In article , "Kim W5TIT"
writes:

I am
shopping for a new home and my husband and I have decided what we are
comfortable spending, what we need and desire in a new place, what kind of
interest rate we'll accept, and what payment we want.

Weren't you folks having a place built, Kim? Or are we talking about the same
thing?

Know what? One
mortgage company so far has told us, "you have a lot of room to move,"
meaning that we can get into something much bigger and more expensive than
we are looking for. They seem shocked that we aren't interested in
"maxxing" out our limit!!

Sure. I've encountered that, too, in all sorts of transactions, Their focus is
very narrow. And their fees and commissions are based on the selling price.

And note that reselling mortgages is pretty standard, so the people who sold
you the house and mortgage won't be holding the bag if you do default.

And, you're right about bankruptcy, too. When I said to a lender that we
weren't comfortable with the expense they were suggesting, they said we
could afford it and didn't know what the problem was.

Of course not. It's not their money or their house!

I told them I think
about things like potentially losing my job or my husband losing his. The
come back was that we always have bankruptcy available!!!

Now *that's* a new one! ;-)

Point is that the lenders &tc won't protect us from ourselves. *We* have to do
that.

73 de Jim, N2EY

"N2EY" wrote in message
...
In article , "Kim W5TIT"

writes:

I am
shopping for a new home and my husband and I have decided what we are
comfortable spending, what we need and desire in a new place, what kind
of
interest rate we'll accept, and what payment we want.

Weren't you folks having a place built, Kim? Or are we talking about the
same
thing?


No, no! We're not having a place built...we are ordering a manufactured
home (trailer, whatever-you-want-to-call-it). We are all set with land, and
explored building. But, for some reason, neither of us is particularly
interested in dealing with having one built (there's not one good experience
we've ever had relayed about dealing with builders...LOL).


Know what? One
mortgage company so far has told us, "you have a lot of room to move,"
meaning that we can get into something much bigger and more expensive
than
we are looking for. They seem shocked that we aren't interested in
"maxxing" out our limit!!

Sure. I've encountered that, too, in all sorts of transactions, Their
focus is
very narrow. And their fees and commissions are based on the selling
price.

And note that reselling mortgages is pretty standard, so the people who
sold
you the house and mortgage won't be holding the bag if you do default.


Yep, we've already been told as soon as the "deal is done," the mortgage
will be sold.


And, you're right about bankruptcy, too. When I said to a lender that we
weren't comfortable with the expense they were suggesting, they said we
could afford it and didn't know what the problem was.

Of course not. It's not their money or their house!


Or the accomplishment of having excellent credit!


I told them I think
about things like potentially losing my job or my husband losing his.
The
come back was that we always have bankruptcy available!!!

Now *that's* a new one! ;-)

Point is that the lenders &tc won't protect us from ourselves. *We* have
to do
that.

73 de Jim, N2EY

Precisely what we're doing...

Kim W5TIT

In article , "Kim W5TIT"
writes:

Weren't you folks having a place built, Kim? Or are we talking about the
same thing?

No, no! We're not having a place built...we are ordering a manufactured
home (trailer, whatever-you-want-to-call-it). We are all set with land, and
explored building. But, for some reason, neither of us is particularly
interested in dealing with having one built (there's not one good experience
we've ever had relayed about dealing with builders...LOL).

I lump buying/setting up a new manufactured or modular home in with building,
though obviously they're not exactly the same. Main thing is you're talking
about the same project (getting a new place).

Know what? One
mortgage company so far has told us, "you have a lot of room to move,"
meaning that we can get into something much bigger and more expensive
than
we are looking for. They seem shocked that we aren't interested in
"maxxing" out our limit!!

Sure. I've encountered that, too, in all sorts of transactions, Their
focus is
very narrow. And their fees and commissions are based on the selling
price.

And note that reselling mortgages is pretty standard, so the people who
sold you the house and mortgage won't be holding the bag if you do default.

Yep, we've already been told as soon as the "deal is done," the mortgage
will be sold.

I wonder how those folks make their money, with all the paperwork involved, but
I suppose that if somebody handles ten million dollars in mortagages per month
and gets 0.1% commission, it adds up...

And, you're right about bankruptcy, too. When I said to a lender that we
weren't comfortable with the expense they were suggesting, they said we
could afford it and didn't know what the problem was.

Of course not. It's not their money or their house!

Or the accomplishment of having excellent credit!

Right! You shoulda seen the looks on their faces when I started reciting my
credit history.....

I told them I think
about things like potentially losing my job or my husband losing his.
The
come back was that we always have bankruptcy available!!!

Now *that's* a new one! ;-)

Point is that the lenders &tc won't protect us from ourselves. *We* have
to do that.

Precisely what we're doing...

And a good thing too....

Here's another one for ya: I bet neither of us would have any problem getting a
30 year mortgage, even though we'd be nearly 80 when said mortage was paid off
(barring any advance payments). Huh?

73 de Jim, N2EY

"N2EY" wrote in message
...
In article , "Kim W5TIT"

writes:

Weren't you folks having a place built, Kim? Or are we talking about
the
same thing?

No, no! We're not having a place built...we are ordering a manufactured
home (trailer, whatever-you-want-to-call-it). We are all set with land,
and
explored building. But, for some reason, neither of us is particularly
interested in dealing with having one built (there's not one good
experience
we've ever had relayed about dealing with builders...LOL).

I lump buying/setting up a new manufactured or modular home in with
building,
though obviously they're not exactly the same. Main thing is you're
talking
about the same project (getting a new place).

Know what? One
mortgage company so far has told us, "you have a lot of room to move,"
meaning that we can get into something much bigger and more expensive
than
we are looking for. They seem shocked that we aren't interested in
"maxxing" out our limit!!

Sure. I've encountered that, too, in all sorts of transactions, Their
focus is
very narrow. And their fees and commissions are based on the selling
price.

And note that reselling mortgages is pretty standard, so the people who
sold you the house and mortgage won't be holding the bag if you do
default.

Yep, we've already been told as soon as the "deal is done," the mortgage
will be sold.

I wonder how those folks make their money, with all the paperwork
involved, but
I suppose that if somebody handles ten million dollars in mortagages per
month
and gets 0.1% commission, it adds up...

And, you're right about bankruptcy, too. When I said to a lender that
we
weren't comfortable with the expense they were suggesting, they said
we
could afford it and didn't know what the problem was.

Of course not. It's not their money or their house!

Or the accomplishment of having excellent credit!

Right! You shoulda seen the looks on their faces when I started reciting
my
credit history.....

I told them I think
about things like potentially losing my job or my husband losing his.
The
come back was that we always have bankruptcy available!!!

Now *that's* a new one! ;-)

Point is that the lenders &tc won't protect us from ourselves. *We*
have
to do that.

Precisely what we're doing...

And a good thing too....

Here's another one for ya: I bet neither of us would have any problem
getting a
30 year mortgage, even though we'd be nearly 80 when said mortage was paid
off
(barring any advance payments). Huh?

73 de Jim, N2EY


snicker Well, believe it or not, that is what we're going for. We
thought about the 15-year but what we decided is we'd rather double/triple
payments at our own control...just for the very reason of potential job
loss.

I need to send you an email on another, personal note... I'll do it soon,
remind me if I don't!

Kim W5TIT

In article , "Kim W5TIT"
writes:

Here's another one for ya: I bet neither of us would have any problem
getting a
30 year mortgage, even though we'd be nearly 80 when said mortage was
paidoff (barring any advance payments). Huh?

73 de Jim, N2EY

snicker Well, believe it or not, that is what we're going for. We
thought about the 15-year but what we decided is we'd rather double/triple
payments at our own control...just for the very reason of potential job
loss.

Get yerself an amortization printout and notice how little you pay off the
principal each month on a 30 year. Which means if you can come up with just
that much extra each month, you can take a month off for each month - or more.
And as you say, if you run into trouble you just don't put in the extra for a
while.

There's also a completely opposite philosophy that some folks use. They figure
it's *better* to *not* pay off the mortgage any faster than you have to,
because the interest is deductible if you itemize, and the lowest rate the
average person can get is for a first mortgage of their primary residence.
Instead, they say, pay off all your other debt or don't get into it in the
first place.

I need to send you an email on another, personal note... I'll do it soon,
remind me if I don't!

Consider yourself reminded!

73 es GL in the new place de Jim, N2EY

If your interest rate is less than 5%, the best loan to get is a 30 year!
It's cheap money. Paying off a house quick is foolish. And the monthly
rate is usually a hell of alot less too. Spend the difference of that
paying off bills or invest it in a mutual fund or something.

Instead of paying off that low interest loan quickly, one is smarter paying
off the higher interest loans like automobiles, department and credit card
charges, and other loans/debts.



--
Ryan KC8PMX

"Why is it one careless match can start a forest fire, but
it takes a whole box to start a barbecue?"

snicker Well, believe it or not, that is what we're going for. We
thought about the 15-year but what we decided is we'd rather double/triple
payments at our own control...just for the very reason of potential job
loss.

I need to send you an email on another, personal note... I'll do it soon,
remind me if I don't!

Kim W5TIT

Ryan, KC8PMX wrote:
If your interest rate is less than 5%, the best loan to get is a 30 year!
It's cheap money. Paying off a house quick is foolish. And the monthly
rate is usually a hell of alot less too. Spend the difference of that
paying off bills or invest it in a mutual fund or something.



Ahh, a financial truism! This belongs with:

The stock market ALWAYS goes up!

(It soitanly do, but over long time periods that are not relevant to
most of us who don't live over 150 years. More importantly it is what
the market is doing around the time you take your money out.)

Move your money into high yield accounts shortly before you retire, that
way you'll have more money when you retire!

I've listened to investment consultants actually pull this one out of
their hats. I know some older folk who have done this and now have
almost no retirement funds.

I have to chuckle at your truism. first, because your friend the real
estate agent uses those sort of arguments to talk you into buying
several thousand or tens of thousands more dollars worht of house.
Second is that You are saying a person who gets out of debt is foolish.

Best way to not be a fool is to not go heavily into debt in the first
place. I have a 5 percent loan, but I'll pay it off quickly, I think.

Instead of paying off that low interest loan quickly, one is smarter paying
off the higher interest loans like automobiles, department and credit card
charges, and other loans/debts.

Again, it's better to not get into a situation where you would have to
choose which loan you're paying off early.

- Mike KB3EIA -

"Mike Coslo" wrote in message
...
Ryan, KC8PMX wrote:
If your interest rate is less than 5%, the best loan to get is a 30
year!
It's cheap money. Paying off a house quick is foolish. And the monthly
rate is usually a hell of alot less too. Spend the difference of that
paying off bills or invest it in a mutual fund or something.



Ahh, a financial truism! This belongs with:

The stock market ALWAYS goes up!

What goes up must come down as well too. But that is the beauty of the
stock market. It is a cyclical thing. Ideally it would be like a good
sinus rhythm. It is just merely the knowledge of where to jump in at.


(It soitanly do, but over long time periods that are not relevant to
most of us who don't live over 150 years. More importantly it is what
the market is doing around the time you take your money out.)

Move your money into high yield accounts shortly before you retire, that
way you'll have more money when you retire!


Only if you know what you are doing and have a really good grasp of the
market.



I've listened to investment consultants actually pull this one out of
their hats. I know some older folk who have done this and now have
almost no retirement funds.


Yep... not for the weak or feable to try on thier own if not knowledgeable.



I have to chuckle at your truism. first, because your friend the real
estate agent uses those sort of arguments to talk you into buying
several thousand or tens of thousands more dollars worht of house.
Second is that You are saying a person who gets out of debt is foolish.


Actually the person I got this truism from and believe in it is Bruce
Williams, the talkshow host. If you do the math, it is fairly true.



Best way to not be a fool is to not go heavily into debt in the first
place. I have a 5 percent loan, but I'll pay it off quickly, I think.

I wouldn't but thats me. What I would do is see if you can refinance at all
to a lower rate. I have actually seen a interest rate recently somewhere in
the 3 percent range!! Talk about a cheap loan, hell, I would
refinance/remortgage my neighbors house if I could legally get away with it!
LOL



Instead of paying off that low interest loan quickly, one is smarter
paying
off the higher interest loans like automobiles, department and credit
card
charges, and other loans/debts.

Again, it's better to not get into a situation where you would have to
choose which loan you're paying off early.

Well, its not paying the principle that kills ya, its the interest that does
over a long time. The lesser the interest rate, the less I am interested in
rushing to pay it off extra early. Either way, one needs to do the math or
find someone who does understand real estate finance and other financal
calculations to make sure in their own individual circumstances.



--
Ryan KC8PMX

"All of us could take a lesson from the weather. It pays no
attention to criticism."

"Ryan, KC8PMX" wrote

If your interest rate is less than 5%, the best loan to get is a 30 year!
It's cheap money. Paying off a house quick is foolish.

You've been brainwashed!!!

Instead of paying off that low interest loan quickly, one is smarter
paying
off the higher interest loans like automobiles, department and credit card
charges, and other loans/debts.

Then there are the rocket scientists (NOT!!!!) who refinance their house,
grab some equity cash, and pay off the remaining 3 year loan on their SUV
that they really couldn't afford in the first place. Now they're paying for
30 years on a truck that will be 25-years in the scrap-yard before it's paid
off. Brilliant financial wizards!!!

73, de Hans, K0HB

N2EY wrote:
Here's another one for ya: I bet neither of us would have any problem getting a
30 year mortgage, even though we'd be nearly 80 when said mortage was paid off
(barring any advance payments). Huh?

My xyl works in the housing industry. There are people who are in their
60's and up getting those mortgages. Go figure.

- Mike KB3EIA -