Comments on: Counterintuitive Advice: Borrow to the hilt http://funny-about-money.com/2008/09/12/counterintuitive-advice-borrow-to-the-hilt/ Simple Living = Frugality = Peace of Mind: Personal Finance and Stress Control Wed, 23 May 2012 08:41:13 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Donna http://funny-about-money.com/2008/09/12/counterintuitive-advice-borrow-to-the-hilt/comment-page-1/#comment-1965 Donna Sat, 13 Sep 2008 17:24:07 +0000 http://funnyaboutmoney.wordpress.com/?p=1164#comment-1965 I would go with a housing finance scenario that involves the least amount of debt possible. You just don't know what the future might hold. We're entering unstable times and I don't think you can count on the price of groceries, clothing, and gasoline holding steady for you. At the very least, you'll be more likely to sleep well at night. :) I would go with a housing finance scenario that involves the least amount of debt possible. You just don’t know what the future might hold. We’re entering unstable times and I don’t think you can count on the price of groceries, clothing, and gasoline holding steady for you. At the very least, you’ll be more likely to sleep well at night. :)

]]> By: funnyaboutmoney1 http://funny-about-money.com/2008/09/12/counterintuitive-advice-borrow-to-the-hilt/comment-page-1/#comment-1966 funnyaboutmoney1 Sat, 13 Sep 2008 16:32:27 +0000 http://funnyaboutmoney.wordpress.com/?p=1164#comment-1966 Problem is, if his property values fall further, so will mine. The value of my house always will be proportionately less than the value of his house. His realtor just told mine that he would entertain a bid as low as $330,00, but not on contingency. This means I would have to sell my house, across the street from Dave's Used Car Lot, Marina, and Weed Arboretum and in a neighborhood about to be walloped with a four-year-long lightrail construction project before someone else comes along and grabs that house. If I don't, then I'm committed to a listing with an agent who very well may sell my house, leaving me with no comparable affordable alternative to move into. A $55,000 difference in prices will still be a $55,000 difference, because both houses' values will drop or rise proportionately. Interestingly, houses are starting to move here. In my neighborhood a place a few lots up from a foreclosure sold in 7 days for $370,000, a good price for this area. Mortgage rates are expected to drop to 5.25% or lower, and that's starting to thaw the market. At my credit union, 15-year and 30/15 fixed-rate mortgages are already at 5.25%, and 30-year fixed rates are at 5.625%. Problem is, if his property values fall further, so will mine. The value of my house always will be proportionately less than the value of his house.

His realtor just told mine that he would entertain a bid as low as $330,00, but not on contingency. This means I would have to sell my house, across the street from Dave’s Used Car Lot, Marina, and Weed Arboretum and in a neighborhood about to be walloped with a four-year-long lightrail construction project before someone else comes along and grabs that house. If I don’t, then I’m committed to a listing with an agent who very well may sell my house, leaving me with no comparable affordable alternative to move into.

A $55,000 difference in prices will still be a $55,000 difference, because both houses’ values will drop or rise proportionately.

Interestingly, houses are starting to move here. In my neighborhood a place a few lots up from a foreclosure sold in 7 days for $370,000, a good price for this area. Mortgage rates are expected to drop to 5.25% or lower, and that’s starting to thaw the market. At my credit union, 15-year and 30/15 fixed-rate mortgages are already at 5.25%, and 30-year fixed rates are at 5.625%.

]]> By: Caitlin http://funny-about-money.com/2008/09/12/counterintuitive-advice-borrow-to-the-hilt/comment-page-1/#comment-1967 Caitlin Sat, 13 Sep 2008 16:07:02 +0000 http://funnyaboutmoney.wordpress.com/?p=1164#comment-1967 Or you could wait another year or two, wait for property prices to fall even further, and then buy the house at the bottom of the market. Your sums only work on current prices. Or you could wait another year or two, wait for property prices to fall even further, and then buy the house at the bottom of the market. Your sums only work on current prices.

]]>