With current homes prices are skyrocketing, we need to get a 2 or 3 jobs to cover the mortgage payment. Not too mention the interest rate is going up as well. How a family member can buy a home in a decent neighborhood?
You need to buy within your means, and I recommend a fixed rate mortgage. In the early 80s, we saw mortgage rates as high as 18%. God forbid that should happen if you are one of those people living in a home you can't really afford with a variable rate interest-only loan. If something looks too good to be true, it probably is. If the information I gather from your question is correct, you will need to sell or refinance. Other than that, ignore the person who said renting is better than owning right now. For that to be true, huge monetary deflation would have to be imminent. Since monetary INFLATION is actually what seems imminent, this would be a wonderful time to have a fixed-rate mortgage, student loan, etc. You may also expect rents to keep increasing, while the cost of home ownership with a fixed-rate mortgage loan will remain relatively stable. (And relative to the value of money, will decrease.)
I hope this helps.
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Sunday, September 28th, 2008 at 12:48 pm
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June 13th, 2006 at 8:53 pm
Buy a mobile home. All the conviences but on wheels.
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June 13th, 2006 at 8:54 pm
Rent with an option to buy. That way your rent goes into house payments.
Start small. Buy a condo and trade up after a couple of years.
Look for bankruptcy sales or very run down properties you can fix up.
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June 13th, 2006 at 8:55 pm
No sane family would want to buy a house now when the housing bubble is about to burst.
The rent to buy ratio is at historic low and the best option now is to rent.
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June 13th, 2006 at 9:10 pm
Interest rates high? Come on now, my first home had an interest rate of 21% back in the 80s
Currently, interest rates are around 6.5% and home prices are coming down. It is now a Buyers market.
So to answer your question, how do you afford to buy a home, easy, start small and work your way up.
Need a good realtor for you area? I work with a network of realtors nation-wide http://www.pauld-kw.com
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June 13th, 2006 at 9:17 pm
You need to buy within your means, and I recommend a fixed rate mortgage. In the early 80s, we saw mortgage rates as high as 18%. God forbid that should happen if you are one of those people living in a home you can't really afford with a variable rate interest-only loan. If something looks too good to be true, it probably is. If the information I gather from your question is correct, you will need to sell or refinance. Other than that, ignore the person who said renting is better than owning right now. For that to be true, huge monetary deflation would have to be imminent. Since monetary INFLATION is actually what seems imminent, this would be a wonderful time to have a fixed-rate mortgage, student loan, etc. You may also expect rents to keep increasing, while the cost of home ownership with a fixed-rate mortgage loan will remain relatively stable. (And relative to the value of money, will decrease.)
I hope this helps.
References :
June 13th, 2006 at 9:52 pm
It depends on what area you are referring to. Depending on the area, it might not be affordable for a regular household income to buy a place…I mean, look at the SF Bay Area. The medien home now costs around 715k…that's crazy!
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