Homeowning Dream

[Anonymous]

So on a similar thread I mentioned my irritation at the housing market in Miami.

Well my mom has been paying $1500 a month in rent for the last year. She says according to her income, she can afford these payments. Well I have considered that fact that with my income and my DTI as well as my credit I shouldn't have any trouble getting financing that comes out to that amount in monthly payments. 

However, I've looked at several mortgage calculators and they show that at about a 6.5% APR for $230,000 you will pay close to $1454 a month. But, I know that this doesn't include all of the additional costs. What percentage increase should I consider in my calcs. I know that when I am ready, I can find out all the charges and what they are going to boost me up to but I'd hate to find a steal at $215k (about $1356 a month with no extra costs) and end up having to pay $1800 a month when all is said and done. 

I know this is a risk buying a house and having my mom pay the rent because relying on family members tends to be the first pitfall creditwise but worst case scenario, I have a really low DTI about 15% and I can always take over payments if anything happens.

[Anonymous]

Buy the same Bayliner I have and YOU live on it... it's only 36 feet - much easier to find marina space... or buy a houseboat (they have them used) then get a used jetski for tooling aorund.... a house at the marina!

[ShanetheMortgageMan]

Insurance in Florida is horrificly expensive... some areas I see insurance policies of $2-3k/year, just for a $200k home.  It's due to most of Florida being in a flood zone, and also you got those things called hurricanes coming through every year.  Other item you want to figure in are property taxes, these can easily be found out by calling the _______ County Assessor's office for the county you are buying in, tell them you are buying a home for $XXX,XXX and you want help calculating what the property taxes will be.  They'll give you the formula and probably calculate it over the phone with you.  Lasty you want to find out if the home has any homeowners association (HOA) fees, these are the fees for the common area, the nice community pool, the clubhouse, the golf course it's on (I'd be surprised if you could find a development not on a golf course), etc.   Could be none, could be just $50-100/mo, or some nicer developments are $300-$1k/mo (think West Palm Beach).  Last is mortgage insurance (MI or PMI), mortgage insurance is based on loan amount, credit score, approval type, and loan-to-value... you can read about mortgage insurance in the "PMI sucks" thread, there is even a link to a calculator in there as well.  With $100/mo HOA fee, PMI, taxes, homeowners insurance... on $230k the total PITI payment (see acronym listing at the top of this section) could be around $2,075/mo.

[Anonymous]

Thanks for the help Shane.

Hey LS, if it was just me I would. By the way, the boat thing is a hypothetical if I am able to get a job in Miami. But living in Northeast Louisiana, no need for a boat. Would like to get my mom into something other than helping someone else cover their mortgage costs.

[ShanetheMortgageMan]

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berraco58 wrote:

Thanks for the help Shane.

Hey LS, if it was just me I would. By the way, the boat thing is a hypothetical if I am able to get a job in Miami. But living in Northeast Louisiana, no need for a boat. Would like to get my mom into something other than helping someone else cover their mortgage costs.

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I'd recommend she holds off on buying a home in Florida then... I have a feeling values are still very much on the decline.  You can get some real estate agent's opinions on which way the market is going at http://realtytimes.com/rtmcrloc/Florida~Miami (also can select other city's in the US as well).  (Lady_Scarlet perhaps you'd like to sign up for that site, get more exposure).

[Anonymous]

So I guess "take what you read with a grain of salt" goes with out saying?

http://realtytimes.com/rtmcrcond5/Florida~Miami~carlosgarcia

"Miami is a unique area which is always the last one to feel the effects of an economic slowdown and the first one to exit from it. We do not have any huge employer other than government and American Airlines. We have many Mom and Pop family run business and small to medium sized employers."

NO! Some place in the middle of North Dakota is the last one to feel an economic slowdown. The economy hickups and we walk around bruised and beaten up. Now I don't agree with the Gov't and AA being the only large employers either. Whose basis is that off of? Miami is like the center point of all Latin American Business. I lived a couple blocks from the Southeast Burger King HQ and then moved and lived a mile away from the Southeast Coca Cola HQ. There are plenty of big businesses, they probably just don't have their main HQs in Miami. Then Mom and Pop shops. I agree with that one, when housing inflates but income doesn't, then people have to reach into that entrepreneurial spirit to make ends meet. Way to go!

[Anonymous]

Tanks Shane - as soon as we get moved that and few other things are in the pipeline.... I don't wnat to market 40 miles from where I am living and working....or 40 miles from where I am now so a few things are on hold until the move.

[ShanetheMortgageMan]

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berraco58 wrote:

So I guess "take what you read with a grain of salt" goes with out saying?

http://realtytimes.com/rtmcrcond5/Florida~Miami~carlosgarcia

"Miami is a unique area which is always the last one to feel the effects of an economic slowdown and the first one to exit from it. We do not have any huge employer other than government and American Airlines. We have many Mom and Pop family run business and small to medium sized employers."

NO! Some place in the middle of North Dakota is the last one to feel an economic slowdown. The economy hickups and we walk around bruised and beaten up. Now I don't agree with the Gov't and AA being the only large employers either. Whose basis is that off of? Miami is like the center point of all Latin American Business. I lived a couple blocks from the Southeast Burger King HQ and then moved and lived a mile away from the Southeast Coca Cola HQ. There are plenty of big businesses, they probably just don't have their main HQs in Miami. Then Mom and Pop shops. I agree with that one, when housing inflates but income doesn't, then people have to reach into that entrepreneurial spirit to make ends meet. Way to go!

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Exactly... everyone has an opinion.