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You said a mouthful in that one. Tokyo vs. desert south west USA. In Tokyo a car is a burden most of the time. In the desert south west a car is a necessity. It can really expand your employment options by increasing the radius of commute. That is acceptable. Well worth the money spent on it. In Tokyo public transportation is good enough that you really don't need a car, and unless you are well off you are better off without one. It really depends on your location.
Gee, then, we did it ALL WRONG, Darn it!
We received a conventional mortgage with 10% down for 30 years and PMI, darn it! We WOULD have put 20% down, but wanted to be sure we had an extra good cushion in the "housing account" to do what improvements we wanted, without touching other assets.
ANd Now, that the renos are mostly done, and we have paid the other 10% as Principle Only payment {PLUS MORE $$$ in addition}, now they say we have to have at least 2 years of on-time full mortgage payments and a new appraisal BEFORE we can eliminate PMI. We expect to have the house paid for in 5 years or less, so the PMI will pretty much stick with us!
*sigh*
Darn it for those of us who have the funds, have great credit scores, an appropriate income to qualify for a CONVENTIONAL mortgage by doing everything right.
*double sigh*
You should have been aware of the 2 year issue before closing on the mortgage and an appraisal is a pretty common requirement to drop pmi
You should have been aware of the 2 year issue before closing on the mortgage and an appraisal is a pretty common requirement to drop pmi
Unm, no it isn't-- this mortgage company itself said they have stricter requirements{ AFTER the closing}, NO it was NOT disclosed prior to closing. Only AFTER Closing...
WHY/ HOW? because it was SOLD to this stupid Mortgage company AFTER closing, that is WHY. This NEW company has the strict requirements of 24% equity AND two year payment history.
The ORIGINAL mortgage company's requirement was only it had to be when one reached 23% of equity level, obviously at large chunks paid on principle [we've paid more than just the 10% over the 10% put down], we'd have reached that already {we are now at 28.5% of Equity of the purchase price..lower than the appraised value-next month we will be at 39%}.
The underlying problem is choosing not to have your own transportation. If the $225 spent on a storage facility every month was spent on a decent car instead, you would have flexibility to get to more jobs at hours that fit your schedule.
This is not rocket science.
Along these lines, I seldom understand the line "I can't afford a car." Sure, maybe not a very nice one, but basic transportation costs a few thousand bucks, if that. If you're that incredibly poor, you have serious problems. In most of the country, a car is a necessity, and even if I were to lose my job and lose everything, keeping a car would be the highest priority next to housing.
Along these lines, I seldom understand the line "I can't afford a car." Sure, maybe not a very nice one, but basic transportation costs a few thousand bucks, if that. If you're that incredibly poor, you have serious problems. In most of the country, a car is a necessity, and even if I were to lose my job and lose everything, keeping a car would be the highest priority next to housing.
For me, the problem is the cost of insurance, not the car itself. Because I'd be a first time buyer, they want to charge me almost $200/month - a full 10% of my income!
I also don't think that owning a car is a necessity when I have never had a problem finding a cheap room for rent on Craigslist that allows me to walk. If you want to make a million excuses as to why you can't do this, then have at it but that does not make it a necessity.
Of course if you have kids it is a different story, or if your job requires driving, or if there are jobs in your household in different locations, etc.
For me, the problem is the cost of insurance, not the car itself. Because I'd be a first time buyer, they want to charge me almost $200/month - a full 10% of my income!
I also don't think that owning a car is a necessity when I have never had a problem finding a cheap room for rent on Craigslist that allows me to walk. If you want to make a million excuses as to why you can't do this, then have at it but that does not make it a necessity.
Of course if you have kids it is a different story, or if your job requires driving, or if there are jobs in your household in different locations, etc.
There are all sorts of cheap coverage options (InsurancePanda, etc.) that will give you the legal minimum coverage for a cheap rate. If you're driving a junker, go with the insurance minimums. I can't imagine legal minimum insurance costing $200/month for someone who has never driven and thus has no driving record.
I'm in a suburban office next to an interstate. There is really no way you could reasonably walk from here to any nearby apartments. You probably couldn't even safely bike.
There are all sorts of cheap coverage options (InsurancePanda, etc.) that will give you the legal minimum coverage for a cheap rate.
I'm not about to put all my life savings at risk in order to skimp down to state minimum coverage levels, which won't even cover a sizeable surgical operation...
Quote:
Originally Posted by Serious Conversation
If you're driving a junker, go with the insurance minimums. I can't imagine legal minimum insurance costing $200/month for someone who has never driven and thus has no driving record.
I'm in a suburban office next to an interstate. There is really no way you could reasonably walk from here to any nearby apartments. You probably couldn't even safely bike.
When you're poor, you find a way to make it work. For example, finding a room in the other direction from the office (not across the interstate). Even get up 30 minutes earlier to cross all the busy streets.
It may be unpleasant, but when you have to do it, you will find a way, believe me.
Along these lines, I seldom understand the line "I can't afford a car." Sure, maybe not a very nice one, but basic transportation costs a few thousand bucks, if that. If you're that incredibly poor, you have serious problems. In most of the country, a car is a necessity, and even if I were to lose my job and lose everything, keeping a car would be the highest priority next to housing.
Exactly! You can always earn enough extra money working a part time job for a few hours to pay monthly expenses for a car. A car gives you the power and freedom to go apply for any job you want and work any hours you're needed. A car gives you the freedom to live in better neighborhoods, not just ones on the bus line.
If you are poor, I think your first step out of poverty is getting transportation.
I know many people who even received used cars from their churches in exchange for volunteering.
Exactly! You can always earn enough extra money working a part time job for a few hours to pay monthly expenses for a car. A car gives you the power and freedom to go apply for any job you want and work any hours you're needed. A car gives you the freedom to live in better neighborhoods, not just ones on the bus line.
If you are poor, I think your first step out of poverty is getting transportation.
I know many people who even received used cars from their churches in exchange for volunteering.
Unless you don't have time for a part time job. The average cost of owning a car in the US, according to AAA estimates, is $8k/year. At $10/hour POST-TAX, this is about 16 hours per week.
Walking to work and back takes me 4 hours per week, and I haven't even subtracted out the time I save by not going to the gym or circling for 20-30 minutes to find parking.
For me, the problem is the cost of insurance, not the car itself. Because I'd be a first time buyer, they want to charge me almost $200/month - a full 10% of my income!
I also don't think that owning a car is a necessity when I have never had a problem finding a cheap room for rent on Craigslist that allows me to walk. If you want to make a million excuses as to why you can't do this, then have at it but that does not make it a necessity.
Of course if you have kids it is a different story, or if your job requires driving, or if there are jobs in your household in different locations, etc.
The $200 sounds outrageous, however, maybe it is true because you are getting up charged because it is unusual to be your age with no driving experience in your area. The insurance company doesn't know if you will be a safe driver or not. Other men your age have driven 150-200,000 miles by now.
So I guess this is the extra cost you need to pay because of your choice not to have a car. I assume you eventually want to have a family? Maybe do some more research with insurance agents to see what your options are to get those rates down.
Our insurance runs $93 a month for two vehicles.
It's fine that you live within walking distance of work and school. Most of us did when we were in college. But you shouldn't be encouraging people to not have cars if they can't find enough work on the bus line.
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