|
|
|
|
#1
04-21-2005, 11:51 AM
|
|||
|
|||
Re: Buying a house
baught?
|
|
#3
04-21-2005, 04:37 PM
|
|||
|
|||
|
Re: Buying a house
[ QUOTE ]
[ QUOTE ] baught? [/ QUOTE ] is this necessary? no i do not believe it is. [/ QUOTE ] It is. It provides necessary information about OP that will better allow us to gauge his ability to understand and apply various pieces of advice given in this thread. Freakin
|
|
#4
04-21-2005, 04:48 PM
|
|||
|
|||
|
Re: Buying a house
Welllll.... I can tell you that when I bought a house (WITH a regular day job), the process included me presenting a current pay stub and three years of tax returns. Yes, they phoned my employer's HR department, and verified how long I had worked there and that my employment was expected to continue.
In general, the more you put down and the higher your interest rate, the easier it is to get a loan. I would not be surprised if you get turned down a time or three. Also in general - DO put down at least 20% even if you can get a loan without doing so. Mortgage insurace is a huge unnecessary dent in your paycheck, and paying off the first 20% of your mortgage to avoid it is right behind paying your credit cards off as far as +EV financial decisions go. There are upsides to mortgaging the remaining 80% of the house and investing your spare money elsewhere especially if you are very rich or it's a very expensive house. But if you're buying a house worth under 200k like us mere mortals, there is no gain from the interest deduction, and if you have any trouble with the bank, I would seriously consider saving up another year's worth of winnings and buying a small house outright.
|
|
#5
04-21-2005, 05:33 PM
|
|||
|
|||
|
Re: Buying a house
This is poor advice imho, I have many friends that are older than I and have more funds(way more), when I "baught" my first house(2nd property), they all told me the same thing, buy the biggest you can afford. The cheapass that Iam went down a little in price so that I could safely make extra payments every month(i'm anal like that), which I do. If I had spent a little more on the house I would have a bigger house worth more and 3 years later now, Id have more equity and the difference in the payment was minimal(I'm making about the same payment anyway).
In a few years youll be glad you got sommething worth a little more, its not like a car wheer it is worth less every year, as the real estate market grows, and it does everywhere, your value will too. BTW, where are you looking to buy? tobdog *These are my opinions, not those expressed by 2+2 or any of their affiliates, sponsors, etc. Tobdog inc. investments carry market risk and you should connsult with your finantial advisor as well as your tax advisor before making any investment that may be at risk of lisong value due to market volitality.
|
|
#6
04-21-2005, 06:16 PM
|
|||
|
|||
|
Re: Buying a house
[ QUOTE ]
This is poor advice imho, I have many friends that are older than I and have more funds(way more), when I "baught" my first house(2nd property), they all told me the same thing, buy the biggest you can afford. [/ QUOTE ] That's what mortgage brokers and realtors tell everyone, shouldn't be hard to figure out why. Better advice, IMO, is to buy a more resonable house that suits your needs, and pay it off way early. Then you take your former mortgage payment and invest it in whatever. And don't give me tax deductible interest blah blah, why would I want to pay 10K in interest to save 3K in taxes? Debt = risk.
|
|
#7
04-21-2005, 06:22 PM
|
|||
|
|||
|
Re: Buying a house
Better advice, IMO, is to buy a more resonable house that suits your needs, and pay it off way early. Then you take your former mortgage payment and invest it in whatever.
think about what you typed. then think about it some more. then think about what the stock market generally returns if you are long term investor. then think about what a typical mortgage interest rate is. then tell me again why paying your mortgage off early is smart?
|
|
#8
04-21-2005, 06:48 PM
|
|||
|
|||
|
Re: Buying a house
[ QUOTE ]
Better advice, IMO, is to buy a more resonable house that suits your needs, and pay it off way early. Then you take your former mortgage payment and invest it in whatever. think about what you typed. then think about it some more. then think about what the stock market generally returns if you are long term investor. then think about what a typical mortgage interest rate is. then tell me again why paying your mortgage off early is smart? [/ QUOTE ] For some people it's a huge psychological burden lifted off their shoulders. Also, a lot of people don't expect the market to return as much as the past average over the course of the next few decades.
|
|
#9
04-21-2005, 06:56 PM
|
|||
|
|||
|
Re: Buying a house
[ QUOTE ]
think about what you typed. then think about it some more. then think about what the stock market generally returns if you are long term investor. then think about what a typical mortgage interest rate is. then tell me again why paying your mortgage off early is smart? [/ QUOTE ] No need for the insulting tone, I understand all that. It's all about your risk tolerence level I guess. Debt = risk. If my mortgage rate is 5%, and I can get 8-9% from mutual funds (Don't tell me about the 20% returns you got in the last week, i invest for the long term) The 3% extra I get for those few years is worth less to ME that the peace of mind and awesome cash flow I can get from living in a paid off home. YMMV. I'm not talking about 15 years, I'm talking about paying it off in 7 or 8. That's the beauty of not buying "the biggest house you can possibly afford" If your portfolio is so huge that the 3% extra over 8 years comes out to a huge amount, I see your point.
|
|
#10
04-21-2005, 06:25 PM
|
|||
|
|||
|
Re: Buying a house
[ QUOTE ]
[ QUOTE ] This is poor advice imho, I have many friends that are older than I and have more funds(way more), when I "baught" my first house(2nd property), they all told me the same thing, buy the biggest you can afford. [/ QUOTE ] That's what mortgage brokers and realtors tell everyone, shouldn't be hard to figure out why. Better advice, IMO, is to buy a more resonable house that suits your needs, and pay it off way early. Then you take your former mortgage payment and invest it in whatever. And don't give me tax deductible interest blah blah, why would I want to pay 10K in interest to save 3K in taxes? Debt = risk. [/ QUOTE ] My understanding is that ALL of the interest on a mortgage is tax deductible.
|
 |
|
|
Hybrid Mode
