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i plan to buy $30000 studio condo. i also plan to take loans from my credit union. if i take a 15 yr mortgage, the rate is from 5% up. i dont wanna pay interest for 15 yrs so my plan is to take a personal loan, they have several ratings depending on the plan you choose. I chose the 5 yr plan which has a rate from 5% up. is that a good decision? and since it is a personal loan, i plan to loan up to $40000 just in case i need to fix things up. so essentially, I am buying the condo as "cash" with no mortgage payment just 5% interest loan payments. what u guys think?
I would have grave concerns about using an unsecured personal loan for the purchase of real estate.
If you can qualify for a mortgage, and can find a lender willing to loan such a small amount, there is no reason not to take a 15 year loan. If you have the ability to accelerate payments to pay off the loan in 5 years there is no reason not to do so -- very few 15 year mortgages have any sort of penalty for early pay off.
I have seen many 15 year mortgages with rates far below 5% of late.
I have seen NO unsecured personal loans for anything near that.
I cannot fathom that a credit union (or any other lender) would loan you money on an unsecured loan at such an attractive rate...
Do you have a down payment? What is debt:income ratio? Where can you get a condo for $30,000???
insane low prices that actually makes me question why. and then i found out that that vacation village is expanding/building new larger condos and tenants have issues on rezoning it from r3-r4. so do u think this is a wise decision? about the low rate. i am positive i will get 5% interest i visit my credit union site it said the interest is 2% higher than current dividend rate which is 3% = 5% loan interest. i also think they will give me low interest as i just paid off my car loan from them, 1 and a half years in advance. and if they give me more than 6% interest, i won't take it. oh and those condos are less than 400 sq. ft. so i dunno, u think it is priced right? build in the 70s. it is my 1st time to buy a house so i real need expert advise. the reason i chose personal loan is coz i wont have any available fund for downpayment. im debt free and my income is less than $18000 after taxes.
also i frankly dont know what the purpose of mortgage is or how home equity works. so i am approaching buying my house in a way i understand how loan interest works which is much like how i took my car loan from them.
killer: can you give me links of those "plenty" so i can have more choices.
i think im better off a renter, i dont understand why you say buying house is better than renting when u have to pay insane property taxes every year anyway? at least as a renter, i have no worries about maintenance, i wont be stuck to live in that house forever, i wont have to pay property tax every year, most utilities are included in rent... so why is buying houses better than renting? renting is gonna be my way of life at least for now. oh well thank you property tax for slapping me in the face.
Your thought process jumps all over the place. One minute you are ready to take out a personal loan to buy a condo. The next, you're adamant that renting is the way to go. If I was in your shoes, I would sit down and figure out exactly what I wanted to accomplish with my living situation and THEN seek out advice about how to best achieve those goals. I'm sure that there are a lot of people on the forum that would be glad to help, but I don't see how that is possible without a coherent plan.
yeah im a scattered brain. i guess coz im debt free, im thinking of what major purchase to buy with my money. and like i said il be a first time buyer and im not the type to splurge money when i dont know what im doing or dunno what im getting myself into. but can you answer my questions on my last post? property tax yearly is just the same as renting, your money thrown out the fire/oblivion. at least thats how i see it. i guess the only pros of owning your house is you can do anything with it without worrying of paying for the damage.
and l really just want expert opinion from you guys dont mind my scattered brain.
the one im planning to buy has 169/mo assoc fee. that also kinda hinders me to buy a condo, those assoc fees as opposed to standalone houses with none.
the one im planning to buy has 169/mo assoc fee. that also kinda hinders me to buy a condo, those assoc fees as opposed to standalone houses with none.
You also need to keep in mind that association fees can be subject to change.
Some homes have association fees as well, depending on the neighborhood. Just something to keep an eye out for. I'm not saying that HOA fees are always bad, but you will want to know how/if they are subject to change and what services are included.
but can you answer my questions on my last post? property tax yearly is just the same as renting, your money thrown out the fire/oblivion. at least thats how i see it. i guess the only pros of owning your house is you can do anything with it without worrying of paying for the damage.
and l really just want expert opinion from you guys dont mind my scattered brain.
I disagree with some of your views. First, property tax varies a lot from one location to the next. In some areas, it's a much higher percentage of your home value than in others. In my area, it's a relatively small percentage. Second, you get to write that property tax and mortgage interest off on your taxes each year. The same can not be said for rent. Third, you can lock in a fixed mortgage payment while rent is subject to change over time. Fourth, you will eventually own your home and be without a mortgage. If you rent, you will always have a monthly expense.
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