WootBot


quality posts: 15 Private Messages WootBot

Staff

Poll: Did you put down 20% when you bought your home?
  • 6.1% - No, and it was a terrible mistake 131
  • 25.3% - No, and thank god I didn’t 547
  • 7.2% - Yes, it was required 155
  • 21.7% - Yes, it was the smart thing to do 470
  • 35.8% - I don’t own a home 773
  • 4% - Other (comments, please) 86
2162 votes

Well, how do you fare compared to the Zeitgeist? Chat up your fellow wooters and let us know how lame this poll was or what obvious choices we missed. For example: Was this poll a) STUPID, b) DUMB, c) POINTLESS or d) ALL OF THE ABOVE?

BlackCreekBearTRP1


quality posts: 0 Private Messages BlackCreekBearTRP1

I always believed in 50% Down and that's how I bought my home

sewardz


quality posts: 0 Private Messages sewardz

Reason I did it (20% down) was to save me from having to pay Mortgage Insurance, for those that don't know what that is, check out your mortgage details...as for me, I have always done it right and legal and at 56 years old born in 56 and 13 is my number, I no longer will work for tha man again. I can do it and WILL !!

klstrader


quality posts: 2 Private Messages klstrader

It's definitely the way to go if you have the money for it, but if you don't it's not the end of the world.

thumperchick


quality posts: 244 Private Messages thumperchick

We didn't... and if I had to go back? I would have. Not only are you stuck paying PMI until your loan matures, but you are also paying interest on that money for 30 years. I would have gone back to work for the soul suckers for a year and socked all of that into a down payment. It was a good time to buy, we got a great rate, nice house, etc. but we could have done better with more planning.

mjc613


quality posts: 48 Private Messages mjc613

We put down 10%, and paid PMI for a few years.

finzup


quality posts: 2 Private Messages finzup

10% down and are paying PMI for a while, but with low interest rates we won't be paying all that long (and maybe, just maybe, this house will go up in value vs the one we bought in 2006 and had to sell in 2012)

I've noticed that some people list all their woot purchases in their signature. Me? No way, no how. I don't even want to acknowledge to myself, much less anyone else, just how much $$ I've spent on woot crap since 2006.

beaglebrains


quality posts: 4 Private Messages beaglebrains

10% was all we could muster, but we're done with PMI now and living fine!

seekayeff


quality posts: 0 Private Messages seekayeff

we put down less than 10%, but we put our extra cash into the house, It needed a new roof(gambrel style on a 3000 sqf house), chimney and gutters. In the grand scheme of things I think the new roof was a good investment.

bryan047


quality posts: 0 Private Messages bryan047

We put almost 80% down. We moved from CO to NC so it was easy-peasy

calicojack42


quality posts: 3 Private Messages calicojack42

10%, in 2006. Biggest mistake I ever made. I need to pull out my SCUBA gear every time I pay my mortgage.

fuzzypeaches


quality posts: 10 Private Messages fuzzypeaches

I paid cash for my home.

10 quality post! Whoo hoo! I'M SOMEBODY!!!

SneezyKevinA


quality posts: 3 Private Messages SneezyKevinA

30% and went with a 15 year mortgage because it was $100 a month more and a whole lot less in interest.

CHEEZEMAN


quality posts: 0 Private Messages CHEEZEMAN

I BOUGHT MY OWN LAND & WAS MY OWN CONTRACTOR WHEN BUILDING MY HOME. TOOK OUT A BUILDING LOAN,SO THERE WAS NO MONEY NEEDED TO PUT DOWN.

baqui63


quality posts: 8 Private Messages baqui63

10% was all I could afford when a place that was perfect in many ways became available, along with some other changes that made it a good decision to buy even with PMI.

Had the country's financial problems not occured, I'd likely have been able to appraise out of the PMI after three to four years. Instead, I refinanced and now my payment with PMI is less than my payment alone before, and no additional years of PMI were added.

I am very much looking forward to NOT paying PMI though, especially since it will coincide with one less tuition payment. Once that graduation party is paid for, it will almost be like having won a small lottery.

olperfesser


quality posts: 2 Private Messages olperfesser

As above, no mortgage insurance. But had sold previous house and had the cash. Next home will be 100% down, no mortgage.

entouragevol


quality posts: 0 Private Messages entouragevol

No down payment. I built my first home myself, borrowed the money through an equity loan against my parents house. When I finished, I took out a refinance mortgage to pay off previous loan off.

mortgagekaren


quality posts: 0 Private Messages mortgagekaren

We got a VA loan for 100% financing and no PMI. I'm glad we did because the money we would have had to put in as a down payment allowed us to update the house and give us equity.

RWoodward


quality posts: 58 Private Messages RWoodward

Could not have put 20% down in a million years.

jaybee53


quality posts: 0 Private Messages jaybee53

We bought the land live in a trailer. When it was all paid off we built a basement house. The we got an inheritance and built the upper house. It wasn't bad doing it in stages, now it's all paid for.

jackie burns

noodle192000


quality posts: 0 Private Messages noodle192000

I bought mine outright, so I guess that's 100% down. After inheriting my mom's mortgage and fighting with them over paying it off, I didn't want to deal with that again. :-(

bcobos


quality posts: 0 Private Messages bcobos

I put like 2% down, but in 94. I Was able to finance privately, so no PMI. You cant buy stock if you dont have funds available for a margin call... same with a house. It's stock. You have to invest cash and cant trust in the values maintaining now.

People who bought at the height of the market say they got screwed, but if you were not trying to sell the house after the crash, the decrease in value meant nothing. If you took and ARM, you got what you asked for. A house you could not afford the payment on to start with.

charliecarroll


quality posts: 105 Private Messages charliecarroll

In your group of answer choices your second one shoull have read, ..thank God... rather than ..thank god...

pansysmum


quality posts: 0 Private Messages pansysmum

Thankfully, my mother-in-law bought our house outright for us. She was a wonderful m-i-l and I still miss her everyday

brockler


quality posts: 0 Private Messages brockler

Charlie, don't derail the conversation. That's sacra-woot-less.

I was lucky enough to have a VA loan (no PMI) and smart enough to only buy a house that was at or below my means in '06. Since then, I have paid down the mortgage at least past 20% anyway just out of principle....the thought of those greedy bankers reaping thousands of dollars from my children's potential college fund! (I don't have kids yet).

TMI?

Grams53


quality posts: 0 Private Messages Grams53

We inherited the old thing and are hoping to build a new one.

dymongoose


quality posts: 0 Private Messages dymongoose

I would have loved to have been able to put down 20%, but I was just 2 years out of college with $50k in student loans, so minimum was all I could afford (I think 5% or 6%).

rworth01


quality posts: 2 Private Messages rworth01

I assumed someone's mortgege and they paid all the expences.

lmensor


quality posts: 7 Private Messages lmensor

I owned the ground that I build the house on, so I used the ground as collateral so I didn't need to put down 20% and I didn't need to pay PMI.

lukehawk


quality posts: 0 Private Messages lukehawk
charliecarroll wrote:In your group of answer choices your second one shoull have read, ..thank God... rather than ..thank god...



Your God is another mans god. And yet another mans waste of time...

bibliovore


quality posts: 2 Private Messages bibliovore

For those who are currently paying PMI: Check your PMI rules now, and your mortgage balance every time you pay. In most cases, when the amount you owe falls below the PMI requirement amount you can drop the PMI.

Also, putting a bit extra toward the principal each month can make a big change in how quickly you pay off your mortgage, or in how long you have to pay PMI.

Also also, when you figure your house-buying budget, plan to put an additional 1% of the purchase price each year (divided monthly or paycheckly or whatever) into an interest-bearing account as your repairs and upkeep fund. That way, when you need a new water heater or roof or so on sooner or later, you're part or all of the way there already.

THR


quality posts: 0 Private Messages THR

House #1, assumed a mortgage and paid nothing down (only way we could have bought at that time).
House #2, we put down 20% to avoid PMI
House #3, put down 3% (FHA) and spent a good chunk in fixing up. Refi for that same house, 0% down (VA), 15-year note. The goal is to have no mortgage payment by the time we both retire.

aynthem


quality posts: 0 Private Messages aynthem

10% down but no PMI through my credit union, and only $520 in origination charges from the CU. It was fantastic dealing with the CU; they only do about 4 or 5 first mortgages a month so I was able to call up and speak with my loan officer any time I needed. They also have a policy of never selling a mortgage to another finance company. Go local if you can!

lagomorphin


quality posts: 0 Private Messages lagomorphin

i sold my old home for enough that I ended up putting down 50% of my home, and using the balance for improvements.

I just wished I chose better contractors!

pakilei


quality posts: 0 Private Messages pakilei

I've done it all. This is my 6th home purchase. I've assumed, put 5% down, put 20% down, paid cash, put 75% down and I'm back to 20% down but intend to pay it off within 10 years. The last one was a timing problem. I had to close on my new house 2 days before the old house. After all this, the big reason to put down 20% is to get rid of PMI. It's a racket.

geekwench


quality posts: 11 Private Messages geekwench
charliecarroll wrote:In your group of answer choices your second one shoull have read, ..thank God... rather than ..thank god...



The god of my mortgage prefers lower case. We aren't all monotheists, yanno.

macraig


quality posts: 7 Private Messages macraig

My down payment was almost 50%, and it was the dumbest damned thing I ever did. Now I'm stuck here in a house with a severely downgraded value that was only supposed to be a temporary waystation before I moved where I really wanted to be. The appraised value is now less than what I used as a down payment.

lovethedealanne


quality posts: 1 Private Messages lovethedealanne
thumperchick wrote:We didn't... and if I had to go back? I would have. Not only are you stuck paying PMI until your loan matures, but you are also paying interest on that money for 30 years. I would have gone back to work for the soul suckers for a year and socked all of that into a down payment. It was a good time to buy, we got a great rate, nice house, etc. but we could have done better with more planning.



I think there may be differences in state PMI rules but in many cases the mortgage lender can/will drop the PMI after your loan is less than 80% of the home value. It means you must get an appraisal. The sad part is the greedy lenders will gladly continue to collect the PMI for the life of the loan.

jatnj


quality posts: 0 Private Messages jatnj

I sold a house in NY so I was able to pay for my house in NJ in full.

lovethedealanne


quality posts: 1 Private Messages lovethedealanne

I financed through my credit union. They "hold" their loans and don't sell them. They do not require PMI. Instead of 20%, I put 10% down and used the remaining 10% to upgrade the property with new flooring, granite countertops, and more. It was a win-win, no PMI, and the upgrades immediately increased the value and sell-ability of the property.