The Villages #1 for Highest Down Payment

Closed Thread
Thread Tools
  #1  
Old 11-04-2021, 09:06 AM
roob1 roob1 is offline
Senior Member
Join Date: Nov 2016
Posts: 326
Thanks: 45
Thanked 170 Times in 83 Posts
Default The Villages #1 for Highest Down Payment

Housing Markets...
  #2  
Old 11-04-2021, 09:26 AM
Garywt Garywt is offline
Soaring Eagle member
Join Date: Apr 2016
Posts: 2,013
Thanks: 4
Thanked 2,003 Times in 721 Posts
Default

I believe that is because many come to the Villages with money to put down. It is not that it is a required down payment. Also there are no first time buyer deals in The Villages.
  #3  
Old 11-04-2021, 09:42 AM
manaboutown manaboutown is offline
Sage
Join Date: Aug 2009
Location: NJ, NM, SC, PA, DC, MD, VA, NY, CA, ID and finally FL.
Posts: 7,808
Thanks: 14,203
Thanked 5,059 Times in 1,931 Posts
Default

It is a retirement community. Folks have cashed out of their old homes, frequently pay all cash and usually downsize to lower their overhead.
__________________
"No one is more hated than he who speaks the truth." Plato

“To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine
  #4  
Old 11-04-2021, 09:49 AM
Boomer Boomer is offline
Soaring Parsley
Join Date: Nov 2007
Posts: 5,423
Thanks: 172
Thanked 2,429 Times in 842 Posts
Default

Quote:
Originally Posted by Garywt View Post
I believe that is because many come to the Villages with money to put down. It is not that it is a required down payment. Also there are no first time buyer deals in The Villages.
Exactly right. It’s not required. The style of writing is making it sound that way though.

The article’s headline says, “Cities Where You Will Need the Biggest Down Payment to Snag a Home.”

The article is a classic example of writing based on a keyword search or an algorithm by someone with no first-hand knowledge, but with space to fill. The word ‘need’ is misleading. More cash buyers and big down payments? Yes. But the reasons are unique to TV and topping the list skews the other rankings.

Word choice matters, real information does too — but nobody much seems to care anymore.

Boomer

Last edited by Boomer; 11-04-2021 at 09:57 AM.
  #5  
Old 11-04-2021, 10:13 AM
golfing eagles's Avatar
golfing eagles golfing eagles is offline
Sage
Join Date: Mar 2015
Location: The Villages
Posts: 13,507
Thanks: 1,264
Thanked 14,581 Times in 4,803 Posts
Default

Quote:
Originally Posted by Boomer View Post
Exactly right. It’s not required. The style of writing is making it sound that way though.

The article’s headline says, “Cities Where You Will Need the Biggest Down Payment to Snag a Home.”

The article is a classic example of writing based on a keyword search or an algorithm by someone with no first-hand knowledge, but with space to fill. The word ‘need’ is misleading. More cash buyers and big down payments? Yes. But the reasons are unique to TV and topping the list skews the other rankings.

Word choice matters, real information does too — but nobody much seems to care anymore.

Boomer
There you go again, confusing people with the facts! Just stop it!!!!
  #6  
Old 11-04-2021, 10:40 AM
vintageogauge vintageogauge is offline
Sage
Join Date: Aug 2016
Location: village of Fenney, Ford City, Pa., and Hudson, Ohio
Posts: 4,608
Thanks: 6
Thanked 4,834 Times in 1,652 Posts
Default

There was a statistic printed when we first moved here 4-1/2 years ago that 55% of the homes sold were full cash deals.
  #7  
Old 11-04-2021, 11:25 AM
Dana1963 Dana1963 is offline
Gold member
Join Date: Jan 2019
Posts: 1,295
Thanks: 3,174
Thanked 1,446 Times in 580 Posts
Default

At our stage in life I couldn’t imagine carrying a mortgage I don’t even like auto loan payments with 0% interest. But then again people love reverse mortgages
  #8  
Old 11-04-2021, 11:33 AM
villagetinker's Avatar
villagetinker villagetinker is offline
Sage
Join Date: Sep 2013
Location: Village of Pinellas
Posts: 10,997
Thanks: 3
Thanked 8,081 Times in 2,937 Posts
Default

Quote:
Originally Posted by Dana1963 View Post
At our stage in life I couldn’t imagine carrying a mortgage I don’t even like auto loan payments with 0% interest. But then again people love reverse mortgages
We took the mortgage since our investments are making almost twice the interest rate on the mortgage.
__________________
Pennsylvania, for 60+ years, most recently, Allentown, now TV.
  #9  
Old 11-04-2021, 11:52 AM
DAVES DAVES is offline
Sage
Join Date: Feb 2014
Posts: 3,539
Thanks: 196
Thanked 1,920 Times in 984 Posts
Default

Quote:
Originally Posted by Dana1963 View Post
At our stage in life I couldn’t imagine carrying a mortgage I don’t even like auto loan payments with 0% interest. But then again people love reverse mortgages
All these things are a matter of opinion. It is a financial as well as a personality decision. Can't imagine carrying a mortgage. People finances and understanding of money are far different. Free of a monthly bank payment? You still pay common charges, taxes, water etc. A mortgage is the cheapest source of money there is. Whatever the amount is do you come out ahead with that money in your house or can it earn more elsewhere?

Auto loan with zero interest. You are usually offered zero interest or $$$$$$ off. Which is the better deal? The answer is usually-it depends.

Qualifying for a mortgage. You need to show income to pay the mortgage. I was amused when I was told to get a letter from my brokerage that they will send me $$$$$$ per month so I could fill in the line on my mortgage application. The bank told me to do this. The brokerage has a form for this. Reality, after you get the mortgage, you can call the brokerage and stop the checks.

There is no shortage of choices. We all need to pick what is best for us understanding risks and rewards.
  #10  
Old 11-04-2021, 12:09 PM
DAVES DAVES is offline
Sage
Join Date: Feb 2014
Posts: 3,539
Thanks: 196
Thanked 1,920 Times in 984 Posts
Default

Quote:
Originally Posted by Boomer View Post
Exactly right. It’s not required. The style of writing is making it sound that way though.

The article’s headline says, “Cities Where You Will Need the Biggest Down Payment to Snag a Home.”

The article is a classic example of writing based on a keyword search or an algorithm by someone with no first-hand knowledge, but with space to fill. The word ‘need’ is misleading. More cash buyers and big down payments? Yes. But the reasons are unique to TV and topping the list skews the other rankings.

Word choice matters, real information does too — but nobody much seems to care anymore.

Boomer
I think most of us have been on both sides of the issue. We sold our previous home in another state. The deal was full price and a cash deal-that was roughly 10 years ago.
A great deal for us. We all know of cases where you draft a contract, the property is essentially off the market and then the buyer can't get a mortgage. Perhaps, the house does not appraise for that value or the person overstated income, understated debt etc.

A large down payment, vastly reduces the bank's risk but does not reduce the interest charged. It may prevent your paying mortgage insurance. You are paying to insure the bank's risk.

Real estate is truly different financial world. No other loan is, can be so highly leveraged.
Interest can be deductible. The real owner is often the bank. The person whose name is on the deed, cannot pack up the house or land and move it to another state or country.
  #11  
Old 11-04-2021, 12:22 PM
JMintzer JMintzer is offline
Sage
Join Date: Feb 2021
Location: Where Eagles Dare to Soar...
Posts: 11,949
Thanks: 486
Thanked 8,975 Times in 4,713 Posts
Default

The current (very) low interest rates make carrying a mortgage much more attractive, leaving the funds available for investment gains (which should be significantly higher than the mortgage rates). Add in the interest deduction on your taxes (if your home in TV is your primary residence, or an investment property), and it's even MORE attractive to carry a mortgage...

We put down 25% on our home in TV, mostly because we still own our home up in the DC area (for now)... Once I fully retire and we become Frogs, we'll sell the house (which is paid off), and decide what to do with the remainder of our mortgage.

We may decide to invest in a small condo up here, since that's where the kids live, but we'll make that decision when the time comes, once we see how often we travel back to the DC area...
  #12  
Old 11-04-2021, 01:26 PM
JoMar JoMar is offline
Sage
Join Date: Apr 2014
Posts: 4,973
Thanks: 10
Thanked 2,473 Times in 937 Posts
Default

Quote:
Originally Posted by villagetinker View Post
We took the mortgage since our investments are making almost twice the interest rate on the mortgage.
Agree, paying cash just doesn't make sense at this age (77). Plus it is unlikely a 30 year mortgage will be paid off. Paying cash for stuff at todays interest rates and investment return is giving money away.
__________________
No one believes the truth when the lie is more interesting

Berks County Pennsylvania
  #13  
Old 11-04-2021, 02:48 PM
manaboutown manaboutown is offline
Sage
Join Date: Aug 2009
Location: NJ, NM, SC, PA, DC, MD, VA, NY, CA, ID and finally FL.
Posts: 7,808
Thanks: 14,203
Thanked 5,059 Times in 1,931 Posts
Default

IMHO it can make sense to highly leverage one's home with a large mortgage and it can make sense to own a home free and clear. It just depends.

When I was young, starting out, I always borrowed as much as possible on a home. I itemized deductions so the interest (and RE taxes) were tax deductible. When I sold a home it had inevitably appreciated and its gain could be deferred upon purchasing another home above its sale price within a certain period of time. I then invested whatever cash I might have put down on the home elsewhere. The internal rates of return on my small down payments were fantastic.

In today's tax environment I no longer itemize deductions so cannot deduct interest on a home mortgage. Granted, mortgage interest rates are historically low, around 2-3% so if one can make more on their investments after taxes that option can still make sense. Given stock market performance over the past dozen years one could have done very well obtaining a mortgage and investing cash that could have paid for a home. Homes too have appreciated so perhaps this has been a win, win, win situation. A couple can sell a home and if certain residency and holding period conditions are met pay no tax on up to $500,000 in gain.

On the other hand at my age of 79 I am no longer comfortable with much debt and am happy to live in a free and clear home. It has greatly appreciated, my stock market investments have appreciated. Although I have left some money on the table I have slept well.
__________________
"No one is more hated than he who speaks the truth." Plato

“To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine
  #14  
Old 11-04-2021, 03:06 PM
charlieo1126@gmail.com charlieo1126@gmail.com is offline
Sage
Join Date: Jun 2019
Posts: 2,688
Thanks: 18
Thanked 3,015 Times in 1,149 Posts
Default

14 homes or condos some very expensive, I never put more then 20% down it’s always made financial sense to me and especially during these time of very low interest rates . I just got the last mortgage in April at 82 there’s nothing wrong with good debt
  #15  
Old 11-04-2021, 04:18 PM
OrangeBlossomBaby OrangeBlossomBaby is offline
Sage
Join Date: Feb 2015
Posts: 10,216
Thanks: 8,189
Thanked 11,373 Times in 3,816 Posts
Default

Quote:
Originally Posted by JoMar View Post
Agree, paying cash just doesn't make sense at this age (77). Plus it is unlikely a 30 year mortgage will be paid off. Paying cash for stuff at todays interest rates and investment return is giving money away.
Depends on your investments.

We had to borrow against ours just to afford our house because of our particular circumstances. If we die together tomorrow, our "estate" won't owe anything to our investments (which are actually insurance policies with nice cash values), and it'll get a house that it owes nothing on. No debt collectors at the door of our next of kin demanding their payment.

We have nothing, but we also owe nothing. I personally feel this is the best option when you're older.
Closed Thread

Tags
villages, highest, payment


You are viewing a new design of the TOTV site. Click here to revert to the old version.

All times are GMT -5. The time now is 07:06 PM.