byu1's predicament

[MikeWaters]

http://www.cougarboard.com/noframes/message.html?id=2918337

I just came up with an idea. I bet if he sold his 350z he could use that to keep his house solvent for a while.

[il Padrino Ute]

http://www.cougarboard.com/noframes/message.html?id=2918337

I just came up with an idea. I bet if he sold his 350z he could use that to keep his house solvent for a while.

I don't understand why people who spend beyond their means want me to feel badly for them.

[MikeWaters]

I don't understand why people who spend beyond their means want me to feel badly for them.

But they thought it would turn out different.

I'm sitting on a ARM right now. Am I thrilled? No. But I also have a house that is not that far from 1x my income.

[ewth8tr]

But they thought it would turn out different.

I'm sitting on a ARM right now. Am I thrilled? No. But I also have a house that is not that far from 1x my income.
I don't want people to feel badly for me and my 5.5% fixed rate either :)

[il Padrino Ute]

But they thought it would turn out different.

I'm sitting on a ARM right now. Am I thrilled? No. But I also have a house that is not that far from 1x my income.

I understand what you're saying and wasn't talking about you. I meant byu1 in particular and especially agree with your comment about his car.

Edit: ARMs suck and I hate mortgage companies that use them to get business. They do seem attractive, but I am such a miser with my money that I looked at the end of the road and not the beginning when I got my fixed fate for 15 years. The mortgage guy tried to push an ARM at me and when I asked why he objected to me wanting a fixed rate, he had no answer. So I left and went to a bank and got what I wanted.

[MikeWaters]

My brother complains that he can't move out of my parents house, and he drives a nicer car than me (2006 Camry vs. my 2001 sentra).

[MikeWaters]

btw, I like byu1. I'm not rejoicing in his pain. I've suggested he moved to TExas. And of course, I don't offer that to everyone.

[Jeff Lebowski]

I don't want people to feel badly for me and my 5.5% fixed rate either :)

We are at 4 5/8 fixed. Neener, neener.

[il Padrino Ute]

My brother complains that he can't move out of my parents house, and he drives a nicer car than me (2006 Camry vs. my 2001 sentra).

IMO, the only reason to have a car is to get you from point A to point B. Perhaps I'm weird in that sense.

You drive a practical car. Good for you. It gets you to work so you can get on with your career and eventually the big bucks.

[il Padrino Ute]

We are at 4 5/8 fixed. Neener, neener.

You guys have me beat. I'm at 6 1/8 fixed - but I'm in year 8 of 15.

[MikeWaters]

IMO, the only reason to have a car is to get you from point A to point B. Perhaps I'm weird in that sense.

You drive a practical car. Good for you. It gets you to work so you can get on with your career and eventually the big bucks.

get safely from point A to point B.

[il Padrino Ute]

get safely from point A to point B.

Is a Sentra not a safe car?

I'm of the belief that a car is as safe as the driver.

[MikeWaters]

Is a Sentra not a safe car?

I'm of the belief that a car is as safe as the driver.

It's ok. I'm talking about people driving suzuki samurais . and cars with no air bags.

[il Padrino Ute]

It's ok. I'm talking about people driving suzuki samurais . and cars with no air bags.

Got it.

People who drive those vehicle have a death wish, IMO.

As for me, I drive a Buick LeSabre.

[Mormon Red Death]

my question is why didnt he just stay in the the townhome?

[il Padrino Ute]

my question is why didnt he just stay in the the townhome?

He wanted to keep up with the Jonses.

[MikeWaters]

my question is why didnt he just stay in the the townhome?

"left behind syndrome".

If you don't buy a house now, you'll never be able to. so goes the reasoning.

[BlueHair]

We are at 4 5/8 fixed. Neener, neener.

Nice. I thought I had a good deal at 5.375% Did you have to pay points to get that rate?

[Jeff Lebowski]

Nice. I thought I had a good deal at 5.375% Did you have to pay points to get that rate?

Nope. We got it 4-5 years ago. Got lucky on our timing and caught one of the dips.

Trust me, my timing in financial matters is rarely this good.

[il Padrino Ute]

Nice. I thought I had a good deal at 5.375% Did you have to pay points to get that rate?

Points are a huge ripoff. They're just another way for the mortgage company to suck money out of your pocket and increase the commission of the guy doing the mortgage for you.

[cougjunkie]

Points are a huge ripoff. They're just another way for the mortgage company to suck money out of your pocket and increase the commission of the guy doing the mortgage for you.

I must weigh in here and defend my profession for a second. Points are not a ripoff if you plan to keep the mortgage the full term, or a substantial amount of time. For example. Usually paying 1 point or percent will buy down your interest rate .5%. So for example:

200,000 loan amount, at an interest rate of 6.5%, closing costs at 3% so you pay 6000 in closing costs and your payment is 1264.16.

If you pay 1 point and buy down the rate to 6% it looks like this:

200,000 loan amount, interest rate of 6%, closing costs at 3% plus additional 2,000 for 1 point. Your payment is: 1167.15 a month.

So to make it simple you save 100 a month, in 20 months you recoup your original 2k, and over the next 28 years you will save yourself: $33,600.

[il Padrino Ute]

I must weigh in here and defend my profession for a second. Points are not a ripoff if you plan to keep the mortgage the full term, or a substantial amount of time. For example. Usually paying 1 point or percent will buy down your interest rate .5%. So for example:

200,000 loan amount, at an interest rate of 6.5%, closing costs at 3% so you pay 6000 in closing costs and your payment is 1264.16.

If you pay 1 point and buy down the rate to 6% it looks like this:

200,000 loan amount, interest rate of 6%, closing costs at 3% plus additional 2,000 for 1 point. Your payment is: 1167.15 a month.

So to make it simple you save 100 a month, in 20 months you recoup your original 2k, and over the next 28 years you will save yourself: $33,600.

Fair enough.

I should have stated that in my situation, points would have been a ripoff.