stockae92

say you sold your S2K to get a house, how much difference does it make?

that's for putting a sum of money for down payment, right?

jasonw

Would probably let you get 1 more bedroom.

I actually kept my 1st and only car until 2.5 years after buying my house before switching to the new S.

There are lots of variables. Selling the car may push you over the 20% mark for a downpayment which will let you avoid PMI or a higher interest 2nd mortgage. Or maybe you won't qualify with your current car loan payments and selling the car is the only chance of getting real estate...

S2000bobster

I bought my S2000 three weeks before closing my house escrow, I knew at the time if I have gotten into a second car loan, I was taking a risk that the bank won't approve my loan for the house but the S2000 was just too tempting luckily I qualified for a good rate and now I have my own house plus a great roadster!!

stockae92

let me get this right, if i am over the 20% mark for a downpayment, then i will avoid PMI or a higher interest 2nd mortgage?

S2000bobster, you lucky bastard


i knew there's more to it than just meet the eye. i am such a newbie on this housing thing. and i want to get a heads up and plan for the future

jasonw

There are lots of ways to work it but you usually pay PMI if the primamry loan is more than 80% of the home's value. The best way to avoid this is a big downpayment, the 2nd best is a 2nd loan but it will probably be at a higher rate than the primary.

BPUKiller

I sold my supra back in 2001. I got a lot of flack for it from my friends. I bought a second home and made over $400K in equity on a house I rent out that basically pays for itself and then some. Hummmm I think I made the right decision.

Sam

exceltoexcel

its called an 80/20 loan. Much better than PMI however you'll have a little bit of a harder time refinancing the two loans into one, not too much of a hard time if your have a good credit rating but it's not easy. With PM and if (which I doubt) the housing market continues to rise you can get a reassessment of the property and get the PMI off the loan when the home value exceeds a certian portion say 20% of the loan but read the fine print on the loan.

S2000bobster

Yeah I got pretty lucky, my parents helped me out and I was able to put 25% for the downpayment.

stockae92

wondering: can i get a bigger home load and use part of it to get a car?

jasonw

You'll need more than one loan if you don't have a downpayment and want to get a car.