Best place to get a Loan?

[Chazno]

I'll preface this that I don't know squat, but some of this stuff seemed off to me.

Originally Posted by Saul Good

Let's say you bring $3,000 to the table to buy a $100,000 house. That's 3% down. Then there's the closing costs. They could easily be $3,000. If you roll that into the loan, you're back to financing 100% which is the same as having no down payment, so you can't get most loans.

Isn't 3/103 still 2.9%

Originally Posted by Saul Good

Even if you could, you'd have to pay private mortgage insurance (PMI) which will run you $100-$150 per month. Then, you're looking at $150 per month in property taxes. Then, you're looking at $100 per month for insurance. Then, you're looking at $250 per month in maintenance and repairs. Then, you're looking at purchasing things like lawnmowers, weed eaters, fertilizer, etc. for the lawn. There's $700-$800 in monthly costs before you even talk about the loan.

$3k a year for maintenance and repairs? unless you are renovating isn't that excessive? I've lived in my house 5 years and probably spent 3-4k total.

Originally Posted by Saul Good

The loan, at around 5%, would run you another $500 or so per month. If it's your first house, you will probably live there no more than 5 years. Nearly 100% of the money you pay on your loan will go towards interest during that time. Even if the house goes up in value by 10% over that time, you're still going to have to pay a realtor 6% to sell your house so you really didn't make anything by the time you pay your capital gains tax.

Why would you pay capital gains if you roll it over into another house? Don't you want to take into account what he would save on income taxes by deducting the interest expense?