dow 24000

[El Correcto]

Subprime loans.


Give people loans for homes they can't afford.

Someone bringing home 60k per year has no business buying a 300k home. Not without a massive downpayment.

I’d think that’s a decent income for that kind of home. It depends, the real problem is if they sign into a flexible interest rate and balance their budget on the lower rate only to have their mortgage spike a couple years in. That’ll end poorly for them.

 

[Brownslave688]

Thank you. Just because the bank will loan you the money doesn't mean it's a good idea.

I'd have to have about 50% down to even consider buying a house 5x my wife and I annual income.

 

[El Correcto]

I'd have to have about 50% down to even consider buying a house 5x my wife and I annual income.

The truth is some people won’t have that money. People aren’t blessed. I think it’d be a better move to get out of the rent race ASAP and start investing your money into a home. At least then you won’t be paying 15-20k a year in my area with 0 return long term.

 

[Brownslave688]

I’d think that’s a decent income for that kind of home. It depends, the real problem is if they sign into a flexible interest rate and balance their budget on the lower rate only to have their mortgage spike a couple years in. That’ll end poorly for them.

At 60k let's say they bring home 900 a week. You're talking half of their monthly take home tied up in a mortgage after taxes and insurance and likely pmi are added.

Not a recipe for financial success

 

[Brownslave688]

The truth is some people won’t have that money. People aren’t blessed. I think it’d be a better move to get out of the rent race ASAP and start investing your money into a home. At least then you won’t be paying 15-20k a year in my area with 0 return long term.

Sure you will. There's zero return on your taxes there's zero return on the insurance one pays. Zero return on pmi. You need savings to pay for repairs or you're going negative when you put it on a credit card.

Homeownership isn't all it's been cracked up to be.

 

[El Correcto]

At 60k let's say they bring home 900 a week. You're talking half of their monthly take home tied up in a mortgage after taxes and insurance and likely pmi are added.

Not a recipe for financial success

There’s lots of variables to consider. Do I think it’s smart to buy that house, most likely not. Do I think it’s possible and could end well, yes.

 

[MAKAVELI]

Well obviously then, a mortgage application does not ask for reality.

Reality is a family of 4 will have more debt than a single person. I don't know why that is too hard for you to understand. Must be all those years in UPS management that has you believing in fairy tales.

 

[El Correcto]

Sure you will. There's zero return on your taxes there's zero return on the insurance one pays. Zero return on pmi. You need savings to pay for repairs or you're going negative when you put it on a credit card.

Homeownership isn't all it's been cracked up to be.

That’s all true. Especially home ownership being difficult. Variables and uncertaintity. I just rather be paying to own than paying to rent. If done properly it pays off, you can even profit doing so. You’ll never profit renting unless you compare it to owning disasters.

 

[Catatonic]

That’s all true. Especially home ownership being difficult. Variables and uncertaintity. I just rather be paying to own than paying to rent. If done properly it pays off, you can even profit doing so. You’ll never profit renting unless you compare it to owning disasters.

Renting may make sense for a person or couple when they are retired.
One should definitely not retire with a mortgage payment.

 

[Catatonic]

PS2 - I'll go ahead and report this post so will not have to.

Barack Obama Mic Drop

X

He reported it! LOL

 

[eats packages]

Hey guys, I make $25000 a year, I drive by 5 homeless people on my way to work every day, Everyone can afford stock, partake in these tax cuts and certainly buy a home smdh.

homes are the worst investments...

 

[1989]

Hey guys, I make $25000 a year, I drive by 5 homeless people on my way to work every day, Everyone can afford stock, partake in these tax cuts and certainly buy a home smdh.

homes are the worst investments...

Your home is a lifestyle, not an investment.

 

[1989]

Reality is a family of 4 will have more debt than a single person. I don't know why that is too hard for you to understand. Must be all those years in UPS management that has you believing in fairy tales.

I raised 4 kids with very little debt. Just a car payment at times.

 

[1989]

At 60k let's say they bring home 900 a week. You're talking half of their monthly take home tied up in a mortgage after taxes and insurance and likely pmi are added.

Not a recipe for financial success

900 a week is 4,050 a month. If one is paying 1500 for an apartment, why can’t they afford a 1500 mortgage?

I bought a 300k home making 64k. Had 3 kids at the time. My residence is only a lifestyle choice, not an investment.

One should only spend what they feel they can afford. In 2016 I got an approval letter for 670k. I settled for much less.

 

[MAKAVELI]

900 a week is 4,050 a month. If one is paying 1500 for an apartment, why can’t they afford a 1500 mortgage?

I bought a 300k home making 64k. Had 3 kids at the time. My residence is only a lifestyle choice, not an investment.

One should only spend what they feel they can afford. In 2016 I got an approval letter for 670k. I settled for much less.

Because a $1500 mortgage is more when you include ins. and taxes.

 

[MAKAVELI]

I raised 4 kids with very little debt. Just a car payment at times.

I know and I had to walk 15 miles one way to school.

 

[1989]

I know and I had to walk 15 miles one way to school.

You had it rough. I had a trans am.

 

[MAKAVELI]

You had it rough. I had a trans am.

I'm talking grade school.

 

[1989]

I'm talking grade school.

I only walked about a mile, cutting through the woods.

 

[MAKAVELI]

I only walked about a mile, cutting through the woods.

Lucky you.