Comments on: Outstanding Debt as of March 2009 http://www.debtreductionformula.com/blog/outstanding-debt-as-of-march-2009/ Reduce Expenses + Increase Income + Discipline = Get Out of Debt Fri, 05 Mar 2010 09:37:31 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: Ryan Healy http://www.debtreductionformula.com/blog/outstanding-debt-as-of-march-2009/comment-page-1/#comment-50749 Ryan Healy Sat, 21 Mar 2009 14:28:49 +0000 http://www.debtreductionformula.com/blog/?p=556#comment-50749 Leah - I guess my statement that "EVERYBODY" is doing FHA loans wasn't so much justification that I should get one too... but only to point out how few people can do conventional loans these days. Playing devil's advocate here... I have begun to wonder if home prices will go up sooner than later due to hyperinflation (devaluation of the currency). In such situations, many people are able to pay off debt quickly, including their mortgages. The down side is that most people end up having to sell their homes anyway just to buy basic necessities like... bread. Who knows what will happen though. As the saying goes, if I knew what the future held, I'd be rich. For now, we're still just figuring out what our options even are. I'll keep you posted. Ryan Leah – I guess my statement that “EVERYBODY” is doing FHA loans wasn’t so much justification that I should get one too… but only to point out how few people can do conventional loans these days.

Playing devil’s advocate here…

I have begun to wonder if home prices will go up sooner than later due to hyperinflation (devaluation of the currency).

In such situations, many people are able to pay off debt quickly, including their mortgages.

The down side is that most people end up having to sell their homes anyway just to buy basic necessities like… bread.

Who knows what will happen though. As the saying goes, if I knew what the future held, I’d be rich.

For now, we’re still just figuring out what our options even are. I’ll keep you posted.

Ryan

]]> By: Leah S http://www.debtreductionformula.com/blog/outstanding-debt-as-of-march-2009/comment-page-1/#comment-50727 Leah S Thu, 19 Mar 2009 23:09:37 +0000 http://www.debtreductionformula.com/blog/?p=556#comment-50727 But just because EVERYBODY is jumping off the cliff, doesn't mean you should. ;) In my case, I'll be waiting no matter what. If that means living in apartments for another 5 years, then so it be. A house isn't going to buy you financial security. Just a bigger debt and more responsibilities. There's no equity in houses these days, and it'll probably be another 5 or so years before people will see prices rise again. If you wait until you have 20% down, you won't need to deal with PMI and the likes. You'll have more "weight" to throw around because more than one bank will be happy to accept an application from a financially responsible person. If you're debt free, even better! I think people need to stop playing musical houses and commit to buying one house for the next 20-40 years. If you can't see yourself staying there than long, perhaps it's best to remain as a renter until you can put down deep roots. But just because EVERYBODY is jumping off the cliff, doesn’t mean you should. ;)

In my case, I’ll be waiting no matter what. If that means living in apartments for another 5 years, then so it be. A house isn’t going to buy you financial security. Just a bigger debt and more responsibilities. There’s no equity in houses these days, and it’ll probably be another 5 or so years before people will see prices rise again.

If you wait until you have 20% down, you won’t need to deal with PMI and the likes. You’ll have more “weight” to throw around because more than one bank will be happy to accept an application from a financially responsible person. If you’re debt free, even better!

I think people need to stop playing musical houses and commit to buying one house for the next 20-40 years. If you can’t see yourself staying there than long, perhaps it’s best to remain as a renter until you can put down deep roots.

]]> By: Ryan Healy http://www.debtreductionformula.com/blog/outstanding-debt-as-of-march-2009/comment-page-1/#comment-50726 Ryan Healy Thu, 19 Mar 2009 22:11:44 +0000 http://www.debtreductionformula.com/blog/?p=556#comment-50726 @Leah - You raise some good points. Our credit scores range from 740 to 765 or so, depending on the agency. I should have at least 5% down payment by mid-April, and FHA requires only 3.5%. Not sure if we qualify for FHA, but that's an option. According to a realtor I know, nearly EVERYBODY is doing FHA loans because nobody can qualify for conventional loans... at least not with housing prices as high as they still are. Of course, if I do have enough for down payment by mid-April... maybe it's time to wipe out all unsecured debt so there's only the van loan left. Ryan @Leah – You raise some good points. Our credit scores range from 740 to 765 or so, depending on the agency.

I should have at least 5% down payment by mid-April, and FHA requires only 3.5%. Not sure if we qualify for FHA, but that’s an option.

According to a realtor I know, nearly EVERYBODY is doing FHA loans because nobody can qualify for conventional loans… at least not with housing prices as high as they still are.

Of course, if I do have enough for down payment by mid-April… maybe it’s time to wipe out all unsecured debt so there’s only the van loan left.

Ryan

]]> By: Leah S http://www.debtreductionformula.com/blog/outstanding-debt-as-of-march-2009/comment-page-1/#comment-50707 Leah S Wed, 18 Mar 2009 03:46:09 +0000 http://www.debtreductionformula.com/blog/?p=556#comment-50707 I think I'd get a 6 months lease and start house hunting in the fall. I still think the market has plenty of falling to do. What does your credit score looks like? You're going to have a rockier time if it's not at least 700, preferably 750 or more. And I can't see any sane bank these days loaning out to anybody without a 20% down payment. If you can't pay off your debts yet, I doubt you have the down payment. I just hear too many stories of people trying buy a house, but just can't get the financing these days. Gotta look GOOD to the banks. I think I’d get a 6 months lease and start house hunting in the fall. I still think the market has plenty of falling to do.

What does your credit score looks like? You’re going to have a rockier time if it’s not at least 700, preferably 750 or more. And I can’t see any sane bank these days loaning out to anybody without a 20% down payment. If you can’t pay off your debts yet, I doubt you have the down payment.

I just hear too many stories of people trying buy a house, but just can’t get the financing these days. Gotta look GOOD to the banks.

]]> By: Ryan Healy http://www.debtreductionformula.com/blog/outstanding-debt-as-of-march-2009/comment-page-1/#comment-50684 Ryan Healy Mon, 16 Mar 2009 18:56:45 +0000 http://www.debtreductionformula.com/blog/?p=556#comment-50684 That's a great sound clip, Ben. Thanks for sharing it! Ryan That’s a great sound clip, Ben. Thanks for sharing it!

Ryan

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