Printable View
It's just semantics I suppose. Lets just say that it is a "Home" with an investment component that carries a moderate level of risk :-)Quote:
Originally Posted by LodgeDodger
My comments were basically saying that some people are too stupid to buy a home [[the truth hurts) and some bankers have the improper morals to be able to sell mortgages. The people who have to foot the bill are the ones who are really being screwed here, for making the right choices nonetheless.
Same here. I bought my place 7 years ago [[30 year fixed at 5.5%) and really thought I was getting a deal. I did the math, broke my expenses out excel-style to the dime. My lender qualified me for a loan 3 times what I truly could afford. [[25% of take home -Principal, Interest, Taxes & Insurance) It was tempting, thankfully I said no. Found a great place in Hamtown that today takes up 15% of my take home pay.Quote:
Originally Posted by guito13
Today I am severely upside down. My initial 20% equity is toast! That buffer that was originally mandated to protect one from losing their home to unforeseen incidents like temporary unemployment etc.
I haven't taken a HELOC or sought refinancing options though I have received dozens of solicitations. Comps show 5 houses that recently sold for $10,000 or less. The key is I was in a position for this to happen. I was realistic. I did not take an ARM HOPING that my salary would double in 3-5 years. One should never take a mortgage based on future expectations like a salary increase or taking on a roommate to offset the cost.
So I did the right thing. Hurray for me. I can curl up on the couch and not have to worry as much about money as many others do. Awesome. Then I remember that 30% chunk taken from my paycheck every two weeks that is sent off to fill in the ever-widening hole created by American greed. I sure as hell know it is not being used to provide state and local services that I can benefit from. Perhaps I should squat out a few children I cannot afford to raise, get "injured" on the job and start collecting WIC, unemployment, social security and apply to THAW to start getting "Mine." Until we check ourselves, those who consistently "do the right thing" will continue to get raped.
My heart goes out to those who were not capable of truly understanding what they were signing, but anyone who thinks they could outsmart the saying "too good to be true" is a fool.
I got lucky and hit the upside of the bubble. I bought a place on the far west side in the late 80s for $40K or so. Got a deal on it then, but not a real great deal with a good interest rate for the time [[ 9% or 10% I think). Refied once when the rates started to drop.
In the late 90s, I wasn't really ready to sell, but I had problems at work and in some other areas and decided to move away. I was shocked to see other houses on the same street selling in the upper 60s and even more shocked when the agent listed it at $75K, far above what I thought it was worth. No way I would have paid that for it, but it sold on the second deal [[first deal fell through).
I got enough to pay off that mortgage and buy another place out in the country outright.
Every house I've bought was at or below MY means, not what the banks thought I could pay. Never missed a payment, even during times I was out of work.
I even went through a bankruptcy, reaffirmed the mortgage on the house mentioned above and never missed a beat. Took a few years to get a decent credit card again, but keeping up the house payments made a big difference there too.
Words of wisdom from Meddle. Don't dig a hole so deep you can't get out of it!Quote:
Originally Posted by Meddle
YAY! Squat in your American homes. sez the Ohio Congresswoman. That's a great ideal. Let the squatters' rights continue.
Got it. My mistake. We are on the same page then.Quote:
Originally Posted by Cincinnati_Kid