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Old 02-16-2009, 05:45 PM
 
67 posts, read 85,327 times
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Are you forgeting what the housing prices were like 20-30 yrs. ago?I live in Cali, and in order to raise my family in a decent nieghborhood i would have to buy a 400k house.I, just like the majority of people can not afford the down or the payments on a house like that, it would cost over 60k just to close the deal with 10% down.In an uncertain economy wouldnt it be more effective to help the middle class.Like i said , this bill is designed to help investors definitely not first time buyers.And as far as what got us into this mess, well that has to do with banks not verifieing incomes and loan officers falsifieing incomes. Both the fault of the lender and borrower. I suppose I have to suffer for the mistakes and greed of others.
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Old 02-16-2009, 05:54 PM
 
739 posts, read 2,697,088 times
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Quote:
Originally Posted by bproven View Post
I think people better get used to 10 or better yet 20% down again - anything else is what got us into the mess in the first place. If you are not hanging around for 5 years (you may need to move) then maybe you should rent. If you cannot afford 20% - rent till you can. Home ownership is not a right. I'm not seeing what is so bad about going back to the way things were 20-30 years ago.
Here in Texas rent on a house and the mortgage on that same house is the same price, if not more. We don't save money by renting. In my case we have 10 months of mortgage payments saved up and 3.5% down payment. I would much rather put 3.5% down and have the saved money as a nest egg in case one of us loses a job or something.

There is no reason for us not to get into a home now and pay the same amount in mortgage AFTER taxes, pmi, insurance then there is to pay someone else's mortgage by renting from them. Plus with owning a home we get this tax credit just approved plus tax write offs.

Also, home prices as compared to average incomes were MUCH lower 20-30 years ago then they are now. So, while I understand where you are coming from, it does not make sense fir everyone to continually rent.
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Old 02-16-2009, 05:59 PM
 
67 posts, read 85,327 times
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Well said Shaxs!! I happen to have a brother that lives in Texas and his rent is the same as the mortgage, so you are absolutely correct.He moved out of California in hopes of a better future for his family, this supposed tax credit would not help him nor the average American taxpayer.
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Old 02-16-2009, 06:02 PM
 
Location: Gallatin Valley
491 posts, read 1,139,872 times
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Shax, where we live right now, our rent is $1,000. These same homes are on the market right now for $57,000 - $60,000. It is rediculous. Why continue to pay that? We are home shopping in a different area right now.
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Old 02-16-2009, 06:05 PM
 
739 posts, read 2,697,088 times
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Originally Posted by MikeinIE View Post
Well said Shaxs!! I happen to have a brother that lives in Texas and his rent is the same as the mortgage, so you are absolutely correct.He moved out of California in hopes of a better future for his family, this supposed tax credit would not help him nor the average American taxpayer.
I moved back to Texas after 18 years in California- I am only 26 so I moved back as soon as I graduated college and got married. We too wanted a better place to raise a family and are glad we came to Austin.

As for the tax credit, it would in fact help us. I would consider us an average American newlywed couple. Both have college degrees and only one of us uses that degree The $8,000 tax credit would allow us to pay off all our bad debt (not including school loans there). Essentially, moving from renting to buying would keep our payments the same and help us to eliminate roughly $500/month revolving debt. It would also give us tax deductions and put us into OUR home.
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Old 02-16-2009, 06:06 PM
 
739 posts, read 2,697,088 times
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Originally Posted by Desertrose34 View Post
Shax, where we live right now, our rent is $1,000. These same homes are on the market right now for $57,000 - $60,000. It is rediculous. Why continue to pay that? We are home shopping in a different area right now.
Geez, that would put your payment at roughly half to own than what you pay to rent. Where do you live?
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Old 02-16-2009, 06:13 PM
 
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i was refering to the 15k tax credit that didnt pass. But again depending on where you live the 8k tax credit would help even if it required you to put down 10%.However i live in california (Inland Empire) where the average home is over 300k, college degree or not 30k is still alot of money to part with in these tough times.Hopefully the 8k tax credit does not have the same stipulations as the 15k.
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Old 02-16-2009, 06:20 PM
 
739 posts, read 2,697,088 times
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Originally Posted by MikeinIE View Post
i was refering to the 15k tax credit that didnt pass. But again depending on where you live the 8k tax credit would help even if it required you to put down 10%.However i live in california (Inland Empire) where the average home is over 300k, college degree or not 30k is still alot of money to part with in these tough times.Hopefully the 8k tax credit does not have the same stipulations as the 15k.
I hear you. $30k is a lot to me as well. That is twice what my poor wife makes at the moment- FYI social workers get paid in emotional money I moved from San Diego in August to Texas.
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Old 02-16-2009, 07:36 PM
 
Location: Wyoming
9,176 posts, read 16,544,646 times
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Quote:
Originally Posted by bproven View Post
I think people better get used to 10 or better yet 20% down again - anything else is what got us into the mess in the first place. If you are not hanging around for 5 years (you may need to move) then maybe you should rent. If you cannot afford 20% - rent till you can. Home ownership is not a right. I'm not seeing what is so bad about going back to the way things were 20-30 years ago.

You're absolutely right. When I bought my first house in 1972, FHA and conventional mortgages required 20% down. You could buy extra mortgage insurance to borrow an additional 10%. Other than that, 100% VA loans were available to veterans, but the maximum loan was only $17,500. That wouldn't buy much of a home in Wyoming, or in most other parts of the country. I think it was a couple years later that mortgage companies started offering insurance to cover 95% loans. (I think.)

With more money down, even if home prices took a dip, which has never been unusual, new home owners could usually sell their homes if necessary and still have a little money to pocket.

With 3.5% down, new owners would need to come up with extra money even to sell their home for what they paid for it, after paying Realtor and closing fees. When the value of their home dips a little, it's too easy to just walk away from the home and mortgage and stick it to the banks. That's where our banks got into trouble.



Quote:
Originally Posted by MikeinIE View Post
... And as far as what got us into this mess, well that has to do with banks not verifieing incomes and loan officers falsifieing incomes. Both the fault of the lender and borrower. I suppose I have to suffer for the mistakes and greed of others.
This certainly added to the problem, but if those buyers had put 20% down on their homes, they'd have worked a little harder to make the mortgage payment or sold them for 20% less than they'd paid originally. In some cases the prices might have dipped more than that, but I don't think prices would ever have dropped this much but for all the low down payment loans. And even if they'd walked away from the mortgages, the banks wouldn't have been hurt nearly as badly.

But I know what you mean about the mortgage lenders falsifying incomes. I'm self employed, and it was easier for me to just do a "stated income" loan when I refinanced a few years ago. The lender didn't tell me to lie about my income, but he found careful wording to suggest I make it look like I was making $X amount. And while I only wanted a 60-70% loan, to get the best interest rates I had to get an 80% loan. I couldn't figure that one out....

Last edited by WyoNewk; 02-16-2009 at 08:25 PM..
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Old 02-16-2009, 09:58 PM
 
Location: West, Southwest, East & Northeast
3,446 posts, read 6,454,729 times
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New homebuyers to get $8,000 cash back - Feb. 16, 2009
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