Oh. I thought fully mine meant paid off. As in the bank does not own it, its mine. I was about to ask you for life coaching.

 

Banks are really tight with investment properties...they normally want 25% down payment.

 

You dont have to go with a bank to get a mortgage, we got 2.8% interest rate I believe it was for ours, with 5% down. Paying that stupid fee for owning less than 20% of the house sucks big time though. The other good thing about not going with a bank is, when time comes to buy another house, you can hide the first one .

 

I sold my 1994 TT 6 speed Supra then bought my house. Do I regret it? No. Do I miss my Supra, absolutely.
I'd recommend saving as much as you can before committing to buying your first house.

 

Coming from a guy that has more toys than anyone on here I say no don't sell it. Don't give up a passion for your house. No point selling something for so many cents on the dollar just to afford a house. Your not homeless so do the smart thing and save.

 

Yea i want a motorcycle SO BAD!

 

I predict tank slappers and fiery death.

Bad idea Mike.

 

I can understand if you have car payments why it would be finanically smart to free up monthly cash flow in order to put towards a mortgage. However, for people who own their vehicles, it makes little to no sense to sell off your car to purchase a house in my opinion. Lets say you get (best case scenerio) 20,000 for your vehicle, on a 300,000 home that is less than 7% of the actual cost of the house.

this value would make VERY little decrease in your mortgage payments and the majority of the payments would still be going primarily to interest. The price of selling the S vs. the value of reduced mortgage payments doesn't seem very worth it for me.

 

Like how a 23 year old can have a payed off house. I'm all ears.
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depends what area you buy in ... i could have a payed off house as well (and i just turned 24) but thats nearly impossible when your paying half a mill for a town house in woodbridge.

 

Like how a 23 year old can have a payed off house. I'm all ears.
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depends what area you buy in ... i could have a payed off house as well (and i just turned 24) but thats nearly impossible when your paying half a mill for a town house in woodbridge.
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Very true^, at 21 I was financially stable enough to purchase an investment property and had my mortgage pre-approved for $400k but the property ended up selling for 30k more than listed so I let it go. Right now I'm looking at purchasing my childhood home from my parents ($520k) as they are moving into a new area and flip it after doing a few upgrades.

With the amortization rate dropped to 25 years from 30, mortgage payments are slightly higher but depending on the lender, your income & credit score you shouldn't have any trouble securing it with 0-10% down. From there go with an accelerated bi-weekly/weekly payment plan and it is completely possible to pay off the property in 10 years or even less, or flip it after the first mortgage term.

From what you've said Fluky15, I believe it would be in your best interest to sell the vehicle just so you can reduce monthly expenses and divert it to an investment. Unless you are VERY well off, car payments on a vehicle that is depreciating and the scam that is insurance are not a great way to tie up your income. According to you, you're spending close to $20,000/year for the use of your vehicle(s). $1600/Month is the average monthly mortgage for properties around $320-$350k, more than enough to buy in a developing area or even a bank property. And hell in 5 yrs or less you could sell the property and get your entire investment back + profit.

Suggestion if you plan to go through with buying a home(s).
- Sell Car (Wouldn't suggest this if you already owned it but you owe on it)
- Pay off all existing debt. (Student loans, car loans, personal loans, credit cards, line of credit, etc)
- For every $100,000 in value save 5%. (Ex: $500,000 property, save $25k for down payment)
- If you cannot afford the down-payment don't buy the property. (You can finance the down-payment to be apart of the mortgage [depending on lender] but you will be hit with higher interest rates till the down payment is paid off).