Rent Forever, Don’t Buy A Home

[wawaweewa]

Originally Posted by Wr

Originally Posted by wawaweewa

Originally Posted by Supermanblue79


What's $6,400 annually compared to upwards of $16,000 annually?  Owning is still a better situation once a house is paid off.
And paying an extra $100 to $200 a month on the principle will take the average 30 year mortage to 15 years.

After you've already poured 300k+ into something and supposedly "own" it? It's not about the money. 
Paying an extra 100-200 a month on what principle? I doubt if would move it from 30-15. 

If you add extra principle only payments to your mortgage payment you can. You'd be surprised how much of your money in a mortgage payment goes toward interest. It's usually after around 10- 15 yrs before the part of your payment going towards principal and interest level out. Only in the later portion of your mortgage does a good chunk of your monthly payment actually go to the house principal. The bank get's their money first. 

I understand that but 100-200/ month on what principle amount? What percentage would that be of the principle? The principle amount matters more than the added payments in this case. 

theyre idiots. interest rates are historically low, home prices are low. perfect time to by a house. you need a fixed asset that you can sit on for 10-15 years.

[font=Arial, Helvetica, sans-serif]bull +%!!. Back in 2003 or 2004 I handled the refinancing for my parents house and we got 4.75%. Now that's low. [/font]

[font=Arial, Helvetica, sans-serif]
[/font]

[font=Arial, Helvetica, sans-serif]Try getting that now even with ZIRP running for nearly 3 years. The vast majority of buyers won't get below 5.5% even today. [/font]

 

[wawaweewa]

Originally Posted by Wr

Originally Posted by wawaweewa

Originally Posted by Supermanblue79


What's $6,400 annually compared to upwards of $16,000 annually?  Owning is still a better situation once a house is paid off.
And paying an extra $100 to $200 a month on the principle will take the average 30 year mortage to 15 years.

After you've already poured 300k+ into something and supposedly "own" it? It's not about the money. 
Paying an extra 100-200 a month on what principle? I doubt if would move it from 30-15. 

If you add extra principle only payments to your mortgage payment you can. You'd be surprised how much of your money in a mortgage payment goes toward interest. It's usually after around 10- 15 yrs before the part of your payment going towards principal and interest level out. Only in the later portion of your mortgage does a good chunk of your monthly payment actually go to the house principal. The bank get's their money first. 

I understand that but 100-200/ month on what principle amount? What percentage would that be of the principle? The principle amount matters more than the added payments in this case. 

theyre idiots. interest rates are historically low, home prices are low. perfect time to by a house. you need a fixed asset that you can sit on for 10-15 years.

[font=Arial, Helvetica, sans-serif]bull +%!!. Back in 2003 or 2004 I handled the refinancing for my parents house and we got 4.75%. Now that's low. [/font]

[font=Arial, Helvetica, sans-serif]
[/font]

[font=Arial, Helvetica, sans-serif]Try getting that now even with ZIRP running for nearly 3 years. The vast majority of buyers won't get below 5.5% even today. [/font]

 

[lazyj10]

We got I think 4.45% back in Nov.

 

[lazyj10]

We got I think 4.45% back in Nov.

 

[wawaweewa]

Originally Posted by LazyJ10

We got I think 4.45% back in Nov.

You're prob part of the 10 or 15% that are qualified for that rate. After the drubbing most have taken the last 3 years not many are. 

 

[wawaweewa]

Originally Posted by LazyJ10

We got I think 4.45% back in Nov.

You're prob part of the 10 or 15% that are qualified for that rate. After the drubbing most have taken the last 3 years not many are. 

 

[versache530]

Originally Posted by Furrell

Additionally, with the banks still recovering from the sub-prime mortgage debacle, they are making it harder to take out loans to get a home. You have to put at least 20% of the home's value up in addition to having near spotless credit. They aren't playing around anymore. In the short term, depending on where you live, renting is the better option. Its great to own your own home though when everything is paid off.

not true in all cases. ever heard of an FHA loan? put down 3.5% and only need a 620 credit score. if you can't even get a 620 then you don't need a house anyway.

 

[versache530]

Originally Posted by Furrell

Additionally, with the banks still recovering from the sub-prime mortgage debacle, they are making it harder to take out loans to get a home. You have to put at least 20% of the home's value up in addition to having near spotless credit. They aren't playing around anymore. In the short term, depending on where you live, renting is the better option. Its great to own your own home though when everything is paid off.

not true in all cases. ever heard of an FHA loan? put down 3.5% and only need a 620 credit score. if you can't even get a 620 then you don't need a house anyway.

 

[orsrt8]

This is a very entertaining and insightful thread. Sad to see the mentality of some of some you guys. Although if I had to guess they are the younger NT'ers.

 

[orsrt8]

This is a very entertaining and insightful thread. Sad to see the mentality of some of some you guys. Although if I had to guess they are the younger NT'ers.

 

[smallball5]

after reading the replies in this thread, I ask myself how could we have NOT had a mortgage crisis. 

A primary residence shouldnt be looked at as an investment, but as a HOUSE a place to live. If you study finance youll learn that a way to minimize risk is to have a diversified portfolio across all asset classes while making regular contributions (the average persons that tries to time the market/pick stocks underperforms the market, hell even the majority of professional mutual fund managers cant beat the market). Investing in a house poses a huge risk because you are investing in one highly illiquid asset class where forces out of your control (the U.S economy tanking) can destroy your "investment."

 

[smallball5]

after reading the replies in this thread, I ask myself how could we have NOT had a mortgage crisis. 

A primary residence shouldnt be looked at as an investment, but as a HOUSE a place to live. If you study finance youll learn that a way to minimize risk is to have a diversified portfolio across all asset classes while making regular contributions (the average persons that tries to time the market/pick stocks underperforms the market, hell even the majority of professional mutual fund managers cant beat the market). Investing in a house poses a huge risk because you are investing in one highly illiquid asset class where forces out of your control (the U.S economy tanking) can destroy your "investment."

 

[toy collector123]

Originally Posted by wawaweewa

Originally Posted by LazyJ10

We got I think 4.45% back in Nov.

You're prob part of the 10 or 15% that are qualified for that rate. After the drubbing most have taken the last 3 years not many are. 

Just got a 4.0 rate on an investment property. Well then again, my credit score is at 780.

 

[letitshine24]

Originally Posted by wawaweewa

Originally Posted by Wr

Originally Posted by wawaweewa

After you've already poured 300k+ into something and supposedly "own" it? It's not about the money. 
Paying an extra 100-200 a month on what principle? I doubt if would move it from 30-15. 

If you add extra principle only payments to your mortgage payment you can. You'd be surprised how much of your money in a mortgage payment goes toward interest. It's usually after around 10- 15 yrs before the part of your payment going towards principal and interest level out. Only in the later portion of your mortgage does a good chunk of your monthly payment actually go to the house principal. The bank get's their money first. 

I understand that but 100-200/ month on what principle amount? What percentage would that be of the principle? The principle amount matters more than the added payments in this case. 

theyre idiots. interest rates are historically low, home prices are low. perfect time to by a house. you need a fixed asset that you can sit on for 10-15 years.

[font=Arial, Helvetica, sans-serif]bull +%!!. Back in 2003 or 2004 I handled the refinancing for my parents house and we got 4.75%. Now that's low. [/font]

[font=Arial, Helvetica, sans-serif]
[/font]

[font=Arial, Helvetica, sans-serif]Try getting that now even with ZIRP running for nearly 3 years. The vast majority of buyers won't get below 5.5% even today. [/font]

my parents got  a 2% percent fixed for 30 years. now thats low. dont ask me how they did it but they did. i work at citibank and ive seen atleast 10 customers within the past 3 months with a 2% fixed

 

[toy collector123]

Originally Posted by wawaweewa

Originally Posted by LazyJ10

We got I think 4.45% back in Nov.

You're prob part of the 10 or 15% that are qualified for that rate. After the drubbing most have taken the last 3 years not many are. 

Just got a 4.0 rate on an investment property. Well then again, my credit score is at 780.

 

[letitshine24]

Originally Posted by wawaweewa

Originally Posted by Wr

Originally Posted by wawaweewa

After you've already poured 300k+ into something and supposedly "own" it? It's not about the money. 
Paying an extra 100-200 a month on what principle? I doubt if would move it from 30-15. 

If you add extra principle only payments to your mortgage payment you can. You'd be surprised how much of your money in a mortgage payment goes toward interest. It's usually after around 10- 15 yrs before the part of your payment going towards principal and interest level out. Only in the later portion of your mortgage does a good chunk of your monthly payment actually go to the house principal. The bank get's their money first. 

I understand that but 100-200/ month on what principle amount? What percentage would that be of the principle? The principle amount matters more than the added payments in this case. 

theyre idiots. interest rates are historically low, home prices are low. perfect time to by a house. you need a fixed asset that you can sit on for 10-15 years.

[font=Arial, Helvetica, sans-serif]bull +%!!. Back in 2003 or 2004 I handled the refinancing for my parents house and we got 4.75%. Now that's low. [/font]

[font=Arial, Helvetica, sans-serif]
[/font]

[font=Arial, Helvetica, sans-serif]Try getting that now even with ZIRP running for nearly 3 years. The vast majority of buyers won't get below 5.5% even today. [/font]

my parents got  a 2% percent fixed for 30 years. now thats low. dont ask me how they did it but they did. i work at citibank and ive seen atleast 10 customers within the past 3 months with a 2% fixed

 

[wawaweewa]

Originally Posted by LetItShine24

Originally Posted by wawaweewa

Originally Posted by Wr


If you add extra principle only payments to your mortgage payment you can. You'd be surprised how much of your money in a mortgage payment goes toward interest. It's usually after around 10- 15 yrs before the part of your payment going towards principal and interest level out. Only in the later portion of your mortgage does a good chunk of your monthly payment actually go to the house principal. The bank get's their money first. 

I understand that but 100-200/ month on what principle amount? What percentage would that be of the principle? The principle amount matters more than the added payments in this case. 

theyre idiots. interest rates are historically low, home prices are low. perfect time to by a house. you need a fixed asset that you can sit on for 10-15 years.

[font=Arial, Helvetica, sans-serif]bull +%!!. Back in 2003 or 2004 I handled the refinancing for my parents house and we got 4.75%. Now that's low. [/font]

[font=Arial, Helvetica, sans-serif]
[/font]

[font=Arial, Helvetica, sans-serif]Try getting that now even with ZIRP running for nearly 3 years. The vast majority of buyers won't get below 5.5% even today. [/font]

my parents got  a 2% percent fixed for 30 years. now thats low. dont ask me how they did it but they did. i work at citibank and ive seen atleast 10 customers within the past 3 months with a 2% fixed



Are they loan mods under the MHA? 

Just got a 4.0 rate on an investment property. Well then again, my credit score is at 780.

Yeh...most Americans wouldn't get that.

 

[font=Arial, Helvetica, sans-serif]How much did you have to put down? Was it a commercial property? [/font]

 

[wawaweewa]

Originally Posted by LetItShine24

Originally Posted by wawaweewa

Originally Posted by Wr


If you add extra principle only payments to your mortgage payment you can. You'd be surprised how much of your money in a mortgage payment goes toward interest. It's usually after around 10- 15 yrs before the part of your payment going towards principal and interest level out. Only in the later portion of your mortgage does a good chunk of your monthly payment actually go to the house principal. The bank get's their money first. 

I understand that but 100-200/ month on what principle amount? What percentage would that be of the principle? The principle amount matters more than the added payments in this case. 

theyre idiots. interest rates are historically low, home prices are low. perfect time to by a house. you need a fixed asset that you can sit on for 10-15 years.

[font=Arial, Helvetica, sans-serif]bull +%!!. Back in 2003 or 2004 I handled the refinancing for my parents house and we got 4.75%. Now that's low. [/font]

[font=Arial, Helvetica, sans-serif]
[/font]

[font=Arial, Helvetica, sans-serif]Try getting that now even with ZIRP running for nearly 3 years. The vast majority of buyers won't get below 5.5% even today. [/font]

my parents got  a 2% percent fixed for 30 years. now thats low. dont ask me how they did it but they did. i work at citibank and ive seen atleast 10 customers within the past 3 months with a 2% fixed



Are they loan mods under the MHA? 

Just got a 4.0 rate on an investment property. Well then again, my credit score is at 780.

Yeh...most Americans wouldn't get that.

 

[font=Arial, Helvetica, sans-serif]How much did you have to put down? Was it a commercial property? [/font]

 

[wr]

Originally Posted by wawaweewa

Originally Posted by Wr

Originally Posted by wawaweewa

After you've already poured 300k+ into something and supposedly "own" it? It's not about the money. 
Paying an extra 100-200 a month on what principle? I doubt if would move it from 30-15. 

If you add extra principle only payments to your mortgage payment you can. You'd be surprised how much of your money in a mortgage payment goes toward interest. It's usually after around 10- 15 yrs before the part of your payment going towards principal and interest level out. Only in the later portion of your mortgage does a good chunk of your monthly payment actually go to the house principal. The bank get's their money first. 

I understand that but 100-200/ month on what principle amount? What percentage would that be of the principle? The principle amount matters more than the added payments in this case. 

I was saying on top of your monthly payment (which normally includes P.I.T.I.- Principle, Interest, Taxes and Insurance) you can add a principle only payment on top of that. When you first get a mortgage almost none of your payment goes to paying down the principle amount owed on your home. You'll spend the first 10-15 years paying interest to the bank rather than paying for the house. 200/month extra dollars principle only comes out to 2400 dollars off your principle a year. That can shave years off of your amortization.  

 

[wr]

Originally Posted by wawaweewa

Originally Posted by Wr

Originally Posted by wawaweewa

After you've already poured 300k+ into something and supposedly "own" it? It's not about the money. 
Paying an extra 100-200 a month on what principle? I doubt if would move it from 30-15. 

If you add extra principle only payments to your mortgage payment you can. You'd be surprised how much of your money in a mortgage payment goes toward interest. It's usually after around 10- 15 yrs before the part of your payment going towards principal and interest level out. Only in the later portion of your mortgage does a good chunk of your monthly payment actually go to the house principal. The bank get's their money first. 

I understand that but 100-200/ month on what principle amount? What percentage would that be of the principle? The principle amount matters more than the added payments in this case. 

I was saying on top of your monthly payment (which normally includes P.I.T.I.- Principle, Interest, Taxes and Insurance) you can add a principle only payment on top of that. When you first get a mortgage almost none of your payment goes to paying down the principle amount owed on your home. You'll spend the first 10-15 years paying interest to the bank rather than paying for the house. 200/month extra dollars principle only comes out to 2400 dollars off your principle a year. That can shave years off of your amortization.  

 

[supermanblue79]

Originally Posted by Wr

Originally Posted by wawaweewa

Originally Posted by Wr


If you add extra principle only payments to your mortgage payment you can. You'd be surprised how much of your money in a mortgage payment goes toward interest. It's usually after around 10- 15 yrs before the part of your payment going towards principal and interest level out. Only in the later portion of your mortgage does a good chunk of your monthly payment actually go to the house principal. The bank get's their money first. 

I understand that but 100-200/ month on what principle amount? What percentage would that be of the principle? The principle amount matters more than the added payments in this case. 

I was saying on top of your monthly payment (which normally includes P.I.T.I.- Principle, Interest, Taxes and Insurance) you can add a principle only payment on top of that. When you first get a mortgage almost none of your payment goes to paying down the principle amount owed on your home. You'll spend the first 10-15 years paying interest to the bank rather than paying for the house. 200/month extra dollars principle only comes out to 2400 dollars off your principle a year. That can shave years off of your amortization.  


Agreed.
And to answer the question above, here's an example.  For the average $1,200 monthly mortgage payment, about $100-$200 of that actually goes toward the principle.  In some cases it could be less.  Paying an extra $200 on the principle is like making two payments per month.  This is how you cut a 30 year mortgage down to 15 years or less.

 

[supermanblue79]

Originally Posted by Wr

Originally Posted by wawaweewa

Originally Posted by Wr


If you add extra principle only payments to your mortgage payment you can. You'd be surprised how much of your money in a mortgage payment goes toward interest. It's usually after around 10- 15 yrs before the part of your payment going towards principal and interest level out. Only in the later portion of your mortgage does a good chunk of your monthly payment actually go to the house principal. The bank get's their money first. 

I understand that but 100-200/ month on what principle amount? What percentage would that be of the principle? The principle amount matters more than the added payments in this case. 

I was saying on top of your monthly payment (which normally includes P.I.T.I.- Principle, Interest, Taxes and Insurance) you can add a principle only payment on top of that. When you first get a mortgage almost none of your payment goes to paying down the principle amount owed on your home. You'll spend the first 10-15 years paying interest to the bank rather than paying for the house. 200/month extra dollars principle only comes out to 2400 dollars off your principle a year. That can shave years off of your amortization.  


Agreed.
And to answer the question above, here's an example.  For the average $1,200 monthly mortgage payment, about $100-$200 of that actually goes toward the principle.  In some cases it could be less.  Paying an extra $200 on the principle is like making two payments per month.  This is how you cut a 30 year mortgage down to 15 years or less.

 

[tim teufel]

Originally Posted by Toy Collector123

Originally Posted by wawaweewa

Originally Posted by LazyJ10

We got I think 4.45% back in Nov.

You're prob part of the 10 or 15% that are qualified for that rate. After the drubbing most have taken the last 3 years not many are. 

Just got a 4.0 rate on an investment property. Well then again, my credit score is at 780.

Your credit can be a zillion and there is no way in hell ur getting a 4 percent on a investment property.most people are not getting that rate on a primary home.and it has nothing to do with credit cause 780 shows ur credit is not perfect.so relax with the ducktales

 

[tim teufel]

Originally Posted by Toy Collector123

Originally Posted by wawaweewa

Originally Posted by LazyJ10

We got I think 4.45% back in Nov.

You're prob part of the 10 or 15% that are qualified for that rate. After the drubbing most have taken the last 3 years not many are. 

Just got a 4.0 rate on an investment property. Well then again, my credit score is at 780.

Your credit can be a zillion and there is no way in hell ur getting a 4 percent on a investment property.most people are not getting that rate on a primary home.and it has nothing to do with credit cause 780 shows ur credit is not perfect.so relax with the ducktales

 

[doublejs07]

Originally Posted by Toy Collector123

Originally Posted by wawaweewa

Originally Posted by LazyJ10

We got I think 4.45% back in Nov.

You're prob part of the 10 or 15% that are qualified for that rate. After the drubbing most have taken the last 3 years not many are. 

Just got a 4.0 rate on an investment property. Well then again, my credit score is at 780.

I refinanced 2 years ago to a 4.25%