 Should the government bail out people who's variable rate mortgages are foreclosing? |
| I keep hearing about how the government needs to help people who signed variable rate morgages. They knew what they were getting into when they signed. Now their rates are rising and the mortgages ... |
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 Closing on my home end of July - can I take my expensive luxury shower head or do I have to leave it? |
| This is the first time I am selling a home. I just happend to be telling my mom this morning that I'm planning on taking my $100 shower head with me when I move and replacing it with this $20 ... |
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 What's there to stop me withholding my last months rent to make sure I get my deposit back? |
| Given that I am having to take my previous landlord to court in order to get back my illegally withheld deposit, I was wondering what is there to stop me in future withholding the last months rent (... |
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 I moved out of my flat recently....? |
| .....and my former flatmate owes me £100 which he refuses to pay. What are my options, legal and .....erm....otherwise, to get my money?... |
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 My landlord won't fix problems with my apartment? |
| My landlord won't fix my windows and when I signed my lease I had him amend it to state that all window would be fixed so that they open and close and lock. It's been six months and they ... |
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 I want to know what I can do about a landlord entering my home when I am home and when I am not home.? |
| Is there a law that protects me from this? Is there something I can do to stop it. I was sleeping one afternoon and got up cause I heard something and when I came around the corner of my living room.... |
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 My real estate agent and broker are liars.? |
| My real estate agent tells me he will sell my condo in 8 months or less and he has me signs a "listing agreement." Stupid me. I sign the damn thing without looking closer at it! After he ... |
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| Can I advertise a house for sell without upseting my real estate agent? |
| I want to sell a house through a real estate agent but also want to advertise it on sites like craigslist. I would list the real estate agent's number as the contact person. Would I be violating ... |
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 What to do? My landlord claims that I did not pay my April rent, but I did? |
| I got notice of non payment today and it claims that I did not pay the April rent. But they are mistaken, I did pay the rent and I have a copy of the check I wrote them. However, I don't have a ... |
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 Dear Sirs,I am the franchising manager of a construction company and its real estate agent dept. in Altınkum i |
Dear Sirs,
I am the franchising manager of a construction company and its real estate agent dept. in Altınkum in Didim(a beautiful sea-side town on the west coast ) in Turkey and we would like ... |
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 What is a good excuse for breaking a lease?? |
| we have a year lease, I know it's bad but we need to move 2,000 miles away in 2 months for family. I need something that is reasonable enough for our landlord to go easy on us. Please help!!!... |
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 Scam or not? |
| This investor says he can help me sale my house by lease w/ option to buy to a person with bad credit. All I have to do is put the title or deed in his or her name until their credit is better, then ... |
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 Have 800+ credit score, did a 30 yr, 20% down, no pts home loan, 0.802% loan orig. fee. Did I get a raw deal? |
| I didn't get a lower interest rate as I understand it for having the loan origination fee. Interest rate was 6.25% locked in on 5/23/07. I was later told by my realtor that with my income (over ... |
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| Regarding down payments when purchasing a home.? |
| We are just out of a bankruptcy and are wanting to purchase a home again. We have no money for a down payment. Can a down payment on the home be financed along with the mortgage?... |
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 Can my fiance and I purchase a home together before we get married? |
| I currently own a condo, which I just purchased last November. My fiance has never owned a home before. We want to purchase a home together now, before we are married. I am going to sell my condo. ... |
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 How many houses do the average couple look at before making a choice? |
| We have looked at 3 houses and will look at 3 more next week. I really loved the 3rd house I looked at. I feel like I'm rushing. Should I look at alot. Around 15-20 or more? Help!... |
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 Section 8..what is it? |
What is that? I am not moving till end of May , but i am looking at apts now. i was looking at one and my friend said not to rent there because its section 8. what is that? thanks
Additional D... |
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 Can I break my lease if a murder was committed in my apt complex? |
| There was a double homicide committed in my apt complex a couple of buildings down from mine. Two men were stabbed to death and the front of my apt is a crime scene. I left for work this morning to ... |
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Heidi J | What are the negatives/positives of purchasing a home outright rather than taking out a mortgage? |
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whiskeyman510
|
Well in the current economy, you can borrow money to buy a house for between 5-7%.
If you do that, then the money you have left over that you would have used to buy the house outright can be invested. You can probably earn 10-15% by investing in mutual funds.
So after 10-15 years, you will have made a lot more money investing than you would have by just owning the house outright.
It's just a better use of your cash as long as the interest rates on mortgages are under 9%. |
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BlackDahlia
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I don't see any negatives if you have that kind of money! You pay so much on interest, it's just throwing money away. Most ppl can't afford to buy outright, or they would. Plus, if things don't work out, it's easier to re-sell and get something else. You will have to pay for your property taxes and insurance though, if you do. That's usually included with the mortgage. |
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Pure Genius
 |
i only see positives to purchase the home outright... having a mortgage means interest rates, and monthly payments, you are better off buying the home...came upon some great real estate information for home buyers, good luck!
http://www.goduckcreek.net/
http://www.goduckcreek.net/HelpCenter.html |
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zealot144
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Buy a more expensive home, and make a big down payment. Houses in most places are way down in value right now, so you may find a bargain. You will be paying interest on the mortgage, and it may well be less than you can earn from investments, but high return investments usually carry some level of risk. Over the long hall, real estate appreciates, and always has. Houses are selling today in weak markets for less than they would have a year or two ago, but they are still selling for significantly more than they would have three or four years ago. As a licensed real estate agent, I have seen the market slow down, and values decline, but most sales are at a significantly higher price than the seller paid, even one one house I represented that the seller had owned for only one year (the house gained 6% in actual value from June 2006 to April 2007!).
IF, in a given period of time, the value of the property doubles (in eight years, for example), the more expensive house will gain more in real appreciation. As an example, if you paid 200K for a home, and its value doubled, you would be ahead by 200K. If you bought a 400K home with 200K down, you would not only have a much nicer home, but the doubling would gain you 400K. In that eight years, you would have paid out approximately 120K in principle and interest, so your net gain would be about 80K, not to mention the taxes you would save if your income is high enough. The tax savings on the 120K you paid out could easily save you 40K in Federal income taxes.
If, of course, the houses do not double in value that quickly, the advantage would be reduced. Depending on the interest, your break even would usually arrive at about 12 years (not counting the tax savings) but you would still have been enjoying a much nicer home for those twelve years. |
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PolarBear
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If you purchase a home outright, all your cash is tied up and locked into the property. If you have an unforeseen large expense (have to replace the roof, plumbing, etc.), you can readily do that.
If you take out a mortgage, you get the tax deduction, have more cash on hand (and you can always add to the monthly payment on the principal which will reduce the length of your loan).
It is always good to diversify your cash holdings, so all your eggs aren't in one basket (or should I say nest!). If you have that much money, do you have stocks, CDs, money market accounts, etc.
Oh, and the biggest cash killer is credit cards. Pay them off each month. In the long run, that will save you scads of mullah.
Talk to a good financial adviser in what your options are. The bottom line is that there is no one right answer. |
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Kaya
 |
No guarantee that the value of your home will appreciate. In fact, it just came out that the value of the average home has depreciated 8%. No telling what your neighborhood will be like in the next few years, either.
The obvious positive is no mortgage payments to worry about. |
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lawnranger69ishere
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This one could go either way, but my vote goes to NO MORTGAGE.
Debt is something that can never be classified as "good". The stock market and/or mutual funds will out perform the housing market increases over time as well. But consider this.
God forbid another 9-11 happen in this country. If it would, the affect on the stock markets would be tremendously more negative in our current market situation than it was 6 years ago. Even if the housing market continues to fall (which I believe the bottom will come in the second or third quarter next year) you would still have a place to live. If the stock market were to take a 50% hit and you had to liquidate for some cash emergency you would guarantee yourself a loss. If your house is paid for with no monthly obligation you could most likely lose your job for a time and still be ok paying insurance and property taxes only but add a mortgage payment to the mix and times could get tough rather quickly.
So all in all, no mortgage is good. You have an asset that may not appreciate as well as a stock/mutual fund investment may, but the down side risk is there would not be any card board box homes in your future!! :-)
Wes Engbrecht
Norsew Investments, LLC
Rochester, MN
The Six Figure Income Professor
http://www.replacemypay.com |
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MR TADS
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positive! tax deductions. better have money working for you. |
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Michael
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It must be nice to be in that position. Wish I had the cash to pay mine off.
Knowing what I know now, If I had the cash, I would start watching for a foreclosure in the area I wanted to live. You can come up with extremely good deals in today's market.
Find one you like and then go to the auction. You generally only have to pay what's owed on the house/mortgage, and can accumulate equity rapidly. Even if you have to do some fixing up, you will come out ahead.
You have to pay a cash downpayment, and within 24 hours of your winning bid you will have to pay the balance.
In today's buyers market, another alternative, is to find someone that want's out quickly, and with cash in hand, you can find very good deals.
The advantage of paying cash, is that you have no mortgage payment. Imagine if you lost your job, and had to worry about a mortgage payment. |
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helprhome
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Negatives:
no interest deductions
limited appreciation (return on investment) ROI
You can make more in the short term in other ways, no crystal ball though!
Talk to investment counselors about where you can get more of a return up to 15%?
Unless you buy discounted properties?
or are thinking about retirement? Circumstances do change the varibles here. |
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Carolinahomerates.com
 |
when you take out a mortgage it will be a 'cash out refinance' the rates are higher...and you will be limited on the cash amount you will receive.
if the home is a jumbo loan...they may only let you borrow 200k....even if the house is worth 1million |
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aerothen
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which do u prefer: paying a huge lump of cash now and pay bills or pay in smaller incriments and pay the bills? (note mortgage is the latter) |
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m_brink
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With some intelligence and a little luck, you could invest the lump in the stock market, and end up earning more from that than you'd lose from interest on the mortgage. The likelihood of succeeding at this would depend a lot on what interest rate you are looking at.
Taking out a mortgage and paying it on time would also help out your credit report. Since you have the option of paying with a pile of cash, this probably isn't an issue for you, but it is something that might still apply. |
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