For all my Home Goal Homies with a sharp eye, yes I put too many 0s on 5:55 . I noticed it when I was recording and fixed it, which is why right after that you will notice the correct numbers.
@MiGueLiooo Gonzalezzz Not everyone does things the same way. Debt is a tool for the disciplined. I'll only have my first house to pay for over the years and from there I'm set and that's okay. Sometimes people know what's best for themselves more than you know what's best for them
@RcLoko A fixed mortgage is better than rent, some of that money is going back into your pocket every month. Rent is never returned and is often raised yearly. Sure you have to pay for maintaining a home you own as opposed to a rental, that's often why rentals are trashed. It takes responsibility to be a home owner but it pays off.
Gigi Gaskaite Everyone I know works here for many years and when they retire they sell their expensive home and go live somewhere less expensive. Letting the equity build in their home is part of their income for retirement. My parents did this and are enjoying their retirement in another state. 😊
I know I live and do real estate in Florida and we have many elderies who comes to retire here and if come from states like Washington DC , Illinois , New York , Philadelphia it is so cheaper for them down here in Florida ! I don’t see nothing wrong with that , plus it is more fun to retire in the sunshine and at the beach ! 👍🏻
Yes it was! Although if people don’t care about their lungs, they can always buy in very affordable Bakersfield still in the high 100’s or low 200’s! 😬
Despite persistent, politically motivated doomsday talk, the stock market just keeps on rolling upward. The talk is of over priced stocks but perhaps price to core earnings ratios aren't as bad as promoted, and the markets are headed further upward, According to Stock Analyst and columnist, Dr Paul Institutional and retail stock market investors believe in the long term direction of the US economy, and they think they will likely see earnings begin to grow. They're holding onto them in anticipation of 2021 and beyond, but concerns persist about the next 6 months through the winter, if a vaccine isn't distributed by then, so Dr Paul Tudor Jones warns new buyers to be careful the picture is not clear yet and for now you can only make profit by trading, for me i advice you multiply the little you have with Tudor strategy, i was able to make $700,000 with $70,000 in 3 weeks with the same strategy, reach Him on WhatsApp+1 213-992-7101
Dude just what I was talking to my wife about like two weeks ago! As we are in the process of buying our first home, but we weren’t so sure if we wanted to put 5 percent down or 3 and pay off her car with the extra 2%! Amazing content like always! Keep up the good work!
that last part.. thank you for saying that. it applies to so many things. the part where you say something about not wanting people to stay with no money all because they want to save later on and then something bad happens and they are lucked out. thank you.
Got a pretty good deal with mine. I used the 20k grant for first time home buyers. I only put down less than 1000 out of pocket. Loan was for 248k Got a 2.8% rate and my mortgage came out to 1200 a month.
You must have a high paying job I make about the average income and despite several years of huge sacrifices I don't have anywhere near 20%. I'm happy for you but 20% is beyond most people.
@@albundy3929 Having 20% when everything comes crashing down, will give you the pick of the litter. Yes, I understand it's difficult, but you guys have about 5-6 years of foreclosures coming up...🤷♂️
@@albundy3929 If you are seeing it as a potential to make money with rental properties, then yes you are 100% right. I'm just looking to buy a home to raise a family and retire. But I do like your suggestions...👍
Underwriter here. The answer is HomeReady. ASK YOUR LENDER ABOUT HOMEREADY. Also side note, if you can, you should absolutely make extra payments towards your principal, BUT ONLY until you have 20% equity in your house. This can be through a combination of you paying off your mortgage and appreciation. Why 20%? Because at that point, you can drop your PMI. You can make additional payments after that too, but at that point it becomes diminishing returns unless you are planning on staying in that house 20+ years. Hope that helps.
Love these types of videos. More please. I’m looking to buy my first home, so I am researching how to save the most money on the purchase. Thanks in advance 🙏
Appreciate the info however, I'd like to challenge a few things here. To say that putting money towards your principal is Good or bad depending on how long you stay? Is not an accurate statement. Why? Because no matter what (long or short term), you are adding equity to your home and reducing your principal. It's best practice to do that, in EITHER case.
Hi there, I just asked a question in the comments in regards to that-in what way is a conventional loan more attractive? I’m not quite sure what the major diff is bw fha + conventional
@@stephisteti That's an excellent question. You want to go with a conventional loan because you can remove mortgage insurance once you have 20% or more equity in the home rather that's through your home increasing in value or paying the house down. If you go FHA you'll pay mortgage insurance forever or at least until the house is paid off. Mortgage insurance is often more than $200/month so you want to remove it as soon as possible. With FHA, the only way to remove mortgage insurance is to refinance but that will cost you thousands of dollars. If at all possible go Conventional. Did I answer your question? I actually have more than 150 real estate videos that may help you on your journey. Be sure to check it out.
This market was is so crazy sometimes you need to rework your mortgage loan to get the house you want! When I was a first time home buyer 4 years ago I had it made. My credit score was strong enough to get all my down payment financed into the loan at a 3.25% rate. The seller paid my closing cost and the realtor gave a us an incentive credit. I was paid to take that house lol! Fast forward to last month. Sold our house to FHA buyers with not much funds. My house didn’t appraised and we sold for $20k under (they’re lucky we were about to close with our new house next week!). Bought our huge forever house but the sellers didn’t want to pay closing cost. I could have did 10% down but did 5% instead to have more money to cover all my closing cost annnnd buy a damn washer and dryer (yes they took the w/d 🙄). I payments were still affordable since the rates dropped way lower than June numbers. It all worked out and have money in the bank.
Stumbled upon this page somehow but great information. Im 19 so im wont be putting it to use any time soon but always great to know for the future. Keep up the great work
I live in Goodyear, and was in escrow for a house in the east valley. After seeing yours (and other multiple videos) on the subject of waiting to buy, I cancelled on the BINSR. There were a few other reasons, but honestly I think waiting to buy a house is a smart move, especially when there is so much uncertainty in the market. There are so many red flags on how bad the market is going to get it’s unreal...
You are an Angel incarnate. Your explanations are so clear and detailed, and you sincerely advocate for homebuyers. May all the good work that you do for people return to you manifold.😇🏠💕
This is almost the exact scenario I’m going through right now with my first time home purchase so thanks for the information! My realtor kept telling me since interest rates are so low right now might as well just put 3% down but I have the extra 2% so I don’t see why I shouldn’t put down as much as I can.
@cnorth1123 I've got multiple lenders here in Utah offering 5% conventional loans. If you're a first time home buyer they may actually be able to get you a 3% down conventional loan. Isn't that great? Where are you from?
@@charliefabian7345 Or, you could just keep saving & wait for the housing market to bottom out. Then buy a home at a deep discount. If you're in an area where home prices are dropping just hang in there.
It's definitely crazy here (Broward). Have you seen the homes one can get in places like Orlando or Tampa versus what even a so-so condo would cost here? It's crazy!!
@@chris10858 yes, I'm from Miami and moved to Orlando 6 years ago. I purchased the day before Thanksgiving last year and plan on using this property as an additional rental and build again in either Clermont, Groveland, or Leesburg.
Thanks for the vid, man. Your vids have really helped me prepare for buying a house in Palm Springs, CA. Your numbers in this video also are in the ballpark for Palm Springs as well. Also, big cities in California sucks.(I live in LA). Small cities are where it's at
I've been a homeowner for a long time. Reserves and down payment savings is hard to accumulate, especially since it's after tax unlike the 401k/IRA. My advice is that it never gets easier to save up so start now and go super aggressive. It was very hard to save 20% down in 2000 and it's still just as hard in 2021 despite the higher salaries. Don't settle for 3% down or 5% down. You need reserves and savings for maintenance, mortgage lender reserves, closing costs, and some initial fixes. A dip in the housing market could occur, but it doesn't last long. The last downturn was terrible and that dip didn't last. I would say go Dave Ramsey and save like your life depended on that as fast as possible and buy at 20% down.
Dude, you rock. I’ve watched nearly every video you’ve posted. We’ll be shopping in the Vegas area come the fall and you’ve helped us to keep our eye on the prize.
My parents did that a few years ago when they retired - they bought a smaller house (on acres of land) in another state. 😊 They are enjoying it! Best of luck to you! ❤️
@CHeEEEeeeEEe Despite persistent, politically motivated doomsday talk, the stock market just keeps on rolling upward. The talk is of over priced stocks but perhaps price to core earnings ratios aren't as bad as promoted, and the markets are headed further upward, According to Stock Analyst and columnist, Dr Paul Institutional and retail stock market investors believe in the long term direction of the US economy, and they think they will likely see earnings begin to grow. They're holding onto them in anticipation of 2021 and beyond, but concerns persist about the next 6 months through the winter, if a vaccine isn't distributed by then, so Dr Paul Tudor Jones warns new buyers to be careful the picture is not clear yet and for now you can only make profit by trading, for me i advice you multiply the little you have with Tudor strategy, i was able to make $700,000 with $70,000 in 3 weeks with the same strategy, reach Him on WhatsApp+1 213-992-7101
Maybe lenders have blown smoke to me in the past but I've been told it didn't make a difference on the interest rate weather I went 3% or 5%-10% down. Hmmm. I am really starting to not trust lenders or realtors anymore.
Sadly I have to wait and save more. I live in California so for a 2 bedroom home 600,000 home I have to save 30,000 plus 11,000 closing cost plus 10,000 for emergency savings. 😔
I don't regret the 20% down payment, but I needed to put that cash somewhere and the stock market was looking a little too expensive. So I diversified and put it into house equity instead, and I had been throwing extra cash at the mortgage instead of stocks until we had that nice COVID drop a while back. It helps to buy a cheap ~$100,000 house... at that price, if you can only come up with 3% or 5% down, you might want to reconsider the purchase altogether.
Hi! I was wondering do you have a video explaining which route is better? Buying a home with higher interest like when the rates go up but the price of the house goes down.( I'm thinking that is what will happen in a few years) or is it better to buy now where house price are inflated but interest rate is a low time low.? From what I understand is that the lower the interest rate the more purchasing power we have.
@@user-mb9jx5tx9y that is what my husband thinks....but i wasn't sure. Hoping he does cost analysis so I don't have too lol let's say we buy at 6k but want to sell in a year and the aprisal goes down to 530,000 so that's bad for short terms...right?
I wouldn't go through the hassle of buying a house if you're only planning on being there a year. all of the closing costs that you paid were just wasted.
Hello Javier, I wanted to know if you still recommend 5% down for a single person or save 10% as a down payment as it will be a single income home. I want to save 20% total- put 10% down + closing cost and keep the rest as an emergency fund as I live in NY, but plan on buying in NJ or Ct. But it will take me another year for that. Thank you
I GOT SO LOST AFTER THE BLONDE AND BRUNETTE AND THE PERCENT AND HUNDRED THOUSAND THIS 5% THAT OH MY BRAIN! BUT THE VIDEO IS VERY INFORMATIVE TO THOSE THAT'S WELL FOCUSED. OH MY BRAIN!!
Just found your videos and I appreciate the advice - very helpful and great seeing actual numbers!! Instantly subscribed - especially after being pessimistic with your money ( I always expect the worst, and hope for the best as well lmao)
Don't forget though, you can always refinance down the road. No way to predict what the rates will be but having extra cash now, then refinancing later (especially if your home value went up) can be a good option too
I’m in Los Angeles, the loan officer I went with told me if I wanted a duplex conventional I needed 15%. So since I don’t have that I’m gonna be stuck doing FHA. Although I told him I could do 8% for the duplex.
Great content as always, Javier. Looking to buy my first house within the next 15 mos. I know you've done a couple of videos on some payment assistance videos. Wondering if you know anything about NACA?
I wish where I live, I can easily down 3% or 5% without having to worry about monthly payments (principal, interest, PMI, property tax, HOA?). But since home prices are crazy high in Sacramento, I'll have to down 20% for a reasonable monthly payment.
If I save $400,000 and my house is like a little less or sum. Can I buy it outright. Like say "I will buy it for that price right now"? (And with extra money in savings ofc ;) 12:10)
Yes, you can. In 2017 I know a guy who sold some property in Sonoma, Ca, and bought a home in the SF East Bay for his son and daughter in law. They always liked the house, knew the owner from the garage sales he always had, and heard that he was retiring and wanted some land in Lake County. So the guy goes over and asks the homeowner if he wanted to sell the place through a do it yourself on-line realtor to save the commission. Sure! So they agreed on a price (a bit more than $400K) set up a contract, a 10 day escrow close, ALL CASH to seller. The escrow company girl was kind enough to hand carry the documents to the County Recorder on the Friday afternoon before Labor Day so they could move in over the 3 day weekend. The guy's son and daughter in law got a house that was completely paid off before the key went in the door. Even I felt like a big swinging weenie just to see that actually go down. I was there to install new locks that day, check out the AC units, and enjoy the pizza party celebration. Doing that transaction without listing with a realtor saved them $40K. Start saving, bro.
Javier if you have excellent credit, great income and low DTI but are cash poor, is a 3% conventional loan the only way to go? Is FHA ever a better deal in the above situation?
@Pinky Good question. My advice is always it depends on your goals. Statistically, most Americans move every 5-7 years. You wont be in a loan for 30 yrs most likely. Pmi is small price to pay for putting less down.
I wish he had touched upon loan refinance. With these crazy low rates 3% is a good deal. Also, the time value of money over 30 years is a significant factor.
Interesting to me that the banking system has convinced people that they are actually “purchasing “ property with a 3 to 20 percent down payment. Then a 30 year loan. Not faulting anyone who can’t pay all cash for what they want. I can’t. Just a thought
Im trying to get a home from 360k to 350k cause yes, 10k means I get to put in new flooring. The market in jersey is brutal right now. Coming from Florida, I’m mortified. 😩
I completely understand. I am trying to dissuade my mom from coming up from Florida because she is older the housing market in jersey sucks compared to what she already has established 😒
Javier! Omg these scenarios! Im in Houston tx. Can you please help me run scenarios? I got my pre-approval and interested in making an offer on this house. I dont have an agent
Just bid on our 1st house using DPA, unfortunately they accepted another offer. I'm in Denver, Co so the market is CRAZY out here! We offered 10k over asking price $426,000. Anyone have any suggestions using DPA? 20% down is out of the question by the way.
Javier : after seeing a disclosure of my contract I noticed that in the 30 year term of the contract I will have ended up paying the lender more than half of what I bought my house for, I borrowed 489k from the lender and am going to pay the lender almost 280k in interest. That’s more than half what I borrowed, that sounded like the biggest rip off of my life. I am discouraged and disappointed. I’m getting cold feet about this whole home buying thing . Am I wrong for feeling like this or is this amount fair? Help meeeeeeeeee Btw , I got a 2.75 interest rate and a 3.091APR
Im paying 3% down payment , can you tell me if paying 5% would be beneficial in the longer run towards saving myself a little more money and can that significantly reduce the amount I would have paid in interest ..
Is there a private lender that will give you a conventional loan with a 3% down? Or is FHA (3.5% down) the only option (or I guess USDA)? I know more lenders now will allow 5% down for a conventional loan. Both with MI but FHA and USDA has that upfront fee people will still have to worry about.
If I could put enough down to avoid PMI then it would be worth making a huge downpayment but houses in most areas have gotten so expensive that most people cannot save 20%. Since I can't avoid PMI I would put as little money down as possible and keep a larger emergency fund. Yes the monthly payment would be alittle higher but if something happened I would have plenty of reserves.
For all my Home Goal Homies with a sharp eye, yes I put too many 0s on 5:55 . I noticed it when I was recording and fixed it, which is why right after that you will notice the correct numbers.
@C Hoc invest in cryptocurrency they are the winning stock we are talking about
What will I need to apply for a conventional loan to refinance my hard money loan
@@hellomynameis20 invest with a life expert with legit Broker
I love your videos I have learned so much! I can not thank you enough! The Nintendo music is a bonus!
i’ve been saving for 3 years for a $30,000 down payment. only $46,000 more to go
@MiGueLiooo Gonzalezzz gosh some people have loans
@MiGueLiooo Gonzalezzz Not everyone does things the same way. Debt is a tool for the disciplined. I'll only have my first house to pay for over the years and from there I'm set and that's okay. Sometimes people know what's best for themselves more than you know what's best for them
@RcLoko A fixed mortgage is better than rent, some of that money is going back into your pocket every month. Rent is never returned and is often raised yearly. Sure you have to pay for maintaining a home you own as opposed to a rental, that's often why rentals are trashed. It takes responsibility to be a home owner but it pays off.
Who else is in the process of getting their new home and that’s how you found his videos 🙋🏻♂️
Closed in June 😁
Im doing this a few years ahead
🙋🏽♂️
Me!!
😎✊🇲🇽🇺🇸
Javier: “No ones telling you to live in California, get out of there”
Me: I’m trying!!!😭
and go where tho...lol. There's only so many options in the US
yeah you live where the jobs are in high demand.
Try Salt Lake City, Utah.
Look for a job first and a cheap place to stay
@@vickyandersen8660 too many Mormons!
@@vickyandersen8660 DO NOT MOVE TO UTAH, horrible place to live.... fucking hate it here
*"YOU DON'T HAVE TO LIVE IN CALIFORNIA" THAT WAS HILARIOUS!!*
Gigi Gaskaite Everyone I know works here for many years and when they retire they sell their expensive home and go live somewhere less expensive. Letting the equity build in their home is part of their income for retirement. My parents did this and are enjoying their retirement in another state. 😊
I know I live and do real estate in Florida and we have many elderies who comes to retire here and if come from states like Washington DC , Illinois , New York , Philadelphia it is so cheaper for them down here in Florida ! I don’t see nothing wrong with that , plus it is more fun to retire in the sunshine and at the beach ! 👍🏻
Yes it was! Although if people don’t care about their lungs, they can always buy in very affordable Bakersfield still in the high 100’s or low 200’s! 😬
I am in CA! 😱😱
Despite persistent, politically motivated doomsday talk, the stock market just keeps on rolling upward. The talk is of over priced stocks but perhaps price to core earnings ratios aren't as bad as promoted, and the markets are headed further upward, According to Stock Analyst and columnist, Dr Paul Institutional and retail stock market investors believe in the long term direction of the US economy, and they think they will likely see earnings begin to grow. They're holding onto them in anticipation of 2021 and beyond, but concerns persist about the next 6 months through the winter, if a vaccine isn't distributed by then, so Dr Paul Tudor Jones warns new buyers to be careful the picture is not clear yet and for now you can only make profit by trading, for me i advice you multiply the little you have with Tudor strategy, i was able to make $700,000 with $70,000 in 3 weeks with the same strategy, reach Him on WhatsApp+1 213-992-7101
Dude just what I was talking to my wife about like two weeks ago! As we are in the process of buying our first home, but we weren’t so sure if we wanted to put 5 percent down or 3 and pay off her car with the extra 2%! Amazing content like always! Keep up the good work!
that last part.. thank you for saying that. it applies to so many things. the part where you say something about not wanting people to stay with no money all because they want to save later on and then something bad happens and they are lucked out. thank you.
Got a pretty good deal with mine. I used the 20k grant for first time home buyers. I only put down less than 1000 out of pocket. Loan was for 248k Got a 2.8% rate and my mortgage came out to 1200 a month.
Damn that's good. What lender did u use ?
Who was your lender? That's Awesome
Dont you have to repay that 20% back tho ?
@@OGCJ10 ya he does
He left that part out.
You came to brag but can't answer some of these questions to help other people?
Been saving for 5 years now for 20%, $70K down about $10 more to go
Los Angeles Flippers that’s my goal 🙂
@@albundy3929 dont know, dont really care. I have an amount set in my mind and I'm not pulling the trigger until I reach that amount.
You must have a high paying job I make about the average income and despite several years of huge sacrifices I don't have anywhere near 20%. I'm happy for you but 20% is beyond most people.
@@albundy3929
Having 20% when everything comes crashing down, will give you the pick of the litter. Yes, I understand it's difficult, but you guys have about 5-6 years of foreclosures coming up...🤷♂️
@@albundy3929
If you are seeing it as a potential to make money with rental properties, then yes you are 100% right. I'm just looking to buy a home to raise a family and retire. But I do like your suggestions...👍
I was just wondering about this the other day! Thanks for going over it Javier!
Javier. Now you’re making me redo my numbers !!! Thanks for all the tools you share with us. Great minds think alike !!!
Underwriter here. The answer is HomeReady. ASK YOUR LENDER ABOUT HOMEREADY. Also side note, if you can, you should absolutely make extra payments towards your principal, BUT ONLY until you have 20% equity in your house. This can be through a combination of you paying off your mortgage and appreciation. Why 20%? Because at that point, you can drop your PMI. You can make additional payments after that too, but at that point it becomes diminishing returns unless you are planning on staying in that house 20+ years. Hope that helps.
Love these types of videos. More please. I’m looking to buy my first home, so I am researching how to save the most money on the purchase. Thanks in advance 🙏
Appreciate the info however, I'd like to challenge a few things here. To say that putting money towards your principal is Good or bad depending on how long you stay?
Is not an accurate statement. Why? Because no matter what (long or short term), you are adding equity to your home and reducing your principal. It's best practice to do that, in EITHER case.
Top level content , as always.
Great video man, Thanks! I always recommend to my clients that they do a 5% down conventional loan if all possible.
Hi there, I just asked a question in the comments in regards to that-in what way is a conventional loan more attractive? I’m not quite sure what the major diff is bw fha + conventional
@@stephisteti That's an excellent question. You want to go with a conventional loan because you can remove mortgage insurance once you have 20% or more equity in the home rather that's through your home increasing in value or paying the house down. If you go FHA you'll pay mortgage insurance forever or at least until the house is paid off. Mortgage insurance is often more than $200/month so you want to remove it as soon as possible. With FHA, the only way to remove mortgage insurance is to refinance but that will cost you thousands of dollars. If at all possible go Conventional. Did I answer your question? I actually have more than 150 real estate videos that may help you on your journey. Be sure to check it out.
Ty Wilde Realtor & New Home Construction Specialist thanks for replying and explaining! Will definitely check you out!
@@stephisteti Where are you looking to buy?
Ty Wilde Realtor & New Home Construction Specialist Northern California🥴
This market was is so crazy sometimes you need to rework your mortgage loan to get the house you want! When I was a first time home buyer 4 years ago I had it made. My credit score was strong enough to get all my down payment financed into the loan at a 3.25% rate. The seller paid my closing cost and the realtor gave a us an incentive credit. I was paid to take that house lol! Fast forward to last month. Sold our house to FHA buyers with not much funds. My house didn’t appraised and we sold for $20k under (they’re lucky we were about to close with our new house next week!). Bought our huge forever house but the sellers didn’t want to pay closing cost. I could have did 10% down but did 5% instead to have more money to cover all my closing cost annnnd buy a damn washer and dryer (yes they took the w/d 🙄). I payments were still affordable since the rates dropped way lower than June numbers. It all worked out and have money in the bank.
Stumbled upon this page somehow but great information. Im 19 so im wont be putting it to use any time soon but always great to know for the future. Keep up the great work
A $300,000 home where I live is a 8 bedroom 5 bath mansion 😂
Where I live, it doesn't even exist anymore😪 haha... *cries*
Where you at? Here in manteca CA. There are only 200s but are normal homes not mansions.
Thats a HOA small 4 bedroom here. Since Disney will be here in like 20 years. The sellers are charged $100,000 over the actual price now.
Wow, you live in Carmel by the Sea? I always wanted to live on the coast of California. But I don't have the $300 million to live there.
In Denver Co it's a 1br shitty apartment in da hood
That discord notification at 6:23 got me for a sec :)
You should join our discord!
I live in Goodyear, and was in escrow for a house in the east valley. After seeing yours (and other multiple videos) on the subject of waiting to buy, I cancelled on the BINSR. There were a few other reasons, but honestly I think waiting to buy a house is a smart move, especially when there is so much uncertainty in the market. There are so many red flags on how bad the market is going to get it’s unreal...
Interest rates are record low. Borrowing money is stupid cheap. Take advantage unless u might lose ur job. Be greedy when others are fearful
Should’ve compared to 20% also. so we allcan feel poor that can’t afford the wonderful benefits of 20% down 😭
You are an Angel incarnate. Your explanations are so clear and detailed, and you sincerely advocate for homebuyers. May all the good work that you do for people return to you manifold.😇🏠💕
This is almost the exact scenario I’m going through right now with my first time home purchase so thanks for the information! My realtor kept telling me since interest rates are so low right now might as well just put 3% down but I have the extra 2% so I don’t see why I shouldn’t put down as much as I can.
You're smart. I tell my clients to do a 5% conventional loan if at all possible. Best of luck to you!
I was in a similar scenario i ended up doing 6% after i crunched my numbers and seen what i had left ... i wanted my payments as low as possible 😩
@cnorth1123 I've got multiple lenders here in Utah offering 5% conventional loans. If you're a first time home buyer they may actually be able to get you a 3% down conventional loan. Isn't that great? Where are you from?
cnorth1123 thats true but if no one is buying houses right now (atleast in my area) then 5% way to go use that leftover money for boats and hoesss
@@charliefabian7345 Or, you could just keep saving & wait for the housing market to bottom out. Then buy a home at a deep discount. If you're in an area where home prices are dropping just hang in there.
Hello thank you for this video I'm Someone who is purchasing soon and my budget is 300000 Max and my credit score is in the low 700 so thank you
So hard to find a 250k home in some cities in Broward County, FL. The price are out of the chain.
Try Tamarac, Sunrise, Miramar, Davie
@@tamararene5913 thanks, Miramar and Davie are to far from my Daughter's school and my wife job.
It's definitely crazy here (Broward). Have you seen the homes one can get in places like Orlando or Tampa versus what even a so-so condo would cost here? It's crazy!!
@@chris10858 yes, I'm from Miami and moved to Orlando 6 years ago. I purchased the day before Thanksgiving last year and plan on using this property as an additional rental and build again in either Clermont, Groveland, or Leesburg.
@@tamararene5913 nice,
Hey Javi good video! You put one too many 0 @5:58 which is in the millions. Just FYI haha sorry I was all into the video and noticed it
Was fixed right after, you’ll notice the numbers being correct after that point!
Thanks for the vid, man. Your vids have really helped me prepare for buying a house in Palm Springs, CA. Your numbers in this video also are in the ballpark for Palm Springs as well. Also, big cities in California sucks.(I live in LA). Small cities are where it's at
Awesome.. thanks my dude, for taking the time out for us beginner-home-buying folk to gain some intellect from a reasonable source.
Thank you, Javier! I had a realtor tell me I should use my emergency fund for the down payment SMH.
U can always make more payments later. Just get in the door.
I've been a homeowner for a long time. Reserves and down payment savings is hard to accumulate, especially since it's after tax unlike the 401k/IRA. My advice is that it never gets easier to save up so start now and go super aggressive. It was very hard to save 20% down in 2000 and it's still just as hard in 2021 despite the higher salaries. Don't settle for 3% down or 5% down. You need reserves and savings for maintenance, mortgage lender reserves, closing costs, and some initial fixes. A dip in the housing market could occur, but it doesn't last long. The last downturn was terrible and that dip didn't last. I would say go Dave Ramsey and save like your life depended on that as fast as possible and buy at 20% down.
Dude, you rock. I’ve watched nearly every video you’ve posted. We’ll be shopping in the Vegas area come the fall and you’ve helped us to keep our eye on the prize.
in canada it's nearly impossible to buy with 5% down. you need at least 10-15%. the only exception is if you are earning over $100k
Hi 👋 I’m here in California 🤪
I’m selling my house, using the equity and buying a new house 🏡
Me too!😂
Congratulations. How exciting for you. Best of luck!
Same here! 🙋🏻♀️
My parents did that a few years ago when they retired - they bought a smaller house (on acres of land) in another state. 😊 They are enjoying it! Best of luck to you! ❤️
@CHeEEEeeeEEe Despite persistent, politically motivated doomsday talk, the stock market just keeps on rolling upward. The talk is of over priced stocks but perhaps price to core earnings ratios aren't as bad as promoted, and the markets are headed further upward, According to Stock Analyst and columnist, Dr Paul Institutional and retail stock market investors believe in the long term direction of the US economy, and they think they will likely see earnings begin to grow. They're holding onto them in anticipation of 2021 and beyond, but concerns persist about the next 6 months through the winter, if a vaccine isn't distributed by then, so Dr Paul Tudor Jones warns new buyers to be careful the picture is not clear yet and for now you can only make profit by trading, for me i advice you multiply the little you have with Tudor strategy, i was able to make $700,000 with $70,000 in 3 weeks with the same strategy, reach Him on WhatsApp+1 213-992-7101
Needed this exact video! Thanks Javier!
Yes Javier come through with the info we really need 🧡🧡🧡
“No ones telling you to live in California, get out of there”
I see it like this if it's a Long term home and you have more then 5% it may be better to do 3% and buy points
Maybe lenders have blown smoke to me in the past but I've been told it didn't make a difference on the interest rate weather I went 3% or 5%-10% down. Hmmm. I am really starting to not trust lenders or realtors anymore.
Man, love the quality of the vid.
Sadly I have to wait and save more. I live in California so for a 2 bedroom home 600,000 home I have to save 30,000 plus 11,000 closing cost plus 10,000 for emergency savings. 😔
I don't regret the 20% down payment, but I needed to put that cash somewhere and the stock market was looking a little too expensive. So I diversified and put it into house equity instead, and I had been throwing extra cash at the mortgage instead of stocks until we had that nice COVID drop a while back.
It helps to buy a cheap ~$100,000 house... at that price, if you can only come up with 3% or 5% down, you might want to reconsider the purchase altogether.
Can you do a comparison for 5% vs 10%?
Heck yeah, just the info I was wondering about! Thank you, Javier!
Great video, appreciated the number crunch examples!
Hi! I was wondering do you have a video explaining which route is better? Buying a home with higher interest like when the rates go up but the price of the house goes down.( I'm thinking that is what will happen in a few years) or is it better to buy now where house price are inflated but interest rate is a low time low.? From what I understand is that the lower the interest rate the more purchasing power we have.
I hear a lower interest rate is better
@@user-mb9jx5tx9y that is what my husband thinks....but i wasn't sure. Hoping he does cost analysis so I don't have too lol let's say we buy at 6k but want to sell in a year and the aprisal goes down to 530,000 so that's bad for short terms...right?
I wouldn't go through the hassle of buying a house if you're only planning on being there a year. all of the closing costs that you paid were just wasted.
I’d like to hear from ppl who purchased a multifamily with 5% or less down. How was the process? Was it worth it?
Hello Javier, I wanted to know if you still recommend 5% down for a single person or save 10% as a down payment as it will be a single income home. I want to save 20% total- put 10% down + closing cost and keep the rest as an emergency fund as I live in NY, but plan on buying in NJ or Ct. But it will take me another year for that. Thank you
10% is kind of a sweet spot.
Jeopardy Host: Paying 3% down and using the extra money for the PS5.
Contestant: "What is Financially Savy?"
Bro I heard you have ligma, are you okay?? 😂😂😂
@@JavyVidana Can you help a brother out?
*in the arms of angel song starts playing
I was kidding. Stahp!
Lol, yep
I GOT SO LOST AFTER THE BLONDE AND BRUNETTE AND THE PERCENT AND HUNDRED THOUSAND THIS 5% THAT OH MY BRAIN! BUT THE VIDEO IS VERY INFORMATIVE TO THOSE THAT'S WELL FOCUSED. OH MY BRAIN!!
I GOT LOST MYSELF..The joke's throw me off alot 😅🤣🤦♀️
Just found your videos today. Lots of great knowledge, thanks!
Just found your videos and I appreciate the advice - very helpful and great seeing actual numbers!! Instantly subscribed - especially after being pessimistic with your money ( I always expect the worst, and hope for the best as well lmao)
Shout out to you , what a great detailed break down .
Don't forget though, you can always refinance down the road. No way to predict what the rates will be but having extra cash now, then refinancing later (especially if your home value went up) can be a good option too
Hola! Javier, will you please make a video on how to choose a great lender?
Great info!!!!
What if someone is wasting money paying rent trying to save up 20% down?
I’m in Los Angeles, the loan officer I went with told me if I wanted a duplex conventional I needed 15%. So since I don’t have that I’m gonna be stuck doing FHA. Although I told him I could do 8% for the duplex.
What is the difference between your interest rate and APR? And does the APR get locked just like the interest rate or is that different ?
HOW can anyone pay attention with that Adorable dog in the shot 😂
My lender put me at 5% and I wanted to know why. I have a wedding coming up and need cash.
Great content as always, Javier. Looking to buy my first house within the next 15 mos. I know you've done a couple of videos on some payment assistance videos. Wondering if you know anything about NACA?
Thank you! This was perfect timing
I wish where I live, I can easily down 3% or 5% without having to worry about monthly payments (principal, interest, PMI, property tax, HOA?). But since home prices are crazy high in Sacramento, I'll have to down 20% for a reasonable monthly payment.
If I save $400,000 and my house is like a little less or sum. Can I buy it outright. Like say "I will buy it for that price right now"? (And with extra money in savings ofc ;) 12:10)
Yes, you can. In 2017 I know a guy who sold some property in Sonoma, Ca, and bought a home in the SF East Bay for his son and daughter in law. They always liked the house, knew the owner from the garage sales he always had, and heard that he was retiring and wanted some land in Lake County. So the guy goes over and asks the homeowner if he wanted to sell the place through a do it yourself on-line realtor to save the commission. Sure! So they agreed on a price (a bit more than $400K) set up a contract, a 10 day escrow close, ALL CASH to seller. The escrow company girl was kind enough to hand carry the documents to the County Recorder on the Friday afternoon before Labor Day so they could move in over the 3 day weekend. The guy's son and daughter in law got a house that was completely paid off before the key went in the door. Even I felt like a big swinging weenie just to see that actually go down. I was there to install new locks that day, check out the AC units, and enjoy the pizza party celebration. Doing that transaction without listing with a realtor saved them $40K. Start saving, bro.
Javier if you have excellent credit, great income and low DTI but are cash poor, is a 3% conventional loan the only way to go? Is FHA ever a better deal in the above situation?
Conventional is always better
Conventional all the way, PMI never falls off FHA. That alone is a reason to skip FHA and go Conventional.
What about mortgage ins? That is also higher with 3% down
5% is the sweet spot in this Brokers opinion. 👍
Al Bundy Im loan
@Pinky Good question. My advice is always it depends on your goals. Statistically, most Americans move every 5-7 years. You wont be in a loan for 30 yrs most likely. Pmi is small price to pay for putting less down.
Amazing content!
This is such a helpful video!! Thanks!!
So overall how much money should I save. For down payment, closing cost, and extra money for emergency. FYI I live in California
All homes with babies in the background looked up when you said baby 👶👶👶👶
I wish he had touched upon loan refinance. With these crazy low rates 3% is a good deal. Also, the time value of money over 30 years is a significant factor.
I have excellent credit , I applied for a loan for 515k , I got pre approved but I was asked for two co signers, so I used my brother and my uncle.
Why did you have to use 2 family members as co signers Im curious 🤔
Great video thanks!!!!
Interesting to me that the banking system has convinced people that they are actually “purchasing “ property with a 3 to 20 percent down payment. Then a 30 year loan. Not faulting anyone who can’t pay all cash for what they want. I can’t. Just a thought
They did not lower my interest rate when I put 5% down. Why???
What about if you put 20% down ?
I'm looking forward to buying house
I just need some advice.
I saved up $2000
I had 20% down and was still having trouble in this market. I am in an expensive area. It's not just CA
Just be patient. You and me are in the same situation. Patience is key...
The nasty homes in southern california are going for $500k
Im trying to get a home from 360k to 350k cause yes, 10k means I get to put in new flooring. The market in jersey is brutal right now. Coming from Florida, I’m mortified. 😩
I completely understand. I am trying to dissuade my mom from coming up from Florida because she is older the housing market in jersey sucks compared to what she already has established 😒
Great break down thanks for the info.
Javier! Omg these scenarios! Im in Houston tx. Can you please help me run scenarios? I got my pre-approval and interested in making an offer on this house. I dont have an agent
Would love to know what you think of 15 year fixed vs. 30 yr conventional. Not that anyone does that for their first home haha.
Just bid on our 1st house using DPA, unfortunately they accepted another offer. I'm in Denver, Co so the market is CRAZY out here! We offered 10k over asking price $426,000. Anyone have any suggestions using DPA? 20% down is out of the question by the way.
Wat! Which places in california are 300k ? A dog's house is 450K! A Torontonian here. Just asking...
Javier : after seeing a disclosure of my contract I noticed that in the 30 year term of the contract I will have ended up paying the lender more than half of what I bought my house for, I borrowed 489k from the lender and am going to pay the lender almost 280k in interest. That’s more than half what I borrowed, that sounded like the biggest rip off of my life. I am discouraged and disappointed. I’m getting cold feet about this whole home buying thing . Am I wrong for feeling like this or is this amount fair? Help meeeeeeeeee
Btw , I got a 2.75 interest rate and a 3.091APR
Im paying 3% down payment , can you tell me if paying 5% would be beneficial in the longer run towards saving myself a little more money and can that significantly reduce the amount I would have paid in interest ..
$300k is a joke in many, many other states too. Austin, Texas is an example of a formerly cheap place and now it has California prices.
Great content Javier
Also do you think buying a house as self employed is harder this days ?
I heard that
Is there a private lender that will give you a conventional loan with a 3% down? Or is FHA (3.5% down) the only option (or I guess USDA)? I know more lenders now will allow 5% down for a conventional loan. Both with MI but FHA and USDA has that upfront fee people will still have to worry about.
I didnt know they have 3% taught it was 3.5 down?
Is paying 1890 For 305,000 dollar home with a 3.7 interest rate make sense? In a usda loan
Are you using your laptop 💻 camera, phone, or a camera 📸 to record your videos?
It’s really good quality.
If I could put enough down to avoid PMI then it would be worth making a huge downpayment but houses in most areas have gotten so expensive that most people cannot save 20%. Since I can't avoid PMI I would put as little money down as possible and keep a larger emergency fund. Yes the monthly payment would be alittle higher but if something happened I would have plenty of reserves.
How would these numbers change if I reinvested the 2% I didn't put into the downpayment into the stock market (assuming 6% return per year)
But but but I wanna live in CALI 😭 Its all I ever known. Also my job is here 💔
What if you fix up the house and build equity within the first six months and you get ride of the mortgage insurance?
Javier I really like your dog🐶