what is wrong with are country?

[flyingvan]

  I t was easier to explain using a bank for the example, but you're right.  Still, the bond holders/insurance companies/bundlers probably are not interested in holding house inventories, and now you can have a more centralized database with even more within-reach homes to choose from.  Basically facilitate stepping down a bit into a cheaper house, rolling over any equity you may have held, not being without a house, not having a default on you record

[OlJarhead]

'Sub-Prime'

Just find a US Ag Home Loan -- they pay negative points to people who don't have the money to put down (or do for that matter) and low interest.

A fellow I work with saved $20k to put down on a home, made $15/hr and he and his wife (makes less then him) were OFFERED a negative points mortgage around 3.99% with NOTHING down.

They were told to KEEP the downpayment.


So ya, we're pretty much hosed sometime in the future.

[alex trent]

Well, I was wrong.

Said in my post to you that 'people on here could not help".

But, if you take some of the comments to heart, they can.

I would especially urge you to read and heed, post #22 by flyingvan from the third paragraph down.

You need to get real...and you can do that without compromising your dream. But if you just blame it on others or the system you will just go more and more sour.

Also, I think you need to do a better job of listening to or understanding all the ins and outs of credit ranking and what you need to do there...the CC thing is a good example.  if something sounds fishy or is really important, always check it out with another source.

[Native_NM]

I'm back from another busy, busy stretch of work, but this thread caught my eye.

Let's just do the math:  $21.16 x 2080 = $44,000 x .75 = $33,000 (net pay) x .25 = $8254 / 12 = $687 

$687 total housing including PMI, Taxes, and insurance and basic utilities.  Seems reasonable.  Now work backwards:

Figure $50 a month insurance and $100 for taxes at this price point.  Add another $125 for utilities.  Available for PI without PMI is $412.  We'll assume 20% down so no mortgage insurance.

Plug that into Excel and if you bought a $110K house with 20% down you would finance $88,000 at 30 years and 4% for about $420/month PI.  Add back all the taxes, insurance, and utilities and you are at $~687 a month, or 25% of you NET income for all housing related costs except repairs.  Utilities in Iowa might be more than NM.  Adjust as needed.   

These are conservative numbers.  This gives you room to save into your 401(k), repair the car, buy gas, food, and live a bit. The housing crisis was a combination of errors.  One was that families had zero disposable income for "life".  They ended up borrowing even more by credit card/HELOC, and then hit a wall.  There were stories of families who literally counted every dime yet they lived in expensive homes. 

All you need now is $22,000 for the downpayment.

This advice is worth exactly what you paid for it.  It is one way of looking at some numbers.  Your are ultimately responsible for discussing things with your financial planner.

[StinkerBell]

Well....Let me just add, if I was the Queen of this country it would be a much better place!