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Try_Bofa t1_j4j663g wrote

Reply to comment by redheelermama in The current housing market in a nutshell by LopsidedWafer3269

My SO and I are in the same exact situation. Both struggling to save between rent, student loans, utilities, and everything else...

Not sure how the fuck we are supposed to save up 30 grand to put down on a house. Just feels so fucking impossible

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TheJessicator t1_j4ka7n1 wrote

Not to mention that with just 30k down, that puts you within reach of purchasing a property worth 150k, since anything less than 20% forces you into extra PMI payments, which also slows down your loan processing, which delays the closing more than just securing financing. And then there's the reality that most places you put in an offer on, if someone offers the same amount with cash, the seller will almost always go with that due to not having the sale having to be contingent on securing financing at all.

It truly is unfair at every turn.

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SheenPSU t1_j4l87cs wrote

PMI shouldnt be a dealbreaker imo

We bought our house 2 years ago with 5% down and PMI is only ~$80 a month and only applies until you have at least 20% in equity IIRC

20% of our purchase price would be $44k. We paid $11k instead, and PMI costs is roughly $1k a year. It’ll be off of our payments well before it’s adverse

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GaleTheThird t1_j4lakql wrote

> PMI should be a dealbreaker imo

I think you meant "shouldn't"

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SheenPSU t1_j4lba9z wrote

Correct, I’ve since edited that mistake. Thanks for pointing it out

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Rockefor t1_j4l7m9x wrote

We lost out on more than one house where the seller took a lower cash offer than what we offered. I hope the two weeks they saved was worth the 10k they lost.

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freshpicked12 t1_j4maeq3 wrote

It’s not about time saved, it’s about taking the offer that it guaranteed to close. Sellers worry about buyers not being able to get approved for a mortgage and the deal falling through.

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