The Benefits of Home Ownership?

[Stadler]

'New' home owner?  Depending on the age of your home, it could have the old clay pipes as the main drainage to your area's drains.  Eventually, tree roots will crack them and grow into.  We've been here for twelve years, and in our community of 369 homes, we'll see a handful having them dug up every year.  Our turn came last year.  Fortunately, it happened the day after returning from a trip, so the dog/house sitter didn't have to experience the back up (and I caught it before there was a huge mess in the basement while doing laundry).  $7800 later....

If we were to move, we'd mention that repair as a big selling point.

Home inspections:  some miss the obvious, like overwired fuse boxes, or water line shut off valves right above a fuse box (a big no-no).

Don't be turned off by the colors in the house.  We repainted all the rooms in our two homes we purchased but one.  Look at reasonable potential.
Hell, I finally panelled our small basement three years ago.  Being retired allowed me to remove the old shelving and closets and spruce it up at a decent daily pace.  Part of the joy is making the home into 'yours'.

I think maybe excepting the new houses we bought in Georgia and Charlotte, I've painted, myself, every room in every house I've ever owned.  The color of the walls doesn't even remotely factor into the purchase decision; though, having said that, if you see that the house hasn't been painted in decades, that is an indicator - maybe - of how they maintained the place.  I also change out every plug outlet and switch to new when I paint the room, but I admit that may be a bit over the top (though not, again, depending on the age of the house).

[T-ski]

So we’ve got a bit of a conundrum....

What was the result of this?

Found another insurance company and everything is fine. Still a little ticked that we had to go through what we did.

[T-ski]

Soooooo any advice for a hopeful soon-to-be first-time homebuyer?

All good advice so far. If you don’t have a basic tool set get one or ask for them as gifts.

Is it going to be a long term house or a short term house? When we bought ours 20 years ago we knew we didn’t want to move anymore, so we made sure the neighborhood, school district, commute, etc all were what we wanted.

Budget, budget, budget. Shit will happen.

Man cave no matter what.

[hefdaddy42]

So we’ve got a bit of a conundrum....

What was the result of this?

Found another insurance company and everything is fine. Still a little ticked that we had to go through what we did.

[axeman90210]

I'm trying to decide if my doubts right now are practical or just me being gunshy about the biggest expenditure of my life. In talking with some mortgage companies, I can probably only put down 15% as a down payment if I buy this summer so that I leave money behind for closing costs and whatnot, which means PMI on my mortgage. Or, I can rent for another year, go through another year-end bonus cycle at work, and comfortably put down the full 20% next year. Also a decent chance that rates are better next year. anyway.

[Nick]

I think it would be worth waiting if you can just comfortably stay put where you are right now. If you have to move again to stay someplace for just a year, then it might be worth just paying the little extra PMI.

[King Postwhore]

I agree with Nick. PMI is a 10 year ordeal. What's one year more compared to 10 with PMI.

[hunnus2000]

I'm trying to decide if my doubts right now are practical or just me being gunshy about the biggest expenditure of my life. In talking with some mortgage companies, I can probably only put down 15% as a down payment if I buy this summer so that I leave money behind for closing costs and whatnot, which means PMI on my mortgage. Or, I can rent for another year, go through another year-end bonus cycle at work, and comfortably put down the full 20% next year. Also a decent chance that rates are better next year. anyway.

PMI is a scam IMO. Depending on your lender, they end up selling the mortgage to a large bank and your just giving away extra money to that bank.

From a website:
https://frameworkhomeownership.org/get-rid-of-pmi?gad_source=1&gclid=Cj0KCQiAz8GuBhCxARIsAOpzk8y8YHwWAL2dcRNdp2xUplHKUBFL9J1he6Gzl2_PZuM60lFh06LYuOoaAgbTEALw_wcB

MAY 25 2021
Let’s face it: PMI is a pain in the butt.

Private mortgage insurance is required for most loans with a less than 20% down payment. Since lower down payment loans tend to be risky, lenders typically require a private mortgage insurance policy to reduce their exposure if the borrower defaults on their loan. In other words, PMI is put in place to protect lenders, but you’re the one who pays for it.

The good news is that PMI won’t last forever. Here’s how it can go away: 

Cancel it at 20% equity
Since PMI applies to buyers with less than 20% as a down payment, once you reach 20% equity, you can request that it be canceled.

There's good information on this website.

2 things I recommend if you can swing it:

1) Go for a 15 year note instead of a 30 year
2) Make an extra payment every month - you would be surprised on how quickly you're paying on the principal.

[Stadler]

I'm trying to decide if my doubts right now are practical or just me being gunshy about the biggest expenditure of my life. In talking with some mortgage companies, I can probably only put down 15% as a down payment if I buy this summer so that I leave money behind for closing costs and whatnot, which means PMI on my mortgage. Or, I can rent for another year, go through another year-end bonus cycle at work, and comfortably put down the full 20% next year. Also a decent chance that rates are better next year. anyway.

PMI is a scam IMO. Depending on your lender, they end up selling the mortgage to a large bank and your just giving away extra money to that bank.

From a website:
https://frameworkhomeownership.org/get-rid-of-pmi?gad_source=1&gclid=Cj0KCQiAz8GuBhCxARIsAOpzk8y8YHwWAL2dcRNdp2xUplHKUBFL9J1he6Gzl2_PZuM60lFh06LYuOoaAgbTEALw_wcB

MAY 25 2021
Let’s face it: PMI is a pain in the butt.

Private mortgage insurance is required for most loans with a less than 20% down payment. Since lower down payment loans tend to be risky, lenders typically require a private mortgage insurance policy to reduce their exposure if the borrower defaults on their loan. In other words, PMI is put in place to protect lenders, but you’re the one who pays for it.

The good news is that PMI won’t last forever. Here’s how it can go away: 

Cancel it at 20% equity
Since PMI applies to buyers with less than 20% as a down payment, once you reach 20% equity, you can request that it be canceled.

There's good information on this website.

2 things I recommend if you can swing it:

1) Go for a 15 year note instead of a 30 year
2) Make an extra payment every month - you would be surprised on how quickly you're paying on the principal.

I' won't go so far as to say "scam", but Nos. 1 and 2 here are spot on.   You have to make sure it can be canceled, though; on some notes it's NOT without refinancing, and THAT'S where it gets to be a scam, since refinancing DOES cost money and if the new terms aren't optimal enough, you can end up losing money over all.

For me, I don't think "PMI only" would be enough to not buy.  But it's certainly a factor.  If you have a place to live, and it's not (like Nick said) something you're going to have to pay twice for a move), if you feel rates are going to move meaningfully, the PMI is just icing on the cake to holding off for a year. If you have nowhere to live, and you have a great house to go to, and a great rate, I wouldn't let "just PMI" turn me away unless you can't have it automatically removed at 20%.

[cramx3]

2 things I recommend if you can swing it:

1) Go for a 15 year note instead of a 30 year
2) Make an extra payment every month - you would be surprised on how quickly you're paying on the principal.

1 -  for sure, if you can make those payments, a 15 year loan would be a great idea, generally.

2 - I guess this might make sense due to high interest rates today?  This, to my knowledge, has been a no no for all that I've known though as that money is better put in the market or other investments than paying off a mortgage early.  Granted, I feel like sometimes this is a mental game and I've even thrown a some extra cash at times into my mortgage just to see that balance go down 

As for the PMI question.

I'd say wait it out.  Unless you think you've found a dream home that is worth it.  Wait a year and saving that PMI will be huge in the long run, plus maybe interest rates are better.  But if you can afford it and find a home you don't want to pass on, then it is harder to say to wait it out.

[ReaperKK]

I'm trying to decide if my doubts right now are practical or just me being gunshy about the biggest expenditure of my life. In talking with some mortgage companies, I can probably only put down 15% as a down payment if I buy this summer so that I leave money behind for closing costs and whatnot, which means PMI on my mortgage. Or, I can rent for another year, go through another year-end bonus cycle at work, and comfortably put down the full 20% next year. Also a decent chance that rates are better next year. anyway.

PMI is a scam IMO. Depending on your lender, they end up selling the mortgage to a large bank and your just giving away extra money to that bank.

From a website:
https://frameworkhomeownership.org/get-rid-of-pmi?gad_source=1&gclid=Cj0KCQiAz8GuBhCxARIsAOpzk8y8YHwWAL2dcRNdp2xUplHKUBFL9J1he6Gzl2_PZuM60lFh06LYuOoaAgbTEALw_wcB

MAY 25 2021
Let’s face it: PMI is a pain in the butt.

Private mortgage insurance is required for most loans with a less than 20% down payment. Since lower down payment loans tend to be risky, lenders typically require a private mortgage insurance policy to reduce their exposure if the borrower defaults on their loan. In other words, PMI is put in place to protect lenders, but you’re the one who pays for it.

The good news is that PMI won’t last forever. Here’s how it can go away: 

Cancel it at 20% equity
Since PMI applies to buyers with less than 20% as a down payment, once you reach 20% equity, you can request that it be canceled.

There's good information on this website.

2 things I recommend if you can swing it:

1) Go for a 15 year note instead of a 30 year
2) Make an extra payment every month - you would be surprised on how quickly you're paying on the principal.

I' won't go so far as to say "scam", but Nos. 1 and 2 here are spot on.   You have to make sure it can be canceled, though; on some notes it's NOT without refinancing, and THAT'S where it gets to be a scam, since refinancing DOES cost money and if the new terms aren't optimal enough, you can end up losing money over all.

For me, I don't think "PMI only" would be enough to not buy.  But it's certainly a factor.  If you have a place to live, and it's not (like Nick said) something you're going to have to pay twice for a move), if you feel rates are going to move meaningfully, the PMI is just icing on the cake to holding off for a year. If you have nowhere to live, and you have a great house to go to, and a great rate, I wouldn't let "just PMI" turn me away unless you can't have it automatically removed at 20%.

To piggyback of Stad's post make sure you can actually cancel PMI. Our first mortage was an FHA mortgage where you could not cancel PMI. We refinanced to a ridiculously low interest rate and got the PMI knocked off.

[hunnus2000]

I could have sworn that we were able to avoid PMI because of the way our loan was structured but it's been over 25 years ago. It could have been that we didn't with a big financial company like Chase but a smaller Lendor who then sold the mortgage to Chase. I definitely remember getting that letter in the mail.

Anyway, there should be ways to get around it. (I think)

[Jamesman42]

I haven't looked into it yet, but I assume replacing a shower head is easy? It's not a necessity, but it's one of the things that came with our newer house that could be a nice upgrade.

[lordxizor]

I haven't looked into it yet, but I assume replacing a shower head is easy? It's not a necessity, but it's one of the things that came with our newer house that could be a nice upgrade.

Should be pretty easy. You should have to just unscrew the old one and on screw on the new one. All you should need is a wrench. Some Teflon tape will help make sure you get a good seal with no leaks.

[King Postwhore]

Got to get a new furnace this year. Major greens.

[axeman90210]

I'm having second thoughts about trying to pull the trigger on a purchase this year. The primary reason is that my current employer is the only game in town in terms of my little corner of finance. My job performance and my job reviews are very good, but layoffs happen, and if I were ever to end up out of a job I wouldn't be able to get another one in this area. I'm able to rent pretty comfortably (well below the recommended 30% max of gross pay), I may just look for a new rental that's a little bit more ideal for my needs than my current place.

[jingle.boy]

Got to get a new furnace this year. Major greens.

We did the AC and Furnace last year after the AC died.  Both were original to the house (18 years old).  Better to replace the furnace on my time/terms than on a Sunday morning in the middle of January, which is when it invariably would've died.

[King Postwhore]

29 years old. It's on its last leg.

[jingle.boy]

29 years old. It's on its last leg.

Shiiiit.  You got 10 more years out of it than you deserved!

[TAC]

Got to get a new furnace this year. Major greens.

Our neighbor had to have that done last year. Because of the updated code from when it was put in many years ago, it had to be located much further from the oil tank which ended up involving a bit more.

[King Postwhore]

My nephew is in the business so I will get a slight discount.

[Jamesman42]

Should be pretty easy. You should have to just unscrew the old one and on screw on the new one. All you should need is a wrench. Some Teflon tape will help make sure you get a good seal with no leaks.

Awesome, thank you. Do you know if all shower heads are the same size for screwing them on?

[TAC]

Awesome, thank you. Do you know if all shower heads are the same size for screwing them on?

I think for the most part yes. I replaced both of mine a couple of months ago. Bought two at Lowe's and just unscrewed the old ones off and screwed the new ones on. But yes, don't forget the little teflon tape.

[King Postwhore]

Most are universal. I would look into if you have well water or town water. Water pressure is important and the wrong head can affect it.

I have well water with low pressure. I got a specific shower head that helps with low water pressure.

[Jamesman42]

I think for the most part yes. I replaced both of mine a couple of months ago. Bought two at Lowe's and just unscrewed the old ones off and screwed the new ones on. But yes, don't forget the little teflon tape.

Where does the tape go? (I know I can google this stuff, but talking with my DTF buddies helps me more, I like learning from you all).

@king: I have city water.

[King Postwhore]

On the threads of the pipe on the shower wall. Google how to Teflon tape it. It's helpful.

[TAC]

Where does the tape go? (I know I can google this stuff, but talking with my DTF buddies helps me more, I like learning from you all).

When you unscrew the head, you'll see the old tape on the threads. Just clean those off, and wrap the threads a couple of times. Then screw the new one on.

here..
https://www.youtube.com/watch?v=fiv4Zq9v4co

[King Postwhore]

Use a wire brush.

[cramx3]

My friend made this video for his "how to" youtube channel when he replaced my shower head 7 years ago. 

https://www.youtube.com/watch?v=n7eCFSyE844

I don't know if this is normal for all shower heads, but one of the points he was trying to make with this video was popping out the little water stopper inside the head, this greatly increased my shower pressure. 

Shiiiit.  You got 10 more years out of it than you deserved!

Yeah, that's incredible. 

So speaking of long lasting.... my water heater is still working, but I had my gas company at the house recently to replace the gas meter and he re lit my heater and was just looking at it with me.... turns out it's from 1996    I knew it was old, it's been in my house since I moved in 10 years ago.  It has never given any issues but it's approaching 30 years old which is incredible. It's on my radar for replacement, but like I said, it functions just fine so I'm not too inclined to get ahead of the replacement, but I know it's looming.

I do however have a more urgent project with my front steps to my house.  They've been eroding and every winter they get worse and the steps have cracked and some of the brick supports are literally falling apart.  This lead to the side hand railing to break.  It's only 4 steps, so it's not like a huge safety hazard, but it is a hazard so I had someone come out and give me an estimate.  Looks like a few Gs will be spent soon on that, but better than being sued for someone falling.

[Chino]

So speaking of long lasting.... my water heater is still working, but I had my gas company at the house recently to replace the gas meter and he re lit my heater and was just looking at it with me.... turns out it's from 1996    I knew it was old, it's been in my house since I moved in 10 years ago.  It has never given any issues but it's approaching 30 years old which is incredible. It's on my radar for replacement, but like I said, it functions just fine so I'm not too inclined to get ahead of the replacement, but I know it's looming.

I had to replace my hot water heater after a flood knocked out its pilot light last summer. I couldn't get it to relight, and nobody would come look at or service the thing because it was 13 years old. I guess after 10 years they start to become a liability. I ended up having to get a new one. Even though the old one still worked just fine up until the pilot system got messed up, my average gas bill dropped almost $45 a month after getting the new one. I had over 100lbs of calcium build up in the old one, which reduced the amount of water it could hold at a time, making it terribly inefficient.

[cramx3]

I had over 100lbs of calcium build up in the old one, which reduced the amount of water it could hold at a time, making it terribly inefficient.

So I've seen something on tiktok about water heater maintanence and that you need to drain it every once in awhile to prevent this. This was news to me.  So I saw I have the valve to do this, but decided I'm not messing with it due to age  I didn't think about the potential gas savings though. 

[Nick]

Not that there isn't some maintenance stuff to be worried about, but for once, a legitimate happy benefit of home ownership:

[Chino]

Damn! You could build a serious fort under that thing!   

Are you able to generate everything you need with that array, Tesla charging included? Any kind of home battery to go with it?

[jingle.boy]

Nice.  I put 40 panels up on my roof last summer, and my electrical consumption has be ze-ro since then.  I think I generated enough in the summer to see us through our consumption for the winter... and now that the arc of the sun is coming back up and the days are getting longer, we're almost at the point of generating more than we're consuming again.

[Stadler]

That's been me since last December.  I have had a negative balance with the electric company of at least -$350 since then.