Am I making the right decision?
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From: San Diego
0 down for an anesthesiologist is different than 0 down for most people. It is, in all but the most unusual circumstances, incredibly unwise for a bank to offer a 0-down loan on a real estate loan. Banks doing that, and convincing every joe six-pack that he needs and deserves to own real estate is one of the reasons for this lovely crisis.
That said, interest rates are low, and there is the tax credit. I would consider (1) what is my job security, (2) what is my earning potential, (3) what percentage of my income would go to service the home loan, (4) How long will I be in school, (5) How long do I intend to build equity in this home (ie, when/will you move to a new area for a job/etc.)
But I am not a financial analyst - You should definitely stop by to see one. I think I would want to have some liquid cash left over after making a down payment on a house, just to ensure that if I were laid-off, injured, hospitalized, etc. I would be able to make payments on the home loan for at least a year, to give a good safety net. No better way to screw up your credit than to default on a home loan. Too many people run waaay too close to the edge when it comes to budgeting for retirement, home, car, fun, etc.
my .02c
Quick2k
That said, interest rates are low, and there is the tax credit. I would consider (1) what is my job security, (2) what is my earning potential, (3) what percentage of my income would go to service the home loan, (4) How long will I be in school, (5) How long do I intend to build equity in this home (ie, when/will you move to a new area for a job/etc.)
But I am not a financial analyst - You should definitely stop by to see one. I think I would want to have some liquid cash left over after making a down payment on a house, just to ensure that if I were laid-off, injured, hospitalized, etc. I would be able to make payments on the home loan for at least a year, to give a good safety net. No better way to screw up your credit than to default on a home loan. Too many people run waaay too close to the edge when it comes to budgeting for retirement, home, car, fun, etc.
my .02c
Quick2k
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Wait, you already put in an offer that was accepted? Uhh so how were you planning on bailing if we told you to buy the S2000?
After FHA fees (which I don't think are tax deductible) you probably won't get the best mortgage rate in the world, but they should drop off eventually when you hit 80% LTV. But still, a 120k loan your monthly payment will be what... $700 a month? Plus insurance, utilities, etc you're at ~$900 a month to own a townhouse? How much would renting a comparable place in your area cost?
After FHA fees (which I don't think are tax deductible) you probably won't get the best mortgage rate in the world, but they should drop off eventually when you hit 80% LTV. But still, a 120k loan your monthly payment will be what... $700 a month? Plus insurance, utilities, etc you're at ~$900 a month to own a townhouse? How much would renting a comparable place in your area cost?
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Joined: Nov 2001
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From: Ventura, California, USA
Originally Posted by Quick2K,Dec 16 2009, 02:35 PM
0 down for an anesthesiologist is different than 0 down for most people. It is, in all but the most unusual circumstances, incredibly unwise for a bank to offer a 0-down loan on a real estate loan. Banks doing that, and convincing every joe six-pack that he needs and deserves to own real estate is one of the reasons for this lovely crisis.
That said, interest rates are low, and there is the tax credit. I would consider (1) what is my job security, (2) what is my earning potential, (3) what percentage of my income would go to service the home loan, (4) How long will I be in school, (5) How long do I intend to build equity in this home (ie, when/will you move to a new area for a job/etc.)
But I am not a financial analyst - You should definitely stop by to see one. I think I would want to have some liquid cash left over after making a down payment on a house, just to ensure that if I were laid-off, injured, hospitalized, etc. I would be able to make payments on the home loan for at least a year, to give a good safety net. No better way to screw up your credit than to default on a home loan. Too many people run waaay too close to the edge when it comes to budgeting for retirement, home, car, fun, etc.
my .02c
Quick2k
That said, interest rates are low, and there is the tax credit. I would consider (1) what is my job security, (2) what is my earning potential, (3) what percentage of my income would go to service the home loan, (4) How long will I be in school, (5) How long do I intend to build equity in this home (ie, when/will you move to a new area for a job/etc.)
But I am not a financial analyst - You should definitely stop by to see one. I think I would want to have some liquid cash left over after making a down payment on a house, just to ensure that if I were laid-off, injured, hospitalized, etc. I would be able to make payments on the home loan for at least a year, to give a good safety net. No better way to screw up your credit than to default on a home loan. Too many people run waaay too close to the edge when it comes to budgeting for retirement, home, car, fun, etc.
my .02c
Quick2k
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Originally Posted by Quick2K,Dec 16 2009, 02:35 PM
It is, in all but the most unusual circumstances, incredibly unwise for a bank to offer a 0-down loan on a real estate loan.
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From: Ventura, California, USA
Originally Posted by CKit,Dec 16 2009, 02:39 PM
Unless the bank owns the property already and is trying to get it out of foreclosure...
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From: Scatterbrainia
Originally Posted by Quick2K,Dec 16 2009, 03:38 PM
Wow, my California perspective on housing prices skews my perspective. $130,000? WOW. That's like a one-year lease on a balcony in San Francisco, no inside privileges.
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From: San Diego
Originally Posted by s2000raj,Dec 16 2009, 02:40 PM
He's very right. I was in residency and it was a special loan aimed at earning my future business. It worked. We went with them again on our second house.
Quick2k
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Originally Posted by Quick2K,Dec 16 2009, 02:38 PM
Wow, my California perspective on housing prices skews my perspective. $130,000? WOW. That's like a one-year lease on a balcony in San Francisco, no inside privileges.
Dont even compare SF prices with Pittsburg. Pittsburg as a city got hit really hard in the market, nice area though. Has its bad parts, but Im no where near there.
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Originally Posted by Kremlin,Dec 16 2009, 02:37 PM
Wait, you already put in an offer that was accepted? Uhh so how were you planning on bailing if we told you to buy the S2000?
After FHA fees (which I don't think are tax deductible) you probably won't get the best mortgage rate in the world, but they should drop off eventually when you hit 80% LTV. But still, a 120k loan your monthly payment will be what... $700 a month? Plus insurance, utilities, etc you're at ~$900 a month to own a townhouse? How much would renting a comparable place in your area cost?
After FHA fees (which I don't think are tax deductible) you probably won't get the best mortgage rate in the world, but they should drop off eventually when you hit 80% LTV. But still, a 120k loan your monthly payment will be what... $700 a month? Plus insurance, utilities, etc you're at ~$900 a month to own a townhouse? How much would renting a comparable place in your area cost?