 Home mortgage loan question!? |
When applying for a loan do you need all your emplyment history or do they just go by your credit history to lend you the loan?
I used to work full time but only work part-time nowadays but want ... |
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 With perfect credit and $3200/month, can I afford a $200-250k home in TX? |
| I'm 20 years old making around $3,200/month and have $15,000 in the bank that I saved up while living with my parents. I currently have no debt, my credit score is perfect, my car has been paid ... |
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| hi could anybody tell me how long after moving out of a property how long is it that your landlord can keep hold of your deposit , i left with no rent arrears at all, i have been gone since the 26th ... |
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| I am a home renter in Missouri. I am 2 months behind in rent. Today I got a phone call from my landlord saying that he has already re rented the home and I have 2 days to get my things and get out. I... |
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 I Filed Bankruptcy Over 7 Years Ago, Will Any Lender Extend A Mortgage? |
I let my house go and filed bankruptcy when I got ill and my ex flew off on her broom b/c she didn't want to "deal" with it.
I have been since been renting and establishing my ... |
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 What does DSS stand for? |
| In Property / flat share ads, they often say, along with No Smoking, No Pets, etc, 'No DSS' - what does this mean?... |
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| Just curious to know, because in central NJ average rents I've seen for a nice place start around $1200 per month.... |
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| I've just had an offer accepted on a house in England, I want to move in ASAP so I don't have to keep paying rent on the flat I'm in at the moment but I'm the bottom of a chain. C... |
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| I'm looking into buying a house for the first time and was wondering how much I can expect to have to pay a ... |
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 URGENT ADVICE NEEDED! Tenancy law, am I wrong or is the Landlady? |
| Me and my partner are in a unique situation. We've been renting a house off of my Aunt for 2.5 years. We never signed a contract, and as it's family, it hasn't been a very ... |
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 Can you sue your landlord for turning off the gas that runs your stove in the house?? |
and he refuses to fix it...if so what can I do??
Additional Details
and yes I pay the ... |
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 I have 15K burning a hole in my wallet. What do I do with it? |
| I have sold my house but with my new earnings I have no idea what to do with this extra money. I'm absolutely clueless when it comes to investments and whatever I decide to dump my money into I&#... |
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 How much on average does a 3 bedroom house in your area cost to buy? |
Where do you live?
I am in SE suburbs of Melbourne Victoria Australia and an average 3 bedroom house (nothing too special) seems to be around $300,000+
Curious how it compares to ... |
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 Why are big detached houses in the USA ridiculously cheaper than here in Britain? |
I was gobsmacked when I saw absolute massive 5-6 bedroom detached houses for just over £200,000 when i was looking through some US pproperty market websites.
Over here in the UK you can ... |
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 I need to know what this means "utilities not included"...please explain further...? |
| I just signed a lease that stipulates that "utilities are not included" in the rent. I'm not from New York, NY and I don't know if that means heat, hot water, electricity, etc. W... |
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noel | Rent is dead money ? |
heard so many people refer paying rent to money down the drain, but what about interest from mortgage ? isnt that money down the drain also ? only interest go to brank's drain , while rent go to landlord's drain ...im currently renting a very nice property , when i want to buy it from my landlord the mortgage repayment is double the rent ...
so in this case, i guess either way is dead money ... ?
just wonder what people think about this |
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achrimsdale
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Interesting question it made me do some sums
I bought my house 20 years ago and have just paid off the mortgage.
Total cost to me including maintenance costs £74700
Renting similar house in this area £96000
I saved £22000 and have a house which I could sell this week for £130000 |
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RM
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The difference is, you'll be pouring money down the landlord's drain for the next 20 years with nothing to show for it, whereas if you invest in a mortgage for the same amount of time, you'll have an asset that will probably have appreciated in value hugely, more than making up for the interest you've given the bank! |
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Nothing_but_blue_Skies
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I thought the same thing when my fiancee and i decided to buy our home. But the difference is at the end of it all..you own something. So even if the interest is going down the drain, you still come out ahead with the ownership of a property |
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elijahyossie
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I don't agree that renting is necessarily "dead money". In the area of London where I live, our rent is LESS than the interest-only part of a mortgage would be on the same flat! So we are actually much better off renting - we can (and are) saving the money instead. It depends on the relative costs of rent and the mortgage interest element.
Part of a mortgage payment goes to paying off the capital, so that at the end of the term you own the place. But if you are renting for example for £200 a week, and the mortage would cost £250 a week in interest repayment, plus extra to pay back the capital, you would be paying dead money to the bank if you bought.
In addition, house prices might well fall - and then you would be paying back money on an asset that is worth less that you owe. |
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Hild M
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When I took out my mortgage last year my partner and I did the following calculation: Our mortgage now is £700 pounds a month (yes, OK, I know it is fairly low compared to your 'average' mortgage, but the following argument still stands!). In ten years time (we were lucky enough to get a fixed rate mortgage for ten years) those £700 will be equivalent to about £500 pounds of todays money when assuming an average of 3% inflation and hence my salary increasing by 3% a year. In ten years time however, your rent is likely to have gone up by the rate of inflation (at least!) and you'd end up spending lots more!
And of course, as others have already pointed out - at the end of a mortgage term you have something to show for your money... |
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fenlandfowl
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9 years ago I bought my present house for £31,000. It is now worth £130,000. I pay a tiny mortgare, much much less than it would cost me in rent for the same type of house (with land). If I rented there would be all kinds of restrictions on if I could keep animals (I do), any decorations I could do. Why bother improving it for someone else. If a landlord wanted to he could raise my rent or ask me to leave and I would have to try to find someowhere else where I could keep my animals.
In 10 years time, I will have paid off my mortgage and be living rent and mortgage free, while someone else with a similar place rented, would still be paying out every month and in increasing amounts too.
When I kick the bucket, my son will also have a tidy sum when he sells my house. |
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Dellboy from UK
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I took out a mortgage 40 years ago and paid it off 12 years ago, so I have been living without paying either rent or mortgage for the last 12 years. That made it all worth while. In this period the value of property has risen hugely. My first home cost £12,000, my present home is worth £320,000.
At times, if you are buying your own home, the value of it is rising faster than the repayments, so in a sense it is costing you nothing.
I knew one chap who took out a mortgage, paid the first couple of months instalments, then never paid anything else. Of course, the building society repossessed the house, but this took about six months. By this time the house had risen in value so much that when the building society sold it and recovered what they were owed, there was several thousands of pounds left over. To everyone's surprise, this surplus legally belonged to the chap. He lived in the property for nearly a year, paid only a couple of months instalments, and at the end of it had a sizable chunk of money handed to him. That is why it is best to buy - do not rent if you can avoid it. |
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Cookie On My Mind
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The difference is, you can eventually decide to move and sell the house and make a profit on it. You can't do that when leaving an apartment. |
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cajunrescuemedic
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I understand what you're talking about, but eventually you'll pay off your mortgage, you'll never pay off your rent, unless you come up with some type of rent to own agreement with your landlord. This agreement would have to be on a legal document and notarized, to protect you and your landlord. Best of luck to you. |
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flybymind
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Paid £20000 for my house 30 years ago now worth £200 000 do the maths been living mortgage free for five years its definately best to buy |
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Hope this helps
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Okay - if you want to live in the area for more than a couple of years, you need to look into buying a house/condo, etc.
Remember - real estate increases in value. When you go to sell the house (assuming you don't TRASH it) it will be worth more than when you bought it.
So - let's use round numbers, and say you buy a starter-house for $150,000. Your payments are going to be about the same as renting the same house. You will enjoy it more. You will paint, decorate, plant trees, and do fun house stuff.
Five years later, you outgrow that house, and you put it on the market for $200,000. The house has increased in value, plus you have improved it. You owe about $135,000 on the house. So, you walk away from the deal with $65,000 in cash. Not too bad !!! You use that money for downpayment on your new house.
Compare that to renting those five years. At the end you would have...NOTHING. Then you would have to find a better apartment.
Think about it...who lives in apartment complexes? Younger adults who might be moving soon, or who aren't yet making enough money to buy a house. It is very unusual to see anyone over 35 "choosing" to live in a rental unit.
As per your specific situation, where the mortgage is double the rent - that is a very unusual situation. Double....really? Is that from a bank, or would your landlord be financing that deal. Ask your landlord his selling price (most will accept 10% less) and take those numbers to your bank. They will help you crunch the numbers. If you are a first-time buyer, you probably qualify for a special low-rate. |
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glenn
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In North Texas if you pay $1000 rent on a house it will probably sell for about $90,000. So your rent is higher that a monthly mortgage payment would be. Plus all the tax advantages and gains in value every year.
I have a good friend in San Francisco that lives in a rent controlled apartment. He has told me for years that if he bought his payments would be much higher. He has also watched his landlords property skyrocket in value. For him it was a tougher decision and for you it would be also, but I still think that over the long haul (10 years or more). Buying is much better than renting.
If you are going to move in a year or two I would rent, if you are going to stay there seven to ten years or more I would buy. Between those two--you take a gut feeling and decide. |
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whizzbangdood
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Thats why its better to get a loan and buy 2 houses, coz the rent from one of them should pay off both mortgages if you work it out right. |
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Mike G
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Yes, interest is dead money. You pay interest all year and at the end you own two bricks in the bottom left corner of your house. The majority of your money went to your bank. The claim that if you own a property all the money you pay is to your benefit is false and shows a mis-understanding of the economics of the situation.
So why buy? Well if you are fortunate or wise, your property will rise in value. Borrowing someone else's money to invest is called gearing: you put down 10k, borrow 90k. If the house goes up 10%, it's worth 110k and you made 10k on a 10k investment, very nice. Of course you probably paid 6k in interest for the loan, but you would have paid about 6k for a competitive rent anyway.
Long term, property rises in price. But so does the stock market, and faster. However, the banks will loan you 90k to invest in property, but they won't lend you 90k for stocks so this is one of the few markets in which average investors can take advantage of gearing.
It costs most a 1-5k to get into the investment - surveys, mortgage fees, moving expenses etc.
What if the property falls in price? Things go bad for you just as fast. If it drops in value by 10%, you lost all your hard earned 10k. This is the current situation in some areas in the USA, and happened in a big way in the UK at the end of the 1980's as shown by the long term house prices charts.
At the moment there are many more people who made money than lost it, and they recommend buy. However if you want to make a rational decision, you should buy if ALL the following are true:
* you think house prices will continue to rise - the big question
* you will stay in the place long enough to recoup the initial expenses from this price rise (I think average for first time buyers is 4 years)
* you can afford the monthly payments even if the interest rate goes up a few notches
* the *interest* part of the mortage payment is less than the rent you pay currently
* you are happy with the hassle and responsibility of ownership (insurance, repairs etc)
If any of the above are false, you should not buy. |
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shih tzu lady
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But whilst you are paying a mortgage the property value is usually increasing, giving you a profit for the future. So the interest is offset again this. But not so in the case of renting. |
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princess
 |
Buying a house is only a good investment if you intend to live there for a long time - or you can afford to rent it out.
My husband and I bought our first house 2 years ago and it was perfect for us - at the time.
I soon discovered I was pregnant and while we had a beautiful house that suited us as a couple, it was no good for us to raise a family in.
It took us 2 years to sell the house, during which time I fell pregnant again and our financial position changed drastically due to working less hours and paying our nursery fees etc.
We couldn't find a house to buy that was within our price range that would be suitable to raise a family and have just gone back to renting.
We also wanted to travel abroad for a few months before our children start school and if we couldn't find someone to rent off us during that period then we wouldn't be able to afford.
We sold our house at the market value (which wasn't much more than we initially paid for it) and because of the interest, solitors fees and estate agent fees we've made no money at all. I may as well have been renting for the last 2 years!
So to sum up, it is only worth byuing a house if it definitely is a lifetime investment for you personally.
I won't be doing it again for a good few years (unless I come into some money and can afford a massive deposit!) |
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GREG H
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Well, you need to put a roof over your head dont you?
Why do you not value your security?
Why buy and lose the house if you cant afford it?
you can move in and out of rentals like nothing!!!
as much times a year as you want!!
People paying off a house are people who usaully never take a bigger risk than buying a house!!
I am 27, have purchased 2 houses, and both times had bad luck!!
But, then again, I have owned many businesses, and earned massive money!!!
The way I see it, I could be living in a house, and paying off a mortgage, but then I wouldnt have the income I have from the 90 people working for me!!!
Because i used my money to start a business, and now I will buy a house cash, every 2 years!!
Wankers who take no risks will tell you that, because they have no spine. |
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