Inky_Wretch
Well-Known Member
I visited a buddy in Boston last weekend. He's in a 1/1 in a pre-war. We never talk about money, but I had to wonder how a TV reporter can afford $350k for less than 1,000 sq. feet in the Back Bay.
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Housing Market
- Thread starter HeinekenMan
- Start date
HeinekenMan
Active Member
I've learned much on this thread.
Since it's had such interest, I'll open my little financial door and explain my situation. We're interested in buying, but our credit sucks. Basically, I've been fairly irresponsible. For the past eight months, though, I haven't missed a payment on anything and have slashed debt.
By Christmas, I expect to have my credit card debt eliminated. I've never been a big fan of the things, but I financed a vacation on one and have used a Shell card to get out of some tight spots now and then.
Because of past bad payment history, there's a chance that I'll just be above the subprime classification. It's my understanding that lenders are planning to raise subprime to about a 640-650 credit rating from 620. Otherwise, I'd be almost out of subprime now.
I'm probably the ideal subprime person, someone whose credit rating is poor simply because I haven't been very responsible. Now I am demonstrating responsibility, and my rating is climbing quickly. My debts are very low, and I have enough disposable income to sock away a few hundred every month. My job income is rising by several thousand every year. And I'm paying as much in rent as I'd be paying in mortgage payments.
But I really don't want to pay the subprime rates. So I'm getting out of that mess by repairing my credit. I'm using a monthly service to monitor my rating, and it's gone up considerably in the past three months.
The other catch is that I'm a freelancer. I understand the best way to handle that when it comes to credit is to incorporate, which I'm planning to do this fall. The ultimate goal is to buy next spring. The last catch is that I'll only have $5,000 at best for a down payment. The only savings we have is my wife's teacher retirement, and I really don't want to touch that and get a big penalty. We have no family that will loan us anything.
But I keep seeing these zero-down loans for first-time homebuyers and, particularly, for teachers. It sounds like a good approach to take, but I haven't looked into it yet. I plan to wait until I'm out of subprime before securing financing. Even then, I'm worried that all lenders will be asking for 10 percent down. For the home I want to buy, that would be about $15,000.
Since it's had such interest, I'll open my little financial door and explain my situation. We're interested in buying, but our credit sucks. Basically, I've been fairly irresponsible. For the past eight months, though, I haven't missed a payment on anything and have slashed debt.
By Christmas, I expect to have my credit card debt eliminated. I've never been a big fan of the things, but I financed a vacation on one and have used a Shell card to get out of some tight spots now and then.
Because of past bad payment history, there's a chance that I'll just be above the subprime classification. It's my understanding that lenders are planning to raise subprime to about a 640-650 credit rating from 620. Otherwise, I'd be almost out of subprime now.
I'm probably the ideal subprime person, someone whose credit rating is poor simply because I haven't been very responsible. Now I am demonstrating responsibility, and my rating is climbing quickly. My debts are very low, and I have enough disposable income to sock away a few hundred every month. My job income is rising by several thousand every year. And I'm paying as much in rent as I'd be paying in mortgage payments.
But I really don't want to pay the subprime rates. So I'm getting out of that mess by repairing my credit. I'm using a monthly service to monitor my rating, and it's gone up considerably in the past three months.
The other catch is that I'm a freelancer. I understand the best way to handle that when it comes to credit is to incorporate, which I'm planning to do this fall. The ultimate goal is to buy next spring. The last catch is that I'll only have $5,000 at best for a down payment. The only savings we have is my wife's teacher retirement, and I really don't want to touch that and get a big penalty. We have no family that will loan us anything.
But I keep seeing these zero-down loans for first-time homebuyers and, particularly, for teachers. It sounds like a good approach to take, but I haven't looked into it yet. I plan to wait until I'm out of subprime before securing financing. Even then, I'm worried that all lenders will be asking for 10 percent down. For the home I want to buy, that would be about $15,000.
A
Angola!
Guest
I didn't put any money down on either of my houses, but for the markets we lived in we pulled some pretty good coin (ex-wife is a nurse) so I was able to get fixed mortgages.
I don't fully understand the sub-prime thing, but I know my sister - who is a pastor and doesn't make a lot of money - got hosed by CountryWide and is currently in the process of trying to get out of a subprime loan.
So, I guess I would avoid one of those like the plague.
I don't fully understand the sub-prime thing, but I know my sister - who is a pastor and doesn't make a lot of money - got hosed by CountryWide and is currently in the process of trying to get out of a subprime loan.
So, I guess I would avoid one of those like the plague.
Pencil Dick
Member
- Joined
- Dec 28, 2004
- Messages
- 753
To echo Bubs, I too have done some dumb shirt financially in my life.
Refinancing a 30-year, 5.75% loan for a 15-year fixed at 4.62% in '03 can't be included in the "dumb shirt" category.
I also have a friend who bought a Pensacola Beach condo for $899,000 with an interest-only loan in '03. Not surprisingly, he's now looking for 6 "co-investors" to share ownership.
Refinancing a 30-year, 5.75% loan for a 15-year fixed at 4.62% in '03 can't be included in the "dumb shirt" category.
I also have a friend who bought a Pensacola Beach condo for $899,000 with an interest-only loan in '03. Not surprisingly, he's now looking for 6 "co-investors" to share ownership.
