Investor · Boston, MA · Member since 2015 · 26 posts · 9 votes
I paid cash for a duplex in Pittsburgh, then applied for a mortgage under the delayed financing exception that I learned about here on BP. I am trying to figure out if it is even worth it to go through with the mortgage.
Here are the numbers I received from the bank and I am wondering if this mortgage is too expensive for the size of it.
Lender · Las Vegas, NV · Member since 2015 · 2k+ posts · 1k+ votes
10y
The loan size is what is not in your favor. Have you talked to a small community bank or credit union or savings and loan? Try them before you decide. If you do not need the money for something that is going to return you more than the cost to get it...leave it alone.
I paid cash for a duplex in Pittsburgh, then applied for a mortgage under the delayed financing exception that I learned about here on BP. I am trying to figure out if it is even worth it to go through with the mortgage.
Here are the numbers I received from the bank and I am wondering if this mortgage is too expensive for the size of it.
Appraised Value: $60,000
Mortgage of $42,000 (LTV=70%)
30 Yr. Fixed Conforming
5.00% with -.125 pts.
Closing costs are approximately $3,140
Thanks for your thoughts.
Have you every considered or have access to a joint venture partnership?
Investor · Boston, MA · Member since 2015 · 26 posts · 9 votes
10y
@Michael Lee Thanks for your comments. I have a similar philosophy about life.
It's just that I am new to real estate investing and I know that gut feelings can be financially dangerous. But, I guess, once you have crunched the numbers, they are what they are and I have to make a decision about whether I am comfortable with them.
In this specific case (with the amount at issue relatively small), I guess the decision, either way, wouldn't be horrible.
Montgomery, AL · Member since 2015 · 109 posts · 11 votes
10y
I live in Silicon Valley and you have to shell out 1.5m to get an okay house. So does it make sense to put all 400k on that house which is what would be required to get a house in that price range based on income, or do I just accept that I can't afford a house here and put all that 400k in stocks/bonds and keep saving until I can afford something?
Montgomery, AL · Member since 2015 · 109 posts · 11 votes
10y
We just bought a house: with insurance, taxes & mortgage, we’re paying 15% of our income per month. It was important to us that we live well within our means. Though we do need to do some significant/rather expensive projects on our house, since the previous owner didn’t do a lot of maintenance.We live in Baltimore, where housing is generally reasonably-priced, though you need to be careful about the neighborhood you choose.