IF YOU'RE ALREADY A HOMEOWNER...
... and you have a 30-year fixed rate (or even a 10-year fixed rate) and you have no intention of selling your home in the next five years, STOP WHINING ABOUT HOW YOUR HOME HAS GONE DOWN IN THE VALUE. Your rate ain't changing for a loooooong time, and even if your value has gone down, you're still going to be making the same payments you're making now, and if you're comfortable with those payments, I see no reason why you should be crying like a banshee.
IF YOU'RE A HOMEOWNER AND YOU DON'T HAVE ENOUGH EQUITY TO GET CASH OUT...
... it's not the end of the world. Live within your means, get a second job to pay for your needs and wants. Your house is NOT a giant ATM machine. It never was, to begin with.
IF YOU'RE A HOMEOWNER AND YOU DON'T QUALIFY FOR A REFINANCE TO LOWER YOUR RATE...
...don't walk out on your house just yet. You need to look into FHA loans first. If that doesn't work, have a loan modification company (I refer people to American Modification Agency, since they're the only one out there that's fully licensed and bonded, and approved by the three credit bureaus) work with your lender on making your payments more affordable. If that doesn't work, there are investors looking to buy your home (I work with a company that specializes in buying properties lickety-split). If all else fails, there are affordable litigation options that allow you to stay in your home for less than your current mortgage payments.
Thursday, August 14, 2008
Stop This Homebuyer Insanity Already!
Aaaarghhh!!! Stop this insanity already!
This post may be a bit more blunt than what you're used to coming from me, but some things just have to be said.
IF YOU'RE A HOMEBUYER AND YOU DON'T HAVE MONEY FOR A DOWN PAYMENT...
... you're basically going to be SOOL (S**t Out Of Luck) come October 1st if you don't have a signed purchase contract and preapproval in place because seller-funded Down Payment Assistance is out the door on October 1st.
... keep your fingers crossed that they'll reinstate seller-funded down payment assistance programs but don't get your hopes up. It's better to err on the side of caution on this one. In the meantime, start looking toward your 401k, employer and family members for down payment assistance instead.
... just to put it into perspective, a 3.5% down payment on a $200,000 purchase is $7,000. At the very least, see if you can get your employer or family member to give you even half of that, and then go sell some stuff on eBay, or a garage sale, or get a part-time gig to come up with the rest.
This post may be a bit more blunt than what you're used to coming from me, but some things just have to be said.
IF YOU'RE A HOMEBUYER AND YOU DON'T HAVE MONEY FOR A DOWN PAYMENT...
... you're basically going to be SOOL (S**t Out Of Luck) come October 1st if you don't have a signed purchase contract and preapproval in place because seller-funded Down Payment Assistance is out the door on October 1st.
... keep your fingers crossed that they'll reinstate seller-funded down payment assistance programs but don't get your hopes up. It's better to err on the side of caution on this one. In the meantime, start looking toward your 401k, employer and family members for down payment assistance instead.
... just to put it into perspective, a 3.5% down payment on a $200,000 purchase is $7,000. At the very least, see if you can get your employer or family member to give you even half of that, and then go sell some stuff on eBay, or a garage sale, or get a part-time gig to come up with the rest.
... and you want to buy a single-family residence with a nice yard, WAKE UP! Unless the 'rents had the cha-ching to give you a brand-new, smokin' sportscar for your 16th birthday, your first vehicle probably wasn't a BMW either. If all you can afford the first time around is a condo or a townhome, deal with it. Chances are, owning your own condo unit or townhome is going to be a heck of a lot better than throwing your money away on rent every month. You can always buy a bigger, better home when your earnings catch up with your lifestyle wishes.
... keep in mind that before all the No Money Down loans happened, people did have to put at least 20% down. The straight-up No Money Down days are OVER!!!
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