Why owning a home is better than renting

Deaf Mortgage said:
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.
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Indeed, I agree and its good for people who wants to pay their loan faster to shorten the life of the loan. As for me, I may be differ. I'd pay 4% 30 year fixed loan. Claim all deductions on taxes paid. Save several hundred dollars into my high yield account. Every year I deposit all my tax refund checks into my account as well, knowing that I have massive cash reserve for whatever I need even I lose my job due to restructures, layoffs, corporate collapse or resignation

For example. Pay off mortgage faster with or little no savings. Lost your job and haven't found a job for about 6 months. To maintain your mortgage repayments, cut down all the lifestyles you love. I am sure Unemployment check can help you personally and your family but not enough to meet mortgage repayments. Sell off your fixed assets or worse facing foreclosures and possibly lead to bankruptcy. The worse part is that YOU WONT GET YOUR MONEY BACK BECAUSE YOU PAID OFF LOAN FASTER

My example. Got laid off, applied and receives UI checks. Look for work for about 6 months until I got the job back and I still have my house, car and the lifestyle my family loves. Why? Because I have the cash reserve in my high yield account that I can access to meet mortgage payments.

Whereas I will have very large cash available at the end of the mortgage, along with a very strong equity. All thanks to the IRS and my monthly savings. Many people claims that they can get cash from house after being sold. I agree with this, but it all about waiting game.

Need strong financial advice and wants IRS to be your friend that gives you refund checks annually? Speak to your advisor or PM me and I will email you PDF with detailed information how it works
 
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webexplorer said:
I am confused what you said in your post.

Are you saying that you hired an inspector to inspect your house?

If yes, you are not supposed to pay your inspector because the buyers' bank is the one that hires an inspector because they loaned the money from their bank. The bank wants to make sure that the house is in a good condition so that they can get the money to buy your house. If the inspector finds some things that need to be repaired, then you need to pay for the repairs unless a buyer is willing to pay for it. Most buyers want the sellers to pay the repairs.
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No the buyer pay for the inspection due to make sure the house in good condition before the buyer can go ahead buying the house or back out. That is what happened to me on the last house before this one. The seller refused to fix the spectic system cost about 15,000 and I backed out.
 
shel90 said:
Matter of fact, my husband's parents hired an inspector too for their new home..same thing with my friends. It must the procedures for MD.
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In my state, the potential buyers hire the inspectors, too. The banks aren't involved with the inspection. The lender is more interested in the appraisal value, not the inspection.
 
Reba said:
In my state, the potential buyers hire the inspectors, too. The banks aren't involved with the inspection. The lender is more interested in the appraisal value, not the inspection.
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Oh I get it now. Of course, the appraisal value. I wasn't thinking of that one. I'm awake in the morning.

Shel90, I'm sorry I wasn't pay attention myself what I read your post. I am kind of embarrassed myself.
 
webexplorer said:
Oh I get it now. Of course, the appraisal value. I wasn't thinking of that one. I'm awake in the morning.

Shel90, I'm sorry I wasn't pay attention myself what I read your post. I am kind of embarrassed myself.
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Dont feel embarrassed. :) It is all cool.
 
Reba said:
In my state, the potential buyers hire the inspectors, too. The banks aren't involved with the inspection. The lender is more interested in the appraisal value, not the inspection.
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Right..those are the same procedures we are doing...the lender is supposed to send an appraiser...just found out today that an appraiser was sent last week but my lender said they didnt send the appraiser. Weird...nobody knows who the appraiser was sent by. The sellers said they didnt hire the appraiser either...oops someone is not getting paid? :eek2:
 
webexplorer said:
shel90

Thanks. Is it everything under control?
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We are still waiting to see if the sellers will sign the new addendum. This is getting to be a big pain in the ass. Thanks for asking. :)
 
I paid rent 700 a month x 12 months ( one year ) = $8,400

I lived that apartment for ten years and 6 months. I paid total $88,200 dollars to the landlord.

Where my $88,200 dollars is ?? Why are you waiting for purchase your own condo or small house? After five years, the valuable will be going up, it is depend on the market.

You can sell your own home and profit some of the investment to buy another extra home with your happiness.

I can enjoy my new home for years to come !!! I will be final move in a new condo on August 28th. :D

How wonderful that I have achieved the American dream of home ownership. My fingers crosses the closing goes smoothly and I am able to move on schedule.

This is also a PERFECT time to get the boys in line with me to pick up family contributions.
 
Kalista said:
I paid rent 700 a month x 12 months ( one year ) = $8,400

I lived that apartment for ten years and 6 months. I paid total $88,200 dollars to the landlord.

Where my $88,200 dollars is ?? Why are you waiting for purchase your own condo or small house? After five years, the valuable will be going up, it is depend on the market.

You can sell your own home and profit some of the investment to buy another extra home with your happiness.

I can enjoy my new home for years to come !!! I will be final move in a new condo on August 28th. :D

How wonderful that I have achieved the American dream of home ownership. My fingers crosses the closing goes smoothly and I am able to move on schedule.

This is also a PERFECT time to get the boys in line with me to pick up family contributions.
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Good luck and hope everything goes smoothly for u!

I agree with u about throwing money away on rent. Rent is ok for certain situations but in the long run, there is no investment with rent. I have been renting for over 10 years at different places so I am ready for home ownership too..

The house that we are buying (if everything goes smoothly) was appraised at $275K and we are buying it for $260K so already we will get equity on it from the start. It is a buyer's market now cuz sellers are desperate to sell. :)
 
webexplorer said:
I am very surprised to read yours. I suspected something is not right. It sounds that they are advantage of you for the inspector because you are deaf. They think that you don't know a lot about it.

For me, big NO paying the inspector. It's the bank's job. That's it. I sold my house last year. Whew! It was a hard job for me to move things out fast. I was really glad that they were not crabby to me.

Last year, my deaf friend sold his house. He found out that three buyers are the same people - a father, a daughter, and a daughter's boyfriend. The realtor didn't realize it. They made a trick gambling to buy it for a lower price. It is illegal, but they did it anyway. I didn't want to ask him how does that happen because he lost 6 thousands dollars. I don't know how it worked for them. I rather back off.
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Oh my gosh, it is so unbelievable !!! Blow my mind out !
 
shel90 said:
Good luck and hope everything goes smoothly for u!

I agree with u about throwing money away on rent. Rent is ok for certain situations but in the long run, there is no investment with rent. I have been renting for over 10 years at different places so I am ready for home ownership too..

The house that we are buying (if everything goes smoothly) was appraised at $275K and we are buying it for $260K so already we will get equity on it from the start. It is a buyer's market now cuz sellers are desperate to sell. :)
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Oh yeah, they are extremely competitive to sell their condos right now. The market is very low in State of Massachusetts. Alot of people are selling their homes due to cost of living is awful high in this state. They move down to south due to cheaper cost of living.
 
shel90 said:
Good luck and hope everything goes smoothly for u!

I agree with u about throwing money away on rent. Rent is ok for certain situations but in the long run, there is no investment with rent. I have been renting for over 10 years at different places so I am ready for home ownership too..

The house that we are buying (if everything goes smoothly) was appraised at $275K and we are buying it for $260K so already we will get equity on it from the start. It is a buyer's market now cuz sellers are desperate to sell. :)
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a strong suggust.. don't get any money out of equity alot of people are facing conquence with equity loans. and it varies with variable interest loan, selling and didn't get a profit at all and still owe the equity loan after selling, and many to list...
its just a dirty business such as credit cards do.
 
DeafSCUBA98 said:
a strong suggust.. don't get any money out of equity alot of people are facing conquence with equity loans. and it varies with variable interest loan, selling and didn't get a profit at all and still owe the equity loan after selling, and many to list...
its just a dirty business such as credit cards do.
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Not gonna do that for probably 5 years...want to do that for remodeling the kitchen and build a deck but wait for 5 years. Not now..no way. Just enjoy the house. :)

Thanks
 
DeafSCUBA98 said:
a strong suggust.. don't get any money out of equity alot of people are facing conquence with equity loans. and it varies with variable interest loan, selling and didn't get a profit at all and still owe the equity loan after selling, and many to list...
its just a dirty business such as credit cards do.
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Equity loan is good for house needs as much revocation kitchen, family room, or basement. Not recommand loan for car,RV,vacation like that.
 
In near future, I wouldn't mind to own house but too impossible to own house in LA metro due skyrocketed real estate, if not then I would live in apt.
 
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