How much house to buy?
03-25-2009, 10:02 AM
#11
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Originally Posted by magician,Mar 25 2009, 11:19 AM
The simple approach is to calculate the payment for the same loan at the same interest rate with half the maturity; for example, if you take out a 30-year loan, calculate the payment for a 15-year loan and make that payment.
Make sure that the additional amount you pay is credited as principal; not all lenders will do that automatically.
Make sure that the additional amount you pay is credited as principal; not all lenders will do that automatically.
03-25-2009, 10:26 AM
#12
Yeah, he doesn't live in San Francisco! Or DC, for that matter. Great price for a house that big and that new! 
, move to Dallas, tons of HOT WOMEN
03-25-2009, 10:48 AM
#14
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Dallas is about 30 minutes from where I am now, it will be about 25 minutes away via a different route, if I can get a house in the towns I'm looking at.
03-25-2009, 04:22 PM
#15
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Originally Posted by magician,Mar 25 2009, 01:19 PM
The simple approach is to calculate the payment for the same loan at the same interest rate with half the maturity; for example, if you take out a 30-year loan, calculate the payment for a 15-year loan and make that payment.
Make sure that the additional amount you pay is credited as principal; not all lenders will do that automatically.
Make sure that the additional amount you pay is credited as principal; not all lenders will do that automatically.
Some 30 year rates are as low or lower than 15 or 20 year rates right now. Wells Fargo for example is offering 30 years at the same rate as 15
03-25-2009, 04:28 PM
#16
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Originally Posted by cthree,Mar 25 2009, 07:22 PM
It has to be applied to principle, there is nothing else to credit it towards. Interest begins to accrue on the first of the month and at the end of the month you pay it and whatever is left over pays principle. If you over paid and it wasn't applied to principle you would be owed interest on the overpayment.
03-25-2009, 04:35 PM
#17
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Originally Posted by cthree,Mar 25 2009, 04:22 PM
It has to be applied to principal, there is nothing else to credit it toward. Interest begins to accrue on the first of the month and at the end of the month you pay it and whatever is left over pays principal. If you over paid and it wasn't applied to principal you would be owed interest on the overpayment.
Your best course is to read your statement every month and make sure that it's being credited properly.
03-25-2009, 04:37 PM
#18
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[QUOTE=magician,Mar 25 2009, 05:35 PM] That's how it should work, I agree, but I remember having a loan (who knows how long ago?) where any additional payment went into an "escrow" account and didn't reduce the principal.
03-25-2009, 04:52 PM
#19
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i say buy a decent house in the best location possible (good schools, good jobs, etc).
From what I've seen, prices have plummeted in less desirable areas but still are holding up in good neighborhoods near jobs and good schools. It really is location location location in real estate. you'll be thankful when it comes time to sell
From what I've seen, prices have plummeted in less desirable areas but still are holding up in good neighborhoods near jobs and good schools. It really is location location location in real estate. you'll be thankful when it comes time to sell
03-25-2009, 06:04 PM
#20
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in texas house prices haven't fallen as much as they have in places like cali and fl, but still there aren't a lot of people buying houses, so you can get some good deals.