Broompilot
Veteran Expediter
This made me go ahead and bring my thoughts to print here. I was reading in USA Today I bleive Wednesday. You may have noticed the article yourself.
U.S. Housing and the % of debt vs income and where the trend is has been and is going.
Than I thought of Phil, Great position he is in with no house since prices are falling, than he prints the Fincial Calculator.
I still would never be without a Home, and even though it has dropped in value (mine probably about $20K in the last year and half). But here is my own back slapping SO WHAT? There are many many ways to look at this instead of the scare tatic the paper is trying to print. (100% accurate for those that borrowed 100% with 20% down payment on high intrest rate note plus a loan 80% that re-adjusts itself every couple of years) Way to many people have seen there housing costs take up 50% OR MORE of there TOTAL GROSS income, 33% is the safe guideline (who thought of that????). Educated people with two incomes and than they have to get a part time job, go figure did they not learn anything about finances while in that school? The things people have done just to buy a house is amazing but once in that dream turns into a NIGHTMARE. Than at sometime comes along a bump in the road, illness, slow down in the economy, loss of job etc.. And they cry (why me). The article also pointed out that half of all the mortages created in NY, PA, NJ were more than 80% financed 20% down payment last year, and of that 80% most were near 95% or higher.
Now prices have adjusted downward and these people are stuck, crying they cannot sell. WELL GO FIGURE.
Putting alot down (min 20%) one protects oneself from a down turn on any investment even a rising one (trucks do not go up in value only help create an income stream.)
Nice post Phil, re:calculator but where could it (should) be put up here for us to use all of the time rather than search to find such a necessary piece of info. I use the Auto Trader calculator alot since I can remember how to find it.
U.S. Housing and the % of debt vs income and where the trend is has been and is going.
Than I thought of Phil, Great position he is in with no house since prices are falling, than he prints the Fincial Calculator.
I still would never be without a Home, and even though it has dropped in value (mine probably about $20K in the last year and half). But here is my own back slapping SO WHAT? There are many many ways to look at this instead of the scare tatic the paper is trying to print. (100% accurate for those that borrowed 100% with 20% down payment on high intrest rate note plus a loan 80% that re-adjusts itself every couple of years) Way to many people have seen there housing costs take up 50% OR MORE of there TOTAL GROSS income, 33% is the safe guideline (who thought of that????). Educated people with two incomes and than they have to get a part time job, go figure did they not learn anything about finances while in that school? The things people have done just to buy a house is amazing but once in that dream turns into a NIGHTMARE. Than at sometime comes along a bump in the road, illness, slow down in the economy, loss of job etc.. And they cry (why me). The article also pointed out that half of all the mortages created in NY, PA, NJ were more than 80% financed 20% down payment last year, and of that 80% most were near 95% or higher.
Now prices have adjusted downward and these people are stuck, crying they cannot sell. WELL GO FIGURE.
Putting alot down (min 20%) one protects oneself from a down turn on any investment even a rising one (trucks do not go up in value only help create an income stream.)
Nice post Phil, re:calculator but where could it (should) be put up here for us to use all of the time rather than search to find such a necessary piece of info. I use the Auto Trader calculator alot since I can remember how to find it.
