60 Minutes tonight

Gern Blansten said:

F Me In The Brain said:

Gern Blansten said:

nicknyr15 said:

Gern Blansten said:

nicknyr15 said:

The Juggler said:

Gern Blansten said:

mace1229 said:

While not ideal, the mortgage will probably still be cheaper even with PMI than a rental in many cases. And in several years I think you can refinance and use your equity as a down payment and get rid of it.
After living in California my entire life, I left 9 years ago because I knew I'd never be able to own there. I was tired of rent going up and having no equity. When I moved to Colorado my entire mortgage on my 5 bedroom house was $6 less than my half of the rent on a 2-bedroom apartment in LA. Since then housing has about doubled, I don't know if I could move to Colorado now if I didn't then. And its still cheaper to buy than rent here. Housing is crazy in so many places, we could be close to another bubble popping.

yeah it's an odd market...houses in our downtown area that were selling for $140K three years ago are going for $180K immediately.  We have a lot of growth here but it does make you wonder if banks are lending based on inflated values and the market drops there are going to be issues.

The market is what the market is. It is nothing like it was 14 years ago when banks/brokers were flat out telling appraisers where they needed the house to appraised for and stuff. Nowadays we have to order them through third party vendors who randomly assign local appraisers. So there's no conflict of interest anymore.

There is going to be a correction at some point, but I don't think it will be anything like what happened back then. 

I used to do mortgages for about 7 years. I’ll never forget the first time I ordered the appraisal. The appraiser asked “where do you need it to come in?”  I was shocked. 

To some degree I understand that. If an appraiser knows what is needed/required they can always decide if it truly meets that value instead of their own calculated value that might be $1,000 off what they are looking for.

That’s the responsible way of looking at it. But in my experience  , that’s not what they meant. 

I'm not arguing that there aren't shady appraisers but I have experienced many issues where appraiser doesn't give the value wanted and it has been a problem for the buyer.  

Values are inflated around my area but there are comparative sales to back them up. The question will be if there is a bubble and it breaks will these people that paid $180K for a $140K house be able to sell it for $160K in five years or will they end up owing more on it then it appraises for.

Where do people buy homes for $180k, these days?

Do you live in Alaska?

North Dakota?

Indiana...these are old homes probably built in the early 1900s in the downtown area of a small city.

   

F Me In The Brain said:

Gern Blansten said:

nicknyr15 said:

Gern Blansten said:

nicknyr15 said:

The Juggler said:

Gern Blansten said:

mace1229 said:

While not ideal, the mortgage will probably still be cheaper even with PMI than a rental in many cases. And in several years I think you can refinance and use your equity as a down payment and get rid of it.
After living in California my entire life, I left 9 years ago because I knew I'd never be able to own there. I was tired of rent going up and having no equity. When I moved to Colorado my entire mortgage on my 5 bedroom house was $6 less than my half of the rent on a 2-bedroom apartment in LA. Since then housing has about doubled, I don't know if I could move to Colorado now if I didn't then. And its still cheaper to buy than rent here. Housing is crazy in so many places, we could be close to another bubble popping.

yeah it's an odd market...houses in our downtown area that were selling for $140K three years ago are going for $180K immediately.  We have a lot of growth here but it does make you wonder if banks are lending based on inflated values and the market drops there are going to be issues.

The market is what the market is. It is nothing like it was 14 years ago when banks/brokers were flat out telling appraisers where they needed the house to appraised for and stuff. Nowadays we have to order them through third party vendors who randomly assign local appraisers. So there's no conflict of interest anymore.

There is going to be a correction at some point, but I don't think it will be anything like what happened back then. 

I used to do mortgages for about 7 years. I’ll never forget the first time I ordered the appraisal. The appraiser asked “where do you need it to come in?”  I was shocked. 

To some degree I understand that. If an appraiser knows what is needed/required they can always decide if it truly meets that value instead of their own calculated value that might be $1,000 off what they are looking for.

That’s the responsible way of looking at it. But in my experience  , that’s not what they meant. 

I'm not arguing that there aren't shady appraisers but I have experienced many issues where appraiser doesn't give the value wanted and it has been a problem for the buyer.  

Values are inflated around my area but there are comparative sales to back them up. The question will be if there is a bubble and it breaks will these people that paid $180K for a $140K house be able to sell it for $160K in five years or will they end up owing more on it then it appraises for.

Where do people buy homes for $180k, these days?

Do you live in Alaska?

North Dakota?

F Me In The Brain said:

mfc2006 said:

F Me In The Brain said:

Gern Blansten said:

nicknyr15 said:

Gern Blansten said:

nicknyr15 said:

The Juggler said:

Gern Blansten said:

mace1229 said:

While not ideal, the mortgage will probably still be cheaper even with PMI than a rental in many cases. And in several years I think you can refinance and use your equity as a down payment and get rid of it.
After living in California my entire life, I left 9 years ago because I knew I'd never be able to own there. I was tired of rent going up and having no equity. When I moved to Colorado my entire mortgage on my 5 bedroom house was $6 less than my half of the rent on a 2-bedroom apartment in LA. Since then housing has about doubled, I don't know if I could move to Colorado now if I didn't then. And its still cheaper to buy than rent here. Housing is crazy in so many places, we could be close to another bubble popping.

yeah it's an odd market...houses in our downtown area that were selling for $140K three years ago are going for $180K immediately.  We have a lot of growth here but it does make you wonder if banks are lending based on inflated values and the market drops there are going to be issues.

The market is what the market is. It is nothing like it was 14 years ago when banks/brokers were flat out telling appraisers where they needed the house to appraised for and stuff. Nowadays we have to order them through third party vendors who randomly assign local appraisers. So there's no conflict of interest anymore.

There is going to be a correction at some point, but I don't think it will be anything like what happened back then. 

I used to do mortgages for about 7 years. I’ll never forget the first time I ordered the appraisal. The appraiser asked “where do you need it to come in?”  I was shocked. 

To some degree I understand that. If an appraiser knows what is needed/required they can always decide if it truly meets that value instead of their own calculated value that might be $1,000 off what they are looking for.

That’s the responsible way of looking at it. But in my experience  , that’s not what they meant. 

I'm not arguing that there aren't shady appraisers but I have experienced many issues where appraiser doesn't give the value wanted and it has been a problem for the buyer.  

Values are inflated around my area but there are comparative sales to back them up. The question will be if there is a bubble and it breaks will these people that paid $180K for a $140K house be able to sell it for $160K in five years or will they end up owing more on it then it appraises for.

Where do people buy homes for $180k, these days?

Do you live in Alaska?

North Dakota?

We bought ours in KC about 4.5 years ago for 210k. The latest appraisal is about 100k more based on how the neighborhood has grown + the many renovations we've done to the house.

Not 180k, but in the ballpark.

I like KC, as well.  That is great to hear -- a well timed purchase!

F Me In The Brain said:

HughFreakingDillon said:

mace1229 said:

static111 said:

dankind said:

tempo_n_groove said:

HughFreakingDillon said:

tempo_n_groove said:

mickeyrat said:

so it was announced that loan forgiveness is happening for a ton of people and a revamp of the program is in the works

I hope this is true.

dankind said:

static111 said:

dankind said:

static111 said:

tempo_n_groove said:

mickeyrat said:

tempo_n_groove said:

mickeyrat said:

2 stories in tonights episode and its fairly well infuriating, so far......

I wasn't surprised at the FB piece.  I also don't think it's much of a whistleblower story.  The girl sounds like she has an axe to grind though.

this woman has an axe to grind? what gives that impression?

Some of the things she said, I don't recall exactly, but a few things she came off as wanting to stick it to FB.  

That is what I got from it.

I was also not the slightest surprised by the story.  It's been known for a while now that this is what they have been doing.

What was the other story that angered you?  The student loan one?  That blew me away and none of it was new either.  The part of that one that got me though was when the gal explained that her minimum payment was a cent under to qualify as a payment.  That one my jaw dropped.

Student loans are a complete scam.  Programmed all through school that the only way to get a future is to get an education. For those of us with less advantages, we get stuck borrowing at high compounding interest rates our whole lives. Unless we get lucky and get a decent job, then we pay those loans off for years before we actually get to begin building any sort of wealth.  There is a better way out there for sure.

My kids will be paying off mine.

luckily they don't transfer down the line...they may not receive any inheritance but they won't have to pay for yours at least.

That must be a recent change. My wife and I have always filed separately so that my debt doesn't impact her credit and also so that her salary isn't included in the calculations for my payment plan. I wonder if we can file jointly now with neither of us being penalized for the stupidest decision I've ever made in my life (i.e., higher ed).

my GF has been paying for years and still owes 6 figures

why wouldn't people open a low interest line of credit so they can pay it off decades earlier?

You'd have to ask her why it is structured and why she has tried to get it consolidated and can't.  She has done many a thing and hit a wall each time.

The principals are huge because the cost of higher education in the US is through the roof. Interest rates don't get much lower than they do on student loans. But with principals at six figures, those interest payments alone can be similar to a mortgage payment. And the balances just get bigger every year for a lot of us. Mine is well more than double what I originally borrowed at this point.

Mine was double what I actually borrowed.  For a couple years I put everything extra towards it.  Been making decent payments since the cares act lowered rates to zero.  I am now just below what I originally borrowed, nearly a decade later.  I might actually have a chance at paying it off if they decide to extend the interest freeze.

My wife really wants to buy a house, but I am in the lets not buy a house until we pay off our student loans camp, which would basically mean we may possibly never reach homeownership before becoming geriatrics, and we don't even have 6 figure debt combined.

I’m not a real estate expert, but my $0.02 is buy if you can afford it, unless you plan to move every 2-3 years. Most places it’s cheaper to own, meaning your mortgage is less than the rental rate. I bought my first home 8 years ago and it’s doubled in equity. My mortgage is less than half what the rental market would be by now.
That’s the whole reason people buy property to rent, they can get a $1000 mortgage and rent it for $1500 the first year. 10 years later they have the same mortgage (taxes and insurance will go up slightly) but by then they have a ton of equity that the renters paid for and are now renting the same place for $2000.

at thanksgiving dinner two nights ago, my wife's brother told us he pays $1200 a month plus utilities for his two bedroom apartment. sure, there's added costs for a home, like taxes and maintenance, but our mortgage is $311 biweekly. HALF of his rent. that's absurd. 

Your mortgage is $600 a month?  Wow. 

Good for you.

I don't feel the need to share what ours is but it would make you vomit all over yourself, and I am sure there are many here who pay much more.

F Me In The Brain said:

The Juggler said:

F Me In The Brain said:

HughFreakingDillon said:

mace1229 said:

static111 said:

dankind said:

tempo_n_groove said:

HughFreakingDillon said:

tempo_n_groove said:

mickeyrat said:

so it was announced that loan forgiveness is happening for a ton of people and a revamp of the program is in the works

I hope this is true.

dankind said:

static111 said:

dankind said:

static111 said:

tempo_n_groove said:

mickeyrat said:

tempo_n_groove said:

mickeyrat said:

2 stories in tonights episode and its fairly well infuriating, so far......

I wasn't surprised at the FB piece.  I also don't think it's much of a whistleblower story.  The girl sounds like she has an axe to grind though.

this woman has an axe to grind? what gives that impression?

Some of the things she said, I don't recall exactly, but a few things she came off as wanting to stick it to FB.  

That is what I got from it.

I was also not the slightest surprised by the story.  It's been known for a while now that this is what they have been doing.

What was the other story that angered you?  The student loan one?  That blew me away and none of it was new either.  The part of that one that got me though was when the gal explained that her minimum payment was a cent under to qualify as a payment.  That one my jaw dropped.

Student loans are a complete scam.  Programmed all through school that the only way to get a future is to get an education. For those of us with less advantages, we get stuck borrowing at high compounding interest rates our whole lives. Unless we get lucky and get a decent job, then we pay those loans off for years before we actually get to begin building any sort of wealth.  There is a better way out there for sure.

My kids will be paying off mine.

luckily they don't transfer down the line...they may not receive any inheritance but they won't have to pay for yours at least.

That must be a recent change. My wife and I have always filed separately so that my debt doesn't impact her credit and also so that her salary isn't included in the calculations for my payment plan. I wonder if we can file jointly now with neither of us being penalized for the stupidest decision I've ever made in my life (i.e., higher ed).

my GF has been paying for years and still owes 6 figures

why wouldn't people open a low interest line of credit so they can pay it off decades earlier?

You'd have to ask her why it is structured and why she has tried to get it consolidated and can't.  She has done many a thing and hit a wall each time.

The principals are huge because the cost of higher education in the US is through the roof. Interest rates don't get much lower than they do on student loans. But with principals at six figures, those interest payments alone can be similar to a mortgage payment. And the balances just get bigger every year for a lot of us. Mine is well more than double what I originally borrowed at this point.

Mine was double what I actually borrowed.  For a couple years I put everything extra towards it.  Been making decent payments since the cares act lowered rates to zero.  I am now just below what I originally borrowed, nearly a decade later.  I might actually have a chance at paying it off if they decide to extend the interest freeze.

My wife really wants to buy a house, but I am in the lets not buy a house until we pay off our student loans camp, which would basically mean we may possibly never reach homeownership before becoming geriatrics, and we don't even have 6 figure debt combined.

I’m not a real estate expert, but my $0.02 is buy if you can afford it, unless you plan to move every 2-3 years. Most places it’s cheaper to own, meaning your mortgage is less than the rental rate. I bought my first home 8 years ago and it’s doubled in equity. My mortgage is less than half what the rental market would be by now.
That’s the whole reason people buy property to rent, they can get a $1000 mortgage and rent it for $1500 the first year. 10 years later they have the same mortgage (taxes and insurance will go up slightly) but by then they have a ton of equity that the renters paid for and are now renting the same place for $2000.

at thanksgiving dinner two nights ago, my wife's brother told us he pays $1200 a month plus utilities for his two bedroom apartment. sure, there's added costs for a home, like taxes and maintenance, but our mortgage is $311 biweekly. HALF of his rent. that's absurd. 

Your mortgage is $600 a month?  Wow. 

Good for you.

I don't feel the need to share what ours is but it would make you vomit all over yourself, and I am sure there are many here who pay much more.

Your property taxes alone will make people barf. lol

Fucking Jersey - I sat next to a woman on a plane a few years back who was from PA and was married to a fancy pants accountant.  She told me the first thing her husband asks of anyone he meets who says they live in NJ is "why?"  The first advice he gives them is "move to PA and leave the taxes."

F Me In The Brain said:

Gern Blansten said:

F Me In The Brain said:

Gern Blansten said:

nicknyr15 said:

Gern Blansten said:

nicknyr15 said:

The Juggler said:

Gern Blansten said:

mace1229 said:

While not ideal, the mortgage will probably still be cheaper even with PMI than a rental in many cases. And in several years I think you can refinance and use your equity as a down payment and get rid of it.
After living in California my entire life, I left 9 years ago because I knew I'd never be able to own there. I was tired of rent going up and having no equity. When I moved to Colorado my entire mortgage on my 5 bedroom house was $6 less than my half of the rent on a 2-bedroom apartment in LA. Since then housing has about doubled, I don't know if I could move to Colorado now if I didn't then. And its still cheaper to buy than rent here. Housing is crazy in so many places, we could be close to another bubble popping.

yeah it's an odd market...houses in our downtown area that were selling for $140K three years ago are going for $180K immediately.  We have a lot of growth here but it does make you wonder if banks are lending based on inflated values and the market drops there are going to be issues.

The market is what the market is. It is nothing like it was 14 years ago when banks/brokers were flat out telling appraisers where they needed the house to appraised for and stuff. Nowadays we have to order them through third party vendors who randomly assign local appraisers. So there's no conflict of interest anymore.

There is going to be a correction at some point, but I don't think it will be anything like what happened back then. 

I used to do mortgages for about 7 years. I’ll never forget the first time I ordered the appraisal. The appraiser asked “where do you need it to come in?”  I was shocked. 

To some degree I understand that. If an appraiser knows what is needed/required they can always decide if it truly meets that value instead of their own calculated value that might be $1,000 off what they are looking for.

That’s the responsible way of looking at it. But in my experience  , that’s not what they meant. 

I'm not arguing that there aren't shady appraisers but I have experienced many issues where appraiser doesn't give the value wanted and it has been a problem for the buyer.  

Values are inflated around my area but there are comparative sales to back them up. The question will be if there is a bubble and it breaks will these people that paid $180K for a $140K house be able to sell it for $160K in five years or will they end up owing more on it then it appraises for.

Where do people buy homes for $180k, these days?

Do you live in Alaska?

North Dakota?

Indiana...these are old homes probably built in the early 1900s in the downtown area of a small city.

Interesting.  Do you like the city?

I grew up in VT - "Them there houses built in the 1900s were built by gad dang 'Flatlanders' and the people who built 'em only became "Vermonters" in the 2000s."

   

F Me In The Brain said:

HughFreakingDillon said:

mace1229 said:

static111 said:

dankind said:

tempo_n_groove said:

HughFreakingDillon said:

tempo_n_groove said:

mickeyrat said:

so it was announced that loan forgiveness is happening for a ton of people and a revamp of the program is in the works

I hope this is true.

dankind said:

static111 said:

dankind said:

static111 said:

tempo_n_groove said:

mickeyrat said:

tempo_n_groove said:

mickeyrat said:

2 stories in tonights episode and its fairly well infuriating, so far......

I wasn't surprised at the FB piece.  I also don't think it's much of a whistleblower story.  The girl sounds like she has an axe to grind though.

this woman has an axe to grind? what gives that impression?

Some of the things she said, I don't recall exactly, but a few things she came off as wanting to stick it to FB.  

That is what I got from it.

I was also not the slightest surprised by the story.  It's been known for a while now that this is what they have been doing.

What was the other story that angered you?  The student loan one?  That blew me away and none of it was new either.  The part of that one that got me though was when the gal explained that her minimum payment was a cent under to qualify as a payment.  That one my jaw dropped.

Student loans are a complete scam.  Programmed all through school that the only way to get a future is to get an education. For those of us with less advantages, we get stuck borrowing at high compounding interest rates our whole lives. Unless we get lucky and get a decent job, then we pay those loans off for years before we actually get to begin building any sort of wealth.  There is a better way out there for sure.

My kids will be paying off mine.

luckily they don't transfer down the line...they may not receive any inheritance but they won't have to pay for yours at least.

That must be a recent change. My wife and I have always filed separately so that my debt doesn't impact her credit and also so that her salary isn't included in the calculations for my payment plan. I wonder if we can file jointly now with neither of us being penalized for the stupidest decision I've ever made in my life (i.e., higher ed).

my GF has been paying for years and still owes 6 figures

why wouldn't people open a low interest line of credit so they can pay it off decades earlier?

You'd have to ask her why it is structured and why she has tried to get it consolidated and can't.  She has done many a thing and hit a wall each time.

The principals are huge because the cost of higher education in the US is through the roof. Interest rates don't get much lower than they do on student loans. But with principals at six figures, those interest payments alone can be similar to a mortgage payment. And the balances just get bigger every year for a lot of us. Mine is well more than double what I originally borrowed at this point.

Mine was double what I actually borrowed.  For a couple years I put everything extra towards it.  Been making decent payments since the cares act lowered rates to zero.  I am now just below what I originally borrowed, nearly a decade later.  I might actually have a chance at paying it off if they decide to extend the interest freeze.

My wife really wants to buy a house, but I am in the lets not buy a house until we pay off our student loans camp, which would basically mean we may possibly never reach homeownership before becoming geriatrics, and we don't even have 6 figure debt combined.

I’m not a real estate expert, but my $0.02 is buy if you can afford it, unless you plan to move every 2-3 years. Most places it’s cheaper to own, meaning your mortgage is less than the rental rate. I bought my first home 8 years ago and it’s doubled in equity. My mortgage is less than half what the rental market would be by now.
That’s the whole reason people buy property to rent, they can get a $1000 mortgage and rent it for $1500 the first year. 10 years later they have the same mortgage (taxes and insurance will go up slightly) but by then they have a ton of equity that the renters paid for and are now renting the same place for $2000.

at thanksgiving dinner two nights ago, my wife's brother told us he pays $1200 a month plus utilities for his two bedroom apartment. sure, there's added costs for a home, like taxes and maintenance, but our mortgage is $311 biweekly. HALF of his rent. that's absurd. 

Your mortgage is $600 a month?  Wow. 

Good for you.

I don't feel the need to share what ours is but it would make you vomit all over yourself, and I am sure there are many here who pay much more.

hedonist said:

All I know is, we’ll be rich(ish) if we sell our place. But then, where to move?