|
My question is How do I figure home Lending Tree mortgage interest? Hoping for any answer. Another question on my mind: So Too Much...Did you pay cash for your house? Do you have any credit cards? Why are you here in the first place?.. |
|
|
|
Good question... I dunno what is the answer. I'll do some Googling and get back to you if I discover an good answer. You should email the people at Lending Tree as they probably could give you an answer..
|
|
Too Much,.
Yes, I agree that a brand new car loses a lot of it's $ value the second it is driven off the parking lot by the buyer. But the joy and happiness that people feel when they purchase THEIR brand new car is priceless especially after having credit problems. Not everybody who come here for help had financial problems. Some were screwed up by the creditors and they are trying to get things straightened out. The ones who had financial problems before are now trying to do something about it. I don't think anybody here wants to go through all the trouble of repairing the credit just so they can mess up again. You are talking about making smart financial decisions. Don't you think it is smart to clean up one's credit so he/she does not have to pay high credit card or loan interest? I don't know about you, but I think it's the right thing to do. Many people here who manage to clean up their credit do not ruin it again because they finally realized how important credit worthiness here.. You probably have tons of money that you can afford to pay cash for your car (new or used). Some people need car to be able to work. In that case, they need to get financing. There are many reasons why people do what they do. But it is not nice to ruin somebody's parade just because you think you're smarter and know everything.. Let's leave it at that.. -GC.. |
|
7.4% on a new expedition w/rebate vs. 0%? I hope you enjoy it cause more than likely you got ripped a new one when you financed it at that rate..
Bottom of the line expedition invoices @ $28,640 according to Kelly Blue Book. Base retail is $32435.. At 7.4% the bottom of the line model would cost over $2K in interest charges the first year alone and over $5K if it was financed for 48 months.. One of the better equipped models around $40K could cost over $7K to finance for 48 months @7.4%.. As you can see, it would take one heck of a rebate to offset the 0% financing... |
|
I did pay cash for my house, after saving up for 7 years..
I have a credit card that carries no balance.. The reason most people have trouble with credit is because they simply don't understand credit. They never take the time to do the math and understand the stupidity of borrowing money to buy an overpriced item.. Buy what you can afford. If you can't afford it, save up until you can afford it. It's really that simple... |
|
So, you would rather that everone here just patted each other on the back for making bad financial decisions?.
You're not doing anyone a favor by sugar-coating things.. Financing a Ford SUV at any interest rate is a bad idea. It just doesn't make sense, and it's one of the reasons why so many people have credit problems.... buying things you cannot afford doesn't make sense... |
|
CONGRATULATIONS!!!???? For what?? For financing a $40,000 vehicle that is nothing more than gross excess??? Are you that financially secure that you can borrow more than $40,000 over 3-5 years on something that will lose 40% of it's value in the first 2 years. Did you do it to make yourself 'feel happy' Have you factored in insurance, repairs & depreciation????, or was this purely an impulse buy??.
Also, she probably 'chose to finance' because these days YOU MUST finance a car with the dealer in order to qualify for an advertised or negotiated price.. If you pay cash or finance thru a third party on your own, you will pay full MSRP plus a dealer markup of 10 - 15%, or full kelley blue book plus 20% for a late model used vehicle.. Unless you are purchasing from saturn or a strict 'no haggle' establishment where everyone received the same price, then it is a bad idea to buy a car from a dealer, unless you closely fit their ideal customer profile (under 35, white, income over $50,000, FICO 700 or better).. |
|
Sorry for the hijack, but I "kind of" agree with Too Much. In today's market it is so much cheaper to buy a year or two year old car. Especially if you are patient and can wait for the great deal. I bought a 2002 BMW Z-3 convertible in January for $27,100..
In case you don't believe me, here's the link:. Http://cgi.ebay.com/ebaymotors/ws/eB...400097239&rd=1. It was 13 months old when I bought it, had less than 9k miles, still smelled new, AND WAS CERTIFIED PRE-OWNED. This bumped the original warranty from 4 years/50k miles to 6 years/100k miles. To top it off, the sticker new was $36,675. By buying a year old car, I got a better warranty, all the original papers and perks, and saved almost 10 thousand dollars over buying the car new. (It costs the dealer between 1 and 2 grand to have the car cerfified. I financed with my credit union for 4.75%.. It pays to be patient. If the Expedition makes you happy though, it's all that matters. I'm just saying I see his point, even though it was a bit harshly delivered... |
|
Do you realize how much money you LOST because you choose NOT to finance you house? You choose to wait 7 years to save up enough money. What was that same house worth 7 years BEFORE you bought it? You paid for 7 years of appreciation on a house you could have bought earlier..
I do agree with alot of what you say but this board is not to put people down. I think thats why alot of people are having problems with what you are saying... |
|
Everyone drives a used car. The "new car feeling" isn't worth $10k+ of instant loss, no matter how good it feels..
The average American feels a sense of entitlement when it comes to owning a new car, house, clothing,etc. That sense is dilled into them by tv, radio, etc, advertisements. "Get the car you deserve". Unfortunately, most people simply do not make enough money to afford all those things they are taught to desire. This is why people get into trouble with credit. The lenders are all-too-willing to lend the money for the new car, and they are very unforgiving when the bill becomes past due. This is where this website comes into play.. People come here looking for help with their credit woes, never realizing that the real problem is a failure to show restraint with their spending.. Many people go about the business of buying a car or house backwards. When they go to the lender, they ask the question: "How much house/car can I be approved for?" They don't stop and think that the proper question should be one they ask themselves at home, long before they start shopping. "How much can I afford." They shop with their desires, and they ignore their budget.. If you want to help someone who's having credit/debt problems, tell them to learn to live within their means. Obiously, I'm not talking about people who have had huge medical bills, etc. I'm talking about the majority of people with debt problems; the ones who overspend because they want more than they can afford.. Look at the majority of the "help wanted" posts on this board. They are asking for help on how to dump old, unpaid debt, so that they can get approved for new debt. It's just frightening. Most of them would have much better credit if they would stop trying to get credit, and instead focused on paying for things with cash, and not shopping for things they clearly can't afford.. You can be frustrated with what I have to say here, but it doesn't change the fact that most people in debt got there because they didn't ever bother to ask themselves if they could really afford something in the first place... |
|
You buy something on credit & understand the agreed terms that the loan will be paid back. You do the math and calculate the true cost of financing the item..
The PROBLEM is that the media and everyone else is convinced that money is so cheap for everyone, and that everyone can qualify for the 'lowest interest rates in a generation'. NOT SO, If your credit score is below the mid 600's, you will not get a used car loan (forget new) under 14% with 25% down, or a mortgage for less than 8% with significant fees & surcharges.. The media needs to do a better job EXPLAINING the criteria for qualifying for 0% car loans, 5% mortgages etc..... |
|
I'm absolutely not trying to put anyone down just the opposite. I'm trying to explain why people have credit problems. If you ignore the cause, you'll never really solve the problem. If you treat the problem with the wrong solution, you'll make matters worse..
I didn't lose anything when I purchased my home, because I didn't buy a house that was in a "bubble" like most of the US has experienced lately.. Also, I bought my home at a forclosure auction, so I saved about 20% off of market prices.. Having financial security isn't about having a lot of credit. Instead, it's about living within your means, and doing without things until you can afford them... |
|
ARE YOU KIDDING ME???.
First of all, lenders are not stupid and are not 'all too willing to lend people money for homes & cars'.. That is why FICO scoring is widely used to establish an objective criteria of granting credit.. If you are meet the score, you are approved, if you score below, you are denied, plain and simple.. Many people are not & probably never will qualify to buy or rent a home or a car. Their income is too low or their credit is too poor.. No one is going to lend money to someone who can't afford to pay it back. DO NOT blame the lenders for being all to willing.. Remember, I am single make close to 50K and have a FICO of close to 630. It is nearly impossible for me to get any car loan under 15% (with 25% down). No lender has shown an iota of willingness to lend me money at anything close to prime, even though I paid off my last car loan 2 years early never being late, & have no lates or chargeoffs on any credit in 3 years.. The problem is that these days stuff happens, people lose their jobs, become sick are disabled, have family emergencies. THESE THINGS COST MONEY and take priority.. The others have only themselves to blame for simply sloppy financial management... |
|
"Too Much" sure sounds like a Troll from the YM boards on MSN....... The auro of arrogance tips him off. Care for a payday loan Too Much??..
|
|
I think you will find that there is no shortage of lenders willing to lend money to people who truly cannot afford the loan..
For example, over the past several years the debt to income ratio for mortgages has gone crazy. It used to be 28%, now people are routinely getting approved with D/I ratios in the 40-50% range; and that's on 5% down mortgages. Any responsible banker will tell you that kind of lending is not responsible. However, that doesn't stop lenders from writing those loans, and then dumping them on Fannie Mae, who is all too happy to buy them so they can keep their balloon inflated.. Credit isn't a yes/no decision. If your credit score is low, you don't always get denied. Instead, you get approved, but at a higher interest rate. This is another trap that many people fall into. They go into the car dealer because they've seen the 0% interest advertisement on tv. They get themselves all excited about driving that new car. They then proceed to sign on the line, and another person is buried in a car they cannot afford. Heck, many of them don't even understand that they've taken out an 18% loan. Many of them don't understand interest rates at all.. If you were to stop relying on credit for a few years, your credit score would rise significantly. However, doing so would involve hardship on your part. Move into a less expensive place, drive a less expensive car, etc. Take every extra dime you have and use it to pay down debt. Don't apply for any credit, and stop using your cards unless you pay off the balance in full.. A higher credit score is like waiting for a pot of water to boil. It's never going to happen if you're watching it... |
|
Sorry, I'm not a troll. I'm expressing my opinion of credit and the problems that credit presents..
If you would like to refute my remarks, please do so. I would be interested in hearing your opinion... |
|
Too Much,.
If you can afford to pay cash for everything, then by all means do so. You cannot expect everybody to do what you are doing. Yes, it feels great to not have any debt. But people have their own reasons for borrowing money or financing cars or getting mortgage. I currently live in an apartment. I have been here for over a year and a half. I am not going to wait 10 years to save up money so I can pay cash for my house! You mean to tell me that it is better to raise my child in an apartment than to have my OWN home where I can build and cherish memories? The money I give my landlord is money lost. It paid for the time I stayed in my apartment but it is not a good investment. I'd rather buy a house NOW and benefit from the tax deductions and equity that builds up.. Having no debt is great but only if you can afford it. Not all debt is bad. I had no money to pay for my education. Based on your principle, I should have saved money before going to college. Let's see. That would have taken me at least 3 to 5 years to save up for my college education. In that case, the whole process took about 6 to 9 years. Look at what I did though. I applied for a loan, got my degree, and steadily working towards paying off my student loans.. By the way, I financed a car while going to school to get my education. If I had to save money to pay for my car, that would have taken me another year or so to save. My oh my it would have taken me a decade to get a degree.. *wink*. I'm happy that you can pay cash for all the things that you buy. But let the lady who used to have credit problems and now able to finance her OWN car for 7.9% (although it may seem high to others, for her it's a great rate) enjoy her success. Let's just congratulate her.. -GC.. |
|
{{{{Credit isn't a yes/no decision. If your credit score is low, you don't always get denied. Instead, you get approved, but at a higher interest rate. This is another trap that many people fall into. They go into the car dealer because they've seen the 0% interest advertisement on tv. They get themselves all excited about driving that new car.
They then proceed to sign on the line, and another person is buried in a car they cannot afford. Heck, many of them don't even understand that they've taken out an 18% loan. Many of them don't understand interest rates at all.}}}}. Many times the F&I managers don't even give you the interest rate, only the monthly payment amount.. Why can't they 'walk away' from a 18% loan?? If you can't pay cash for a car, then you can't afford it, PERIOD.. These days there are many reliable used cars & they don't have to be bought from used cars dealers who routinely screw & scam people.. Also, a 630 FICO score (with no repos, BK, or recent chargeoffs) is not great, but not horrible either, so why am I being quoted used APR rates of 15% - 17 with at least 25% cash down with no discount at all off the sticker price. According to every dealer I have spoken to I can't qualify for a new car, so if I need a car this is 'the best' they can do for me.. I have told them to shove it & walked out many times.... |
|
I agree with too much in that paying for everything with cash is the way to go..
It can easily add 5-8% or more disposable income per year by not having to pay interest... |
|
There have been others here before pushing this CASH GARBAGE...I have said before if you don't like it here...start your own web site>CASHONLY.COM.
CONTRARY TO POPULAR BELIEF...CASH AND CHECKS ARE NOT FREE TO GET AND USE!!!.. |
|
No one is saying that you put your life on hold in order to do things. However, you do have a choice: live within your means or live a life filled with stress brought on by overspending..
Apartment living isn't great, but it's a reality for some people. If you cannot afford to save up enough money to buy a home, you may just be one of those people who rents for a long time. Life isn't always fair, and there's no Constitutional provision guaranteeing you the right to be a home owner.. It isn't always better to buy vs. renting. In the first place, you're probably not factoring upkeep and repairs into the equation. Also, unless you've saved up 20% for a down payment, your mortgage insurance payment will offset and probably exceed any tax advantage you gain from owning a home. It's also important to remember that you're "throwing away" money each month on a mortgage payment, since most of it is interest going to the bank.. Real estate agents and mortgage brokers are good at telling you how foolish renting is. However, just like car salesmen, they never bother to explain the true cost of ownership... |
|
[[[No one is saying that you put your life on hold in order to do things. However, you do have a choice: live within your means or live a life filled with stress brought on by overspending. ]]].
So, getting a car for personal use while I went to school was a stupid idea? Honestly, I would have been more stressed if I had to figure out how to get to school and back everyday. Public transportation? Let me tell you that there are places in the country where there are no public transpo.. [[[ Apartment living isn't great, but it's a reality for some people. If you cannot afford to save up enough money to buy a home, you may just be one of those people who rents for a long time. Life isn't always fair, and there's no Constitutional provision guaranteeing you the right to be a home owner. ]]]. No thank you, I will be more than happy to pay for a mortgage and have my own home than stay in an apartment. Yes, there's no law that guarantees anyone to be a home owner, but anybody has the right to own their own home if they chose to.. [[[ It isn't always better to buy vs. renting. In the first place, you're probably not factoring upkeep and repairs into the equation. Also, unless you've saved up 20% for a down payment, your mortgage insurance payment will offset and probably exceed any tax advantage you gain from owning a home. It's also important to remember that you're "throwing away" money each month on a mortgage payment, since most of it is interest going to the bank. ]]]. Interest I can claim in my income tax return. I'm sorry, but it seems like you don't know much about mortgage. Oh right! Because you paid cash for your house. Let me tell you that there are programs out there where you can get prime rate and 0% with no mortgage insurance. Oh have I told you about equity?. You think I'm throwing away money each month because of the interest I pay on my mortgage? What about the rent I'm paying? Am I not throwing that away? I can't claim rent in my income tax return.... [[[ Real estate agents and mortgage brokers are good at telling you how foolish renting is. However, just like car salesmen, they never bother to explain the true cost of ownership. ]]]. You're assuming that anyone who buys a house through financing is stupid. There are people who do research on renting vs. buying before purchasing a home.. Like I said, having no debt is great, but not all debt is bad either. I agree that if you want to go on vacation, then saving up for it is the way to go. If you want a cadillac instead of a focus then you need to save up for it. But that does not mean that you always have to pay cash for everything. There are times when you do not have time to save money to buy or acquire whatever it is that you need... |
|
For the people who dont need help with their credit or the people who are not offering good advice this board is not for u. what is the big deal the people who are hating against eyes4u she is not spending your money and second she didnt borrow money from you anyway so what is the big deal..
|
|
No one said that anything you did was wrong or "stupid." My point was that you may not have thought the home buying process through..
I paid cash for my house because I planned well and I thought things out. I didn't rush out and buy a house as soon as possible. Instead, I patiently waited for the right opportunity to present itself. Doing so has probably saved me $100,000 over a 10 year period, since I am not a slave to the bank by paying them 5.5% of the purchase price each year in interest.. I sense that you are angry beacue I planned well in life and you apparently didn't. That's not my fault.. If you want to defend the idea of paying interest to a bank, that's you're right. However, it still doesn't make sense.. Most likely, the mortgage interest you pay won't be enough to overcome your standard tax deduction, so it's not a factor anyway. Remember, the IRS gives you a standard deduction of about $5700. Unless you have a lot of other deductions, you're not really saving much by paying a mortgage vs renting.. Like I said before, mortgage brokers and real estate agents love to tell you how good it is to finance a home. Most people just assume it's true, and they never do the math to find out the truth.. Live within your means or have extra stress. it's your choice... |
|
No one is "hating" the original poster. Instead, I was attempting to show the flaw in his/her logic. Doing so may save someone else a lot of money...
|
|
So you are here why?? You appear to think you are helping, I for one don't perceive it this way. If we choose to finance that is OUR choice and it affects you in no way. You continue to be smart and pay cash, I for one will continue to use what I have available to me. I can afford to finance what is needed and continue to live comfortably, if I pay a percentage to the people financing me that is my choice. You have made your point that you don't believe in financing, you've stated that very clearly. So be it and congrats to you...
|
|
I have to agree with too much to a degree as well. buying a new car is stupid.. Of course I've always bought my cars new because I felt that the extra $30-$50 a month was worth it. I currently have two 2002 models at the lowest interest rate Ford and GMAC was offering at the time of purchase: they are both under 3% interest rate. plus I bought both vehicles at $100 over invoice. They were both good deals so I went for them..
Thats right.. I had high utilization on my cards with totals in excess of 35,000 and a mortgage. Yet both seperate dealers approved me. Also my mortgage company approved me for a loan two and a half times what I made at 1% down at 7% interest now being streamlined to 6%.. FHA so no refinance costs. So YES it is stupid to buy new cars because of resale value but. whocares it's worth it. YES you can get good % rates from dealers and mortgage companies with a so so FICO if you work them right... YES everyone will lend you more than you can actually handle because that is where I am right now. screwed.... Not really because they loaned me more than I could handle but because the economy went to shit I lost my money in the market, lost my job, and the payscale for what I do went to the cr@pper.. not my fault.. not anyones fault. It just happened... |
|
Too much,.
Why are you here really? You went from "if you have to finance a car, you can't afford it", and that was bad enough.. now you went to "if you can't pay CASH for your house, you're throwing money away". You know, you'd feel a lot more at home at the MSN groups.. not here.. Do you know how much it is to rent? Where I live, a 3 bedroom apartment is about $2,000. That's $24,000 a year you'll never see again, and *that's* not throwing money away? You'll pay less than that on a $250,000 home that keeps increasing in value year after year thereby increasing your equity! How many people can afford to pay cash on a $250,000 home? If you want a "decent" house around where I live you're talking about at *least* $175,000.. or you'll be getting a house that's barely liveable or too small for a family of 5. How many people can afford that? and how long it take the average person to come up with that amount?. Let's say it takes 7 years (the amount of time you say it took you), and I have a family and needed at least that 3 bedroom apartment. So that's $24,000 * 7 years = $168,000 I'll never see again, and that I'll never be able to claim on taxes. Wait 7 years until everything appreciates in value and it keeps getting harder to buy an affordable decent home? Your advise there is absurd.. See, if you could afford to pay cash on your home, well good for you! But don't go around preaching everyone should to the same or they're "throwing money away". Not everyone here can afford that, and for most people it's plain dumb considering all the benefits and incentives of financing a home.. Don't get me wrong, I do agree on cash purchases for most things, but a house?! Give me a break... |
|
First, you're basing your assumption on the idea that real estate will continue to rise in the near-term. That's not a very safe assumption. The people who are buying houses right now are buying at absulutely the top of a real estate bubble. If they buy with little/no down, they will be buried in their homes for years to come. Those who can't afford to pay the mortgage will face forclosure..
Read your history, and don't listen to what tv news is telling you about the economy. The current real estate bubble is causing people to make incorrect assumptions like yours ( "Wait 7 years until everything appreciates in value and it keeps getting harder to buy an affordable decent home?"). $2000/month rent? If you're living in an area where rent costs that much, you're living beyond your means. This is exactly what I was referring to in my earlier posts. Most people simply cannot understand the concept of living within their means. It's a hard fact to face, but it's true that most people aren't entitled to the best things in life. Cheap and easy credit have allowed us to temporarily obtain them, but that cannot go on forever. As more people lose their jobs in this economy, and the Federal Reserve is forced to raise interest rates to fight inflation, you're going to see the record number of forclosures and bankruptcies that we're currently experiencing skyrocket even further... |
|
Because this is a board to express opinions and offer advice on credit matters. If you don't like my opinion, don't read my messages..
Simple?.. |
|
Let's do ourselves a favor.... let's move on to other topics. =).
Disputes? hehe.. |
|
The original poster wasn't asking your advice. If you didn't like her post why didn't you follow your own advice and not read it and leave it alone? Your posts are so full of contradictions and hypocrisies it's almost comical. But, being in the financial state you claim to be in, I don't even understand why you would go to this site in the first place, let alone this message board. Probably to feel superior by putting other people down and making them feel worse about themselves. I don't think you've helped anyone with your posts thus far. Good job, though...
|
|
I posted the information/opinions in order to help others learn from someone else's mistake. If you would rather that people went around misinformed about such matters, that's certainly your choice. However, I think that anyone with an open mind can see that the information wasn't presented to hurt someone... it was written to help others who simply do not understand how financing and economics work..
If my posts were so full of "contradictions and hypocrisies," why not try to correct me, so that others can learn from the experience?.. |
|
Look, no one here is asking for your opinion with your holier-than-thou preachy crap. Go to the motley fool or msn boards for that.. you'll fit right in. Some of us PREFER to finance our homes, because it's smarter for *US*. I bought my home 3 years ago, and since then, my home has gone up $65,000 in value, and it's perfect. Had I waited, I'd be looking at a small 2 bedroom home for the same original price I got my current home for.
This is my last response to you.. Have a good life... |
|
Well congratulations to all that believe if you can't pay cash, you don't need it. Our ancestors subscribed to that theory. Ever wonder why they died younger?.
When you die, you'll have tons of money in the bank, a house that is paid for, and an oldfully depreciated junker in the drivewayfor somebody else to enjoy.. For all the posturing about cash vs. credit. Nobody has talked about the pleasure value of things. I could wait 10 or 12 years, pay cash for a house, and remain in a little dump where my family is all cramped up, or I could buy now, watch my children enjoy having a home of their own, and create memories that won't go away when the lease is up.. I could drive an old clunker, pray that it makes it to the nearest mechanic when it breaks down, or I could drive a newish car, and when DH is out of town (which is alot), I know one phone call to the dealership, and I have whatever fixed and something to drive while I wait.. There is nothing wrong with waiting and paying cash for things. But just because some of us choose to not wait does not make us financial idiots, nor does it say we are entitled to these things.. It says we love life, and we choose to enjoy it!.. |
|
Too Much:.
I don't think what a person pays for rent means anything until you know where they live. $2000 may seem high to you compared to where you live but it might be average for that persons city. I personally live in NYC and $2000 is not alot of money to pay for a decent apt. The standard of living is so much higher here than most other places... |
|
Or, you could live within your means..
My gosh, you sound like an advertisement for a 2nd mortgage lender. It's all about me me me. "I deserve it, and I want it now...". All you're doing is trading your future for an immediate gratification. You might feel good today, but you're going to pay for it in the future. Unless, of course, you win the lottery.. Your ancestors probably made the same mistakes as you are... that's why you weren't left with an inheritance and a family property, right? If your parents were good savers, they would have left you with a property and some money to get a head start in life. Wouldn't you like to do that for your children? Or, would you prefer to have them buried in debt so they can have "everything" too?. Good financial sense is something that should be passed down from parents to children. If you teach your kids to spend all they have, and to go into debt to buy what they want, they're going to be even worse off than you are.. No matter how you try to spin it, you're not going to be able to justify going into debt for things you clearly cannot afford.. And yes, being impatient and financing a "want" instead of waiting to pay cash IS a bad financial decision. You simply do not have the intelligence to understand why it's a bad decision. That's not an insult it's just a commentary on your upbringing and social status.. There are people who are perfectly happy to go through life ignorant of the responsible way to do things. They have poor impulse control, and pass those traits on to their children, who repeat the cycle. Those are the people who are abused by lenders. Lenders sell them the rope, and they proceed to use it to hang themselves.. Getting angry at the messenger isn't the solution. If you want a bright future, free from debt and credit problems, you need to do something different than what you've been doing. Your current plan doesn't seem to be working too well, no?.. |
|
The point is that, if you're living in an area where rent is $2000, you probably cannot afford to live there, and you need to move somewhere where rent is more affordable. Not everyone can live in a nice town, near the ocean, etc. If you want to live in one of those places, you live somewhere cheaper, save up some money, and THEN move to your dream location..
$2000 is an insane price to pay for an apartment. You can live in San Francisco, or San Diego for that kind of money.. It's all about realizing your place in the pecking order. Most people think that they're at the top, and they try to live like they are. Unfortunately, their income doesn't allow it for long. That's when they come here and look for help with debt... |
|
I don't think you understand what I am saying. $2000 is alot of money to pay for rent if you live in Idaho. The standard of living is so much lower there than it is in New York City. It's all based on the standard of living. The standard of living is so much higher in NYC than it is in Idaho. I talked to someone from Texas(I forgot the city) and she stated she pays half of what I pay for rent for a huge house with land.
Now I don't pay anywhere near $2000 in rent but it's still alot. I could pay cheaper rent but I would be risking my life going to and from my apartment. You can't judge whether someone is living beyond their means based on the rent they pay. It may seem high to you, but in all reality it might be normal... |
|
Bingo - everything is black and white w/ too much it's either his way (the right way) or our way (the wrong way). He's not here to help, he's here to lecture and belittle the 6,600+ members of cnet...
|
|
Like I said before, lenders & others are not stupid..
It isn't a question about paying rent vs. not paying rent, or living in a decent apt. vs. living in a substandard one.. Even if you have alot of cash stashed away & invested, you have to qualify to buy a house based on income & credit. You also have to qualify to rent an apartment. No landlord will allow someone with a household income of less than $100,000 a year to rent an apartment that is $2,000 a month.. Lending standards for Mortgages, & autos have been tightened. Many people just do not qualify, plain & simple, so they really don't have much of a choice... |
|
Ever heard of a no doc or stated income mortgage? ANYONE can get a mortgage, even one day after bankruptcy. It all comes down to downpayment and the interest rate..
If you put 30% down, you don't even need to have a credit file or SS number, but you'll pay 8% for the mortgage.. Most landlords go by the 33% rule. Your rent cannot exceed 33% of your household income. Therefore, someone with a $100,000 income could easily rent a $3300/month unit. Call any local apartment complex to verify.. Individual landlords won't even care, as long as you have cash... |
|
Certain parts of the US cost more to live in. If you choose to live in one of them, and you don't make the money to support that lifestyle, you're going to struggle..
Like I said, not everyone is in the upper class. Those who aren't can try to live like they are, but the long term effect is that they do without later in life, since they didn't save anything, and they paid too much in interest when they lived beyond their means.. Maybe Idaho isn't such a bad idea for such people. At least it's safe there, and you can live in a lower-class neighborhood without fearing for your life. Sure, the jobs don't pay as much, but at least the cost of living is lower, and the neighborhoods are safer.. Too many middle class Americans are trying to live where the wealthy live. They take out huge mortgages to make it happen, and it cripples their financial situation for years to come... |
|
No, I'm not doing that at all..
If this was a dental help website, and someone came here and said they had pulled out their tooth with pliers because it hurt, would it be responsible to say "Congratulations! Keep up the good work?" Of course it wouldn't.. The same thing holds true for the original poster who made a bad financial decision. We're not doing them any favors by congratulating irresponsible financial decisions.. People may disagree with my opinion, but facts are facts. You don't gain financial freedom by blowing your income on things that are beyond your means.. People of wealth and means obtained them by being smarter than the general population. If you want the finer things in life, you have to do the same thing... |
|
Id just like to comment...CONGRATULATIONS! I for one know how crappy it is to have a 19% interest rate on a car...i would be as overjoyed as you are as well if I got a 7.9% interest rate on a new car. Even though even 7.9% isnt a good interest rate to lots of folks..I'd be damn proud to have it myself..
It would also be a blessing to be able to pick 'any car on the lot' instead of having the crappy salesman dictate which cars I can and cannot get based on my credit scores.. And yes, I've been flat out denied even with 50% down on a vehicle in the past...so I firmly believe those 'good credit/bad credit' advertisments are a scam.. GOOD JOB!.. |
|
Did I say that? My father just recently passed. The nice inheritance he has left me is 4th generation. I have chosen to continue that legacy for my children..
ROFL. Lack of intelligence? Social status???? upbringing????. I understand you perfectly now. When you pull the silver spoon out of your mouth, and quit digging in Mommy and Daddy's deep pockets to pay cash for everything in life, then come talk to me.. Sorry folks, I have NEVER done this before.. [].. |
|
Too much, you need to pick the wax out of your ears or go to the eye doctor or something. I think what people are getting so pissed off about is that you presume to ignore their implied value judgments and coldy spout financial ideals at them. Reminds me of watching a snake..
I think the principles you preach are sound. But, I think you fall down in applying them to everyone indiscriminately ! You're stepping on toes and poo-pooing people's value systems and just generally being a thorn in people's sides.. I know people like you, I get along with them OK but I much prefer to talk with, get help and advice from somebody who can relate to me in the subjective and help ME with that. So, if part of my problem is how I was raised and taught, don't put down my parents, but do suggest I exercise patience and discipline where possible.. If you don't know me, chief, you don't know diddly !.. |
|
Would you believe that? Even went as far as insinuating that jlynn's parents didnt leave her an inheritance because they didn't save and weren't smart with their money. Ignoring the fact that he knows nothing about her whatsoever.. I... blah... I already said I'm not going to reply here anymore...
[]. I just wish CCN Steve would close this thread. Can't let a troll get to us.. |
|
Iballs4u:.
Congratulations ! We're about 4 months away from replacing our mini-van we've had for 12 years. We bought it new and I can remember that feeling like it was yesterday !. We (me and DW) are working hard to get our error riddled credit file straightened out, hoping we can get 5.5% at our credit union or whatever the going rate is in Aug.. I'm real happy for you ! };-).. |
|
Well then you only had yourself to blame that you let a car dealer decide what car he wanted to sell to you, not a car that you wanted to buy even though you would be making the payments for the next 5 years..
If you had 50% in cash to put down, then you should have just bought from a private seller & arranged for a full mechanical inspection.. 19% interest on a used car is insane, most credit cards don't even carry APR rates that high. But if your FICO is below 630, then you are looking at 15% and above on a 5 year old used economy car.. The only reason why this happens is because people are desperate & will do what ever it takes for some slick car dealer to get them into any vehicle.. Make no mistake about it, if your credit is less than perfect these days (below 630), you are looking at very high rates on auto & home loans (if you can obtain these at all) with large downpayments & very limited selection... |
