Comments on: What to Consider When Taking on a Mortgage http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/ Thu, 18 Mar 2010 08:58:58 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Independence Day link love « Funny about Money http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/#comment-22818 Independence Day link love « Funny about Money Mon, 18 Aug 2008 06:20:08 +0000 http://financefreelancelife.com/?p=682#comment-22818 [...] Micah has opened a conversation on things to consider before taking on a mortgage, which has generated some good [...] [...] Micah has opened a conversation on things to consider before taking on a mortgage, which has generated some good [...]

]]> By: Creating a Budget | On a Quest To Be Debt Free... http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/#comment-22648 Creating a Budget | On a Quest To Be Debt Free... Fri, 15 Aug 2008 02:33:49 +0000 http://financefreelancelife.com/?p=682#comment-22648 [...] Hole You’re In?“. Where there is a preset, constant cost, include it (like the rent or mortgage, which doesn’t change). For the utilities, you can average your costs and calculate the [...] [...] Hole You’re In?“. Where there is a preset, constant cost, include it (like the rent or mortgage, which doesn’t change). For the utilities, you can average your costs and calculate the [...]

]]> By: Creating a Budget « http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/#comment-21566 Creating a Budget « Thu, 24 Jul 2008 11:03:00 +0000 http://financefreelancelife.com/?p=682#comment-21566 [...] Hole You’re In?“. Where there is a preset, constant cost, include it (like the rent or mortgage, which doesn’t change). For the utilities, you can average your costs and calculate the [...] [...] Hole You’re In?“. Where there is a preset, constant cost, include it (like the rent or mortgage, which doesn’t change). For the utilities, you can average your costs and calculate the [...]

]]> By: Frugal Trenches http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/#comment-20577 Frugal Trenches Sun, 06 Jul 2008 16:51:47 +0000 http://financefreelancelife.com/?p=682#comment-20577 My considerations would be 1. Do I have enough in an emergency fund to cover the mortgage for 9 months with no income? 2. Do I plan to move in less than 5 yrs? Adding up real estate fees and all others, may not be financially viable 3. Could we rent somewhere cheaply and have a bigger downpayment thus reducing the mortgage. For example, if you could rent a 1 bed apt for $500 but your mortgage is going to be $1200, I'd probably rent for a while to build a bigger downpayment etc! My considerations would be
1. Do I have enough in an emergency fund to cover the mortgage for 9 months with no income?
2. Do I plan to move in less than 5 yrs? Adding up real estate fees and all others, may not be financially viable
3. Could we rent somewhere cheaply and have a bigger downpayment thus reducing the mortgage. For example, if you could rent a 1 bed apt for $500 but your mortgage is going to be $1200, I’d probably rent for a while to build a bigger downpayment etc!

]]> By: L@spillinbuckets http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/#comment-20465 L@spillinbuckets Fri, 04 Jul 2008 11:49:38 +0000 http://financefreelancelife.com/?p=682#comment-20465 Wow, your prof's wife just up and died "after breakfast"! That's scary....... And I really hope your friend makes it through her cancer.... I know a couple who are newly married and inherited a home. They wanted to move, so sold the inherited home and bought a more expensive one a few towns over. Now he is losing his job and she is in school so they can't pay the mortgage. If they had stayed in the first home it would have been fine. I feel like a home is such a large purchase that you should only move into one when you are sure you will be there for "the long haul". Your house should be someplace you really want to be for several years before committing, as Dad said. Wow, your prof’s wife just up and died “after breakfast”! That’s scary…….

And I really hope your friend makes it through her cancer….

I know a couple who are newly married and inherited a home. They wanted to move, so sold the inherited home and bought a more expensive one a few towns over. Now he is losing his job and she is in school so they can’t pay the mortgage. If they had stayed in the first home it would have been fine. I feel like a home is such a large purchase that you should only move into one when you are sure you will be there for “the long haul”. Your house should be someplace you really want to be for several years before committing, as Dad said.

]]> By: Mrs. Nathan http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/#comment-20452 Mrs. Nathan Fri, 04 Jul 2008 01:48:15 +0000 http://financefreelancelife.com/?p=682#comment-20452 Is your friend going to be ok? Is her cancer serious?? I'm so sad! We will pray for them. Is your friend going to be ok? Is her cancer serious?? I’m so sad! We will pray for them.

]]> By: Dad http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/#comment-20449 Dad Fri, 04 Jul 2008 00:56:24 +0000 http://financefreelancelife.com/?p=682#comment-20449 A lot of excellant advice today! One thing which was sort of implied but not mentioned is the cost of 'turning over' a house, selling and the buying. If this cost is less than the value of the house, inflation adjusted, has gone up, you loose money every time you change houses. So, first you want to be pretty sure you are going to stay in an area for a while before getting committed to a house. Second you need a rising market to cover the closing costs. We don't have that today. In time that will probably happen again. I know people who sold just before the bubble burst and those who sold after it had burst. People's general optimism never seems to learn that things won't keeping going up. This happened at the start of the great Depression and it happened at the dot com bubble and it has just happened in housing. Optimism needs to be tempered with a realistic look at history. A lot of excellant advice today! One thing which was sort of implied but not mentioned is the cost of ‘turning over’ a house, selling and the buying. If this cost is less than the value of the house, inflation adjusted, has gone up, you loose money every time you change houses. So, first you want to be pretty sure you are going to stay in an area for a while before getting committed to a house. Second you need a rising market to cover the closing costs. We don’t have that today. In time that will probably happen again. I know people who sold just before the bubble burst and those who sold after it had burst. People’s general optimism never seems to learn that things won’t keeping going up. This happened at the start of the great Depression and it happened at the dot com bubble and it has just happened in housing. Optimism needs to be tempered with a realistic look at history.

]]> By: Ryan S.@uncommon-cents.net http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/#comment-20446 Ryan S.@uncommon-cents.net Thu, 03 Jul 2008 23:01:27 +0000 http://financefreelancelife.com/?p=682#comment-20446 I think that considering interest rates and the various types of mortgages available is critical. A large part of the subprime mess has to be considered the responsibility of the borrowers. One of my best buddies, among the three brightest women I know, got herself an ARM and had to scramble to refinance and is now struggling on a daily basis financially. You can't prepare for every eventually, but don't over extend yourself! I think that considering interest rates and the various types of mortgages available is critical. A large part of the subprime mess has to be considered the responsibility of the borrowers. One of my best buddies, among the three brightest women I know, got herself an ARM and had to scramble to refinance and is now struggling on a daily basis financially. You can’t prepare for every eventually, but don’t over extend yourself!

]]> By: mrsmicah http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/#comment-20434 mrsmicah Thu, 03 Jul 2008 18:25:05 +0000 http://financefreelancelife.com/?p=682#comment-20434 Excellent points everyone! Besides property tax, I've heard that one should plan on spending maintenance money every year. For the latter, I've heard solid figures or percentages of the home's price suggested. I really appreciate that almost all or our apartment maintenance is included in the rent. Excellent points everyone! Besides property tax, I’ve heard that one should plan on spending maintenance money every year. For the latter, I’ve heard solid figures or percentages of the home’s price suggested.

I really appreciate that almost all or our apartment maintenance is included in the rent.

]]> By: Home Mortgage Loan: Just Because You Can, Doesn't Mean You Should - Mortgage Rate News http://financefreelancelife.com/2008/07/03/what-to-consider-when-taking-on-a-mortgage/#comment-20432 Home Mortgage Loan: Just Because You Can, Doesn't Mean You Should - Mortgage Rate News Thu, 03 Jul 2008 18:09:49 +0000 http://financefreelancelife.com/?p=682#comment-20432 [...] that different items, from job loss to loss of a partner to a change in family circumstances will affect your ability to make your mortgage payment. Think about the future, and try not to live at the edge of your [...] [...] that different items, from job loss to loss of a partner to a change in family circumstances will affect your ability to make your mortgage payment. Think about the future, and try not to live at the edge of your [...]

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