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Originally Posted by sixshooter
(Post 778005)
Uhm, ok. I'm just going to say if you've ever had your balls slap a girls lips when she is giving you head then your dick is too short.
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So both home prices and mortgage rates are pretty much in the toilet right now, and homes that were $700k to $900k range four years ago are in the $400-$500k range right now.
That's still a metric shitload of money, and it would mean taking out a loan (something I swore I'd never do again) but I'm becoming increasingly tempted by the idea... |
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The miata was driving weird on the way to the shop and when I got here I checked under the hood only to come up empty handed.
I started it back up looking for the usually problems, but found nothing. As I sat in the car I was playing with the heater control and found that with it on, it idles sloppy. So then I turned on the headlights to see if it made it worse and it almost died. lol Battery is out being charged and I noticed the belt is super loose on the alternator. Hopefully a couple hours on the charger and tightening the belt is all that's wrong. Going to look at a 2005 Legacy GT this weekend. Its the 1 color I didnt want, but if they'll cut me a deal I might just buy it. I really need a dependable DD again. |
Originally Posted by Joe Perez
(Post 778046)
So both home prices and mortgage rates are pretty much in the toilet right now, and homes that were $700k to $900k range four years ago are in the $400-$500k range right now.
That's still a metric shitload of money, and it would mean taking out a loan (something I swore I'd never do again) but I'm becoming increasingly tempted by the idea... Come join us, Joe. Sacrifice yourself to the gods of banking. Debt is good. Embrace the suck. |
Originally Posted by xturner
(Post 778130)
At current rates, you can probably get a 30-year fixed mortgage for $400K for the price of a decent rental in Carlsbad.
Even I were to put only 20% down, the mortgage payment itself would still be less than the rent on my one bedroom apartment. Obviously you have to factor in taxes, HOA fees, Mello-Roos and whatnot, but a lot of that is deductible. So the first year, figure $10k in interest and $6k in taxes, written down at my 22% net personal rate (1040 only, I don't get to make deductions on schedule SE) and that's effectively $290 a month off the gross, which brings the bottom-line to just a few hundred more than rent. |
Goddamn it. Fucking bullshit. I can't even get financing on a $4000 motorcycle, how the fuck am I supposed to buy a house like I plan in the next 2 years. I have awesome credit, but if I recall I have had people tell me in the past I don't have sufficient credit history, I make decent money, but not good at the moment. I drive a piece of shit car that is falling apart, I live with my dad, have bills out the ass... I just can't fucking get ahead or get on my own two feet. Unless my work allows me to go flat rate in the next few weeks I'm going to have to look elsewhere. I'm not being the shop bitch for 1/4 the money that some of the less experienced guys are making. It's goddamn bullshit, and I'm sick of not having anything, not being able to afford anything, and not being able to get credit for anything. I guess I'll be 30 in my dads house, with no wife of kids, because I refuse to have a relationship while I'm still in my dads house (at fucking 25). Oh well, enough of me bitching, I'm gonna scratch up enough money to at least go have a little fun and eat some sushi, before I have to get up and go to fucking work in the morning for my pitiful paycheck...
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Originally Posted by NA6C-Guy
(Post 778165)
I can't even get financing on a $4000 motorcycle, how the fuck am I supposed to buy a house like I plan in the next 2 years.
(...) I have bills out the ass... (...) Oh well, enough of me bitching, I'm gonna scratch up enough money to at least go have a little fun and eat some sushi, |
Originally Posted by Joe Perez
(Post 778167)
Uhm, yeah- I have no idea why you'd be having these problems.
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I understand what you're saying. But when someone looks at a credit report, all they see is "Ah, this guy has this many open lines of credit, owes this much money, has had this many late payments, etc..."
In a perfect world, you will have only one credit card, with a $10,000 or so limit, have had it open for ten years, and have no balance on it whatsoever. And you'd have a history of having had loans in the past (eg: student loan, car loan, etc) but of having paid them off quite a while ago, with no late payments whatsoever, and having not opened any new credit lines of any kind within the past few years. That kind of history is how you get into the 800 club. It's hard when you're young. Believe me, I remember. Not even Mark Zuckerberg had an "excellent" credit rating when he was 25, and he was already a billionaire. |
Do they figure debt to income ratio into personal loans? Sounds like your cashflow is the issue, not your credit history.
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Originally Posted by Joe Perez
(Post 778162)
That's kind of where I'm at right now.
So the first year, figure $10k in interest and $6k in taxes, written down at my 22% net personal rate (1040 only, I don't get to make deductions on schedule SE) and that's effectively $290 a month off the gross, which brings the bottom-line to just a few hundred more than rent. I know utterly nothing about the market where you are, but I have a strong aversion to condo/HOA arrangements. We had a condo for quite some time, and I had to choose between selling for a loss and creating "Connecticut Man Kills 47 in Civic Improvement Attempt" headlines. Nothing like having your finances/future tied up with a bunch of feckless mouth-breathers. |
Originally Posted by Joe Perez
(Post 778162)
Even I were to put only 20% down, the mortgage payment itself would still be less than the rent on my one bedroom apartment. ... and that's effectively $290 a month off the gross, which brings the bottom-line to just a few hundred more than rent.
Originally Posted by Joe Perez
(Post 778167)
Uhm, yeah- I have no idea why you'd be having these problems.
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Originally Posted by mgeoffriau
(Post 778177)
Do they figure debt to income ratio into personal loans?
The credit rating itself does not consider debt:income ratio, since the credit-rating companies do not know what your income is. The only things they see are your credit accounts, which is everything from credit cards to car loans to mortgages. To look at the specific example of a credit card, for instance, the factors they consider are:
Now, the actual lender will of course take into account debt:income ratio. You could have a perfect 850 score, but if you're making $60k a year and applying for a $600k mortgage, that's probably not going to happen. Three years ago, yes. Today, no.
Originally Posted by xturner
(Post 778197)
I know utterly nothing about the market where you are, but I have a strong aversion to condo/HOA arrangements.
Out here, however, an HOA is definitely your friend. North County is a massively polarized market, with amazingly sharp contrasts between the "nice" communities with HOAs, and the "other" communities where the houses are literally falling apart. I personally am not all that fanatical about whether my neighbor's lawn is 1.05" tall vs. 1", but in terms of appreciation and resale value, you need to be in an area with a strong HOA. Those were the ones that appreciated the fastest, and subsequently depreciated the least, over the past 10 years.
Originally Posted by Gearhead_318
(Post 778208)
One word: Equity.
The other thing about mortgage-funded housing (which I must admit, occurred to me only recently) is that you're betting with someone else's money. I mean, let's say that I'm a day-trader with $250k in my account. For the most part, I'm limited to trading just that $250k. I could open a margin account obviously, however that's generally considered an unusual (and risky) proposition, generally reserved for the elite. But within the housing industry? Hell, every single homeowner trades on margin. If I borrow $300k to buy a $450k house, I get to enjoy the appreciation not just on the $150k that I put down, but on the whole $450k. (This presupposes, of course, that we are near the bottom of the market, which I believe we are.) |
Even if I paid my bills off, I couldn't move out, unless I rented an apartment, and I almost refuse to pay for something I can never own, and will not enjoy living in. I only have about $3k in debt, excluding my $13k in student loans left. Only have two open credit cards, each only have around $600-$800 on them. I also have two retail store cards, Best Buy and Sears, each with around a grand on them. So I don't see how that little debt could really screw me that badly. My yearly income at the moment isn't impressive, so that may have a little to do with it too. But my credit score is in the mid 700's, so I was hoping that would be enough. I guess not. I'm going to open a savings secured loan ASAP and start building another credit line that I can make good payments on and pay off.
Too bad there aren't good faith loans. I will make all of the payments, since they would only be like $120 a month for 4 years, or $140 for 3 years. Even if I lost my job, I could scratch that little up from under a couch or skim from a washing well or something. |
Originally Posted by NA6C-Guy
(Post 778289)
Only have two open credit cards, each only have around $600-$800 on them. I also have two retail store cards, Best Buy and Sears, each with around a grand on them. So I don't see how that little debt could really screw me that badly.
Also, it's not the actual amount on each account that matters, it's the average balance as a proportion of the limit. Carrying a $5,000 balance on an account with a $25,000 limit is not nearly as bad as carrying an $800 balance on a card with a $1,000 limit. |
Originally Posted by Joe Perez
(Post 778293)
So you have four revolving credit accounts. Why so many? (I'm asking this from the perspective of a credit-rating agency.)
Also, it's not the actual amount on each account that matters, it's the average balance as a proportion of the limit. Carrying a $5,000 balance on an account with a $25,000 limit is not nearly as bad as carrying an $800 balance on a card with a $1,000 limit. I can see where that would look bad to someone loaning me money, even though my credit score is good, or well above average. |
I need to get real with my budget. I'm slacking. I'm not buying anything anymore. Must SAVE!
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Originally Posted by Vashthestampede
(Post 778059)
The miata was driving weird on the way to the shop and when I got here I checked under the hood only to come up empty handed.
I started it back up looking for the usually problems, but found nothing. As I sat in the car I was playing with the heater control and found that with it on, it idles sloppy. So then I turned on the headlights to see if it made it worse and it almost died. lol Battery is out being charged and I noticed the belt is super loose on the alternator. Hopefully a couple hours on the charger and tightening the belt is all that's wrong. Going to look at a 2005 Legacy GT this weekend. Its the 1 color I didnt want, but if they'll cut me a deal I might just buy it. I really need a dependable DD again. |
RE credit and home ownership: when I bought my house, interest rates were way up. I got 9.something % variable. After a while, rates started dropping. Rather than take the difference and spend it, I still paid the same payment as before.
Rates continued to drop, but I kept up the payment as originally. Paid off a 30 year in just over 21, and we would have done it at 19 but the hospital bill put us a little behind the curve. NA6C, pay off those damn cards, and stop buying toys. When you're all paid up, you can think about new stuff. |
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