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HLS
ParticipantI am not one to push anybody into buying a house, I have sent plenty of wanna-be borrower’s on their way telling them that they truly cannot afford a house.
When someone is educated enough to understand their risks and follow this website, I don’t think that they need to be lectured on whether or not they can afford it.
The fact is that over the last 75 years, MOST of the time buyer’s who stretched to buy their dream house ended up OK eventually. None of us know when/if this market will turn wildly in either direction. Everybody has an opinion. The OP wants to buy his dream house to actually LIVE IN and is not speculating on any appreciation. He doesn’t care about “the bottom”
Somebody with 30% DTI but lots of other debt, cars, boats, RV, credit card, etc is not in a much better position than someone with no other debt that wants to go to 50% DTI.
Without knowing AND understanding a buyer’s motivation/goals/income/assets/potential income it’s difficult to offer advice.
Assuming that one is determined to buy, my advice is to figure out a way to get the lowest rate and fixed payments that you possibly can, even if it means a 401K loan, credit card advance or another option that may not have been considered.
Falling for a no cost/no fee loan at time of historically low rates is pretty foolish in my opinion.. HLS
ParticipantOK,,
But with an additional cost I can do high balance/jumbo at 4.375% also, not just below $417K.Although the upfront cost might be $5K-$10K higher, if you plan on staying there for the long haul, you will save tens of thousands of dollars over the life of the loan, GUARANTEED.
Saving 1.125% in rate will save you over $5000 in interest just the first year… your payments will be lower FOREVER…when you figure out the guaranteed savings, try to do whatever you can to buy the rate down, even if the loan is above $417K..
Was this option even explained to you ??
Please let me know if you need a better explanation. As you have decided that you want the house, I would even consider a credit card cash advance OR 401K loan to get to the lower rate if necessary.BTW, there are archives of past shows on my website. Listen anytime you want! HLS
ParticipantOK,,
But with an additional cost I can do high balance/jumbo at 4.375% also, not just below $417K.Although the upfront cost might be $5K-$10K higher, if you plan on staying there for the long haul, you will save tens of thousands of dollars over the life of the loan, GUARANTEED.
Saving 1.125% in rate will save you over $5000 in interest just the first year… your payments will be lower FOREVER…when you figure out the guaranteed savings, try to do whatever you can to buy the rate down, even if the loan is above $417K..
Was this option even explained to you ??
Please let me know if you need a better explanation. As you have decided that you want the house, I would even consider a credit card cash advance OR 401K loan to get to the lower rate if necessary.BTW, there are archives of past shows on my website. Listen anytime you want! HLS
ParticipantOK,,
But with an additional cost I can do high balance/jumbo at 4.375% also, not just below $417K.Although the upfront cost might be $5K-$10K higher, if you plan on staying there for the long haul, you will save tens of thousands of dollars over the life of the loan, GUARANTEED.
Saving 1.125% in rate will save you over $5000 in interest just the first year… your payments will be lower FOREVER…when you figure out the guaranteed savings, try to do whatever you can to buy the rate down, even if the loan is above $417K..
Was this option even explained to you ??
Please let me know if you need a better explanation. As you have decided that you want the house, I would even consider a credit card cash advance OR 401K loan to get to the lower rate if necessary.BTW, there are archives of past shows on my website. Listen anytime you want! HLS
ParticipantOK,,
But with an additional cost I can do high balance/jumbo at 4.375% also, not just below $417K.Although the upfront cost might be $5K-$10K higher, if you plan on staying there for the long haul, you will save tens of thousands of dollars over the life of the loan, GUARANTEED.
Saving 1.125% in rate will save you over $5000 in interest just the first year… your payments will be lower FOREVER…when you figure out the guaranteed savings, try to do whatever you can to buy the rate down, even if the loan is above $417K..
Was this option even explained to you ??
Please let me know if you need a better explanation. As you have decided that you want the house, I would even consider a credit card cash advance OR 401K loan to get to the lower rate if necessary.BTW, there are archives of past shows on my website. Listen anytime you want! HLS
ParticipantOK,,
But with an additional cost I can do high balance/jumbo at 4.375% also, not just below $417K.Although the upfront cost might be $5K-$10K higher, if you plan on staying there for the long haul, you will save tens of thousands of dollars over the life of the loan, GUARANTEED.
Saving 1.125% in rate will save you over $5000 in interest just the first year… your payments will be lower FOREVER…when you figure out the guaranteed savings, try to do whatever you can to buy the rate down, even if the loan is above $417K..
Was this option even explained to you ??
Please let me know if you need a better explanation. As you have decided that you want the house, I would even consider a credit card cash advance OR 401K loan to get to the lower rate if necessary.BTW, there are archives of past shows on my website. Listen anytime you want! HLS
ParticipantAre you basing that on a 4.375% 30 YR fixed mortgage ??
ParticipantAre you basing that on a 4.375% 30 YR fixed mortgage ??
ParticipantAre you basing that on a 4.375% 30 YR fixed mortgage ??
ParticipantAre you basing that on a 4.375% 30 YR fixed mortgage ??
ParticipantAre you basing that on a 4.375% 30 YR fixed mortgage ??
ParticipantThink of debt as manure.. the more you spread it around over a wider and larger area, it smells the same to everybody who thinks that it’s the normal smell. A bad pile here or there doesn’t get anyone’s attention. It’s not all going bad at the same time. Just like a Madoff scheme, new money coming in covers up for old money..
There is so much manure(debt) out there that is traded around and swapped, it makes a 6 deck blackjack game in Vegas look tempting.
Some of this debt will never be paid back, ever.
Some will be paid off at par, another huge amount will be settled for less than what was originally borrowed..and part will get paid back with greatly inflated dollars.If there are enough profits from one side, it will offset the losses from the other. Creative accounting and Level 3 assets (off balance sheet)
will bamboozle their books forver.Fractional reserve system allows for around $10 in loans for $1 on the books. If 10% of the loans go 100% bad, in reality they are wiped out, but by not marking to market, give the illusion that they are solvent and all is well. A loan mod that continues to generate revenue is preferred to foreclosing and admitting to a $200,000 loss.
A $200,000 loss can indirectly affect $2,000,000 worth of loans.Illusion is comforting to tens of millions which restores confidence in the “system”
Hedge funds, Bear Stearns etc were leveraged 30 to 1. When 3% of their risk went 100% bad, they were wiped out, as were stockholders, employees, and bondholders.
Fiat money is created out of thin air. You pay back old debt with newly created inflationary money…OR you just default.
It’s going to get worse, before it gets worse…HLS
ParticipantThink of debt as manure.. the more you spread it around over a wider and larger area, it smells the same to everybody who thinks that it’s the normal smell. A bad pile here or there doesn’t get anyone’s attention. It’s not all going bad at the same time. Just like a Madoff scheme, new money coming in covers up for old money..
There is so much manure(debt) out there that is traded around and swapped, it makes a 6 deck blackjack game in Vegas look tempting.
Some of this debt will never be paid back, ever.
Some will be paid off at par, another huge amount will be settled for less than what was originally borrowed..and part will get paid back with greatly inflated dollars.If there are enough profits from one side, it will offset the losses from the other. Creative accounting and Level 3 assets (off balance sheet)
will bamboozle their books forver.Fractional reserve system allows for around $10 in loans for $1 on the books. If 10% of the loans go 100% bad, in reality they are wiped out, but by not marking to market, give the illusion that they are solvent and all is well. A loan mod that continues to generate revenue is preferred to foreclosing and admitting to a $200,000 loss.
A $200,000 loss can indirectly affect $2,000,000 worth of loans.Illusion is comforting to tens of millions which restores confidence in the “system”
Hedge funds, Bear Stearns etc were leveraged 30 to 1. When 3% of their risk went 100% bad, they were wiped out, as were stockholders, employees, and bondholders.
Fiat money is created out of thin air. You pay back old debt with newly created inflationary money…OR you just default.
It’s going to get worse, before it gets worse…HLS
ParticipantThink of debt as manure.. the more you spread it around over a wider and larger area, it smells the same to everybody who thinks that it’s the normal smell. A bad pile here or there doesn’t get anyone’s attention. It’s not all going bad at the same time. Just like a Madoff scheme, new money coming in covers up for old money..
There is so much manure(debt) out there that is traded around and swapped, it makes a 6 deck blackjack game in Vegas look tempting.
Some of this debt will never be paid back, ever.
Some will be paid off at par, another huge amount will be settled for less than what was originally borrowed..and part will get paid back with greatly inflated dollars.If there are enough profits from one side, it will offset the losses from the other. Creative accounting and Level 3 assets (off balance sheet)
will bamboozle their books forver.Fractional reserve system allows for around $10 in loans for $1 on the books. If 10% of the loans go 100% bad, in reality they are wiped out, but by not marking to market, give the illusion that they are solvent and all is well. A loan mod that continues to generate revenue is preferred to foreclosing and admitting to a $200,000 loss.
A $200,000 loss can indirectly affect $2,000,000 worth of loans.Illusion is comforting to tens of millions which restores confidence in the “system”
Hedge funds, Bear Stearns etc were leveraged 30 to 1. When 3% of their risk went 100% bad, they were wiped out, as were stockholders, employees, and bondholders.
Fiat money is created out of thin air. You pay back old debt with newly created inflationary money…OR you just default.
It’s going to get worse, before it gets worse…HLS
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