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Old 02-03-2009, 09:05 PM
Location: Denver
3,138 posts, read 6,901,436 times
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I did FHA because I was forced to (Home appraised declining market). Conventional ment 10 percent down. Which was 90 percent of my savings. Figured it would be smarter to do 3 percent down and keep that money in savings. In case I lost my job.
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Old 02-04-2009, 05:50 AM
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Originally Posted by kcam213 View Post
$50 per month in one year is 600 plus 5% interest maybe another $100. So in one year, 700.

The average house cost about $160,000 ( unless you get a foreclosed, then you will need several thousand for unexpected and expected costs).

10% is about $16,000. It would take you close to 17 years to save up that much.

by the time you save that much money... houses will cost much much more than $160,000. You will never catch up. I guess, things will get to the way it used to be... the rich own homes... everyone else rented apartments. REmember Lucy and Ricky? Ethel and Fred? They all lived in rentals.
Ethel and Fred were actually Lucy and Ricky's landlords: they owned the building. But houses nowadays are more expensive because they are based on two salaries vs. one. So not everyone is entitled to be a homeowner, as the subprime mess proved. Plus, Ricky was an entertainer at the local club, not exactly the best paying job.

Question for those of you who couldn't save for a downpayment: if you lose your job after you buy your home, how will you survive? If you can't save, how can you save for an emergency fund? I guess some people use their savings as cushion and don't put or hardly put money down, but there are many reasons why a downpayment is essential, as the OP pointed out.

The $50 was just an example on how little it takes to get started. A lot of people think $50 is not enough since they just think of the big number. As you get started, you get more motivated!

Actually, $50 a month at 5% is $615.50 after a year and yes, $16,093.00 after 17 years. $100=$1233 and $17 623.69 after 11 years. $150=$1849.50 and $17 734.66 after 8 years, $200=$2466.66 after a year and $16 822.66 after 6 years, etc.
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Old 02-04-2009, 11:20 PM
264 posts, read 849,059 times
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Originally Posted by michmoldman View Post
Yes, but very few people can afford to save money nowadays. With the cost of everything going up and income staying the same ...who can save all that money?? Most people (like me) bought a home hoping to get enough equity to pay the downpayment on another home when they moved. I bought my home 6 yrs ago for 109,000, and remodeled most myself. It should be worth over $120,000 I would think, and I owe $99,000 We wanted to move next year, but now will make nothing on ours, so we cannot put a down payment on a newer house. I dont see how the average joe can possibly make enough money these days to save $30-$40,000 to me its almost impossible. So, how can anyone buy a house if you are thinking everyone should put so much down?
I'm not convinced that "the cost of everything is going up." For one thing, gas and home prices have taken a severe nosedive compared to their levels a few years ago.

That doesn't mean it's easy, but it's definitely not impossible for most people to save more money than they currently are saving. Between my cable bill and eating out, I could probably cut out $100-$200 a month if I had to. The reality is that people *cannot* afford to neglect saving in this economy. I think only paying 3-5% down is a big mistake for most people.

The problem is that a lot of people bought into the delusion that every "average joe" should buy a home. The absolutely retarded lending practices of the past 7-8 years didn't help to squash this notion either.
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