Buying a house... What's the best mortgage

I dont buy into all the the sky is falling run for cover hype about a housing market bubble burst - prices are correcting in less tight areas - not big markets. just more wall street investors looking to make even more money on the housing markey this time on the unavoidable downside of very long run up. Subprime and interest only mortgage still a small piece of the total pie.

That being said - interest only loans are for suckas

no matter how short term you're in the new house for. Lenders are sharks, lurking to get bright eyed newbies to sign on the bottom line on all too big mcmassions. go the fixed 30 on a reasonble house - rates are still low. Shop around for you best rate on your own never thru a broker and dont get sucked into refinancing every couple of years either. just more lendors churning fees out of you. Maybe 5-7 years down the road if rates can get any lower.

Buying a house wrote:I'm in the S.F. bay area so I'm not worried about losing money. It might slow to 1-3% a year but in the Silicon Valley the bubble wont burst, people make too much money here. Even after the dot com bubble blew up prices rose! Even if we break even or perhaps do lose a little the tax benifit is worth it . . . I'd rather build equity then hand it to the government.

I thought this article was interesting in light of our debate in the spring:

According to this month's Case-Shiller Index, SF prices are down 4% year-over-year. That's about $22,000 on a $550,000 house. That, and the fees to sell the house if you tried to sell in the near future would leave you with about half of the $110,000 in equity you had when you bought the house. That's assuming that you could sell it at all in this market without dropping the price well below market rates.

I still think you'll be fine in the long run if you decide to stay in your house, but, as the article suggests, you won't likely be building any equity in the next 5-10 years. Those who wait another year or two will probably find a market that can rise in value faster than inflation once again.

Find a company that offers a daily simple interest biweekly mortgage. You pay the same note as a fixed 30 years but would pay it off in half the time. Everything else is just a waste of time. Don't worry about the interst rate and the payment. Ask them when it will be paid off and how much is the total cost. Don't go around and chase interest rates. people like that have debt until they die. Honestly and truthfull info.

You need to look at interest rates.

If the biweekly has the same rate as a monthly, you could add flexiblity by getting a monthly and paying more in principle each month and making it a biweekly. If you want to cut the loan time in half, just pay the next months principal each month with your normal payment.

If anyone wants anyone to talk to, I would contact Tom Turner with GMAC. I know he can do out of state loans, he knows his stuff and he has the most sound bank behind him too! I know he would be happy to discuss options with no committment.

https://www.gmacm.net/tom_turner

Tell him Ted referred you.

Buying a house wrote:I'm in the S.F. bay area so I'm not worried about losing money. It might slow to 1-3% a year but in the Silicon Valley the bubble wont burst, people make too much money here. Even after the dot com bubble blew up prices rose! Even if we break even or perhaps do lose a little the tax benifit is worth it. My wife and I paid nearly $15,000 in takes over what they took out of our checks (both taking 0 exemptions). We make enough for the government to rape us but not enough for a mortgage payment to be easy. I'd rather build equity then hand it to the government.

Well, it's a year later now, the $115,000 down payment has vanished, and now negative equity is accumulating pretty quickly. The question is how much more money will evaporate before prices start to climb slowly back to where they are now? Pretty scary for people in this situation.

I'll be happy if we bottom out 10% lower next spring and then start seeing prices rise at 3%/year for a few years, getting us back to where we are now by 2012. Back to where we were last summer? 2015? 2020? Who knows?

I meant to link this month's median bay area home price data, showing the 22% annual decline:

http://www.dqnews.com/News/California/Bay-Area/RRBay080618.aspx