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#71
10-12-2005, 05:52 PM
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Re: buying real estate
[ QUOTE ]
Well loan would be a house loan, 25 yrs is a pretty standard duration right? And interest rate would be the best I can get my hands on. [/ QUOTE ] Actually most loans are 30 years or 15 years. If you mortgage $200K at 6% fixed rate (which not that great) for 30 years, your payments will be about $1200.00/month. (that's without counting insurance) 
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#72
10-12-2005, 05:53 PM
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Re: buying real estate
Well, I don't think it will help your mortgage that much to put such a large % down, because you'll still have a 200k loan.
I think it makes a lot more sense to just put the typical 10 to 20 percent down, then invest what you don't need to live on. Don't worry about owing the bank a lot. You will have insurance on your home, so your investment is pretty darn safe. The only thing to worry about is if the real estate market collapses in your area. Some people are predicting the worst; others think the growth will just slow. Personally, I believe that if you own a solid home in a desireable area close-in to a city, the laws of supply and demand will keep your property value as safe as possible from a possible "burst" of the real estate "bubble."
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#73
10-12-2005, 05:53 PM
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Re: buying real estate
OK,
and at the end of that I have to repay the $200K right?
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#75
10-12-2005, 05:55 PM
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Re: buying real estate
OK.
Another question. Say I have a loan for $200K. Have a good year of poker and decide to pay back $100K of the loan. How does this effect my mortgage payments? Would they just get halved?
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#76
10-12-2005, 05:56 PM
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Re: buying real estate
[ QUOTE ]
[ QUOTE ] OK, and at the end of that I have to repay the $200K right? [/ QUOTE ] Repay? [/ QUOTE ] I borrow $200K, pay $1200 per month for 30 years, then I have to pay the bank $200K, right?
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#77
10-12-2005, 05:57 PM
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Re: buying real estate
[ QUOTE ]
OK. Another question. Say I have a loan for $200K. Have a good year of poker and decide to pay back $100K of the loan. How does this effect my mortgage payments? Would they just get halved? [/ QUOTE ] I think this came up when KungFu dood wanted to pay off his parents mortgage. The general feeling if I am correct is that he should just invest the cash and pay off the mortgage at it's normal pace.
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#78
10-12-2005, 05:57 PM
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Re: buying real estate
[ QUOTE ]
OK. Another question. Say I have a loan for $200K. Have a good year of poker and decide to pay back $100K of the loan. How does this effect my mortgage payments? Would they just get halved? [/ QUOTE ] No, they would not, It just means that you will payoff your mortgage in a shorter amount of time. If you want to reduce your payments you will have to refinance.
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#79
10-12-2005, 05:58 PM
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Re: buying real estate
[ QUOTE ]
I borrow $200K, pay $1200 per month for 30 years, then I have to pay the bank $200K, right? [/ QUOTE ] no, at 1200 a month after 30 years you would owe the bank nothing
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#80
10-12-2005, 05:58 PM
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Re: buying real estate
[ QUOTE ]
[ QUOTE ] [ QUOTE ] OK, and at the end of that I have to repay the $200K right? [/ QUOTE ] Repay? [/ QUOTE ] I borrow $200K, pay $1200 per month for 30 years, then I have to pay the bank $200K, right? [/ QUOTE ] No, after the 30 years you are done. You get a satisfaction of mortgage and that's it.
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