Something I learned recently - If you pay under 20% and have PMI payments with your mortgage, you can apply to have it removed once you "own" at least 20% of the property in equity. The catch is that the home is appraised again when you apply for it. That means you potentially will get out of PMI faster than you might have expected. Example: You buy a $200,000 home with a $20,000 down payment (10%). After a year, you have paid $10,000 on principal (a total of $30,000 in cash you've paid), so you might assume you have 15% in equity. But when you apply to have it appraised again, it appraises at $220,000. Since your outstanding principal is $170,000 ($200,000 - $20k down - $10k paid so far), your ACTUAL equity is $50,000 or 22%. Thus, after one year, you may have paid $800 or so in PMI, but then it's removed (plus you pay to have it appraised again). Same thing if you were to refinance.
Don’t forget about a home warranty plan which will take care of your repairs. Depending on the plan you choose, you can save a lot of money. $61,000 isn’t realistic.
Something I learned recently - If you pay under 20% and have PMI payments with your mortgage, you can apply to have it removed once you "own" at least 20% of the property in equity. The catch is that the home is appraised again when you apply for it. That means you potentially will get out of PMI faster than you might have expected.
Example: You buy a $200,000 home with a $20,000 down payment (10%). After a year, you have paid $10,000 on principal (a total of $30,000 in cash you've paid), so you might assume you have 15% in equity. But when you apply to have it appraised again, it appraises at $220,000. Since your outstanding principal is $170,000 ($200,000 - $20k down - $10k paid so far), your ACTUAL equity is $50,000 or 22%. Thus, after one year, you may have paid $800 or so in PMI, but then it's removed (plus you pay to have it appraised again). Same thing if you were to refinance.
You cannot buy a home with an FHA loan as an income property, however, you can rent it out after occupying the property for 12 months.
Don’t forget about a home warranty plan which will take care of your repairs. Depending on the plan you choose, you can save a lot of money. $61,000 isn’t realistic.
If you have family or friends that are trustworthy you can borrow money interest-free and hack the system.
Great video! We’re getting debt free this October and then paying off our mortgage after that! 💗🙌🏻
Nice! Keep it up!
about $600 for the inspector too
Depending if there is a contingency in the RPA. ;-)
Hi Tess,
You’re very knowledgeable.
Everything you said make sense.
That’s sure a lot of money!
Thanks for sharing.
You told us how much money is required to buy a home... but the title says HOW to save... stay on message lol
Great video! Thank you for sharing.
Even at 3.5% our total would be $17k not including closing cost ☹️😭😭😭 fml.
Buying a house is some real shittt