| RE:Real estate question... |
Subject: RE:Real estate question... by CentralCoaster on 2008/2/12 1:10:59 redwing apparently just wants to tell me how to think and doesn't like being disagreed with. His method and thinking may work for him, but it doesn't suit me. Arguing that one can afford a house that's 100% financed is akin to pissing into the wind, I know, but I'll do it anyways. The fact is I had zero money starting out, just like most first-time buyers. I had decent pay and no accessible savings. I had been putting alot into a 401K instead of saving it for a downpayment. 20% down plus closing costs out here equaled about $100,000 for a small 3-bed home at the time I was shopping. It would've taken me probably 5-10 years to save that much. (How long would it take you if you had no existing equity, wise guy?) I was advised to save my cash, take the 100% loan, pay all the closing costs, and use the rest on the house. So yeah, I chose a higher payment and a house to live in. I can afford the payment and other expenses, and can afford to put extra towards it beyond the interest payment, and I have, and the rent income is a surplus beyond that. I chose the interest-only to give me flexibility for home improvements, not because I couldn't afford a 30-yr fixed. The only caveat to that is the interest only loan going variable in 4 years, but the market is either going to suck and rates will stay low (good for refi) or it'll start rising and rates will go up (good for equity). Aside from the house I am in the black, and I own all my vehicles. |
