Another couple things about how hard it is to buy a house these days:
1) Predatory lending aside (never helped anything), people young or old now who are having a heck of a time getting mortgage financing can thank the legions of sub-prime loan customers that defaulted their way into our economy's default. Just a couple years ago, you could walk into a bank and walk out with a mortgage faster than your Dad walked in and out of the five-and-dime for PEZ decades ago. Wasn't set up for success, but it wasn't the lenders that missed the payments was it? Always seems to be someone else's fault. Let's have a spelling bee: A-C-C-O-U-N-T-A-B-I-L-I-T-Y. Sparky, could you now please use that word in a sentence? "Yes; there are many people in today's society that are not in any way accountable for their actions."
2) In November of 1978, the average interest rate on a 30-yr fixed mortgage broke double digits to 10.11, and rates stayed in double digits on average until 1991. In October of 1981, the average rate was 18.45%. January 2013 saw a rate of 3.41%. My parents paid, over the course of their loan term, 5.5x the value of the original purchase price. That's not including any insurance or repairs which adds up beyond belief. These days, you only pay for your house twice.
You want to buy a house soon out of college in your mid-20s? First off, that's a ton of responsibility and renouncing of some of your freedom. Secondly, the way to do it is not to blow your a quarter mil on a private college and go to state school instead. Won't even be six figures in the end. In several states, high academic achievers in high school go to state schools nearly for free.
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Thread: Severing ties with parents...
Jun 29, 2013, 02:31 AM #11