House purchasing

[Quik]

my debt consist of 5k for truck 5k for bike and i think like 9k in school left

 

ill pay my CC debt off before i get into a house

 

now would the above bills be worth "rollin in"

the CC debt happend cause of lack of work, now in a good place with a good future. once paid off might keep a emergency one. i like paying cash for most things

[JF-03-SS]

what age were you?

1st house 23, sold at 30, 2nd house 30, 3rd (rental house) 33

 

what price range did you get into?

1st cost 75,900, 2nd 159,000, Rental 155,000

 

how much debt did you have before the house

1st maybe 4k, 2nd made 75k selling 1st house so nothing before buying 2nd house, Rental, 120,000 debt on 2nd house

 

how long is your morgage for?

30 notes for ea.

 

do you regret?

not at all

 

did you take extra out to help do add ons?

No, Rental we had about 40k cash for remodeling

 

what you paying out per month now with all house bills

My house maybe 1400.00'mo and the rental pays for itself pretty much

Edited December 12, 2006 by JF-03-SS (see edit history)

[Black2003SS]

No...it would not be worth rolling in unless you lost your job and couldnt afford your monthly bills. That is the only scenario to roll them in.

Your truck and bike would be paid for within less than 5 years, probably much sooner if thats all you hae left on them balance wise.

 

Big O...I'm sorry you feel that way. I'm not sure what line of work you are in, but thousands of people on wall street would agree with my facts, not theory:). Good people rack up credit card debt for various reasons and not eveyone lives on cash alone. Thank god too, because our economy revolves around it. I think most of the people I help learn their lesson the first time and eventually do the right thing. Others, they do not. I had some legal troubles that racked up $15k in attorney's fees that went on credit cards. I'm not financially irresponsible because of it. You have no credit card debt, your one in a million man. And if you do and refuse to roll it into a mortgage, thats the suckers bet my friend, no two ways about it. Any financial analyst in the world would tell you to use the equity in your home to put you into a better financial situation. And nobody has the same financial situation or needs either...even though many think the only loan out there is a 30yr and 15 yr loan...lol. Every client I talk to at some point in the first 2 minutes asks what is my rate on a 30yr...lol. 90% of the time, they dont even end up with a 30yr mortgage.

Edited December 12, 2006 by Black2003SS (see edit history)

[ChevySSandChevy8.1]

House is always the main priority. I'd actually get a house before I get a nice car. All our financial situations are different and our priorities are also different. I would definately recommend getting an appropriate dwelling well within your means and putting as much down as possible and having a good credit rating before signing a morgage. Hence I would plan the budget such that the morgage is not drastically affecting your standard of living. Black2003SS is definately right about people getting into morgages that are just way too much for them. Be realisitc at what you can comfortably pay to the morgage each month and go from there. Work towards paying off the morgage as fast as possible and try not to get stuck to 30 years or 15 years of payments. Once you build up more credit and have more money you can easily move up to a nicer home. This way at least the money you pay each month is going to ownership unlike a rental. Good luck.

[billsws6]

a good saying, is you want to live in the house not for the house!

[KoreySS]

what age was you: 23 (just bought my first house 2/26/06)

 

what price range did you get into: 113,000

 

how much debt did you have before the house: ~50K

how long is your morgage for: I have 2 1st: 2 yr ARM ( will refi before it's up) 2nd 15yrs.

 

do you regret: No, except the fact that I wish I bought a house instead of a condo.

 

did you take extra out to help do add ons: NOPE

 

what you paying out per month now with all house bills: Mortgage is $846/ month.

 

 

-K-

[SoCalSS]

so if you have a current debt of say 20k would you just enroll that into the house mortage to have everything paid for and just have one bill

 

 

im 27 planing on house at 28 in june

i teach now and i like this alot and think ill be around for many years to come. my field seems good where we shouldnt have a shortage at all for the future

 

electrical instructor

 

does that sound ok to do, roll your bills into the mortage to help reduce costs out per month

<{POST_SNAPBACK}>

 

You can roll your bills into the house only if someone is willing to sell you a house at less the retailed value of the house. Example: House appraised at 300K but the person is willing to sell it to you at 280K. Most mortgage companies wont even let you do this.

 

The reason you hear about people rolling their debt into their mortgage is because they have "equity" within the home to refinance the home and pay off credit cards or loans.

 

It would be easier if you wait a while and reduce your debt to increase your credit score and thus reducing your rate on the loan.

 

In most cases you just need to make sure that your Debt to Income is less than 50% including current monthly payments and what your new mortgage will be plus homeowners insurance (Havent been in the mortgage business for 1.5 years). I always suggested fixed rate mortgages (15 or 30), and not the 5/1,7/1,10/1 ARMS a lot of people get into. This is due to the rates end up getting very high with these loans once they become adjustable which in some cases can cause people to go bankrupt or loose their house...

 

To each their own though

Edited December 17, 2006 by SoCalSS (see edit history)