# Closing costs? **URL:** \ **Category:** NYSpeed Off Topic\ **Created:** [September 10, 2009, 7:15pm UTC](https://forums.speedlife.net/t/closing-costs/73356 "2009-09-10T19:15:06Z")\ **Posts on this page:** 20\ **Page:** 5
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [August 10, 2011, 6:54am UTC](https://forums.speedlife.net/t/closing-costs/73356/81 "2011-08-10T06:54:03Z")
200+K house here, my PMI is low-mid 100’s (dont remember exactly) ---
**Author:** ![Tbirdsc1](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/tbirdsc1/32/7487_2.png) [@Tbirdsc1](https://forums.speedlife.net/u/Tbirdsc1)\ **Post date:** [August 10, 2011, 6:59am UTC](https://forums.speedlife.net/t/closing-costs/73356/82 "2011-08-10T06:59:17Z")
Yes, thought that seemed a bit high, maybe a non-local bank? My house…250k+, PMI is $93.xx/month ---
**Author:** ![Jagermeister](https://avatars.discourse-cdn.com/v4/letter/j/f19dbf/32.png) [@Jagermeister](https://forums.speedlife.net/u/Jagermeister)\ **Post date:** [August 10, 2011, 11:39am UTC](https://forums.speedlife.net/t/closing-costs/73356/83 "2011-08-10T11:39:17Z")
Just an FYI, if you put down less than 20% initially and have PMI, even if you make a principal payment a week later to get you over the 20% you still have to pay PMI for 2 years. ---
**Author:** ![BOBBYGRV](https://avatars.discourse-cdn.com/v4/letter/b/ed8c4c/32.png) [@BOBBYGRV](https://forums.speedlife.net/u/BOBBYGRV)\ **Post date:** [August 10, 2011, 11:49am UTC](https://forums.speedlife.net/t/closing-costs/73356/84 "2011-08-10T11:49:03Z")
> [@Jagermeister](#): > > Just an FYI, if you put down less than 20% initially and have PMI, even if you make a principal payment a week later to get you over the 20% you still have to pay PMI for 2 years. I think its 5 years on a FHA loan. ---
**Author:** ![Jagermeister](https://avatars.discourse-cdn.com/v4/letter/j/f19dbf/32.png) [@Jagermeister](https://forums.speedlife.net/u/Jagermeister)\ **Post date:** [August 10, 2011, 12:41pm UTC](https://forums.speedlife.net/t/closing-costs/73356/85 "2011-08-10T12:41:51Z")
> [@bobbyg1243](#): > > I think its 5 years on a FHA loan. Which is even more stupid. I’m just speaking to a conventional 30yr fixed. ---
**Author:** ![Jack](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jack/32/7613_2.png) [@Jack](https://forums.speedlife.net/u/Jack)\ **Post date:** [August 10, 2011, 5:01pm UTC](https://forums.speedlife.net/t/closing-costs/73356/86 "2011-08-10T17:01:07Z")
I don’t know when you guys bought your houses… but FHA regulations for PMI/MPI have changed twice in the last 3 years. My PMI on my current $151k mortgage is less than $100. My pre-approval and quotes that I’ve gotten on 200k+ homes would be \> $150/mo Here is google results: FHA PMI Changes 4/18/2011 February 16, 2011 by Eleanor Filed under FHA Mortgage Loans 1 Comment FHA Announced that they will be changing their Mortgage Insurance Premiums (sometimes called MIP or PMI) again effective April 18, 2011. FHA does not underwrite mortgages - they insure them against default, just like Private Mortgage Insurance Companies. Because of this, they set their own guidelines for underwriting the file, and they set their own rates. There are currently two types of Mortgage Insurance or PMI associated with every FHA loan we make. Up Front Mortgage Insurance Premium (sometimes referred to as UFMIP): The current rate on this premium is currently 1 percent of the loan amount. At THIS TIME, if you sell the property or refinance it – you will NOT get a refund of the fee as you did in year’s past. Annual or MONTHLY Mortgage Insurance (I’ve seen it referred to both ways because you pay for it MONTHLY – but it’s calculated on an annual basis): The NEW rate for this FHA Mortgage Insurance Premium varies depending upon your downpayment – and the length of your loan Annual Premiums for Loans Longer than 15 Years (So 20 and 30 year mortgage loans) If you borrow 95.000% of the value of the home or Less 110 BPS If you borrow MORE than 95 percent of the value of the home 115 BPS Annual Premiums for Loans 15 Years or Less If you borrow 95.000% of the value of the home or Less 25 BPS If you borrow MORE than 95 percent of the value of the home 50 BPS How do I know what the BPS means to my monthly payment?? **In the simplest of terms (for these purposes) here’s how you calculate it:** Sales Price is $300,000 3.5% Downpayment makes your Loan Amount $289,500. Add the 1% Upfront Fee that FHA charges, and your total loan amount is $292,395. This is the number that interest and the monthly (annual) PMI rate is calculated on. Multiply $292,395 by 1.15% which equals $3362.54 (which is your annual premium). Divide that by 12 months – and your Mortgage Insurance payment is roughly $280 a month. * * * * * * Now, as far as the market goes and the current losses and realized losses and all of that other bullshit investors talk to you about… I don’t know how long you guys have been in the market either actively or with a 401k/403b but if you think the **recent** loss is temporary and that pulling out now is a bad idea… I have great news for you… the market will continue to do relatively poorly (shitty) for at least the next 5 years and probably the next 10. GET OUT OF THE MARKET Put it this way… about 3 years ago I had the same if not more in my 403b than I do right now. I’ve never touched it. The $10k I lost this week doesn’t mean shit compared to the money I’ve lost and the HUGE money I continue to contribute… Even putting in over $400 every 2 weeks can’t keep up with how poorly it is doing. Losing half of my nest-egg is realized… it is realized that that money is much better off not in the market. So, pulling out $40k right now is $40k that can’t lose another 10-20-50% in the next couple months/years … and that money will be making me money out of the market. There are probably a couple people on here who know a lot more about it than I do, and 1 in particular who I won’t name that has opened my eyes to a lot of the BS I’ve been putting up with as far as my investments go. The only solid investment is one in myself… I think that is the route I’m going to take. ---
**Author:** ![Tbirdsc1](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/tbirdsc1/32/7487_2.png) [@Tbirdsc1](https://forums.speedlife.net/u/Tbirdsc1)\ **Post date:** [August 11, 2011, 5:23am UTC](https://forums.speedlife.net/t/closing-costs/73356/87 "2011-08-11T05:23:34Z")
Wow things have changed…for the worse. We bought June of 2009 and put down just over 10% netting our PMI at 47 BPS vs today’s rate of 110 BPS. That example is outrageous, $280/month for a $300k house. They must be worried more people will be defaulting on their loans with this shit economy, don’t blame them I guess. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [August 11, 2011, 9:25am UTC](https://forums.speedlife.net/t/closing-costs/73356/88 "2011-08-11T09:25:43Z")
> [@Jack](#): > > Now, as far as the market goes and the current losses and realized losses and all of that other bullshit investors talk to you about… I don’t know how long you guys have been in the market either actively or with a 401k/403b but if you think the **recent** loss is temporary and that pulling out now is a bad idea… I have great news for you… the market will continue to do relatively poorly (shitty) for at least the next 5 years and probably the next 10. > > GET OUT OF THE MARKET > > Put it this way… about 3 years ago I had the same if not more in my 403b than I do right now. I’ve never touched it. The $10k I lost this week doesn’t mean shit compared to the money I’ve lost and the HUGE money I continue to contribute… > Even putting in over $400 every 2 weeks can’t keep up with how poorly it is doing. Losing half of my nest-egg is realized… it is realized that that money is much better off not in the market. > > So, pulling out $40k right now is $40k that can’t lose another 10-20-50% in the next couple months/years … and that money will be making me money out of the market. > > There are probably a couple people on here who know a lot more about it than I do, and 1 in particular who I won’t name that has opened my eyes to a lot of the BS I’ve been putting up with as far as my investments go. The only solid investment is one in myself… I think that is the route I’m going to take. I think you’re wildly guessing what the market will do over the next 5-10 years. Taking money out 10k down is realizing a large loss that is avoidable. It’s not like you’re retiring in 5-10 years and you also lose all the tax advantages on top of this along with the long term multiplier effect. but I’d welcome other opinions from Joe, tradersbase, and similar. ---
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [August 11, 2011, 9:33am UTC](https://forums.speedlife.net/t/closing-costs/73356/89 "2011-08-11T09:33:53Z")
Right now the real estate market is just as volatile as the stock market. Maybe it’s more steady in WNY, but it’s really hard to tell these days what ANY investment is going to yield in 5-10 years. Your best bet is to diversify and hope that at least some if it holds up or gains. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [August 11, 2011, 9:54am UTC](https://forums.speedlife.net/t/closing-costs/73356/90 "2011-08-11T09:54:48Z")
WNY never increased with the boom much so there wasn’t much to deflate. If anything we’ll remain stagnant. ---
**Author:** ![BOBBYGRV](https://avatars.discourse-cdn.com/v4/letter/b/ed8c4c/32.png) [@BOBBYGRV](https://forums.speedlife.net/u/BOBBYGRV)\ **Post date:** [August 11, 2011, 10:01am UTC](https://forums.speedlife.net/t/closing-costs/73356/91 "2011-08-11T10:01:42Z")
I’m doing my deposit tomorrow on my house. I’m not letting any of this nonsense bother me about the market or the economy. If it all goes down, everybody is going down. I’m tired of everyone telling me that I should hold off…interest rates are low, housing market is low and it makes more sense to buy now. ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [August 11, 2011, 10:03am UTC](https://forums.speedlife.net/t/closing-costs/73356/92 "2011-08-11T10:03:06Z")
As this country continues to move away from pensions and toward 401k-based retirement, it just points more and more to the stock market continuing to go up LONG-TERM. Call it the biggest ponzi scheme in history if you like but more and more people are dumping a percentage of their check into long market funds every two weeks. The bears can absolutely kick the market’s ass in the short-term, generating more momentum than the bulls ever could, which they did in 08-09 and to a lesser extent the last couple weeks, but when they drive it down far enough the whole world is waiting there to buy the dips. Even in 09 when the fundamentals said run for the hills, between the market makers and the government, they manipulated enough fake demand to get some momentum upward going, and then no one wanted to miss the boat for the ride up. The market may underperform its historical rate of return the next couple years, but no way it stays in the negative for 5-10 years. In parts of the country, housing moves like the stock market. In Buffalo, it’s more like a savings account. You’re not going to lose your ass, but you’re not going to make big money either. Just sit back and collect your 1% a year. ---
**Author:** ![Jack](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jack/32/7613_2.png) [@Jack](https://forums.speedlife.net/u/Jack)\ **Post date:** [August 12, 2011, 5:10pm UTC](https://forums.speedlife.net/t/closing-costs/73356/93 "2011-08-12T17:10:00Z")
Nobody “knows” how the market will end up, and if they did they sure as he’ll wouldn’t be posting about it on here. For the next 5 years my money is much better off outside the market. Someone quote this in 5 years when we’re still in a depression. ---
**Author:** ![MrSmith](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/mrsmith/32/5254_2.png) [@MrSmith](https://forums.speedlife.net/u/MrSmith)\ **Post date:** [August 12, 2011, 6:27pm UTC](https://forums.speedlife.net/t/closing-costs/73356/94 "2011-08-12T18:27:12Z")
You guys all make enough where you can’t deduct your PMI? Ballin if you are living in WNY and filing single! ---
**Author:** ![Jack](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jack/32/7613_2.png) [@Jack](https://forums.speedlife.net/u/Jack)\ **Post date:** [August 13, 2011, 11:57am UTC](https://forums.speedlife.net/t/closing-costs/73356/95 "2011-08-13T11:57:59Z")
Isn’t the cap $109,000 filing jointly and $50,000 if married filing separately? That’s gross dude. So $50k in WNY is ballin? lol. It is bad, but not that bad. Also, wouldn’t avoiding PMI all together be better off than deducting it? ---
**Author:** ![NYstanger](https://avatars.discourse-cdn.com/v4/letter/n/6a8cbe/32.png) [@NYstanger](https://forums.speedlife.net/u/NYstanger)\ **Post date:** [August 15, 2011, 8:27pm UTC](https://forums.speedlife.net/t/closing-costs/73356/96 "2011-08-15T20:27:07Z")
Couple questions here. Looking at a house where the owner has bought another home and is 3 months behind on his mortgage payment for this house. How long before the bank will take it and put it in foreclosure? Second question, if dealing with a realtor to find you a house, where does their whole commission come into play for the closing costs? ---
**Author:** ![NYstanger](https://avatars.discourse-cdn.com/v4/letter/n/6a8cbe/32.png) [@NYstanger](https://forums.speedlife.net/u/NYstanger)\ **Post date:** [August 15, 2011, 8:27pm UTC](https://forums.speedlife.net/t/closing-costs/73356/97 "2011-08-15T20:27:22Z")
Double post ---
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [August 16, 2011, 4:15am UTC](https://forums.speedlife.net/t/closing-costs/73356/98 "2011-08-16T04:15:09Z")
Buyer’s agent commission comes out of the seller’s profits not your pocket. ---
**Author:** ![ubengineering](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ubengineering/32/5171_2.png) [@ubengineering](https://forums.speedlife.net/u/ubengineering)\ **Post date:** [August 16, 2011, 6:48am UTC](https://forums.speedlife.net/t/closing-costs/73356/99 "2011-08-16T06:48:41Z")
Is it bad if you buy a house cash? Just curious, not that I did. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [August 16, 2011, 9:04am UTC](https://forums.speedlife.net/t/closing-costs/73356/100 "2011-08-16T09:04:52Z")
it’s fantastic for bargaining since every seller would love this. the downside would be that you’re not borrowing money at today’s insanely cheap rates and also missing out on the deductions. good or bad would depend on the exact scenario and your goals [Previous page](https://forums.speedlife.net/t/closing-costs/73356.md?page=4) [Next page](https://forums.speedlife.net/t/closing-costs/73356.md?page=6)