Mortgage Question

[Sbroadus]

I think what H20 is saying is be sure before you buy a house, have money in the bank. With the way things are today it would be nice to be in a house financially that if you had to sell it you could sell it quickly due to the amount you owe on it or can afford to lose on it due to money you have. I also think he is saying that there is more financially to owning a house than a mortgage payment. Lets be honest a house is not the sound investment it once was but rates are so low now it is a great time to buy if you are smart financially. Sorry if I miss spoke H2O.

[H20fowlkiller]

I think what H20 is saying is be sure before you buy a house, have money in the bank. With the way things are today it would be nice to be in a house financially that if you had to sell it you could sell it quickly due to the amount you owe on it or can afford to lose on it due to money you have. I also think he is saying that there is more financially to owning a house than a mortgage payment. Lets be honest a house is not the sound investment it once was but rates are so low now it is a great time to buy if you are smart financially. Sorry if I miss spoke H2O.

No problem you basically nailed it by stating other thing I didn't, my big point is if you are a young single man and buy a house, you probably won't buy the house you a wife and a couple of kids can live in with all that is associated with a family and all of that can happen pretty quickly. So put yourself in a situation where you either have money in the bank as a safety net or your buying one at such a great deal now( short sales, foreclosures) that if you need to get out of it quickly then you won't put yourself in a bind. And don't forget all the things associated with owning a home for upkeep ( lawnm equipment, vacuums, appliances if the house doesn't have them yet, furniture for housing assuming you don't have any of this yet) possible HOA fees, taxes on property. All may be a little chunk here a little chunk there but it ads up quickly especially when your doing it all by yourself.

[southdeltan]

. Now if this is the house you plan on living in forever and is big enough for a full-size family by all means feel free to pay it off over 30 years.

This may come off as confrontational but I don't mean it that way - but I'd hope most people would plan ahead and know that they're going to have children, and know there's a possibility that they may want to move - before they purchased a house.

Of course, with interest rates as they are now - in many cases you can refinance to 15 years and come out with similar (or smaller payments).

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It's interesting that your situation is why you're against it, but the lack of money for a down payment is a reason that many choose to go this route.

[H20fowlkiller]

. Now if this is the house you plan on living in forever and is big enough for a full-size family by all means feel free to pay it off over 30 years.

This may come off as confrontational but I don't mean it that way - but I'd hope most people would plan ahead and know that they're going to have children, and know there's a possibility that they may want to move - before they purchased a house.te.

But a lot of young people don't any more look at enough classified ads and you will see what I mean, guy will buy a truck or boat or a four wheeler sink a ton of money rigging it up and find out girlfriend or wife is pregnant and try to sell it for more than it's worth because they have no money saved due to they put everything into fun stuff instead of the bank.

[matador1]

Just stated my opinion, I forgot everyone was a mortgage and finance expert. Im just sayin if you can't put anything down, as in you don't have any money saved you shouldn't buy a house again just my opinion.

I don't think anyone is claiming to be an expert, simply wanted to know your reasoning. You stated your opinion without any facts to form the basis of you opinion. You or I neither one know how much money he has saved, income, potential for income to increase soon, etc. All of these play a part in helping someone make the decision as to whether they need to rent or buy. You painted with a broad stroke or gave it the ole one size fits all comment.
I do tons of first time homebuyer loans with the minimum down payment, 3.5% for FHA or 0% for Rural Developemnt for people with savings all the time. With rates as low as they are some people would rather fund their retirement, pay down other debt, or simply save as an emergency fund.
I've also done several where they were receiving a large sum of money in the near future but didn't want to miss on a particular house or low rates.
Just another reason you need a professional helping you when you buy a home, lot's of variables that play a huge role in the decision.