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Jan 29, 2014 4:13AM

I agree totally with the previous commenter. In other words pay three times what the house cost. To build the house on a lot including material, labor, lot and permits and necessary hookup cost ,$200,000. For a mortgage with the bank $400,000, over twice what the house cost…This way the banks earn their money. And it’s a pity that people have to overpay their house and pay at least 15 years their mortgage. But what can we do? I saved for almost 7 years to purchase my current house that I’ve found at and that is why didn’t have to pay mortgage. In other case I’d have to pay the mortgage that is really exhausting especially when you understand how much money you give to the bank.

Jan 23, 2014 9:18AM
Read and re-read this article, it's crazy. It's paid for by banks and/or real estate companies. The only key word here is mortgage. In other words pay three times what the house cost. To build the house on a lot including material, labor, lot and permits and necessary hookup cost ,$200,000. For a mortgage with the bank $400,000, over twice what the house cost. See anything wrong here? You do not need credit, again YOU DO NOT NEED CREDIT. Don't get taken in by this. Live cheap and save your money, you will never be sorry. Banks and credit institutions steal your money.  It might be tough at first, but in a few years you'll be on top. Everybody doesn't need to own a home. I find it particularly funny about the part that says if you're only going to be there 7-10 years. Right, if you figured the real estate and moving fees in 7 years, you will lose money. If you need to borrow the money, you don't need whatever it is, not even a house. 
Jan 23, 2014 8:32AM
Jan 23, 2014 8:15AM

I can't believe MSN even suggest that people should consider ARM loans.  ARM loan has adjustable interest rate that can increase your mortgage payment by 40 to even 100 % within the near future but it's only good if the housing prices are skyrocketing and you just want to get it and use your new house as an ATM machine to make money from... and then you get out with the equity money.  If you plan to live in the house for the long run and if home prices don't go up, it's a bad advice. 


The other advice is the DTI (Debt to Income ratio) that was suggested at maximum of 42%.  This is bad for people with low income because 58% will not be enough if your yearly income is less then $50,000 a year. 


In conclusion, MSN needs to do a better job telling Americans to live within their means.  It's not a popular topic to talk about... but what is right is not always popular... and what is popular is not always right.

Jan 23, 2014 6:38AM

Slide #9  Consider a ARM (Adjustable Rate Mortgage). Yes, consider an ARM for just one moment. More people with ARM's defaulted on their mortgage payments and lost their homes BECAUSE they had an ARM! What most of these folks did not realize was that the mortgage rate ALWAYS GOES UP. Monthly payments of $450 per month grow to $600 and then to $800 per month and not in 10 years! Stay away from the ARM loans.


FHA Loans? Realy folks, with their track record? When did the feds ever do anything better than ordinary people can do them without government "help".  One thing we learned in 2008 is that government hacks are motivated by getting re-elected, not managing the nations financial health! If you want your loan app to get lost in government red tape and corruption, then go FHA. My father bought 2 homes through FHA and they were both nightmares. The first home had to have the roof replaced the first year due to leaks. The second home had to be re-wired because the original contractor had used undersized alum wire instead of copper wire, and had bribed the FHA inspector to pass it at the inspection! Twenty four other homes had to be re-wired in the same new sub-division.


I suggest starting with your local bank and require them to write and manage the loan and not allow them to sell it. At least then you are dealing with an individual person who lives in your community, has kids in your schools, belongs to your churchs, and is motivated to work with you. It may cost you a few bucks a month more BUT if you miss a payment or end up in the hospital for some reason, there is a face to talk with.  They may have tougher standards for loans because they expect you to actually repay the loan as you promised.

Jan 23, 2014 5:35AM
Really? You say rates are rising so take an ARM. Are you trying to cause another housing collapse. 
Jan 23, 2014 3:32AM
No anchor around *my* neck, thanks.
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