On Sat, 8 Apr 2017 12:30:54 -0500, Leon lcb11211@swbelldotnet wrote:
On 4/8/2017 11:21 AM, wrote:
Snip
I can't parse the above sentence.
It is all cash to them, more cash or less cash. Builders pay a lot for
certain things to help the buyer qualify or to compete with what the
builder in the next door model home is offering.
But those are all gimmicks that can be negotiated around. It's not
the cash sale that mattered. Again, if you came in with your own
financing, nothing would have changed. He would have given you the
same price. Money is money.
There is no mortgage insurance unless you have more
house than you can afford.
Unless you finance 80% or more IIRC.
What I said. ;-)
I would say the the vast majority of new home buyers are paying as
little down as possible. And a good majority of those people can easily
afford the home they buy. An extreme example was my son, he bought our
home and financed as much as he could. 3 years later he paid the loan
off. We considered having a balloon loan on our current home to get
very low interest in the first five years and simply paying if off in 2
years, just to have a little more cush. We chose to not finance at all
and tightened the purse strings for a couple of years.
I don't think that's true at all. PMI is a *lot* of money and avoided
if at all possible. I only put 10% down on this house because I still
had my previous house (wife was still living in it) but as soon as
that sold. The PMI wasn't a big deal for a short time.
Well what you think is not gospel.
"And a good majority of those people can easily afford the home they
buy."
If the majority could easily afford the homes they bought, we wouldn't
have had the mess in '08. Home affordability is even lower today.
If you're in a flood plane, you're stupid
if you don't have flood insurance. Don't you have fire insurance?
I do not have fire insurance specifically, I have home owners insurance
which covers most anything except flood.
I'll bet it doesn't cover earthquakes (earth movement) either.
Every one is in a flood plane, some 500 year, 100 year, etc.
Not true.
Every one is in a zone determined by FEMA.
Pike's Peak? Get real. Well, I guess there was Noah...
Explain that to FEMA.
I am in
the 500 IIRC and buy the insurance anyway, relatively cheap. My
precious home was in a cheap zone until it was rezoned, that can happen
any time and if it happens and you still have a mortgage you may have to
get flood insurance. If you don't the flood insurance the mortgage
company will get it for you.
So?
Just because I am not likely to be in a flood, it can happen. If your
storm drains clog a heavy rain can flood your home. I witnessed this
about 10 years ago. While I was "then" in a likely to flood area and
did have flood insurance, we had a tornado go through the neighborhood
followed by heavy rains for 2~3 hours. Rising water almost entered our
garage and did enter homes at the end of the street. The was no high
water our side of a few streets in our neighborhood. The drains were
stopped up with debris and the rain came down faster than than the
clogged drains could handle.
Can happen, but it's highly dependant on surrounding terrain.Clare's
situation is pretty obvious. We just had 6" of rain in a couple of
hours (under tornado warnings). No problems. The only storm drains
around here take the water off the street and dump it into the woods
(streams) behind the houses.
You said So, I explained.
So, that is why I buy flood insurance even though I am not ins a prone
to flood area.
My precious home went from about $260 per year to $3600 for flood
insurance. That was just after Katrina. Had I still had a mortgage my
payments would have gone up $300 per month.
If you have a mortgage you may incur more liabilities than just the loan.
So you're saying that you would go without flood insurance? So you're
self-insuring.
NO I did not say that. I was locked in with the $260 that I had already
paid, about 3 months later my agent and the flood insurance company
tried to make me cancel the policy so that I would have to immediately
pay more. They sent me a refund check which I sat on until the policy
expired. I then cashed the check and changed agents and flood
insurance companies. My new policy went up to about $700, after I
provided an elevation survey, otherwise I would have had to pay way more.
I'm confused.
I know.
What would a mortgage have to do with it?
It? and there was no mention of a mortgage in the above paragraph.
We were discussing the difference between mortgages and cash (or at
least paid off). If there was a mortgage they could get their panties
in a twist but since not...
You were
covered contractually.
Not arguing that at all.