My New House & Workshop

[Jim Oaks]

I signed a contract on that place, should close on December 30th.

It's a little overwhelming. I don't have any furniture, appliances, or even a bed. I'm literally started at zero.

But, this will be the first time I've bought a home when I wasn't married. It's mine. Everything I put in it will be mine, and this time around I won't be losing it to a divorce.

 

[SenorNoob]

Congratulations!

 

[MikeG]

Good feeling isn't it? Even better when you get one paid off with no financial parasites attached.....

 

[sgtsandman]

You never truly own it. Miss a tax payment and the government will take it away from you.

 

[MikeG]

That beats the ex taking it.....

Actually, in Texas, with our homestead laws, as long as you have a homestead exemption, it can't be repossessed for taxes. However you'd never be able to sell it. This made the papers a a few years back, as with rising property taxes some folks were concluding that it was cheaper to just let the home go when they died, rather than pay property taxes all along.

Anyway that was my understanding from the newspaper articles. Would be a real mess for your heirs, most likely.

 

[Jim Oaks]

I've been seeing something about homestead and property taxes in Texas, but I haven't read anything yet to understand what it is.

 

[MikeG]

You get a slight reduction in property taxes (every little bit helps) and it does add in some protection against property being seized. Get behind on mortgage payment, and it won't help you though.

Anyway lots of fun to read through

 

[Rick W]

Wow, good for you! Great feeling, huh?

Try this trick: every time you get a few extra bucks, send it to the mortgage company. Make sure you mark it “payment against principal,” or they’ll count it as pre-paid interest. Over the years you’d be amazed how much interest you save.

The other trick is BI-weekly payments: split the payment in half and send a check every two weeks instead of once a month. This adds up to making 13 full payments a year instead of 12, but you’re also paying half of it two weeks early. It knocks about six years of payments off a 30 year mortgage.

If you have PMI, make your payments on time for two years, and then insist that they remove the PMI since you’ve shown you can pay on time.

My 2cents, hope it helps, and mostly enjoy! (But keep your boots off the coffee table!!!)

 

[MikeG]

Yeah PMI sucks. Free money for them. See what the rules are - I don't believe it is based on time, I think it is based on whether or not you have a certain percentage of equity. Going from memory but it may be something like 10%. Anyway find out for sure and ditch it as soon as you can. $50 or $100 a month over the life of the mortgage, adds up.

Right now interested rates are so stupid low that kinda debatable about paying off early. My GF refi-ed her place and I think got 2.5%. If you have any other payments at higher rates, smart money is to do them first, but certainly I understand the satisfaction of getting the place paid off.

 

[Curious Hound]

! (But keep your boots off the coffee table!!!)

He doesn't have a coffee table yet.

 

[Roert42]

Yeah PMI sucks. Free money for them. See what the rules are - I don't believe it is based on time, I think it is based on whether or not you have a certain percentage of equity. Going from memory but it may be something like 10%. Anyway find out for sure and ditch it as soon as you can. $50 or $100 a month over the life of the mortgage, adds up.

Right now interested rates are so stupid low that kinda debatable about paying off early. My GF refi-ed her place and I think got 2.5%. If you have any other payments at higher rates, smart money is to do them first, but certainly I understand the satisfaction of getting the place paid off.

PMI is for if you own less then 20%.

 

[MikeG]

That sounds about right.

 

[19Walt93]

What's PMI?

 

[Curious Hound]

What's PMI?

Something women have once a month.

 

[19Walt93]

Something women have once a month.

So..pre menstrual irritability? I suspect that was a smartass reply and is incorrect.