$70k to food stamps
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From: Newport Beach
That's why stupid people shouldn't breed.
Even my 6 year old son understands how stupid debt is, how he will have to learn how to grow his trust fund, how to manage his allowance and how cash in your pocket makes you the king.
That stupid woman is no different than many on this board who finance their car or carry credit card debt, have no liquid emergency fund. If the idiots in office offer to bail out the idiots who bought too much house we as a nation are truly ####ed. Let them learn their lesson by being homeless. No handouts no nothing, we are in a huge debt as a nation that my kids will have to help pay off when they did nothing to create it. F'en morons.
Even my 6 year old son understands how stupid debt is, how he will have to learn how to grow his trust fund, how to manage his allowance and how cash in your pocket makes you the king.
That stupid woman is no different than many on this board who finance their car or carry credit card debt, have no liquid emergency fund. If the idiots in office offer to bail out the idiots who bought too much house we as a nation are truly ####ed. Let them learn their lesson by being homeless. No handouts no nothing, we are in a huge debt as a nation that my kids will have to help pay off when they did nothing to create it. F'en morons.
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From: Longmont, CO
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From: Brazoria
My sister is in a similar boat. She was laid off with two kids from an $80K job but has six weeks of severance to run through before unemployment.
Her mortgage is much lower, but there are facials, private school for the two kids, personal trainer, home grocery service. She was always out of money when she was employed but my parents put her on an "allowance" paid for a $20k divorce bill and paid off $5k in credit card balance TWICE last year. She is 41.
Her mortgage is much lower, but there are facials, private school for the two kids, personal trainer, home grocery service. She was always out of money when she was employed but my parents put her on an "allowance" paid for a $20k divorce bill and paid off $5k in credit card balance TWICE last year. She is 41.
for a few years in a row, he netted over 100k (economy was good, so was OT) but we never, ever lived a baller lifestyle. I guess we probably had a lot of debt beforehand though.
I'm glad I learned 1st hand how bad credit cards and debt are...
edit: making 70k a year, I'm guessing the most house she could *really* afford, according to 30% of income going to house, is a 700K house. But to me, that is stretching it. @5.5% she is paying 740k over 30 years, meaning she will be paying 2,055 a month. if 2500/mo is her interest ALONE I couldnt imagine how much the house is. (that or I couldnt do the math...I've been drinking, someone correct me if I am wrong here)
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Originally Posted by Mister2,Mar 27 2008, 04:48 PM
My parents, who decide to buy this house that they cannot afford, needed me to front them money for a down payment. I took much of the equity out of my condo as a down payment for their house. My dad got lazy and didn't follow up with his job relocating him down to FL so he had no income. In the meantime, my mom wanted to buy the house that needed a lot of money and work into it. She apparently has been watching too many of these "Flip this House" shows and thought that she could easily sell the house once she redid everything. Well, two years and many thoushands of dollars later, they have no equity in the house and owe a lot of money on my ELOC. They are making the minimum payments which is all they can afford to do and can't afford to do anything because they are living in a house which not even I (who make almost twice my mom's salary) can afford that house. Financially, I am comfortable and am doing fine. At the moment I want to buy something and still keep my place in NY but I can't. As much as I love them dearly, I have a lot of resentment towards them because had they been smart and rented for the first year (since they don't know the area), they would have been able to have enough for a down payment. The only other alternative would be for me to move back in with them, and pay off the ELOC (it will take me 2 years). But I can't fathom being over 30 and living with my folks. Sorry, I just have to vent because it gets to me sometimes. There are more fiscally foolish people out there than you think. Sometimes, one has to look no further than their immediate family.
Most of the people who are in trouble with these loans were very stupid to get so far in over there head. We are all going to pay in the end. Who in there right mind signs up for an ARM? or a loan with a balloon payment? Should just pass a law to cut out all balloon type and ARM loans.
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From: Tulsa, OK
Originally Posted by CKit,Mar 28 2008, 09:06 AM
Your math is way off.
To the poster above, you need to look a little deeper into how interest loans work over multiple years. The payment on a $700,000 30 year mortgage at 5.5% interest is $3975 a month. So if you don't pay it off early, the total amount of payments will be $1,431,000 of which $731,000 is interest alone.
Your first month's payment only has $766 go against the principal. The other 3200 is just interest costs. You have to go all the way out to the 17th year before your principal amount is greater than the amount paid in interest on one of your payments.
, makes my current interest at $300/month seem seem insignifcant, but at least I can afford it w/o help.
