The Rent Is Too Damn High!

[Mojo]

I thought that some of the loans they're doing now require you to pay PMI through the life of the loan, even when you hit the 20% equity mark. That's partially while I'm hesitating.
Along with a whole other host of reasons, but yeah.

Only if it's an FHA loan. You can get other types of loans with low down payments. I would be hesitant to buy in the bay area though, especially in any of the super inflated areas.

[Ayn]

Ah ha, FHA loan.

Sadly, CalSTRS used to do a pretty good loan program (some "80/20 loan") which has since been phased out.

I mean I try not to complain too much since again, I have a very good deal, and honestly don't really *want* a house at this point -- plus, I'm sure if I ever get to that point, like I said earlier, I'll just make it happen. It does make me wonder what the long-term societal impact will be.

[RKenshin]

I'm kind of torn on what I should do with housing, on the whole PMI vs 20% down vs FHA loan vs rising interest rates.

Finally will be done with student loans and completely debt free this year (after 3 years), and with that done I hoped to save up some money for a downpayment and skip the whole renting game... but how long/much to save has been tough to figure out.

I originally wanted to both avoid PMI and try to start with a sizeable downpayment, and particularly since it'll be easier and faster to save now than it ever will be in my life again (I can save $20-30k/y). But the rising interest rates have made it a tougher decision. I don't want to be stuck home anymore than another 1-2 years in any case, but whether I should get out sooner at a cheaper interest rate with significantly less saved up, or go out later with a higher interest rate but signficantly more saved up... tough to figure out the best course.

[Aksannyi]

Only 3 years of student loan payments - I envy you.

[RKenshin]

Well, it was a 10-12y term at like $800/month to start D: ... So I opted to stay home and put everything I could towards it instead; tied up way too much of the monthly budget otherwise. But yeah, will be awesometastic to have it done and out of the way soon.

[Krandor]

that is more than twice my monthly income

If I wasn't a welfare whore getting a monthly housing allowance it would have been impossible for me to live there, but BAH in the Bay Area is huge (was in the neighborhood of $1550 a month while I was there).

[Kohan]

I have until tomorrow to submit an "intent to vacate" letter to get in by the 60-day notice deadline from my current complex, and just for fun (because I really don't think I'm going to move unless I find something significantly cheaper like 10 feet from my job), I'm looking on craigslist for apartment listings and again, the major hurdle to finding a one-bedroom apartment practically anywhere is that people who build apartments seem to think that single people don't do laundry, and none of the apartments have W/D hookups, though they have laundry facilities onsite (which you undoubtedly have to pay to use, or are probably in a severe state of disrepair, not to mention they are shared with other residents so you either have to babysit your clothes or trust that the skeevy guy in 2C isn't going to go through your unmentionables).

Have you ever considered renting a room, a guest house, or a month-to-month in a not-garbage motel/hotel (though that last one wouldn't solve the washer/dryer issue)? You can find one that's cheaper than an apartment, and you will probably be able to use their facilities. As long as the homeowner is legit—you can confirm they're the actual homeowner, you know that sub-letting is legal in their community, city, and county, and they supply a legitimate lease with legal terms—it may be significantly nicer than an apartment.

Alternatively, you could go cheaper by getting a studio and buying a countertop washer.

Examples:

http://www.amazon.com/Basecamp-Heate...8882163&sr=8-1

http://www.amazon.com/Panda-Compact-...8882163&sr=8-3

[Aksannyi]

I had no intent of actually moving, although my current place isn't ideal, it's adequate and it's much more hassle just to stay.

If I moved into just a room or even a studio, I'd have to put most of my stuff into a storage unit, which is an extra hassle I don't really need. I have nothing against my place aside from the increase in rent, but I've had places raise my rent a lot higher than $15/month so I really can't complain too hard.

Plus, roommates. Just no. I've tried that and I wanted to stab somebody.

I fully realize what I have to put up with to get what I want, which is why I'm annoyed about the rent increase but not surprised, and I will accept that this is what I have to put up with to have an affordable apartment in a decent location with w/d hookups for my appliances.

[Kohan]

I had no intent of actually moving, although my current place isn't ideal, it's adequate and it's much more hassle just to stay.

If I moved into just a room or even a studio, I'd have to put most of my stuff into a storage unit, which is an extra hassle I don't really need. I have nothing against my place aside from the increase in rent, but I've had places raise my rent a lot higher than $15/month so I really can't complain too hard.

Plus, roommates. Just no. I've tried that and I wanted to stab somebody.

I fully realize what I have to put up with to get what I want, which is why I'm annoyed about the rent increase but not surprised, and I will accept that this is what I have to put up with to have an affordable apartment in a decent location with w/d hookups for my appliances.

I understand that it's doubtful you'll reconsider, and there's no reason for you to if you're content. However, not all roommates are young and/or irresponsible—you may have a middle-aged or older owner, you could have a peaceful college student that doesn't want parties and would like to study, and you also have the advantage of being former military, which would be smiled upon by some independent owners. They could also have storage space that they would either include or offer at a small additional fee (e.g., half of their garage). Great deals still do exist out there if you are willing to get a little unconventional.

[Aksannyi]

True, and if I had more time I would have probably looked. The fact is, the leasing office closed 20 minutes ago and the deadline passed, so I have basically agreed to stay, though I haven't signed anything just yet.

Besides, I'm still holding out hope that one of these days my boyfriend will want to move in together.

[Mojo]

I'm kind of torn on what I should do with housing, on the whole PMI vs 20% down vs FHA loan vs rising interest rates.

Finally will be done with student loans and completely debt free this year (after 3 years), and with that done I hoped to save up some money for a downpayment and skip the whole renting game... but how long/much to save has been tough to figure out.

I originally wanted to both avoid PMI and try to start with a sizeable downpayment, and particularly since it'll be easier and faster to save now than it ever will be in my life again (I can save $20-30k/y). But the rising interest rates have made it a tougher decision. I don't want to be stuck home anymore than another 1-2 years in any case, but whether I should get out sooner at a cheaper interest rate with significantly less saved up, or go out later with a higher interest rate but signficantly more saved up... tough to figure out the best course.

Have you thought about an ARM?

[Twilight Sky]

I had no intent of actually moving, although my current place isn't ideal, it's adequate and it's much more hassle just to stay.

If I moved into just a room or even a studio, I'd have to put most of my stuff into a storage unit, which is an extra hassle I don't really need. I have nothing against my place aside from the increase in rent, but I've had places raise my rent a lot higher than $15/month so I really can't complain too hard.

Plus, roommates. Just no. I've tried that and I wanted to stab somebody.

I fully realize what I have to put up with to get what I want, which is why I'm annoyed about the rent increase but not surprised, and I will accept that this is what I have to put up with to have an affordable apartment in a decent location with w/d hookups for my appliances.

The increase wont be fair if they don't fix shit that breaks, so yeah there's that too. Actually(well once again for the south at least) the one reason high rent is ridiculous. Everything is all good til something breaks, which is inevitable with older homes.

[RKenshin]

Have you thought about an ARM?

Truth be told, no not at all.

I've heard/read a lot of horror stories about it screwing people over and being abad choice, and beyond that I didn't consider it to be a good option to look into.

[archibaldcrane]

An ARM is a pretty bad idea during an extremely low rate environment.

[tyven]

Never ARM bro. I'm an FHA man myself because anything that's not a shithole in this area gonna run a player a cool 500k and that's just to live in an area I don't want to live in.

[archibaldcrane]

You can ARM if you are SURE you won't be owning the place more than a few years after the first adjustment.

[Mojo]

ARMs can be good or bad depending on how you utilize them. If you think you'll likely sell the house within 2~5 years it's not a terrible idea although it's not a good plan for the long term.

[Zetanio]

ARMs can be good or bad depending on how you utilize them. If you think you'll likely sell the house within 2~5 years it's not a terrible idea although it's not a good plan for the long term.

It's very risky. I would not recommend them to anyone.

[Cantih]

Hell, everyone's convinced I'm stupid and delusional right now.

But even I know ARMs should be avoided like the plague.

[Zetanio]

Hell, everyone's convinced I'm stupid and delusional right now.

But even I know ARMs should be avoided like the plague.

^

Seriously, avoid em.