Staggering credit numbers…

[GoUSC]

Has anyone taken a look at the latest consumer credit numbers? Some highlights:

Revolving credit up over 8% annualize in Oct. It has been increasing at a brisk pace ever since the beginning of 2006 when the cards started fallin.

Non-Revolving credit, is falling (first time in years).

Average car loan is $30,000 with a 61 month maturity, and a 95% LTV.

Man this country is screwed.

[Anonymous]

Borrowers are loading up their credit cards on the way to bk court.

[pencilneck]

Do either of you have a link to this data? I looked (not very hard, I admit) and couldn’t find it.

Thanks in advance!

[GoUSC]

Here you go!

http://www.federalreserve.gov/releases/g19/Current/

[GoUSC]

Here you go!

http://www.federalreserve.gov/releases/g19/Current/

[GoUSC]

Here you go!

http://www.federalreserve.gov/releases/g19/Current/

[GoUSC]

Here you go!

http://www.federalreserve.gov/releases/g19/Current/

[GoUSC]

Here you go!

http://www.federalreserve.gov/releases/g19/Current/

[pencilneck]

Do either of you have a link to this data? I looked (not very hard, I admit) and couldn’t find it.

Thanks in advance!

[pencilneck]

Do either of you have a link to this data? I looked (not very hard, I admit) and couldn’t find it.

Thanks in advance!

[pencilneck]

Do either of you have a link to this data? I looked (not very hard, I admit) and couldn’t find it.

Thanks in advance!

[pencilneck]

Do either of you have a link to this data? I looked (not very hard, I admit) and couldn’t find it.

Thanks in advance!

[Arty]

“Borrowers are loading up their credit cards on the way to bk court.”

If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.

[bubba99]

“If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.”

Correct, Chapter 7 bankruptcy is only available to a few – no income people, and then only after month of “credit counseling”. And even then the judge can force them to chapter 13 if it is mostly consumer debt.

The rest will need to develop a payment plan under Chapter 13, and pay for the rest of their lives.

Unless Paulsen et al create a new bailout for credit card debtors.

[4plexowner]

Does anyone know what happens to the interest rate on credit card debts after going through bankruptcy?

Some of the things I read indicate that a single late payment on ANY credit card can result in ALL the credit cards the consumer uses raising their interest rates to a very high rate (I think I have read 29% but that is ridiculously high)

So a consumer gets into trouble, has a late credit card payment and the next thing they know all of their cards are charging them 20%+ interest – a few months of this and they head to the bankruptcy court

I assume the bankruptcy process modifies the consumer’s debt so the monthly payment is manageable (interest rate and amount of payment)

I hope that the bankruptcy court isn’t sending debtors back into the world with debt charging over 20% interest – if they are, the term ‘debt slave’ is appropriate for these unfortunate consumers – does anyone have insight into the bankruptcy process?

[4plexowner]

Does anyone know what happens to the interest rate on credit card debts after going through bankruptcy?

Some of the things I read indicate that a single late payment on ANY credit card can result in ALL the credit cards the consumer uses raising their interest rates to a very high rate (I think I have read 29% but that is ridiculously high)

So a consumer gets into trouble, has a late credit card payment and the next thing they know all of their cards are charging them 20%+ interest – a few months of this and they head to the bankruptcy court

I assume the bankruptcy process modifies the consumer’s debt so the monthly payment is manageable (interest rate and amount of payment)

I hope that the bankruptcy court isn’t sending debtors back into the world with debt charging over 20% interest – if they are, the term ‘debt slave’ is appropriate for these unfortunate consumers – does anyone have insight into the bankruptcy process?

[4plexowner]

Does anyone know what happens to the interest rate on credit card debts after going through bankruptcy?

Some of the things I read indicate that a single late payment on ANY credit card can result in ALL the credit cards the consumer uses raising their interest rates to a very high rate (I think I have read 29% but that is ridiculously high)

So a consumer gets into trouble, has a late credit card payment and the next thing they know all of their cards are charging them 20%+ interest – a few months of this and they head to the bankruptcy court

I assume the bankruptcy process modifies the consumer’s debt so the monthly payment is manageable (interest rate and amount of payment)

I hope that the bankruptcy court isn’t sending debtors back into the world with debt charging over 20% interest – if they are, the term ‘debt slave’ is appropriate for these unfortunate consumers – does anyone have insight into the bankruptcy process?

[4plexowner]

Does anyone know what happens to the interest rate on credit card debts after going through bankruptcy?

Some of the things I read indicate that a single late payment on ANY credit card can result in ALL the credit cards the consumer uses raising their interest rates to a very high rate (I think I have read 29% but that is ridiculously high)

So a consumer gets into trouble, has a late credit card payment and the next thing they know all of their cards are charging them 20%+ interest – a few months of this and they head to the bankruptcy court

I assume the bankruptcy process modifies the consumer’s debt so the monthly payment is manageable (interest rate and amount of payment)

I hope that the bankruptcy court isn’t sending debtors back into the world with debt charging over 20% interest – if they are, the term ‘debt slave’ is appropriate for these unfortunate consumers – does anyone have insight into the bankruptcy process?

[4plexowner]

Does anyone know what happens to the interest rate on credit card debts after going through bankruptcy?

Some of the things I read indicate that a single late payment on ANY credit card can result in ALL the credit cards the consumer uses raising their interest rates to a very high rate (I think I have read 29% but that is ridiculously high)

So a consumer gets into trouble, has a late credit card payment and the next thing they know all of their cards are charging them 20%+ interest – a few months of this and they head to the bankruptcy court

I assume the bankruptcy process modifies the consumer’s debt so the monthly payment is manageable (interest rate and amount of payment)

I hope that the bankruptcy court isn’t sending debtors back into the world with debt charging over 20% interest – if they are, the term ‘debt slave’ is appropriate for these unfortunate consumers – does anyone have insight into the bankruptcy process?

[bubba99]

“If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.”

Correct, Chapter 7 bankruptcy is only available to a few – no income people, and then only after month of “credit counseling”. And even then the judge can force them to chapter 13 if it is mostly consumer debt.

The rest will need to develop a payment plan under Chapter 13, and pay for the rest of their lives.

Unless Paulsen et al create a new bailout for credit card debtors.

[bubba99]

“If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.”

Correct, Chapter 7 bankruptcy is only available to a few – no income people, and then only after month of “credit counseling”. And even then the judge can force them to chapter 13 if it is mostly consumer debt.

The rest will need to develop a payment plan under Chapter 13, and pay for the rest of their lives.

Unless Paulsen et al create a new bailout for credit card debtors.

[bubba99]

“If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.”

Correct, Chapter 7 bankruptcy is only available to a few – no income people, and then only after month of “credit counseling”. And even then the judge can force them to chapter 13 if it is mostly consumer debt.

The rest will need to develop a payment plan under Chapter 13, and pay for the rest of their lives.

Unless Paulsen et al create a new bailout for credit card debtors.

[bubba99]

“If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.”

Correct, Chapter 7 bankruptcy is only available to a few – no income people, and then only after month of “credit counseling”. And even then the judge can force them to chapter 13 if it is mostly consumer debt.

The rest will need to develop a payment plan under Chapter 13, and pay for the rest of their lives.

Unless Paulsen et al create a new bailout for credit card debtors.

[Arty]

“Borrowers are loading up their credit cards on the way to bk court.”

If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.

[Arty]

“Borrowers are loading up their credit cards on the way to bk court.”

If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.

[Arty]

“Borrowers are loading up their credit cards on the way to bk court.”

If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.

[Arty]

“Borrowers are loading up their credit cards on the way to bk court.”

If it is that simple after the law change…I thought you can no longer declear chapter 7 and have your credit cards charges just disappear like that.

[Anonymous]

Borrowers are loading up their credit cards on the way to bk court.

[Anonymous]

Borrowers are loading up their credit cards on the way to bk court.

[Anonymous]

Borrowers are loading up their credit cards on the way to bk court.

[Anonymous]

Borrowers are loading up their credit cards on the way to bk court.

[bsrsharma]

Average car loan is $30,000 with a 61 month maturity

What are the usual "Average cars" driven by J6P? 32K seems a bit steep. Camry is 17-25K Invoice and 18-28K MSRP. F-150 starts 17K MSRP. And they can only pony up $1500 to buy these toys?

[kev374]

part of the problem is because people can so easily get credit and then just walk away from their debt when they feel like not paying.

Thanks to our government with schemes like the current bailout plan, the concept of individual responsiblity in this country is all but dead.

I support reserving Bankruptcy for those that have been TRULY unfortunate and this means they fell seriously ill and could not work or they lost their job and used their credit cards to buy groceries to eat or feed their children. Apart from that enslave them and make them pay their FULL obligations. I have no sympathy for those that have bought $5 Starbucks lattes and now cry crocodile tears or took out loans way more they could afford since they felt entitled to own a home!

[kev374]

part of the problem is because people can so easily get credit and then just walk away from their debt when they feel like not paying.

Thanks to our government with schemes like the current bailout plan, the concept of individual responsiblity in this country is all but dead.

I support reserving Bankruptcy for those that have been TRULY unfortunate and this means they fell seriously ill and could not work or they lost their job and used their credit cards to buy groceries to eat or feed their children. Apart from that enslave them and make them pay their FULL obligations. I have no sympathy for those that have bought $5 Starbucks lattes and now cry crocodile tears or took out loans way more they could afford since they felt entitled to own a home!

[kev374]

part of the problem is because people can so easily get credit and then just walk away from their debt when they feel like not paying.

Thanks to our government with schemes like the current bailout plan, the concept of individual responsiblity in this country is all but dead.

I support reserving Bankruptcy for those that have been TRULY unfortunate and this means they fell seriously ill and could not work or they lost their job and used their credit cards to buy groceries to eat or feed their children. Apart from that enslave them and make them pay their FULL obligations. I have no sympathy for those that have bought $5 Starbucks lattes and now cry crocodile tears or took out loans way more they could afford since they felt entitled to own a home!

[kev374]

part of the problem is because people can so easily get credit and then just walk away from their debt when they feel like not paying.

Thanks to our government with schemes like the current bailout plan, the concept of individual responsiblity in this country is all but dead.

I support reserving Bankruptcy for those that have been TRULY unfortunate and this means they fell seriously ill and could not work or they lost their job and used their credit cards to buy groceries to eat or feed their children. Apart from that enslave them and make them pay their FULL obligations. I have no sympathy for those that have bought $5 Starbucks lattes and now cry crocodile tears or took out loans way more they could afford since they felt entitled to own a home!

[kev374]

part of the problem is because people can so easily get credit and then just walk away from their debt when they feel like not paying.

Thanks to our government with schemes like the current bailout plan, the concept of individual responsiblity in this country is all but dead.

I support reserving Bankruptcy for those that have been TRULY unfortunate and this means they fell seriously ill and could not work or they lost their job and used their credit cards to buy groceries to eat or feed their children. Apart from that enslave them and make them pay their FULL obligations. I have no sympathy for those that have bought $5 Starbucks lattes and now cry crocodile tears or took out loans way more they could afford since they felt entitled to own a home!

[GoUSC]

I have no idea Bsrsharma. But that’s what the numbers say. Lots of people bought $50k SUV’s and such with 100% loans.

[5yes]

My brother just got out of college and got his first job, so he went out and bought $40,000 truck with 100% financing on an 80 month loan! He wouldn’t listen to anyone’s (including my) advice about it, even though I am much older and have a better job and have never bought a car even close to half that price!

[5yes]

My brother just got out of college and got his first job, so he went out and bought $40,000 truck with 100% financing on an 80 month loan! He wouldn’t listen to anyone’s (including my) advice about it, even though I am much older and have a better job and have never bought a car even close to half that price!

[5yes]

My brother just got out of college and got his first job, so he went out and bought $40,000 truck with 100% financing on an 80 month loan! He wouldn’t listen to anyone’s (including my) advice about it, even though I am much older and have a better job and have never bought a car even close to half that price!

[5yes]

My brother just got out of college and got his first job, so he went out and bought $40,000 truck with 100% financing on an 80 month loan! He wouldn’t listen to anyone’s (including my) advice about it, even though I am much older and have a better job and have never bought a car even close to half that price!

[5yes]

My brother just got out of college and got his first job, so he went out and bought $40,000 truck with 100% financing on an 80 month loan! He wouldn’t listen to anyone’s (including my) advice about it, even though I am much older and have a better job and have never bought a car even close to half that price!

[(former)FormerSanDiegan]

What are the usual “Average cars” driven by J6P? 32K seems a bit steep. Camry is 17-25K Invoice and 18-28K MSRP. F-150 starts 17K MSRP. And they can only pony up $1500 to buy these toys?

It didn’t say the loan on an average car, like a Camry. It said the average car loan. A few expensive samples can really skew the numbers.

Consider a sample that has 5 average sedans (e.g.Camry’s at 25K each) and one Range Rover for 75K, with 10% down.
The average loan would be 30K.

[(former)FormerSanDiegan]

What are the usual “Average cars” driven by J6P? 32K seems a bit steep. Camry is 17-25K Invoice and 18-28K MSRP. F-150 starts 17K MSRP. And they can only pony up $1500 to buy these toys?

It didn’t say the loan on an average car, like a Camry. It said the average car loan. A few expensive samples can really skew the numbers.

Consider a sample that has 5 average sedans (e.g.Camry’s at 25K each) and one Range Rover for 75K, with 10% down.
The average loan would be 30K.

[(former)FormerSanDiegan]

What are the usual “Average cars” driven by J6P? 32K seems a bit steep. Camry is 17-25K Invoice and 18-28K MSRP. F-150 starts 17K MSRP. And they can only pony up $1500 to buy these toys?

It didn’t say the loan on an average car, like a Camry. It said the average car loan. A few expensive samples can really skew the numbers.

Consider a sample that has 5 average sedans (e.g.Camry’s at 25K each) and one Range Rover for 75K, with 10% down.
The average loan would be 30K.

[(former)FormerSanDiegan]

What are the usual “Average cars” driven by J6P? 32K seems a bit steep. Camry is 17-25K Invoice and 18-28K MSRP. F-150 starts 17K MSRP. And they can only pony up $1500 to buy these toys?

It didn’t say the loan on an average car, like a Camry. It said the average car loan. A few expensive samples can really skew the numbers.

Consider a sample that has 5 average sedans (e.g.Camry’s at 25K each) and one Range Rover for 75K, with 10% down.
The average loan would be 30K.

[(former)FormerSanDiegan]

What are the usual “Average cars” driven by J6P? 32K seems a bit steep. Camry is 17-25K Invoice and 18-28K MSRP. F-150 starts 17K MSRP. And they can only pony up $1500 to buy these toys?

It didn’t say the loan on an average car, like a Camry. It said the average car loan. A few expensive samples can really skew the numbers.

Consider a sample that has 5 average sedans (e.g.Camry’s at 25K each) and one Range Rover for 75K, with 10% down.
The average loan would be 30K.

[GoUSC]

I have no idea Bsrsharma. But that’s what the numbers say. Lots of people bought $50k SUV’s and such with 100% loans.

[GoUSC]

I have no idea Bsrsharma. But that’s what the numbers say. Lots of people bought $50k SUV’s and such with 100% loans.

[GoUSC]

I have no idea Bsrsharma. But that’s what the numbers say. Lots of people bought $50k SUV’s and such with 100% loans.

[GoUSC]

I have no idea Bsrsharma. But that’s what the numbers say. Lots of people bought $50k SUV’s and such with 100% loans.

[bsrsharma]

Average car loan is $30,000 with a 61 month maturity

What are the usual "Average cars" driven by J6P? 32K seems a bit steep. Camry is 17-25K Invoice and 18-28K MSRP. F-150 starts 17K MSRP. And they can only pony up $1500 to buy these toys?

[bsrsharma]

Average car loan is $30,000 with a 61 month maturity

What are the usual "Average cars" driven by J6P? 32K seems a bit steep. Camry is 17-25K Invoice and 18-28K MSRP. F-150 starts 17K MSRP. And they can only pony up $1500 to buy these toys?

[bsrsharma]

Average car loan is $30,000 with a 61 month maturity

What are the usual "Average cars" driven by J6P? 32K seems a bit steep. Camry is 17-25K Invoice and 18-28K MSRP. F-150 starts 17K MSRP. And they can only pony up $1500 to buy these toys?

[bsrsharma]

Average car loan is $30,000 with a 61 month maturity

What are the usual "Average cars" driven by J6P? 32K seems a bit steep. Camry is 17-25K Invoice and 18-28K MSRP. F-150 starts 17K MSRP. And they can only pony up $1500 to buy these toys?

[Trojan4Life]

That’s insane! I had a Corvette that I financed $25K on at 0% and my payment was in the neighborhood of $600. I thought that was a ton of money in 2004! I have neighbors who don’t have two nickels to rub together who go out and lease a new car when they get to the point that they need to replace tires because they don’t have the $$$ to buy new tires. This is absolutely insane.

On a different yet related topic, I found a very nice brand new townhome in Redondo Beach up here in LA. Really nicely done Med style, high quality finish materials (granite, travertine, crown molding, etc). It was completed and originally listed in Sep 07 for $859K, now reduced to $829K. Agent claims the seller/builder will refund $$$ to match sales price with last unit sold (i.e buy now for $829K and if the last of the ten units sells for $759K, I would get $70K back). Sounds too good to be true…so we know the adage.

Do you think I’d have a crack at a deal at a $750K offer? it’s blocks from the beach, good schools for LA, etc…
Also, we’re dealing with only being able to put about $100K down, are there still loan products out there to help me without burying me?

[patientrenter]

Trojan4Life, I know you didn’t ask for financial planning advice, but I’ll offer some anyway. If you asked yourself these questions, what would your answer be:

1. What’s my net income? (I)

2. What are my annual expenses, including everything (like occasional car replacement and health expenses)? (E)

3. How many years do I want to commit to working for? (W)

4. How many years after retirement am I prepared to run out of all my money? (R)

5. What is (I x W) – [E x (W+R)]?

I think you see where I’m going with the (simple) math.

Patient renter in OC

[Trojan4Life]

PR, not sure what you’re getting at with your reply.

I’ll have approximately $120K in net income (not including bonuses) and realistically will be in the home for about 12-15 years (once my youngest is established in college, which I already have fully funded). I am in a little different situation from a lot of you in that I am going to be receiving a govt. (military) pension starting this summer at the ripe old age of 42. This retirement check is for life and will start out at approximately $3,100 net and will adjust upward each year. Military retired pay rises each year to ensure that inflation does not erode the purchasing power of retirees, and raises are based on the CPI.

Annual expenses is kind of tricky, because I don’t need to fund a lot of the retirement savings most folks do as aggressively due to my military retirement. We have no debt (as in $0), two newer cars paid off. Kids college funds are already set (pre-paid plan in Florida for 4-yrs of university study) and if they want to go to school in California they will be afforded free tuition due to my injuries received on active duty.

All told, I anticipate a mortgage PITI of (gasp) $5,300 per month, with a net income of slightly over $10K per month.

I’d be more thatn happy to talk to you off-line at [email protected]

Thanks

[patientrenter]

Trojan, sorry, I didn’t mean to be obtuse. What I was getting at is that it might be helpful to assess how much you can afford to pay for a home based not on monthly mortgage payments, but rather how much the purchase price is versus your lifetime income and outgo.

For example, if you applied this method using these assumptions (that I just made up):

1. Income (net of taxes and other deductions) = $120K+37K = $157K

2. Expenses (excluding non-expense items such as savings) = $70K.

3. Number of years you’re OK with committing to working at $120K job = 15.

4. Number of years after you’ve quit working the $120K job at which you’re prepared to run out of cash in your old age = 90 – (42+15) = 33

The you’d get total lifetime savings = 15 x 157 + 33 x 37 – (15+33) x 70 = $216K.

So if you have no other things you want to save for, then you can afford about $200K for a home. Plug in the numbers you think are appropriate. It’s just a way to strip out all the “noise” from complicated assumptions about interest and other investment income and inflation. I hope this helps as an alternative view.

Patient renter in OC

[patientrenter]

Trojan, sorry, I didn’t mean to be obtuse. What I was getting at is that it might be helpful to assess how much you can afford to pay for a home based not on monthly mortgage payments, but rather how much the purchase price is versus your lifetime income and outgo.

For example, if you applied this method using these assumptions (that I just made up):

1. Income (net of taxes and other deductions) = $120K+37K = $157K

2. Expenses (excluding non-expense items such as savings) = $70K.

3. Number of years you’re OK with committing to working at $120K job = 15.

4. Number of years after you’ve quit working the $120K job at which you’re prepared to run out of cash in your old age = 90 – (42+15) = 33

The you’d get total lifetime savings = 15 x 157 + 33 x 37 – (15+33) x 70 = $216K.

So if you have no other things you want to save for, then you can afford about $200K for a home. Plug in the numbers you think are appropriate. It’s just a way to strip out all the “noise” from complicated assumptions about interest and other investment income and inflation. I hope this helps as an alternative view.

Patient renter in OC

[patientrenter]

Trojan, sorry, I didn’t mean to be obtuse. What I was getting at is that it might be helpful to assess how much you can afford to pay for a home based not on monthly mortgage payments, but rather how much the purchase price is versus your lifetime income and outgo.

For example, if you applied this method using these assumptions (that I just made up):

1. Income (net of taxes and other deductions) = $120K+37K = $157K

2. Expenses (excluding non-expense items such as savings) = $70K.

3. Number of years you’re OK with committing to working at $120K job = 15.

4. Number of years after you’ve quit working the $120K job at which you’re prepared to run out of cash in your old age = 90 – (42+15) = 33

The you’d get total lifetime savings = 15 x 157 + 33 x 37 – (15+33) x 70 = $216K.

So if you have no other things you want to save for, then you can afford about $200K for a home. Plug in the numbers you think are appropriate. It’s just a way to strip out all the “noise” from complicated assumptions about interest and other investment income and inflation. I hope this helps as an alternative view.

Patient renter in OC

[patientrenter]

Trojan, sorry, I didn’t mean to be obtuse. What I was getting at is that it might be helpful to assess how much you can afford to pay for a home based not on monthly mortgage payments, but rather how much the purchase price is versus your lifetime income and outgo.

For example, if you applied this method using these assumptions (that I just made up):

1. Income (net of taxes and other deductions) = $120K+37K = $157K

2. Expenses (excluding non-expense items such as savings) = $70K.

3. Number of years you’re OK with committing to working at $120K job = 15.

4. Number of years after you’ve quit working the $120K job at which you’re prepared to run out of cash in your old age = 90 – (42+15) = 33

The you’d get total lifetime savings = 15 x 157 + 33 x 37 – (15+33) x 70 = $216K.

So if you have no other things you want to save for, then you can afford about $200K for a home. Plug in the numbers you think are appropriate. It’s just a way to strip out all the “noise” from complicated assumptions about interest and other investment income and inflation. I hope this helps as an alternative view.

Patient renter in OC

[patientrenter]

Trojan, sorry, I didn’t mean to be obtuse. What I was getting at is that it might be helpful to assess how much you can afford to pay for a home based not on monthly mortgage payments, but rather how much the purchase price is versus your lifetime income and outgo.

For example, if you applied this method using these assumptions (that I just made up):

1. Income (net of taxes and other deductions) = $120K+37K = $157K

2. Expenses (excluding non-expense items such as savings) = $70K.

3. Number of years you’re OK with committing to working at $120K job = 15.

4. Number of years after you’ve quit working the $120K job at which you’re prepared to run out of cash in your old age = 90 – (42+15) = 33

The you’d get total lifetime savings = 15 x 157 + 33 x 37 – (15+33) x 70 = $216K.

So if you have no other things you want to save for, then you can afford about $200K for a home. Plug in the numbers you think are appropriate. It’s just a way to strip out all the “noise” from complicated assumptions about interest and other investment income and inflation. I hope this helps as an alternative view.

Patient renter in OC

[Trojan4Life]

PR, not sure what you’re getting at with your reply.

I’ll have approximately $120K in net income (not including bonuses) and realistically will be in the home for about 12-15 years (once my youngest is established in college, which I already have fully funded). I am in a little different situation from a lot of you in that I am going to be receiving a govt. (military) pension starting this summer at the ripe old age of 42. This retirement check is for life and will start out at approximately $3,100 net and will adjust upward each year. Military retired pay rises each year to ensure that inflation does not erode the purchasing power of retirees, and raises are based on the CPI.

Annual expenses is kind of tricky, because I don’t need to fund a lot of the retirement savings most folks do as aggressively due to my military retirement. We have no debt (as in $0), two newer cars paid off. Kids college funds are already set (pre-paid plan in Florida for 4-yrs of university study) and if they want to go to school in California they will be afforded free tuition due to my injuries received on active duty.

All told, I anticipate a mortgage PITI of (gasp) $5,300 per month, with a net income of slightly over $10K per month.

I’d be more thatn happy to talk to you off-line at [email protected]

Thanks

[Trojan4Life]

PR, not sure what you’re getting at with your reply.

I’ll have approximately $120K in net income (not including bonuses) and realistically will be in the home for about 12-15 years (once my youngest is established in college, which I already have fully funded). I am in a little different situation from a lot of you in that I am going to be receiving a govt. (military) pension starting this summer at the ripe old age of 42. This retirement check is for life and will start out at approximately $3,100 net and will adjust upward each year. Military retired pay rises each year to ensure that inflation does not erode the purchasing power of retirees, and raises are based on the CPI.

Annual expenses is kind of tricky, because I don’t need to fund a lot of the retirement savings most folks do as aggressively due to my military retirement. We have no debt (as in $0), two newer cars paid off. Kids college funds are already set (pre-paid plan in Florida for 4-yrs of university study) and if they want to go to school in California they will be afforded free tuition due to my injuries received on active duty.

All told, I anticipate a mortgage PITI of (gasp) $5,300 per month, with a net income of slightly over $10K per month.

I’d be more thatn happy to talk to you off-line at [email protected]

Thanks

[Trojan4Life]

PR, not sure what you’re getting at with your reply.

I’ll have approximately $120K in net income (not including bonuses) and realistically will be in the home for about 12-15 years (once my youngest is established in college, which I already have fully funded). I am in a little different situation from a lot of you in that I am going to be receiving a govt. (military) pension starting this summer at the ripe old age of 42. This retirement check is for life and will start out at approximately $3,100 net and will adjust upward each year. Military retired pay rises each year to ensure that inflation does not erode the purchasing power of retirees, and raises are based on the CPI.

Annual expenses is kind of tricky, because I don’t need to fund a lot of the retirement savings most folks do as aggressively due to my military retirement. We have no debt (as in $0), two newer cars paid off. Kids college funds are already set (pre-paid plan in Florida for 4-yrs of university study) and if they want to go to school in California they will be afforded free tuition due to my injuries received on active duty.

All told, I anticipate a mortgage PITI of (gasp) $5,300 per month, with a net income of slightly over $10K per month.

I’d be more thatn happy to talk to you off-line at [email protected]

Thanks

[Trojan4Life]

PR, not sure what you’re getting at with your reply.

I’ll have approximately $120K in net income (not including bonuses) and realistically will be in the home for about 12-15 years (once my youngest is established in college, which I already have fully funded). I am in a little different situation from a lot of you in that I am going to be receiving a govt. (military) pension starting this summer at the ripe old age of 42. This retirement check is for life and will start out at approximately $3,100 net and will adjust upward each year. Military retired pay rises each year to ensure that inflation does not erode the purchasing power of retirees, and raises are based on the CPI.

Annual expenses is kind of tricky, because I don’t need to fund a lot of the retirement savings most folks do as aggressively due to my military retirement. We have no debt (as in $0), two newer cars paid off. Kids college funds are already set (pre-paid plan in Florida for 4-yrs of university study) and if they want to go to school in California they will be afforded free tuition due to my injuries received on active duty.

All told, I anticipate a mortgage PITI of (gasp) $5,300 per month, with a net income of slightly over $10K per month.

I’d be more thatn happy to talk to you off-line at [email protected]

Thanks

[patientrenter]

Trojan4Life, I know you didn’t ask for financial planning advice, but I’ll offer some anyway. If you asked yourself these questions, what would your answer be:

1. What’s my net income? (I)

2. What are my annual expenses, including everything (like occasional car replacement and health expenses)? (E)

3. How many years do I want to commit to working for? (W)

4. How many years after retirement am I prepared to run out of all my money? (R)

5. What is (I x W) – [E x (W+R)]?

I think you see where I’m going with the (simple) math.

Patient renter in OC

[patientrenter]

Trojan4Life, I know you didn’t ask for financial planning advice, but I’ll offer some anyway. If you asked yourself these questions, what would your answer be:

1. What’s my net income? (I)

2. What are my annual expenses, including everything (like occasional car replacement and health expenses)? (E)

3. How many years do I want to commit to working for? (W)

4. How many years after retirement am I prepared to run out of all my money? (R)

5. What is (I x W) – [E x (W+R)]?

I think you see where I’m going with the (simple) math.

Patient renter in OC

[patientrenter]

Trojan4Life, I know you didn’t ask for financial planning advice, but I’ll offer some anyway. If you asked yourself these questions, what would your answer be:

1. What’s my net income? (I)

2. What are my annual expenses, including everything (like occasional car replacement and health expenses)? (E)

3. How many years do I want to commit to working for? (W)

4. How many years after retirement am I prepared to run out of all my money? (R)

5. What is (I x W) – [E x (W+R)]?

I think you see where I’m going with the (simple) math.

Patient renter in OC

[patientrenter]

Trojan4Life, I know you didn’t ask for financial planning advice, but I’ll offer some anyway. If you asked yourself these questions, what would your answer be:

1. What’s my net income? (I)

2. What are my annual expenses, including everything (like occasional car replacement and health expenses)? (E)

3. How many years do I want to commit to working for? (W)

4. How many years after retirement am I prepared to run out of all my money? (R)

5. What is (I x W) – [E x (W+R)]?

I think you see where I’m going with the (simple) math.

Patient renter in OC

[Trojan4Life]

That’s insane! I had a Corvette that I financed $25K on at 0% and my payment was in the neighborhood of $600. I thought that was a ton of money in 2004! I have neighbors who don’t have two nickels to rub together who go out and lease a new car when they get to the point that they need to replace tires because they don’t have the $$$ to buy new tires. This is absolutely insane.

On a different yet related topic, I found a very nice brand new townhome in Redondo Beach up here in LA. Really nicely done Med style, high quality finish materials (granite, travertine, crown molding, etc). It was completed and originally listed in Sep 07 for $859K, now reduced to $829K. Agent claims the seller/builder will refund $$$ to match sales price with last unit sold (i.e buy now for $829K and if the last of the ten units sells for $759K, I would get $70K back). Sounds too good to be true…so we know the adage.

Do you think I’d have a crack at a deal at a $750K offer? it’s blocks from the beach, good schools for LA, etc…
Also, we’re dealing with only being able to put about $100K down, are there still loan products out there to help me without burying me?

[Trojan4Life]

That’s insane! I had a Corvette that I financed $25K on at 0% and my payment was in the neighborhood of $600. I thought that was a ton of money in 2004! I have neighbors who don’t have two nickels to rub together who go out and lease a new car when they get to the point that they need to replace tires because they don’t have the $$$ to buy new tires. This is absolutely insane.

On a different yet related topic, I found a very nice brand new townhome in Redondo Beach up here in LA. Really nicely done Med style, high quality finish materials (granite, travertine, crown molding, etc). It was completed and originally listed in Sep 07 for $859K, now reduced to $829K. Agent claims the seller/builder will refund $$$ to match sales price with last unit sold (i.e buy now for $829K and if the last of the ten units sells for $759K, I would get $70K back). Sounds too good to be true…so we know the adage.

Do you think I’d have a crack at a deal at a $750K offer? it’s blocks from the beach, good schools for LA, etc…
Also, we’re dealing with only being able to put about $100K down, are there still loan products out there to help me without burying me?

[Trojan4Life]

That’s insane! I had a Corvette that I financed $25K on at 0% and my payment was in the neighborhood of $600. I thought that was a ton of money in 2004! I have neighbors who don’t have two nickels to rub together who go out and lease a new car when they get to the point that they need to replace tires because they don’t have the $$$ to buy new tires. This is absolutely insane.

On a different yet related topic, I found a very nice brand new townhome in Redondo Beach up here in LA. Really nicely done Med style, high quality finish materials (granite, travertine, crown molding, etc). It was completed and originally listed in Sep 07 for $859K, now reduced to $829K. Agent claims the seller/builder will refund $$$ to match sales price with last unit sold (i.e buy now for $829K and if the last of the ten units sells for $759K, I would get $70K back). Sounds too good to be true…so we know the adage.

Do you think I’d have a crack at a deal at a $750K offer? it’s blocks from the beach, good schools for LA, etc…
Also, we’re dealing with only being able to put about $100K down, are there still loan products out there to help me without burying me?

[Trojan4Life]

That’s insane! I had a Corvette that I financed $25K on at 0% and my payment was in the neighborhood of $600. I thought that was a ton of money in 2004! I have neighbors who don’t have two nickels to rub together who go out and lease a new car when they get to the point that they need to replace tires because they don’t have the $$$ to buy new tires. This is absolutely insane.

On a different yet related topic, I found a very nice brand new townhome in Redondo Beach up here in LA. Really nicely done Med style, high quality finish materials (granite, travertine, crown molding, etc). It was completed and originally listed in Sep 07 for $859K, now reduced to $829K. Agent claims the seller/builder will refund $$$ to match sales price with last unit sold (i.e buy now for $829K and if the last of the ten units sells for $759K, I would get $70K back). Sounds too good to be true…so we know the adage.

Do you think I’d have a crack at a deal at a $750K offer? it’s blocks from the beach, good schools for LA, etc…
Also, we’re dealing with only being able to put about $100K down, are there still loan products out there to help me without burying me?

[Author]

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