Recent First Time Home Owners are confused with Mortgage Payments

[Raisins_72]

21 minutes ago, VictoryTDP said:

@Sonu_Patelnee analysis and nee patience dandam 

Ba Dallas elagundhi ? 

[yemdoing]

1 hour ago, Thokkalee said:

Trust me.. there are a lot of ppl who are not aware of this.. monthly mortgage payment enta avtundi ani matram chuskuntunnaru… property taxes, home insurance, other maintenance ivanni chala mandi lowest numbers veskuni (may be Redfin numbers I guess) digutunnaru.. 

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... 

[yemdoing]

14 minutes ago, Konebhar6 said:

Its very true. Okappudu 400k petti konalantene chinigindi .. ippudu Millions jujubi .. ela kontunnaro janaalu ardham kavatledu. All the ones your mentioned plus .. Home konnaka malli furniture and maintenance .. and beautify home .. adoka nirantara prakriya ... Homedepot visits .. plants .. etc etc .. ITs an endless money pit.

10 years back 400k home ante wow ane vaalu... but appatlo 120K salary ante wow ane vallu. Also appatlo both wife and husband working is a rare scenario.

ippudu salaries have skyrocket for all except me... as a result housing also became expensive.

[VictoryTDP]

12 minutes ago, Raisins_72 said:

Ba Dallas elagundhi ? 

All good baa, unable to find a house within the budget 

[aimodel]

1 hour ago, VictoryTDP said:

All good baa, unable to find a house within the budget 

baa lexington in frisco anta 

[subramanyam_for_sale]

people underestimate YouTube and social media earnings, as also, someone making 120k prior to covid, now has at least that much or multiples of it stashed away in hard cash.

[Thokkalee]

16 minutes ago, subramanyam_for_sale said:

people underestimate YouTube and social media earnings, as also, someone making 120k prior to covid, now has at least that much or multiples of it stashed away in hard cash.

YouTube and social media earnings?? There are may be a 1000 ppl in US of Indian origin who can make money of social media.. that is just a drop in the ocean.. 

[no01]

2 hours ago, Konebhar6 said:

A lot of people do not have Financial knowledge while buying home. They need to understand how amortization works. This is also the reason I suggest a lot of people not to refinance when they have already paid for long time (10+yrs) and want to refinance for small APR gains. 

this is very imp IMO....see regardless owing a home is like basic human needs....not just US or India or any place in the world, everyone wants to buy a home and majority loan through ne kontamu. So amortization enti...first 8yrs entha principal ki velthundi anedi inka secondary....even if u know all these details, it wont stop you by purchasing a home kada.

But oorike re-finance cheyyatam correct step kaadu anedi thelusukovali anthe. Buy a home based on your needs/affordability, later on plan and take proper step while applying for re-finance.

2022 mid nundi who ever bought homes for 5%+ rates, eventually future lo when rates starts to go down (dont know if this happens or not, but assuming it may go down a bit), then we will see huge number of re-finances. So take wise step here and calculate how much actually save overall

[Thokkalee]

2 hours ago, no01 said:

this is very imp IMO....see regardless owing a home is like basic human needs....not just US or India or any place in the world, everyone wants to buy a home and majority loan through ne kontamu. So amortization enti...first 8yrs entha principal ki velthundi anedi inka secondary....even if u know all these details, it wont stop you by purchasing a home kada.

But oorike re-finance cheyyatam correct step kaadu anedi thelusukovali anthe. Buy a home based on your needs/affordability, later on plan and take proper step while applying for re-finance.

2022 mid nundi who ever bought homes for 5%+ rates, eventually future lo when rates starts to go down (dont know if this happens or not, but assuming it may go down a bit), then we will see huge number of re-finances. So take wise step here and calculate how much actually save overall

Rich ppl with expendable income have no issues.. youth in their 20’s and early 30’s also have enough time.. 

But middle class ppl in their 40’s are buying homes Without knowing the total cost of ownership.. they will end up spending all their income on mortgage and maintaining the home without any savings for the future.. also, they have to pay these mortgage into their late 60’s and 70’s.. 

India lo kuda ee situation undi.. people pay 1-2 lakh every months for mortgage and some more on the car.. appliances and furniture kuda loan.. salary padagaane, most of it will be used to pay the loans.. 

[dreamchaser]

16 minutes ago, Thokkalee said:

Rich ppl with expendable income have no issues.. youth in their 20’s and early 30’s also have enough time.. 

But middle class ppl in their 40’s are buying homes Without knowing the total cost of ownership.. they will end up spending all their income on mortgage and maintaining the home without any savings for the future.. also, they have to pay these mortgage into their late 60’s and 70’s.. 

India lo kuda ee situation undi.. people pay 1-2 lakh every months for mortgage and some more on the car.. appliances and furniture kuda loan.. salary padagaane, most of it will be used to pay the loans.. 

Please advice me.I am 40 and i got GC recently.Have been working in US since last 15 years.single income.one kid.Planning to put down 300k downpayment on a 550k home in Arizona and rest mortgage.that way my monthly mortgage will be less than 2k.Is it a wise decision?

[Cosmos]

2 minutes ago, dreamchaser said:

Please advice me.I am 40 and i got GC recently.Have been working in US since last 15 years.single income.one kid.Planning to put down 300k downpayment on a 550k home in Arizona and rest mortgage.that way my monthly mortgage will be less than 2k.Is it a wise decision?

why Arizona? 

[Vaaaampire]

31 minutes ago, dreamchaser said:

Please advice me.I am 40 and i got GC recently.Have been working in US since last 15 years.single income.one kid.Planning to put down 300k downpayment on a 550k home in Arizona and rest mortgage.that way my monthly mortgage will be less than 2k.Is it a wise decision?

Yes it makes sense with current interest rate. When interest rate goes down, refinance ur home, take some cash & invest in something else

[Thokkalee]

1 hour ago, dreamchaser said:

Please advice me.I am 40 and i got GC recently.Have been working in US since last 15 years.single income.one kid.Planning to put down 300k downpayment on a 550k home in Arizona and rest mortgage.that way my monthly mortgage will be less than 2k.Is it a wise decision?

Are you putting all your savings towards the down payment? If not, that is a good idea.

If yes, I would suggest you to have at least 50K in rainy day savings and put the rest towards the down payment.. 

Also, Take a 15 yr loan instead of a 30 yr loan if the numbers works for you. On a 15 yr loan, you pay very very less interest on the loan over the loan term and you will be loan free by the time you are 55 max..

[FrustratedVuncle]

7 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... 

Homestead applicable for all homeowners who live in that home kada anna

[Variety_Pullayya]

10 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

 

amortization schedule theliyakundane mortgage loans theskuntunnaru anukuntunnava? 

another thing is many payoff the loans in 5-6 years. so ppl dont actually keep them for 30 years.