Home Buying with Remodeling Loan??

[lincolnboy]

The wife and I may end up buying the house across the street from the house we are renting. The house has been vacant for 3+ years atleast. The lady that owns it says it needs lots of work. Our thought are to get a house loan and a remodel loan with a combined mortgage.

After talking with a guy at work that just bought a home. He says he asked this same question and they told him he could not do a combined loan.
Has anyone here done this or knows about this. We have till November when our lease is it to decided what our plans are for the next home.

[Big A]

You'll need two loans, the mortgage co. will loan the value of the house, and nothing more. You'll get an unsecured loan for the improvements, which is fine, you wouldn't want to be paying interest on those updates for 15 or 30 years.

[garycrist]

Here is a nifty calculator for payments. Say you
put a $1K icebox on the home loan. After the 360
payments that worn-out icebox was only $23000ish!
BIG A is spot on!

https://www.hsh.com/mopaytable-print.html

[Big A]

Here is a nifty calculator for payments. Say you
put a $1K icebox on the home loan. After the 360
payments that worn-out icebox was only $23000ish!
BIG A is spot on!

https://www.hsh.com/mopaytable-print.html

You have an extra zero in there, and nobody's getting 7% interest right now. One would pay a little more than 1.5% ($1,500) over 30 years at today's rates.

[Ruffdaddy]

You have an extra zero in there, and nobody's getting 7% interest right now. One would pay a little more than 1.5% ($1,500) over 30 years at today's rates.

Came here to say this.

And if you assume a 5-7% annual return on that $1000, you are actually better off financing it and investing the $1000 than paying cash for the fridge. Granted nobody does that.

[lincolnboy]

Well, I did not want to hear that. Would be great to have a low interest on a home remodel debt. Next move, research company for a home remodel loan. I see two down payments for this house already.

[txsr20de]

You may not be able to do this with a conventional loan, but these loans do exist, look at FHA 203(k) loans.

The downsides vs a conventional loan are the usual FHA drawbacks- slightly higher rates(and it looks like the 203(k) is higher than the normal FHA loans as well), PMI(mortgage insurance) for the life of the loan(doesn't fall off at 80%LTV like it used to).

Upsides are much more lenient credit and income requirements and low down payment vs a conventional mortgage.

https://www.hud.gov/sites/documents/2005-09FHA.PDF

[lincolnboy]

For those that have bought a house recently. (Trying to get idea of mortatage payments) how much was your house and how much is the mortgage.
My wife and I house we just sold last year was 270,000 @ 2,300 a month. Just want to see what we can and safely afford. I would ask Dave Ramsey but he cost to much to ask.

[scootro]

For those that have bought a house recently. (Trying to get idea of mortatage payments) how much was your house and how much is the mortgage.
My wife and I house we just sold last year was 270,000 @ 2,300 a month. Just want to see what we can and safely afford. I would ask Dave Ramsey but he cost to much to ask.

2,300 a month sounds painful

[Ruffdaddy]

For those that have bought a house recently. (Trying to get idea of mortatage payments) how much was your house and how much is the mortgage.
My wife and I house we just sold last year was 270,000 @ 2,300 a month. Just want to see what we can and safely afford. I would ask Dave Ramsey but he cost to much to ask.

Man thats almost the same payment we were making on a 365K house.

Obviously down-payment matters but we didn't payoff half or anything. Mortgage insurance is something you want to avoid

[lincolnboy]

2,300 a month sounds painful

O yeah it does. House before was 1500 a month.

[IHaveAMustang]

For those that have bought a house recently. (Trying to get idea of mortatage payments) how much was your house and how much is the mortgage.
My wife and I house we just sold last year was 270,000 @ 2,300 a month. Just want to see what we can and safely afford. I would ask Dave Ramsey but he cost to much to ask.

When we bought our house in 2012, it was a lot like what you want to do.

We bought a foreclosure in Keller that needed a good bit of work. The good news was the foundation was solid. We had to deal with minor flood damage, sheet rock damage (A/C condensation pan rusted out) new flooring throughout, new A/C handler and pan, various electrical issues here/there, broken garage door, etc)

We bought for $165,000 which was a steal in Keller. Put 30,000 down for a total loan of $135,000. Unfortunately the school district rapes the citizens and I pay about $2.60/sqft in taxes to KISD alone. Our mortgage is currently around $1200/mo with insurance and all taxes because TAD now values the house over $300K. We have a 4% fixed 30-year that will be gone by year 25 because I am overpaying the principle little by little.

We bought the house in March and over 7 months made it into our home, every day, after work. We didn't take a loan out for that, just as our paychecks came in, we put aside what we could for counter tops, paint, drywall, flooring, etc and did it.

Shoot, when we moved in 1 week before Thanksgiving, we were sleeping on a mattress on the floor so we could focus priorities elsewhere.

[TX_92_Notch]

This question is almost pointless. You'll be much better off finding a simple payment calculator online and figuring YOUR situation, not everyone else's.

There are three factors that wildly change your monthly payments - down payment, length of the loan (15, 20, 30 years) and interest rate.

If you can afford the 15 year, you'll save a crap ton of interest (plus you'll get a lower interest rate for a 15 versus a 30).

[AnthonyS]

Bankrate.com has a great calculator. It shows you principal, interest, lets you add insurance taxes, check different payoff lengths etc. I used it on my homes and home refinancing. It also shows the impact of making additional payments at whatever interval you schedule. I try and be a month or more ahead on all my financed entities just to have a cushion if things go badly.

Rental houses can be a great investment. My wife knows a few people that do this exclusively. One of them does owner financing as well, and if they default he takes the house back, which is perfectly legal in TX. I'm not sure I could do this for a rent to own agreement, but many do.

[lincolnboy]

This question is almost pointless. You'll be much better off finding a simple payment calculator online and figuring YOUR situation, not everyone else's.

There are three factors that wildly change your monthly payments - down payment, length of the loan (15, 20, 30 years) and interest rate.

If you can afford the 15 year, you'll save a crap ton of interest (plus you'll get a lower interest rate for a 15 versus a 30).

Down payment....
I should have been more specific. How much was your house loan......