(Closed) Mortgages under 40k?

posted 8 years ago in Home
Post # 17
Member
2022 posts
Buzzing bee
  • Wedding: May 2013

I dont think they would give out mortgages for $30-$40K??? I dont think it would be good to pay so little over 30 years?  Maybe a 5, 7 or 10 year loan??

Post # 18
Member
1137 posts
Bumble bee
  • Wedding: September 2010

@out4answers:  A lot of banks will not do mortgages under $50k because the time and costs that go into closing mortgages are not worth the return they will make.

Try going to a credit union.

Post # 19
Member
11736 posts
Sugar Beekeeper
  • Wedding: November 1999

View original reply
@out4answers:  THat is amazing! Something like that around here would go for $300k easily.  I guess they’re on tiny lots which makes a big difference, but still! Nothing that can’t be fixed up for a great starter home!

Wow so I was curious what the cheapest home for sale in my town was – a 500 sq ft studio apartment for $90k. and even that sounds like a steal!  may need to check it out for an investment property!

Post # 20
Member
2268 posts
Buzzing bee

I have heard that certain banks won’t give loans for amounts under $100k, but I assume it depends on the lender, and isn’t a general rule.

Anyway, have you thought of saving the money in cash? That’s what SO and I are doing.

We can buy a house around here in cash, for about $50,000. A mortgage of $50,000 winds up costing around $110,000 (6% interest) after interest is paid, plus several thousand in closing fees.

You could save tens of thousands, but you would have to factor in how much rent/living expenses you’d pay while saving up. SO and I will spend around $17k in rent while saving for the house, in order to save $85,000 or so on interest and fees.

Some perks of buying with cash are:

  • Closing faster (a week or two versus 45 days)
  • Being a more desirable buyer (seller doesn’t have to deal with a bank)
  • Being able to buy foreclosures easily and quickly (some foreclosures can only be purchased with cash, and cash always trumps someone with a loan)
  • Being able to buy short sales quickly and easily (short sales can be a nightmare since the bank can sit and sit on an offer for months, only to reject it. Cash buys the house asap, and at a discount)
  • Having no mortgage (this is a biggie. having no mortgage is like being kissed by the gods.)

Something worth thinking about…

Post # 22
Member
6014 posts
Bee Keeper
  • Wedding: March 2012

If your DH and a friend at work just got a house together ….

These addresses are right outside of Detroit … will you be able to unload them?  I mean I’ve heard some of the police/fire dept won’t go to some areas near Detroit

Post # 24
Member
4575 posts
Honey bee
  • Wedding: April 2012

I never heard that before, but maybe because i live out here in Jersey things may be different

Post # 25
Member
10357 posts
Sugar Beekeeper
  • Wedding: September 2010

Most banks do have a minimum. They want to make sure they get a certain amount of money out of a mortgage. Most banks will also not give out car loans for under $10,000, for example.

I’ve seen that number float from $20,000 to $40,000 depending on the bank. I didn’t pay too much attention since houses here average over half a million dollars. Ugh.

Post # 26
Member
10357 posts
Sugar Beekeeper
  • Wedding: September 2010

View original reply
@bunnyharriet:  Mortgage rates are below 4% now, just FYI. That # you gave out is way high for what you end up paying.

Post # 28
Member
1765 posts
Buzzing bee
  • Wedding: September 2012

I’m sure you could find someone to give you a mortgage for that amount. I’m always interested to see housing prices in other areas.. so different than here! We’re buying the house we already live in and we’re thinking of putting down between 50-80k. 

Post # 29
Member
10357 posts
Sugar Beekeeper
  • Wedding: September 2010

OP- I looked at the second listing. I don’t even want to know how they got 4 bedrooms into 1,000 sq ft – or what they did to the house to get it that way. We just moved out of a 1000 sq ft two bedroom – trust me, there is not enough room for 4 bedrooms. I think you should go and look at these houses in person before you get too attached. Also, look at crime stats, the repairs that are necessary, etc. A new roof can easily cost $15,000+. Older houses like these often have knob and tube electrical that needs to be updated (serious fire hazard) = $$$$$. Etc etc. Repairs often cost way more than the house when the houses are this cheap. And you won’t have equity to pull from to finance those repairs.

Post # 31
Member
10635 posts
Sugar Beekeeper
  • Wedding: January 2011

@bunnyharriet:  We can buy a house around here in cash, for about $50,000. A mortgage of $50,000 winds up costing around $110,000 (6% interest) after interest is paid, plus several thousand in closing fees.


How did you figure out that number?  That sounds very high, but it depends on how long someone takes to pay off the mortgage.

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