Recent First Time Home Owners are confused with Mortgage Payments

[kakatiya]

23 hours ago, Sonu_Patel said:

because they thought 6% APR when signing the home but later realized there is Reverse compounding with Monthly mortgage payments. 

APR is applicable towards the 30 year loan term and realizing the Interest paid within the first 8 years of owning a $750k home with 20% down payment($150K). 

Year	Interest ($)	Principal ($)	Balance ($)
1	35,799.57	7,368.03	592,631.97
2	35,345.14	7,822.46	584,809.51
3	34,862.67	8,304.93	576,504.58
4	34,350.43	8,817.17	567,687.41
5	33,806.61	9,360.99	558,326.42
6	33,229.25	9,938.35	548,388.07
7	32,616.26	10,551.34	537,836.73
8	31,965.46	11,202.14	526,634.59

 

Sonu open one thread and occupy first ten replies saying to be posted,  to be posted ..

 

So edit one master post.. 

If you post bits and pieces Everytime you find something new..you will not be highlighted . Thread won't make sense..so open a mortgage ..home buying thread ..and populate all your finding in to one thread..opening multiple posts for sake thread won't be beneficiary if someone comes here for future referrals.

[argadorn]

7 hours ago, Peddayana said:

I feel Interest rate, APR difference telvakunda mortgage teesukunevallu undaru, especially mana tejams, they are too smart for their own good,

I do agree with some other points in this thread though

I also think they know the risk etc, every one I mean everyone knows the risk, but how do I say it? its like an itch you can't scratch if you can't buy a home now, this could be attributed to the proliferation of stupid u tube vlogs by vaunties and vuncles showing off, created a fomo and desire among everyone that with out a home, you 'did not make it yet' in US, now Home, Tesla have become symbols or more like statements to their relatives back home and to everyone they know to say 'they did indeed make it'

8-10 years back, very few folks desis owned homes, during covid/after covid, there was a rapid increase in dual incomes among desis, given that the new normal is to have house-hold incomes greater than 250k-300k as a couple, lot of folks are opting to buy home instead of renting, it definitely makes sense if you have enough cash and can do a good downpayment but enough cash lekunda (atleast 20% for downpayment and 10% as backup) with the current interest rates and economy is being plain stupid

also, listen to the news but don't blindly believe it, observe the trends, day to day things you see, they are the best indicators of how the economy is doing, we are going into election year so it will be all-out effort to keep the economy float (just until the elections are done), whoever wins will have a big task on their hands to get the economy back on track and it will take several months for sure , so we are in for a tough 2025 logical ga think chesthe, I hope I'm wrong and nothing happens but if there is a recession on cards,it will be a bad situation for folks who are over-leveraged.

I will not say to stop buying homes but please do keep backup money for at-least 1 year of expenses if you lose your job, up-skill yourself meanwhile and be ready for any bumpy rides 

just being aware of the risk does not mean anything, take active action and be prepared bhayyos, db is a stupid but slightly fun place, hope I see good news rolling or even stupid politics discussion rather than job loss or having difficult situations..

 

 

Tesla is no more luxury car 

[pakeer_saab]

5 minutes ago, argadorn said:

Tesla is no more luxury car 

you dont about technology, anduke ala anipistundi

Tesla has so much tech that the owner doesnt know what it can do more other than being used for transportation

wait, it can work as ring camera is parked in driveway saving you 30$ a year

[shaktimaan]

12 hours ago, dreamchaser said:

yes.that is my main intention bro.I want to save money on interest by putting as much downpayment as possible

I'd do a 30yr loan with your down payment and make aggressive payments(2 to 4 extra per year) if you can, to finish it off in less than 15 years. If things go south, you can still manage with a lesser monthly payment compared to a 15 year monthly payment

[IamBhagatSingh]

21 hours ago, yemdoing said:

zillow and redfin show good estimates.. problem is property taxes and insurance are rising rapidly and these models are not able to catchup. 

ex: lets say for preowned home ki property taxes are around 7k. For new buyer taxes may jump to 11k. Why ? because old owner has homestead etc.. caps. These are not applicable to new owner.

insurance: Since covid insurance prices went up a lot and old owner might have different perks for getting low rate or insurance is waiting for renewal etc..

so my point is it's very hard to estimate some expenses... 

Why homestead is not applicable for the 2nd owner. I think it applies to whoever is the current owner, they just need to submit documentation that it's their primary home. 

[argadorn]

39 minutes ago, pakeer_saab said:

you dont about technology, anduke ala anipistundi

Tesla has so much tech that the owner doesnt know what it can do more other than being used for transportation

wait, it can work as ring camera is parked in driveway saving you 30$ a year

vadu ah rate anni esthay luxury car avadhu .. economical car with huge tech 

[Variety_Pullayya]

19 hours ago, Thokkalee said:

Some people only know about the monthly payment.. but they have a lower estimate of the other expenses.. for eg, apartment lo renters insurance will be $20 but home insurance in Texas is on average $300-$400

How do you pay a 400-600K loan in 5-6 years?? 🤔 looks like you fall into the rich ppl category.. 😄

nothing to be surprised dude.  most families lo both husband and wife working. with more than 250K in annual income , many try to clear off the debt if they had higher interest rates. ofcourse some might invest elsewhere....