Why owning a home is better than renting

[Bowak]

my gf and i bought a house in december and we loved the house. Right now we are trying to make our home look more lively. so far its going really good.we have a budget program in the computer and we make sure that we stay on the budget and its going pretty well...word of the wise...always at all times expect the unexpected..it can sneak up on u like that.

As far as I know, we have been staying on top of our budget for the house and things we need. We got a garage sale coming up next weekend and the money will go toward to the land we have bought in the backyard. so a little pressure is there lol.

if anyone of you are buying a house MAKE SURE YOU KNOW WHAT YOU ARE DOING OR KNOWING WHAT U WANNA DO.

I love the house...it gives us good feeling..not having to deal with the landlord lol.

 

[Foxrac]

thats correct.

also many people are on foreclosure is because they choose the wrong loan.. a big mistake that they made.

back during the LOW interest rate days.. many people opt to choose 5 year ARM, 3 year ARM or 7 YEAR... that means the interest rate will be the same for 3,5,or 7 years.. then will be adjustment rate..

for example a person bought a house for $150,000 with interest rate 4.75% 3/1ARM in 2002 and the payment is around $625 a month.

then in year 2005 their 3 year ARM is done now they face a interest rate of 10% and their payment can be around $1400 a month.. you see it doubles the monthly payment

this is how many foreclosure is going on nationwide. now there are few banks are going backrupty because they lure the wrong people and they busted their high hopes plan.


so when you apply for a loan... my recommand is...... GO FOR FIXED RATES 30 or 40 year! don't choose any ARM

the majority of ARM is because the mortgage payment is cheaper.. and most people can use that to buy more expensive home so banks offer this ARM to people.. but this is totally WRONG.

Oh, that's interesting, also good posting.

 

[Foxrac]

I envy you, I wish I did buy any home when I was very young. I never have had any own house. I tried very hard to paying off my debts and save some money to put down payment on condo or townhouse. In Massachusetts is awful cost of living. You can earn less than 20 dollars at your job a hour to meet cost of living here. Tax propery is awful higher here !! It is so discouraged me !!

I constantly work two jobs to struggle with this state economic! My goal is paying off my debts then saving some money to put down payment on the house.

Your plan is excellent with using your good common sense. I envy you.

Kalista

I'm suggesting that you need move to Atlanta and enjoy yourself in southeast USA.

 

[webexplorer]

I found me the cheapest home to own ...

Go to Google and typed Shack house and when you see Royalty free stock image/Old Shack House/iStockphoto.com, click on that and you'll see what my new house looks like LOL!!!

Taadaaaaaaah

What a lovely house! Do you really own it? That picture is interesting, and I have never seen this before when I was a house inspector. I bet that hundreds of termites ruined the house especially old people didn't take care of their house. I think it is pretty common.

 

[webexplorer]

My first house was only cost $61,500, little cute house, and it goes up to $82,000 so I sold it. I earned $20,500 subracted by government tax, so I earn about $10,500 and I only lived there for 6 months. Then now I own a big land with mobile home on for $105,000 and had been living here since about 8 months. This land is not my FULL owned, it's part of my parent's invest too, we are planning to set up condos/townhouses, and we can make 5 times than we bought the land. I only own 30 percent of the land and my parents own 70 percent so we could earn about $500,000 and the government will take about $50,000 away and left is $450,000. So I will earn 30 percent of that money so it should be about $150,000 I benefit and my parents benefit $300,000.

Are you kidding me that you guys had to pay $50,000 to the government for a property tax? Just remind you to send your check to Webexplorer Tax Department next year...

But one thing I would never recommend is this plan:

You buy $120,000 house and improve it raise to $200,000

That makes sense to me.

 

[Hwy99]

Are you kidding me that you guys had to pay $50,000 to the government for a property tax? Just remind you to send your check to Webexplorer Tax Department next year...

Well, that is because we will not own that property for 2 years. If we own that property till after 2 years, we don't have to.

That makes sense to me.

Yupp, that plan actually are ruining the house marketing.

 

[Deaf Mortgage]

Renter vs Ownership has its pros and cons. I have listed few things to consider about ownership of a home. Not to scare you off but to protect you from filing foreclosure and bankruptcy.

1. Budget and familiarize your ability to afford the house. Old rule of thumb says 25% to 33%. Nowadays, many lenders offers 42% to 55%. That means higher risk. Just be comfortable with your monthly payment. Do not MAX out your budget on the house and become slave to the house payments.

2. Go for fixed mortgage payment. Any terms like 5, 10, 15, 20, 30, 40 years will do depend on your income. Your monthly mortgage with principal and interest always remain the same for the term that you signed up. However, escrow that includes property tax, home insurance, and association fee (fees that Condo and Town homes have) will always increase every year. That only number you will continue to see increasing.

3. If you want to save money monthly, then save at least 20% of the house value. That way you can avoid Mortgage Insurance. That could be from 80 to 300 depending on value of the home loan. That way you will only pay 80% of the house loan mortgage at lower monthly cost.

4. Make sure your debts are low compared to your income. You do not want to exceed 42% Debt to Income ratio (including the house mortgage if any). That way you do not need to file bankruptcy or slip into foreclosure during the time of hardship. Debts that lenders looking for are car payments, rent, mortgage, student loans, medical bills, credit cards etc...

5. Do not be impulsive buying a home. Take your time, survey your community and see how things going. Make sure you can handle mortgage monthly. Get a pre-approved letter before you decide your budget and amount of the house value to look into. Pre-approved is a major difference from pre-qualified letter. Pre-approved means you already applied for a loan and a lot Real Estate love to see this and easier to work with. Do the loan one to two months before you make your first bid on house. Shorter span of time means more fees and stress on both side.

6. Make sure you have at least credit score of 680 to get good interest rates at any given bank or lender. Below 680... you might have to face higher interest rate or higher fees. And buyer beware that if you go to several bank or broker, they will check your credit score. Too many companies check your credit score can pull down your credit score. So choose wise who you work with before approve them to check your credit score.

Prism Mortgage Inc has several deaf loan officers in Minnesota. We are working on development mortgage education to the Deaf community national wide.

Feel free to contact me and ask more questions regard of buying a home. If you want to apply for a loan, contact me. Yes I am deaf if you are wondering.

 

[webexplorer]

My two friends are on SSDI. They worked at a company for over 10 years, and they both were laid off. They have been searching a job for a least two years. Now, one of them found a job and will have a job interviewer next week.

Now, I am not sure how this work with a bank. If they want to loan some money from the bank like buying a house, is it likely that the bank would reject them because they are on SSDI and no job for two years? Now, I believe that this person will get a job.

 

[shel90]

Renter vs Ownership has its pros and cons. I have listed few things to consider about ownership of a home. Not to scare you off but to protect you from filing foreclosure and bankruptcy.

1. Budget and familiarize your ability to afford the house. Old rule of thumb says 25% to 33%. Nowadays, many lenders offers 42% to 55%. That means higher risk. Just be comfortable with your monthly payment. Do not MAX out your budget on the house and become slave to the house payments.

2. Go for fixed mortgage payment. Any terms like 5, 10, 15, 20, 30, 40 years will do depend on your income. Your monthly mortgage with principal and interest always remain the same for the term that you signed up. However, escrow that includes property tax, home insurance, and association fee (fees that Condo and Town homes have) will always increase every year. That only number you will continue to see increasing.

3. If you want to save money monthly, then save at least 20% of the house value. That way you can avoid Mortgage Insurance. That could be from 80 to 300 depending on value of the home loan. That way you will only pay 80% of the house loan mortgage at lower monthly cost.

4. Make sure your debts are low compared to your income. You do not want to exceed 42% Debt to Income ratio (including the house mortgage if any). That way you do not need to file bankruptcy or slip into foreclosure during the time of hardship. Debts that lenders looking for are car payments, rent, mortgage, student loans, medical bills, credit cards etc...

5. Do not be impulsive buying a home. Take your time, survey your community and see how things going. Make sure you can handle mortgage monthly. Get a pre-approved letter before you decide your budget and amount of the house value to look into. Pre-approved is a major difference from pre-qualified letter. Pre-approved means you already applied for a loan and a lot Real Estate love to see this and easier to work with. Do the loan one to two months before you make your first bid on house. Shorter span of time means more fees and stress on both side.

6. Make sure you have at least credit score of 680 to get good interest rates at any given bank or lender. Below 680... you might have to face higher interest rate or higher fees. And buyer beware that if you go to several bank or broker, they will check your credit score. Too many companies check your credit score can pull down your credit score. So choose wise who you work with before approve them to check your credit score.

Prism Mortgage Inc has several deaf loan officers in Minnesota. We are working on development mortgage education to the Deaf community national wide.

Feel free to contact me and ask more questions regard of buying a home. If you want to apply for a loan, contact me. Yes I am deaf if you are wondering.

My husband and I followed all these steps and we are in the process of buying a home but I cant help but be nervous. It is such a huge commitment. Our settlement date is July 30th. My knees pratically shake at the thought of paying a mortgage..LOL!

 

[TFWFalcon]

Make sure look around house anything like missing items or damage then go reports before you and your hubby sign forms. There is lot signs all the forms ( loans, titles and insurance......bah bah la la la sign again again....too much to do. After done that you and your hubby will feel great become own house.

Good Luck Shel90

 

[shel90]

Make sure look around house anything like missing items or damage then go reports before you and your hubby sign forms. There is lot signs all the forms ( loans, titles and insurance......bah bah la la la sign again again....too much to do. After done that you and your hubby will feel great become own house.

Good Luck Shel90

Awww thanks..we hired an inspector last week and he found several problems so we had to hire specialists for some of the problems like an engineer, heater specialist, and whatever...guess what? The seller agreed to fix all these problems by licensed contractor. Good thing cuz all those specialist are breaking our bank!!! I am teaching summer school for the extra money..LOL! This house is sooooo adorable and I love it but if the seller refused to fix those problems, we would have backed out for sure..not worth buying a house with major problems. However, we are getting a VA loan and the criteria of the condition of the house are very strict so before we get approved fully for the loan, the house has to pass THEIR inspection. That's fine with me cuz if the house does pass that means the house is completely problem free! At least in the major areas...

 

[webexplorer]

Shel90[/QUOTE]

Be careful with your contract. It could be your new home like this by error:

 

[shel90]

Shel90

Be careful with your contract. It could be your new home like this by error:

[/QUOTE]

U know what? That's what my new house looks like! How did u find it?

 

[Foxrac]

Awww thanks..we hired an inspector last week and he found several problems so we had to hire specialists for some of the problems like an engineer, heater specialist, and whatever...guess what? The seller agreed to fix all these problems by licensed contractor. Good thing cuz all those specialist are breaking our bank!!! I am teaching summer school for the extra money..LOL! This house is sooooo adorable and I love it but if the seller refused to fix those problems, we would have backed out for sure..not worth buying a house with major problems. However, we are getting a VA loan and the criteria of the condition of the house are very strict so before we get approved fully for the loan, the house has to pass THEIR inspection. That's fine with me cuz if the house does pass that means the house is completely problem free! At least in the major areas...

Wow, you got nice house in ghetto of PGC?

Please correct me if wrong...

 

[Rollover]

This is my first home and one thing for sure is that I wanted to quickly end the monthly payments. For me; 15 years mortgage,
and pay one extra payment per year = 13 payments in 12 month period has knocked down a ton of interest and time. I know it's differcult thing to do but in the end it pays itself. One way of doing this is to divide one payment into 12 and add that amount extra to your monthly payment. Does this make sense? The slang would be "working on the back end."

 

[Deaf Mortgage]

My two friends are on SSDI. They worked at a company for over 10 years, and they both were laid off. They have been searching a job for a least two years. Now, one of them found a job and will have a job interviewer next week.

Now, I am not sure how this work with a bank. If they want to loan some money from the bank like buying a house, is it likely that the bank would reject them because they are on SSDI and no job for two years? Now, I believe that this person will get a job.

With SSDI... it a source of income. The bank will want to see the letter of SSDI statement. The bank will gather every available source of incomes and choose which is best income(s) to report to lender and meet the criteria.

 

[Deaf Mortgage]

My husband and I followed all these steps and we are in the process of buying a home but I cant help but be nervous. It is such a huge commitment. Our settlement date is July 30th. My knees pratically shake at the thought of paying a mortgage..LOL!

I am glad you are on the right track.

 

[Deaf Mortgage]

This is my first home and one thing for sure is that I wanted to quickly end the monthly payments. For me; 15 years mortgage,
and pay one extra payment per year = 13 payments in 12 month period has knocked down a ton of interest and time. I know it's differcult thing to do but in the end it pays itself. One way of doing this is to divide one payment into 12 and add that amount extra to your monthly payment. Does this make sense? The slang would be "working on the back end."

The sooner you pay off your mortgage, the more interest you save. If you just follow the "Installement schedule", you will end up paying twice the amount of the house you orginally owned 30 years before. Example, $200,000 at any given interest rates such as 6.5%... you will pay about $220,000 of interest only in the same 30 year term. So when you sell the house. You profit nothing in long run. You end up paying $420,000 in length of 30 years. Then you might sell it for around $370,000 to $400,000. SO the sooner you pay off, the bigger profit your house will yeild.

There are several programs out there that can help you to pay off your mortgage before the targeted date. The one I know so far, Money Merge Account has program that can help you to tackle your mortgage payment and cut down the time by half. Say 30 years... it can be paid off 8 to 10 year with no other debts. With other debts, then 15 to 20 years. Thats saves you a lot of interest.

13 month a year payment could work. But that can hurt your budget because you are coughing up 13th payment a year. Well that depend on your budget.

 

[Kalista]

I have been discourage to look around the right condo what I like the design. Some of the condo has no balcony and kitchen has the window. I don’t like the kitchen without window because I have claustrophobia. I require having more windows to view. Some of maintained fee include repair, insurance and heat. In Massachusetts is very high tax on the small property, it makes me so discourage. My qualification loan was limited what I can afford to purchase two bedrooms condo in my hometown. I am so frustrated to find a right condo. I keep to look around and around since October 2006 to now. My real estate, she is so nice and gives me a good advice to buy a place with more security condition to prevent to spend more money on the repair or revocation in the future.

I saw the place but my real estate stated, “they are selling it as is which means that if there are any problems with the home inspection you have no options and they do not have to do anything to fix a potential problem. I can not tell you what to do but that is my advice...”. I am glad that she tells me the truth. I am so impressed of her.

I only can afford to pay the mortgage less than $980 a month includes tax property. I can’t afford over 1,200 dollars for 30 years. I am almost 50 years old. Why should I continue to work two jobs until I die? I am looking for less than 5.4 % increase on the mortgage fix than adjust.

I gave up looking for the condo.

 

[Kalista]

I am tired of pay my rent to the landlord over ten years ! My investment gone.