What They Don't Tell You About Buying Your First House 

This is a great comment! I didn't want to get into appreciation otherwise the video would've been waaay too long, but everyone should read this!

Thanks! Your home purchase is awesome, thanks for sharing! I'm in the process of buying a condo and super into this. Being driven a little crazy by the lack of mathematical understanding and false info going around.

Michael Molina that 8,000 is over 5 years :) your appreciation over 30 years is way more than average repair. The money, over many years, works out in the homeowners favor almost every time. Especially when you consider that you have to pay for housing anyway.

Rochelle Smith homes can lose value as well. There is no guarantee of appreciation. I’m not saying this to discourage home buying. Just that people are signing a paper to pay on a home for 30 years (or 15 or whatever) no matter what. Not I’m only paying on this home if it makes me money I’m in lending and have been for years. I would have people tell me they walked away from homes because they lost value. That was frustrating for me.

Idk, do u really think a townhouse will be worth close to 2M? Only worth it if someone buys it. I agree with you that all property goes up in value, but is anyone else worried that we’ve hit the ceiling with property values? I can hardly see a home going up in value that high let a alone a townhouse. Doesn’t add up to me, especially when you use that logic and will someday say it will be worth over 4M in however many years.

Lauren Mun I absolutely 100% agree! Why don’t they have a personal finance class in high school? 😊🏡

No, these are the things we need to learn before buying a house!!! I don't think any stupid teacher will encourage anyone to pay extra on a house when there wasn't any multiple buyers. The realtor and the buyer made off with her money. Get back you money Monica!

Lauren Mun They teach his in Canadian schools the course is called Planning basically life planning.

1 - people don't learn until they care. I would've zoned out in this like i did in a lot of other classes. 2 - Also a lot of laws change in the 10 years between HS and home-buying time.

You can there classes you can take

Chelsea Stephenson I’m a real estate agent and would love to help you when the time comes. Where are you located?

Colin Miller thanks for the offer, however I’m not living in the states lol

@@mj-ix4pe Its about 1300 sq ft. 3 rooms 3 bathrooms. I end up paying $2400 a month with roommates pitching in a little over $900 of that going to equity.

And u live in michigan....it aint no seattle. Please dont compair the two. Completely two differ lifestyles.

That's so cheap, that cost atleast 2500 in Toronto. Homes start at 900k, that's for a condo..

For a house like that and bc she has renters, it’s pretty good.... if you think that’s bad imagine how bad it is here in CA 😫 (specifically the Bay Area)

hahahahahaha! She is crazy!!!! Sell that house Monica!!!

In reality, the home is not really hers yet... until she paid off her mortgage. So, in reality, the bank owns the majority of the house and she only own 10%.

@@IamMae72 Respectfully disgree. Even with her mortgage paid off, she can still lose her home if she fails to pay property taxes. The state will force a tax lien sale and fire sale it to pay the bill, erasing all her equity in the process. If she can still lose her house even if she's paid the bank back in full, then she doesn't really own her house and never can, IMO. I have recently paid off our house, and now all I have to pay for is insurance and taxes, but if I don't pay taxes I lose my house. The government owns everything.

@@jwb4bb Respectfully disgree. It is her home and no one can tell her what to do with it unless she breaks some law. In some countries like vietnam the government owns all the land and the people can build on it. Taxes are a by product of living in a country,but it doesn't take a away the legal right of owning something. She is listed as the legal owner of the property and not the government or bank.

Orangeguy I was making the distinction between “legal” owner and “real” owner. If she can lose her home because she didn’t pay the government, then does she really own it? Is it really hers if the government has the final say? Property tax is rent; the landlord you can never be free from. It’s a fee we must all pay or else.

@@jwb4bb The people of the country are the government. Without taxes things like schools and roads don't exist. Some countries only tax property when it sell's . It's what the people of that country by way of laws decided As they say: we are a country of laws. As long as I don't break any laws I am the owner on record on my home legal and real. If someone sues me and wins a judgement against me. Everyone that's on record as the real and legal owners on my home will be part of that lawsuit. Think about it....if I sue you and win .Do I get to sue the government because you paid into taxes on that home or the bank, because they gave you a loan on the home. You can pay all your property taxes and still lose your home by many ways. Like lying on your personal taxes or causing harm to someone else.

I’d love to help you buy a house!! I’m a realtor that specializes in first time home buyers👌🏼

check your county and city if there's any first time buyer programs! Though I totally recommend having about 3 months of payments saved up for a rainy day, since theres a ton of hidden costs to owning!

I just brought my first, I’m only 22 and from Australia 👍💪💪

did you do it?

no, thats still exciting!!

Did you? You weren't gonna.make it without that huh Sarah?

Chad Carlson so condescending for no reason

She should have not purchased that house $7,000 plus 10% down... She should have ran.

Trump Messed Up you have no idea what you’re talking about.

I am so glad this helped! :)

omg i know right?! no one teaches you these things haha 💕

What Monica did not tell everyone which you can do when making your normal payments. If you want to get your house paid off early or lower your loan amount owed. You can pay more of your money towards your principal. You would have to contact the company you got your loan from to ask the process for this and to ask them if you are penalized if you pay your loan off early. I did this with both houses I purchase. We send a extra check in the mail stating on it to go towards our principal. And I don't think its a exaggeration to say getting a home can be a exhausting process. It is subjective and you have to look at it from the perspective of what you are buying such as are you "building" a house, buying a new home or a home that is a couple to several years old or even a decade old. Some home buyers have a lot they go through depending on what they are buying. I have purchase a new house and I have built a house. Buying a house already built was a cake walk compare to getting a house built. Getting a house built depending on the builder can be a long back and forth process that can be exhausting. One advice I would recommend everyone to do. If the builder or home owner tells you they will do something. Always get it in writing.

juliezeneth I do! 😀🏡😀🏡😀

Thank you. This is why wealthier areas have much better public schools. People don't understand this.

Sometimes it is understood. It’s the management of said taxes that gives people a bad view of it.

You forgot interest on loans and military spending

and public servant pensions

maybe, but it bothers me other people in other areas of the world pay higher taxes, sure, but least they get free education and healthcare out of it, mainly healthcare being the most important as it makes paying for a house or anything with kids etc hard when you have medical. so I wonder if we will ever get a better society in this type of way other then the ones you listed above :(

Yeah I was shooook when I realized it too! Renting is TOTALLY ok! Look up renting vs owning who has more wealth, its so interesting- usually comes out about the same.

Alexis Hernandez Those who rush into buy what ever just to have the tile of “home owner” are buying for the wrong reasons/wasting money. Buying is the biggest investment....there are always houses available, builders are building homes daily....no need to rush. Life is short, focus on self love & live to the fullest with no regrets. Homes, cars and boats are just “materialist” items what really matter is having joy in life.

So much goes to interest. I broke it all down and in the last 4 years in my house we’ve paid almost $40000 in mortgage payments but only paid down about $4000 in principal. Its painful to think about

@@MonicaChurch okay but.. if you rent, then you have no assurance. Something happens and you struggle with money, you don't have a house anymore. Plus, if you rent your whole life's spending will be for nothing. If you buy a house, your relatives will get it when you pass away.

My mortgage on the home I’m looking to buy is 1,900 all in. 500 of that is going to principal. Lmao. It’s rough.

How would you know they are not lying? Do they have to show that highest offer by law? Because it seems like they can just say it to try to get more.

I would ask to speak to the other person to confirm that the agent isn't just lying.

My goodness ty for informing ppl. It’s pretty important ppl understand how to not get taken advantage of

yes we were wondering. It seems like a scam jusy to get more money in comission.

@@miichelletran In a city like Seattle, I'm sure it's the norm to get the offer in.

lol I was thinking of that too!

I thought she would insert that clip!

I was not thinking that!! I was thinking, this freaking girl bought a house and didn't know what the hell escrow means??? A sucker is born everyday! LOL!!!

Trump Messed Up hey well now she knows. When I got my first car when I was young there’s a lot of terminology I had to learn and learned the process of making payments, getting insurance, taxes, etc. We all have to learn somewhere whether a house, car or big financial commitment.

Hahaa!! Me too, I have it looping in my head now😂😂

Like she said, you don't have to have a mortgage/house. But in any instance just save whatever you can even if it's $2 a day

Stop wasting money on starbucks

Darth Vader who’s drinking Starbucks? 😂😂

You don't have to buy a house. Nothing is wrong with renting just depends on what you want. Get a second job to save for your down payment.

Start watching Dave Ramsey videos. They may help you to head down a good financial path. You have nothing to lose kiddo.

yesss

Daisy Navarro wet

Everyone needs a “Future House Sh*t” playlist 😂

I did the same! My playlist is called Finally Adulting 🤣

Good luck overpaying for your future house

Looool.

Nope. Still eating.

SteveInvests this is great advice! My husband and I only spend 10% of our monthly income on our mortgage and all other housing expenses. It is such a relief to live below our means.

Well said

Rebecca Anne Awesome work!!

Agreed! We went into home buying with that in mind. We were approved for $250,000 but wanted WAY LESS than that! Thre first realtor we worked with kept taking us to homes near the highway priced admitt $280,000 (I specifically wanted away from major highways). We dumped her & went with a realtor who listened. We were able to get a home at $175,000 & live in it as we fix it up. Nothing major, so definitely comfortable living as we make updates! Since then we've more than doubled our income, and that means we're not even towing the line of "house poor". I really hope everyone looking to buy a home watches videos like this! My family growing up was NOT good at money, RU-vid is free education.

CaSondra Stinson Awesome work! 🤙😎

The Mongstradamous let’s see if he makes a reaction video 👍

yess!!!!!!!

YES

Yes!!! Love Graham Stephan

Hey Graham 👋

Same

Thank you!

In California a conventional loan down payment would have twice as much at 20% or $140,000 down for 700K home.

She is an idiot. It doesn't amaze me... She should get her money back. Let us come together and help her. She did all that and there was no other offer! Seller beware!!!

Camelot yeah! I guess I should clarify - having $70k cash to just drop down on a 10% down payment amazes me. As young adult from the southeast, this isn’t the usual, so it’s tough to empathize - the fact that she has this opportunity is awesome though!

catj You could buy land and a home with that in TEXAS dang

You're going to need roughly $800k for retirement.

Thank you very much!

How old is she?

ominous450 she’s 25

Hi Brenda! Can you share how you can pay extra on principal? (ie do you talk to the bank/lender about it? Do you set up a weekly/biweekly payment instead of monthly?). Thank you!

All you have to do is specify with your bank that any overpayment is to go to your principal. Call your bank and ask how to do that, they may require it in writing. My math teacher in high school psid and extra 4 dollars a month a d paid his house off 4 years early. So even just a couple of extra dollars towards principal really makes a huge difference.

@@purpleshield27 you simply sendnin another payment that month. Or pay more during each payment. anything above the minimum goes to principle that month. Or you transfer large chuncks of the balance to a credit card.

@@agood1 this is not entirely true. Most lenders won’t apply extra payments to the principal without specification, it’ll go as a regular payment which pays the interest and other fee before actually paying the principal.

25% is wonderful. Congratulations! 🍾🎊🎉

Should have put Zero down

Thank you so much!

Jacob Bidwell I totally agree. It’s $150 in my area (Sacramento CA) and you could find $10k in issues.

You should look into prefab homes! They are smaller, less expensive, but really beautiful. with a 100k budget you could get one, but buying land would be a bit more.

@@Nunyabiz8787 that is so interesting! I want to make video about you!!

Monica Church Also, you are correct about the paperwork, it only takes about 30 minutes lol. I closed last year with a 30 year mortgage at 4.7% interest, and then rates dropped to 3.6% this year so I refinanced to a 20 year and the monthly payment is less than $100 more per month. I did have to close again and get a new appraisal (my house value already increased a few thousands dollars!) but it was worth it. I also rent out one of my spare rooms to traveling nurses.

BeckyLee B. Wow!!!!!

This comment is just unrealistic. $700,000 in the south or midwest would be insane. $700,000 in the Bay Area or a brownstone in NYC, not bad. Location is definitely a factor.

@@marleymescudi I live in Los Angeles And I'm very familiar with the Bay area housing market The houses are extremely overpriced . People Pain 700000 to a million dollars for houses that only cost 80K to 90K to build. There will be market corrections and I feel sorry for the people who are caught up in it

@@growingprofits1817 Lol, as someone who lives bicoastal (Atlanta and LA) I'm genuinely curious as to where in the LA or Bay Area you can build a home for 90k. 90k is even really inexpensive in Georgia. Most custom homes (3 bedroom 2 bath) in rural GA start at 140k and that's not including the cost of purchasing land.

Haley Williams lol

Neha Raman never had it happen to me. I’ve lived with over 35 different people in my houses over the last 8 years. Have a good month to month rental agreement in place and everything should be fine.

@@101realtor I've done the same, I just never disclosed that info, however I'm thinking about making a video with my own experience since I did this in college, a bit younger than Monica.

taking advantage how?

Yes Shelby purchased it with me! So at the end of the day when we go to sell it, we will split any money we made from it 50/50.

Nicholas Field same!!

Damn, I haven't got a middle name. I'll never be able to buy a house.

HAHAHAHAHA! I know... She should sell it for $707,000 and run!

ah yay! seriously, hit me up if you ever have any other questions. I thought as a youtuber it would make it harder, but honestly it didn't, they just asked for lots of documents for my company as well as personal.

Elena, I’m a real estate agent and would love to help you out!

YOU WILL :)

My local property taxes more than made up for any federal income tax savings I got from the mortgage interest deduction.

It doesn't work like that.

Mortgage interest and property tax deduction were great until Baby Donny decided to help (one of his many accomplishments). High-cost states like CA and NY have been totally screwed by him. I don't know the Seattle market but I don't expect it was a good thing.

you can't write off property taxes only loan interest if you itemize which 90% of homeowners don't. The standard deduction is the most common. and even you itemize the interest is only a deduction to your effective tax rate. Lots of comments on this board that are flat out wrong

Thank you!

seems very overpriced, but condos and townhouses are overpriced. Who wants to pay a mortgage to share walls and have neighbors and no yard.

You also didn't mention an attorney. In NY you NEED an attorney which is another fee.

Edgar Arenas this is interesting.... what about in Texas? How would this work?

April Mdz it’s works awesome. Check it out : www.zillow.com/homedetails/7327-England-St-Houston-TX-77021/97608357_zpid/

@@moma5501 Where in Texas do you live? Whats you current rent like?

Edgar Arenas I don’t have rent.... I live with family

@@moma5501that's cool. Yeah, a duplex would get you privacy and is smarter then paying rent.

Nikki Riehle that’s awesome! Where are you located?

Actually not. It’s just simple math. The reason you pay so much more interest during the first years is because you owe the most money during these years. The more you owe, the more interest you’re charged.

@@daveerickson5313 Dave is entirely correct. Interest is not a linear function. You pay interest for a variety of reasons; mostly for the time value of the money. And while the total of payments is eye-popping upfront, you are paying that loan off with dollars in 2025, 2030, 2040, all the way to 2050. Ergo the entire concept of interest. Banks typically price off the 10-year t-note; since the "Effective Duration" of the P&I cashflows has historically been roughly 7-8 years for a 10-year note. Then, various levels of interest (measured in "Basis points", like pennies on a dollar) are added in for handling costs, the potential for loss, and profit. E.g., 100 bps for a 10-year note; then add-in 70 bps for handling costs, 10 bps for risk of loss on an annualized basis, and say 70 bps for profit. There ya have it at 3.5% for a 30-year fixed rate mortgage. P.S. "Mortgage" is French for "Death Pledge". P.P.S. I was a capital markets specialist for the FDIC for 32 years. Main gig ? Pricing analyst. : ) !

@@ButcherBird-FW190D there are probably exactly two of us that understand what you just said. :)

@@daveerickson5313 Ha ha, yes, you're likely correct. Then; we can start digging into the portfolio and discuss the five forms of duration (can't leave out DV01) and the result CPR and PSA numbers. Noting the 30-month ramp on the PSA factor (versus linear on the CPR) so the broker doesn't stick it to you re: making the paper look better than it really is.

@@ButcherBird-FW190D .....and then there was one. :)

Yeah I think she meant the title company.

Instead of throwing your money away on rent, you can throw it away on mortgage interest. Your local property taxes should make up for any savings you get on your income tax.

Standard deductions under Trump doubled and interest rate soar every low 2.7% so few get any tax deduction now- standard deduction is higher and everyone gets it- even a renter

@@JenX422 thanks Jen X - you are one of few smart people on this comment section that understood that

@@frankveloz8962 you can't write off property taxes - only interest on a loan if you itemize, which few do

HAHAHAHAHAHAH

completely wrong - the value of your house determines your property taxes - not the size.

Yup inflation and LOCATION!