patrick.net

HappyGilmore says

anon_09ed8 says

Wrong, new FHA loans have MIP for the life of the loan, unless they refinance elsewhere.

Who wouldn't refinance after you get to 20%?

Ones with crappy credit, living paycheck to paycheck, or don't have money for new closing costs.

anon_10ddb says

Ones with crappy credit, living paycheck to paycheck, or don't have money for new closing costs.

You can roll the closing costs into the loan value or opt for a slightly higher rate. I guess if your credit has taken a turn for the worse since you bought it, but I would think that's a small minority. With inflation and principal paydown, the ratios for most people will look better after a few years.

anon_eba5e says

The rock gym at Basecamp in downntown Reno is dog friendly,

Hoe do you like living in Reno Roberto? Can you describe why move there from Bay Area? And are you planing to come back eventually? Or Reno area is fantastic and your home forever?

anon_0128c says

Hoe do you like living in Reno Roberto? Can you describe why move there from Bay Area?

He didn't move there from Bay Area.

Satoshi_Nakamoto says

anon_0128c says

Hoe do you like living in Reno Roberto? Can you describe why move there from Bay Area?

He didn't move there from Bay Area.

I also believe he said he was moving to the Vegas area. Does this Anon not have the ability to read?

HappyGilmore says

You can roll the closing costs into the loan value or opt for a slightly higher rate.

Then what was gained by refinancing and eliminating PMI if you're going to add more costs and a higher rate?

HappyGilmore says

I guess if your credit has taken a turn for the worse since you bought it, but I would think that's a small minority. With inflation and principal paydown, the ratios for most people will look better after a few years.

If you only put down 3.5% originally on the FHA, it's going to take a lot more than a few years to get below 80% LTV.

rando says

Lol, a fair comparison would point out that leverage works both ways. Houses may not go to zero (except in Detroit) but your equity can easily go to zero, and then keep on digging a hole you may never be able to climb out of. Stocks don't do that. If they go to zero, that's the end of the damage. (Unless you buy on margin, generally a bad idea.)

YEs, but the overall expectation in a non-bubble market is that long term return of a house will exceed the cost of the lending. Same reason that short time rates for a savings accounts is less than a long term rate of a loan. Same reason than stock returns beat housing returns. I'd refinance my house to invest in SP500 for 30 years in a heart beat.

anon_e60ba says

Then what was gained by refinancing and eliminating PMI if you're going to add more costs and a higher rate?

It will obviously still be less than PMI

anon_e60ba says

If you only put down 3.5% originally on the FHA, it's going to take a lot more than a few years to get below 80% LTV.

Yep, most likely. But I didn't say that they'd be able to refinance in a few years, but rather that the ratios would look better in a short time. By the time they're ready to refinance, the ratios will probably look much better.