we could have done a 5% down, or whatever, and get a less payment, but that over 2 years didnt make sense... the payment being less didnt make up for the cash on hand to fill the house, with STUFF, so the 100% loan made way more sense...
tw On Fri, 21 Jan 2005 11:28:09 -0500, Charlie Griefer <[EMAIL PROTECTED]> wrote: > On Fri, 21 Jan 2005 10:18:50 -0600, Deanna Schneider > <[EMAIL PROTECTED]> wrote: > > But, even if the market is appreciating, if you can't afford the > > larger payment that still means you are going to _have to sell_ when > > the principal payments come due. > > true...but most people who take interest only loans are only planning > on staying in the place for the short term (as Michael said he's > planning on doing...same thing with my sister...she's only planning on > staying in her new place for a few years). I agree that it's not a > (good) option for people who plan to lay roots. You -don't- want to > be there when the principal payments come. > > >I'm not saying you shouldn't do it - > > only you know if you're going to want to sell at that point. But, the > > fact that the house is worth more doesn't suddenly make what you owe > > on the house any less. Okay, so you could refinance at that point, > > perhaps. But, what will that buy you? More closing costs and > > prolonging the debt by another 5 years again. > > No, you don't owe any less, but you have equity (again, assuming the > house has appreciated). the principal was based on the original > purchase price. now the house is worth...say...$30k more. Well, you > sell it and pay off that original principal and after closing costs, > you've got a few bucks in your pocket. Could be the down payment > towards the next place where you -do- plan on staying long term :) > > > Can you tell I'm fiscally conservative? I figure if you can't afford > > the house, you shouldn't be buying it. > > I don't disagree with that at all. When I saw that my buyer was > financing 100% of the loan, all I could think about was how high the > monthly payment was going to be, and whether or not he really knew > what he was doing. Sometimes people get overwhelmed at the thought of > buying a house...or maybe overemotional would be a better term. > They're so excited to 'just get in' that they don't see the forest > through the trees and realize that they're committing themselves to a > payment they can't afford. > > ...and for clarification...I'm not saying that's the case with Mr. T > here. I believe we've digressed a bit from his original question :) > > -- > Charlie Griefer > > ================================================ > Marta was watching the football game with me when she said, > "You know, most of these sports are based on the idea of one group > protecting its territory from invasion by another group." > "Yeah," I said, trying not to laugh. Girls are funny. > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Discover CFTicket - The leading ColdFusion Help Desk and Trouble Ticket application http://www.houseoffusion.com/banners/view.cfm?bannerid=48 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:143771 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
