Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
People's buying power has gone down to purchase homes, because they're buying everything under the sun and are maxed out on credit cards.
False. Credit card debt has dropped dramatically since the start of the recession, both per-capita and total. It peaked in 2008 at about $1.02 trillion, and now stands at $853 billion.
I'm about to apply for a loan but just checked out the rate today and its is crazy high.
What is going on!!!! Any chance of the rate going down soon?????
This also depends on your credit score. I know for a fact people with over 715 scores locking in around 4.25 last week.
Totally agree. Keep hearing about "well, back in the day, 30 yr rates were 17%, rates are still at historical low, and affordability is high".
The only problem with that statement is that home prices are at historic highs! Further, I bet median household income vs. median home price is likely much lower today than it was "back in the day" Most ppl's buying power/real income has gone done in the last decade. So, low interest rate alone does not make homes affordable.
Nothing makes homes affordable. Homes are expensive and have always been expensive, and will always be expensive. Life is expensive, and always was, always will be. The best way to make a home relatively affordable in terms of the monthly mortgage is to make it manageable in the first place: with a big fat down payment. Like 30%-40%. You can't rely on interest rates to do the heavy lifting. You have to do it yourself.
But, one might proclaim, nobody can come up with that much money. Yes, anyone can. But it takes discipline, focus, and not getting into other forms of debt. It means sacrificing the nonsense like the Iphones and data plans and clothes and HBO and going out to eat all the time and blowing money on stupid consumption of items that are forgotten before they are paid for. It also means deferring the kids and the family until the right time, and concentrating on making money. Lots of it. Very doable for any hardworking person who uses common sense and a decent plan.
Low rates are gone, which means you have to negotiate a lower purchase price to make the payments work. High rates means lower purchase price, low rates means higher purchase price.
The housing bubble a few years ago was caused by easy mortgages at low rates, which inflated purchase prices. All those who are under water on their mortgage or foreclosed on their loan knows by now it's more important to buy cheaper versus expensive at lower mortgage rates, because you can refinance a cheaper home purchase when rates come down, but you can't renegotiate terms when you can't make payments on the inflated purchase price.
Real estate is cyclical. Prices have to come down in order for younger buyers to have a chance. Buyers need to realize purchase price = land value+construction value. If the selling price is overly inflated, you're basically overpaying and will have a hard time finding another sucker to take it off your hands.
In NJ, most resale homes are still listed way below their purchase price from a few years ago. New construction are priced at or below new construction from a few years back, so buyers beware. Don't follow the herd and decide for yourself what a house is really worth, and who you would sell the house to in the future.
Nothing makes homes affordable. Homes are expensive and have always been expensive, and will always be expensive. Life is expensive, and always was, always will be. The best way to make a home relatively affordable in terms of the monthly mortgage is to make it manageable in the first place: with a big fat down payment. Like 30%-40%. You can't rely on interest rates to do the heavy lifting. You have to do it yourself.
But, one might proclaim, nobody can come up with that much money. Yes, anyone can. But it takes discipline, focus, and not getting into other forms of debt. It means sacrificing the nonsense like the Iphones and data plans and clothes and HBO and going out to eat all the time and blowing money on stupid consumption of items that are forgotten before they are paid for. It also means deferring the kids and the family until the right time, and concentrating on making money. Lots of it. Very doable for any hardworking person who uses common sense and a decent plan.
I hate to do this to Marc of all people but AMEN!! Not sure about the deferring family until night time but we all control our habits and can do little things to make it work. Of course most people have ZERO self control so they will just complain about it.
The best way to make a home relatively affordable in terms of the monthly mortgage is to make it manageable in the first place: with a big fat down payment. Like 30%-40%. You can't rely on interest rates to do the heavy lifting. You have to do it yourself.
Also not living in NNJ helps. You want a 30-40% down payment around here, you won't have a house until you're 50, unless you're a DINK family both working for Goldman-Sachs or something.
Quote:
Yes, anyone can. But it takes discipline, focus, and not getting into other forms of debt. It means sacrificing the nonsense like the Iphones and data plans and clothes and HBO and going out to eat all the time and blowing money on stupid consumption of items that are forgotten before they are paid for. It also means deferring the kids and the family until the right time, and concentrating on making money. Lots of it. Very doable for any hardworking person who uses common sense and a decent plan.
Doable? Sure, if you want to put your life on hold until you can buy a house with a very high down payment. Advisable? No. Suppose you actually have the discipline and willingness to self-sacrifice to do all that. You pay your rent in the cheapest place that you can find, don't have any kids, stick with antenna TV and buy your food at Aldi (forget about going out). 15-20 years of that and you can buy a house with a huge down payment and start living. But if you can do that, you're better off buying that house as soon as you can come up with a minimum down payment. Now you're house poor, and maybe living the very same way -- but at least you have the house.
False. Credit card debt has dropped dramatically since the start of the recession, both per-capita and total. It peaked in 2008 at about $1.02 trillion, and now stands at $853 billion.
Wait for Obama to bomb Syria and for Iran to retaliate. The stock market will drop and housing prices will fall. Be patient and wait a few more weeks for the $h!t to hit the fan. Will be a good buying time while the Middle East is in turmoil and we await Iran's surrogates to attack us state side
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
