Izzie
[求助]如何理财
3051
41
2006-08-11 23:40:00
Why not consider purchasing a house? You are paying $2000+ per month anyway. Reduce your 401(K) contributions to save money for the down payment. If you can’t come up with 20% down, look for 80/20 mortgage loans to finance your house and also avoid Private Mortgage Insurance (PMI) you would otherwise have to pay if your down payment is less than 20% of purchase price.
80/20 refers to the percentage of the value of the home for each mortgage. The first loan is for 80% of the value of the home and the second loan is for 20% (down payment) of the value of the home. The second loan usually has higher interest rate than the 30-year fixed rate 1st mortgage and the term may be a little shorter too.
For example, assuming that the purchase price of the house is $600,000. Under 80/20 scenario, your 1st mortgage and 2nd mortgage is $480K and $120K, respectively. Assuming the 1st mortgage is a 30-year fixed rate loan at 6.10% and the 2nd mortgage is a 15-year adjustable rate at prime, your monthly payments for
these two loans are approx. $2,900 and $1,160, respectively. This makes your total monthly mortgage
payments of $4,060 (of course property taxes need to be taken into consideration as well). Is that amount
feasible to you if you and your spouse reduce the 401(K) contribution temporarily to invest in a house?
这些名词我都是头次听说。。见笑了。
大家集思广益。。
也许有很多类似的情况，比如工作不稳定，或者夫妻两地分居，或者市场不稳定，暂时无法买房。。如何有效的攒钱，以备将来实现买房大计。。。
好好学习。。
These are apparent reasons for not buying a house at the moment. Buying a house is a big committment, it seems like that LZMM is making an educated assessment of this decision.
i think it is more risky to the bank. because home owners can choose to default the loan. why not? why paying something more than it's current market value? that's why i think banks must buy that kind of insurance.
of course, default load has serious concequences. but if you are facing something like 100k under the water, i think many will choose to default the loan.
Yes, in the question that you have raised, it is definitely risky to the bank if the housing market goes south. For those buyers who put in less than 20% down payment, they are required to pay (Private Mortgage Insurance), which insures the lender from borrower's default. The buyer pays for the premium, the lender enjoys the benefits. Federally funded loans, such as FHA loans have FHA insurance, a government funded insurance available to protect the lender.
oh. that's what the PMI is for!! thanks for your explaination.
I know bank will not take risks like that. so presumably bank does not think 20% correction happen often.
Again, business is protected while individual home owner is not. How can a home owner buy insurance like that?
I am not sure if there is such insurance available to protect the borrower/homeowner from loss of home values. Isn’t that the same scenario as trying to insure against loss on any other kinds of investments (stocks, bonds, mutual funds, etc.)? Of course we are not talking about diversification here to minimize our risks. Is there one available to protect investment loss?
On the other hand, it may be a disaster that the home value goes down significantly and the homeowner may fall behind on the mortgage payment. However, that is not really the end of the world. Say the house value goes down $100K, the homeowner falls behind the mortgage payments. The lender will foreclose the house and auction it off. The homeowner has three options:
(1) Sell the house in the down market and eats the entire $100K loss;
(2) File Chapter 13 bankruptcy protection, still may be able to keep the house, and work out a payment plan with the court to have a reduced monthly payment, longer mortgage terms, etc.
(3) File Chapter 7 bankruptcy protection, which may force the homeowner to sell the house and any personal possessions but all debts may be forgiven – pretty much a “FRESH START”.
I, personally, would choose to take option #2, and wait for the housing market to bounce back and then sell the house. Your thoughts?
I, personally, would choose to take option #2, and wait for the housing market to bounce back and then sell the house. Your thoughts?
[此贴子已经被作者于2006-8-14 21:28:00编辑过]
The biggest difference between a Chapter 7 is that the bankruptcy forces the liquidation of almost all your valuables as well as the total devastation to your credit rating, whereas filing Chapter 13 allows you to keep many of your possessions while keeping your credit score intact.
That is why many people choose Chapter 13 over Chapter 7.
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