 Closing on my first house?!? |
I am closing on my first house tomorrow!!! (I am only 20) And I was just wondering how long it will take and what all will I need to bring besides closing cost?? Any other good tips?
If I ... |
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 Can i be denied on an apartment because of my income? |
| My fiancee and i tried to rent an 2 bedroom apartment for 850 with heat and hot water included. We only pay electric. We make 2500 between us. My income goes up according to rent price. She said we ... |
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 How much would I be able to rent a decent flat for when I'm 16 in Sheffield? |
| I want to know cos I sort of need to get out of mother's gaze, not cos I don't like her and I don't want rules. Just my Mum is kinda over protective and stuff and when I'm 16 I... |
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 I made a quick list of all the stuff I'll need to pay for when I live on my own. Am I missing anything? |
Rent
Electricity
phone
water
gas (heating)
insurance (car)
gas (car)
groceries for home
drinks
meals eating out
entertainment (movies, ,shows, etc)<... |
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| I moved into my apt in jan 07 signed a lease that said 600, a monnth I get a letter today saying my rent goes up 50 bucks starting august 1. Is this ok for my landlord to do that, I am kinda ticked ... |
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| I just got a message from my apartment manager saying that she needed me to fax the 1st page of my 2005 tax return to their office. I called back and she said they were going through an "audit&... |
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 Secure Home for a Loan? |
| I am looking for a loan, between $25,000 and $50,000. I have about $28,000 in equity in my home, but b/c I am self employed and using bank statements to state my income banks are not willing to give ... |
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 How can I buy a house eventhough I filed bankruptcy over 18 months ago? Are there any programs out there? |
| I am in desperate need of buying a house by April 2007. I filed bankruptcy in October 2005, and it will be discharged on March 2006. Are there any companies or programs that can help me in this ... |
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 Question on a Home Equuity loan....? |
Some facts:
May home was recently appraised for 150,000 more than what I am currently paying a mortgage on. Now does that mean I can get a home equitly loan for like ten percent of that money? ... |
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 Whats a good chachy name for selling? |
im going to be selling tools online and i need a good name thast easy to remember. only like two or three words
i was thinking speedytools. can you guys help me with some ideas ... |
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 I have a tenant who wants the tv aerial changing on the roof? |
| he wants the aerial changing as he claims he can not get terrestial and freeview channels i have checked the aerial and it seems fine and i was able to get a good reception on all channels. this ... |
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renaldo r | Im on my way to paying my house off in my 40s.I think i am better off paying my house off early do yu think so |
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hugh.G.rection
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Here we go...
The thought of adding to the principle, reducing your loan term was a thought that originally spawned from the time of the great depression. At that time, banks (mainly local) had the ability to recall notes at any time they felt, whether you where in default or not. Sooooo, what they did when they needed money was started to take back the money they had lended out to borrowers by way of recalling the notes to properties. Leaving many Americans in the streets. This spawned hysteria in the American Psyche.
The thought of "Mortgage = bad" has been etched in our heads from the passing down of generations ever since. From this, I can tell you it's not logical thinking... WHY???
You see, lets say you take out $100k from the equity in your home and put it in a long term CD earning you 8% (very easy in todays market) and it compounds annually. However you have a loan on the property (interest only) at 6%, the intitial thought is you are going to yeild 2% on your money in a positive. NOT TRUE! you are going to yeild much more than that because the money in the CD is compounded on an annual basis and the interest paid on your home is simple interest. So, in essence you are going to reap the tax benefit of having a mortgage and you are going to be compounding the interest in the long term CD every year...
Ex:
100k x .08 = 8,000.00
108k x .08 = 8,640.00
116,640.00 x .08 = 9,347.20
125,987.20 x .08 = 10,078.98
136066.18
You see wher I'm going with this. After only 4yrs you have made 36,066.18 yet you have paid 24,000.00 in interest to you existing 100k mortgage! Multiply the 24k in interest on your mortgage by 35% (general tax break offered for middle class on interest to a home) and you have really only spent 15,600.00 to make 36066.18.
This is the first four years. Keep compounding the interes for 20yrs and you will be 100's of thousands of dollars ahead.
It's called hedging, it's what the wealthy have been doing for years and years, using other peoples money to make them more money. It's the main reason why the rich get richer and the middle class never accel past middle class. |
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tonic072780
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paying it off early is better because its all principle and no interest |
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hkhart
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The more you can add to your principle each month, the less total amount you will have to pay to own your home. If you have the money, even if it is a few dollars, the interest saved will be much more. |
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April Z
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no. your better out to keep a morgage for taxes reasons.you will be able to get more then paying it off |
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koblas
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It depends on your overall situation:
* Do you have auto loans, credit card debt, etc.
* What tax bracket are you in
* Do you have a fixed or variable rate mortgage
Given these facts and a comparison to earnings on investing the money in other investments (fixed [CD, Money Market, etc], stocks, bonds...) What's the true rate of return v.s. cost after tax deductions.
Odds are if you have a fixed mortgage you're rate of investment return will be greater than your mortgage costs after taxes. -- thus you should invest {unless you want piece of mind}. |
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c0ch0
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Eliminating any debt is the best thing you can do. The equity you will possess by owning your home far outweighs any income you would derive from other investments. |
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stick man
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Yes! congratulations. Then, keep giving the monthly payment to yourself in a good mutual fund, or good stock, and be prepared for retirement. |
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Lizzy
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Too many factors for a quick decision - I'm not sure, but I read the first entry below:
Sell Now! : The End of the Housing Bubble
Sell Now! : The End of the Housing Bubble by John R. Talbott (Paperback - Jan 10, 2006)
Buy new: $14.95 $9.72 Usually ships in 24 hours
Used & new from $7.03
America's Housing Bubble: The Real Estate Outlook for 2006-2012
America's Housing Bubble: The Real Estate Outlook for 2006-2012 by Clif Droke (Paperback - Jun 1, 2005)
Buy new: $24.95 Usually ships in 3 to 5 weeks
The Coming Crash in the Housing Market : 10 Things You Can Do Now to Protect Your Most Valuable Investment
The Coming Crash in the Housing Market : 10 Things You Can Do Now to Protect Your Most Valuable Investment by John R. Talbott (Paperback - April 28, 2003)
Buy new: $14.95 $9.72 Usually ships in 24 hours
Used & new from $1.14
Bubble After Bubble in The Ongoing Bubble Boom : Oil Bursts, the Housing Bubble Fades and Now Stocks Emerge Into a Greater Bubble that Finally Ends in 2010
Bubble After Bubble in The Ongoing Bubble Boom : Oil Bursts, the Housing Bubble Fades and Now Stocks Emerge Into a Greater Bubble that Finally Ends in 2010 by Amazon.com (Digital - Jun 21, 2005)
Buy new: $0.49 Available for download now
How to Profit from the Coming Real Estate Bust : Money-Making Strategies for the End of the Housing Bubble
An educated decision is usually the best one! |
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growingmadness
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Well even though in it of its self that is a great accomplishment, you have to determine your overall goal with your property. Are you planning to sell, if not are you planning on moving and renting this house out? If you pay off your house, are you sure you will never need a loan from it again? These are all important questions to consider because even though having a mortgage may not be fun, in certain situations having one can be very benificial (ie: tax breaks, better loan for needed cash, etc). Do some serious thinking(with your spouse if you have one) write down some goals, and then do some more research.
For any more question you can email me at apboardshop@Hotmail.com
BTW: i almost forgot, congrats on almost paying your house off!!! |
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fortitudinousskeptic
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That's a noble aim. If you can do that, great. BUT, pay off ALL of your other debt FIRST, especially unsecured debt like credit card debt. Your house payment is linked to a real capital investment that has a high likelihood of increasing in value if well maintained, AND it likely has a lower interest rate on the mortgage than any other loan you have. |
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