to go back to middle school learn some math before telling me that I am wrong. That was when the girl there said that equity wasn't enough, while we had 24%.

It was hard to remove pmi, of couse the mortgage company doesn't want to lose extra free money, and I don't want to waste it on them.

[xs4all]

Re: How did you come up with your down payment?

I havent bought a home yet. I have been renting in the same house for 12 years. Living in MA in expensive( like alot of other places) I live near the water, and nothing here is under $330,000. My son is 18 and im looking to buy a townhouse in a few years. Im in no rush. I need to pay off my car paypent first. This will be my first home , so im hoping to get a good deal being a first time home buyer.

[cashqueen]

Re: How did you come up with your down payment?

DH (wasn't DH at the time) had money from a mutual fund his grandparent's started for him when he was 10. WHen we moved and bought a new house our first house had appreciated enough to put down a good downpayment.

[LuxLiving]

Re: How did you come up with your down payment?

I had worked three jobs so I could save enough and got help w/first time buyers bond money back when I was single and bought my studio condo. I continued working those three jobs so that I almost had it paid off (something like 3,000 remaining) when The Hubster and I married low those many moons ago. Too small for us as a pair, so being a team player, we sold it and rolled that over into each house afterwards. I wish now we had kept it and leased it all these years! ...and stayed in his apartment long enough to save up for that second down payment. Wouldn't I be happier? I think so. Who knows!

Hindsight!!! Cloudy at best.

-LuxLivingFrugalis

ADDITION: My mom pushed (= distinctly heavy motherly encouragement YOU BETTER DO THIS NOOOOW) for me to buy early on - I think I was maybe 19 at the time. It was hard to make those early payments but worth it in the end! My Mom has always kept herself well informed on financial news and was aware of the bond programs that were being touted at the time. It was a good thing for me to do! That and she wanted me in a gated high security condo so she could sleep at night! Moms - Ya Gotta Love 'Em!!! Thanks Ma!!