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AuthorPosts
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Raybyrnes
Participantkev374
10 year is a loooooooooooong time. Long time to wait to get started saving in a Roth IRA aswell. Run the numbers on starting a Roth IRA at the age of 25 vs waiting until you are 35. A little bit now goes a long way later. Think you are sort of missing this. Additionally time value of money say that a payment in 40 year will be equivalent to a car payment today. Money has a declining value. Just giving you the facts. You can play aroudn wiht the calculations.Participantpatientlywaiting
“But considering how much house prices will drop, those financing schemes don’t mean much. Buy a house at a price you can afford not because of financing schemes.”I will totally support this statement. I don’t think anyone should use any other financial instrament unless they can afford the 30 year fixed. Once the 30 year fixed is management the ability to use IO, neg am, ARMS etc become vialbale options becasue you can already mangement the payments. At this point it is just a matter of whether or not you can get a better rate of return investing the differnce.
Best scenario is to identify something you can afford and then use the affordable-income programs.
But be aware that if you do well, get married etc you can quickly exceed the income limits and all of a sudden you are trapped in the middle. It happend to me so I speak from experience.
Participantpatientlywaiting
“But considering how much house prices will drop, those financing schemes don’t mean much. Buy a house at a price you can afford not because of financing schemes.”I will totally support this statement. I don’t think anyone should use any other financial instrament unless they can afford the 30 year fixed. Once the 30 year fixed is management the ability to use IO, neg am, ARMS etc become vialbale options becasue you can already mangement the payments. At this point it is just a matter of whether or not you can get a better rate of return investing the differnce.
Best scenario is to identify something you can afford and then use the affordable-income programs.
But be aware that if you do well, get married etc you can quickly exceed the income limits and all of a sudden you are trapped in the middle. It happend to me so I speak from experience.
Participantpatientlywaiting
“But considering how much house prices will drop, those financing schemes don’t mean much. Buy a house at a price you can afford not because of financing schemes.”I will totally support this statement. I don’t think anyone should use any other financial instrament unless they can afford the 30 year fixed. Once the 30 year fixed is management the ability to use IO, neg am, ARMS etc become vialbale options becasue you can already mangement the payments. At this point it is just a matter of whether or not you can get a better rate of return investing the differnce.
Best scenario is to identify something you can afford and then use the affordable-income programs.
But be aware that if you do well, get married etc you can quickly exceed the income limits and all of a sudden you are trapped in the middle. It happend to me so I speak from experience.
Participantkev374
If you bought FEMKX in IRA account you might well served to swap out of this and go with ADRE which gives you the same portfolio but at a much lwoer cost.
Participantkev374
If you bought FEMKX in IRA account you might well served to swap out of this and go with ADRE which gives you the same portfolio but at a much lwoer cost.
Participantkev374
If you bought FEMKX in IRA account you might well served to swap out of this and go with ADRE which gives you the same portfolio but at a much lwoer cost.
Participantbsrsharma
You arr right on the money. That is a great loan. IN 10 years you coul likely see a combination of higher rates and higher home prices. Having locked in at 6% the paper becomes cheap. Additionally accounting for inflation his 3000K payment in 40 years is equivalent to a $1500 payment or less in todays terms.
There is also nothing that stops him from prepaying the loan back or refinancing if we got into soem wierd situation where rates went to some ridiculous 4% range. The big thing here is making sure you have the cash to continue to make the payment.
Nice thing with this home loan is that in the enevt of job loss I believe there is deferrment and forbearanc ein the form of PMI that will cover the mortgage so even his payment is insured. It is a good loan.
Participantbsrsharma
You arr right on the money. That is a great loan. IN 10 years you coul likely see a combination of higher rates and higher home prices. Having locked in at 6% the paper becomes cheap. Additionally accounting for inflation his 3000K payment in 40 years is equivalent to a $1500 payment or less in todays terms.
There is also nothing that stops him from prepaying the loan back or refinancing if we got into soem wierd situation where rates went to some ridiculous 4% range. The big thing here is making sure you have the cash to continue to make the payment.
Nice thing with this home loan is that in the enevt of job loss I believe there is deferrment and forbearanc ein the form of PMI that will cover the mortgage so even his payment is insured. It is a good loan.
Participantbsrsharma
You arr right on the money. That is a great loan. IN 10 years you coul likely see a combination of higher rates and higher home prices. Having locked in at 6% the paper becomes cheap. Additionally accounting for inflation his 3000K payment in 40 years is equivalent to a $1500 payment or less in todays terms.
There is also nothing that stops him from prepaying the loan back or refinancing if we got into soem wierd situation where rates went to some ridiculous 4% range. The big thing here is making sure you have the cash to continue to make the payment.
Nice thing with this home loan is that in the enevt of job loss I believe there is deferrment and forbearanc ein the form of PMI that will cover the mortgage so even his payment is insured. It is a good loan.
ParticipantFormerSanDiegan
I am not a CPA either so I will go with what you said. The idea of classifying oneself as a real esate professional was introduced to me by a colleague who used it to reduce his specific tax liability.
I believe it would be a useful question to ask a CPA if I were sitting down for a consultation.
With respect to the qualification it is a fairly loose interpretation as the 750 hours. Is the time you are on piggington considered research.
ParticipantFormerSanDiegan
I am not a CPA either so I will go with what you said. The idea of classifying oneself as a real esate professional was introduced to me by a colleague who used it to reduce his specific tax liability.
I believe it would be a useful question to ask a CPA if I were sitting down for a consultation.
With respect to the qualification it is a fairly loose interpretation as the 750 hours. Is the time you are on piggington considered research.
ParticipantFormerSanDiegan
I am not a CPA either so I will go with what you said. The idea of classifying oneself as a real esate professional was introduced to me by a colleague who used it to reduce his specific tax liability.
I believe it would be a useful question to ask a CPA if I were sitting down for a consultation.
With respect to the qualification it is a fairly loose interpretation as the 750 hours. Is the time you are on piggington considered research.
ParticipantUnfortunately this is where my knowledgee runs out. You would have to call a lender and find out what is available through these programs.
You may also want to look into the SBA program. If their was any potentail damage to you home you could try to loosely quaiify for SBA money 2.97 for a 30 year fixed up to 200K or if you have a small business 4% fixed up to 1.5 million .
During the World Trade Center many businesses were looseely extended these types of loans. You may want to speak with a banker to see how loose they would be for you.
Sorry I don’t have more for you. -
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