Buying or Selling a Home/Condos

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Expert: - 9/2/2009


Question
Hi,

I went online yesterday and began looking at the condo market in the Ken Caryl/Littleton area...of Denver, Colorado...prices ranging from $120K-$200K.

I then called my lender and told him to run the numbers with %20 down and 0% down (I'm a 100% disabled vet...so the funding fee is waived).  The rates are though my credit union and with no down for a hypothetical $170K condo, the rate is 5.125% as of today.

I am 56 AND will probably reside in the condo for less than 5 years...sooooo....I am thinking of opting for the NO MONEY down...ONLY .25% POINT required and NO origination fee.  The payment would be $190 more a month, but I can afford it.  It seems to me, I'd rather have the cash downpayment working for me in other areas.

Comments?

Thanks alot!!!

Ron  

Answer
Hey Ron,

Thank you for your military service!

I would agree with you about the no money down option.  I feel like I can earn more returns on the ~40k you would use for a down payment in the stock or bond market.  

That said, when you go to sell in 5 years, lots of times folks forget it costs money to sell your home.  Realtor commissions, title company fees, closing costs all add up on the sell side, so even if you sell it for exactly what you pay for it, you will be in the whole because of the costs to sell.  If the property appreciates, then you would be fine, but who knows where we will be in 5 years in terms of property values.

Hope that helps,
Jay

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Jay Denit

Expertise

I'm a Real Estate Broker/Loan Consultant in the state of Colorado. We have a separate foreclosure investing company, so I'm more than willing to answer any Colorado foreclosure questions for both the home owner and investor. I have sold bank owned homes all across the country for all of the big banks. I'd be happy to answer any questions about buying or selling residential homes and specialize in luxury estates. Furthermore, I have some experience in land acquisition and development and know a touch about water rights. We are a licensed lender in most states, so I can answer general questions about all types of mortgages.

Experience

My experience is really anything that has to do with real estate. From buying and selling to investing and foreclosure, I’ve done it all. Being able to handle the acquisition and financing under one roof gives me the intimate knowledge of all facets of property conveyance. My foreclosure/bank owned property (REO) experience gives me the problem solving mindset to always find a solution.

Organizations
BARA- Boulder Association of Realtors NAR- National Association of Realtors CAR- Colorado Association of Realtors

Education/Credentials
Xavier University-- BSBA Finance Colorado State University-- Professional Certificate in Project Management

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