2003 Expedition loan approved! 7.4%

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I agree with too much in that paying for everything with cash is the way to go.

It can easily add 5-8% or more disposable income per year by not having to pay interest.

 

Re: Re: 2003 Expedition loan approved! 7.4%

 

Re: Re: 2003 Expedition loan approved! 7.4%

There have been others here before pushing this CASH GARBAGE...I have said before if you don't like it here...start your own web site----->CASHONLY.COM

CONTRARY TO POPULAR BELIEF...CASH AND CHECKS ARE NOT FREE TO GET AND USE!!!

 

Re: Re: 2003 Expedition loan approved! 7.4%

No one is saying that you put your life on hold in order to do things. However, you do have a choice: live within your means or live a life filled with stress brought on by overspending.

Apartment living isn't great, but it's a reality for some people. If you cannot afford to save up enough money to buy a home, you may just be one of those people who rents for a long time. Life isn't always fair, and there's no Constitutional provision guaranteeing you the right to be a home owner.

It isn't always better to buy vs. renting. In the first place, you're probably not factoring upkeep and repairs into the equation. Also, unless you've saved up 20% for a down payment, your mortgage insurance payment will offset and probably exceed any tax advantage you gain from owning a home. It's also important to remember that you're "throwing away" money each month on a mortgage payment, since most of it is interest going to the bank.

Real estate agents and mortgage brokers are good at telling you how foolish renting is. However, just like car salesmen, they never bother to explain the true cost of ownership.

 

[[[No one is saying that you put your life on hold in order to do things. However, you do have a choice: live within your means or live a life filled with stress brought on by overspending. ]]]

So, getting a car for personal use while I went to school was a stupid idea? Honestly, I would have been more stressed if I had to figure out how to get to school and back everyday. Public transportation? Let me tell you that there are places in the country where there are no public transpo.


[[[ Apartment living isn't great, but it's a reality for some people. If you cannot afford to save up enough money to buy a home, you may just be one of those people who rents for a long time. Life isn't always fair, and there's no Constitutional provision guaranteeing you the right to be a home owner. ]]]

No thank you, I will be more than happy to pay for a mortgage and have my own home than stay in an apartment. Yes, there's no law that guarantees anyone to be a home owner, but anybody has the right to own their own home if they chose to.

[[[ It isn't always better to buy vs. renting. In the first place, you're probably not factoring upkeep and repairs into the equation. Also, unless you've saved up 20% for a down payment, your mortgage insurance payment will offset and probably exceed any tax advantage you gain from owning a home. It's also important to remember that you're "throwing away" money each month on a mortgage payment, since most of it is interest going to the bank. ]]]

Interest I can claim in my income tax return. I'm sorry, but it seems like you don't know much about mortgage. Oh right! Because you paid cash for your house. Let me tell you that there are programs out there where you can get prime rate and 0% with no mortgage insurance. Oh have I told you about equity?

You think I'm throwing away money each month because of the interest I pay on my mortgage? What about the rent I'm paying? Am I not throwing that away? I can't claim rent in my income tax return...


[[[ Real estate agents and mortgage brokers are good at telling you how foolish renting is. However, just like car salesmen, they never bother to explain the true cost of ownership. ]]]

You're assuming that anyone who buys a house through financing is stupid. There are people who do research on renting vs. buying before purchasing a home.

Like I said, having no debt is great, but not all debt is bad either. I agree that if you want to go on vacation, then saving up for it is the way to go. If you want a cadillac instead of a focus then you need to save up for it. But that does not mean that you always have to pay cash for everything. There are times when you do not have time to save money to buy or acquire whatever it is that you need.

 

for the people who dont need help with their credit or the people who are not offering good advice this board is not for u. what is the big deal the people who are hating against eyes4u she is not spending your money and second she didnt borrow money from u anyway so what is the big deal

 

Re: Re: 2003 Expedition loan approved! 7.4%

No one said that anything you did was wrong or "stupid." My point was that you may not have thought the home buying process through.

I paid cash for my house because I planned well and I thought things out. I didn't rush out and buy a house as soon as possible. Instead, I patiently waited for the right opportunity to present itself. Doing so has probably saved me $100,000 over a 10 year period, since I am not a slave to the bank by paying them 5.5% of the purchase price each year in interest.

I sense that you are angry beacue I planned well in life and you apparently didn't. That's not my fault.

If you want to defend the idea of paying interest to a bank, that's you're right. However, it still doesn't make sense.

Most likely, the mortgage interest you pay won't be enough to overcome your standard tax deduction, so it's not a factor anyway. Remember, the IRS gives you a standard deduction of about $5700. Unless you have a lot of other deductions, you're not really saving much by paying a mortgage vs renting.

Like I said before, mortgage brokers and real estate agents love to tell you how good it is to finance a home. Most people just assume it's true, and they never do the math to find out the truth.

Live within your means or have extra stress. it's your choice.

 

Re: Re: 2003 Expedition loan approved! 7.4%

No one is "hating" the original poster. Instead, I was attempting to show the flaw in his/her logic. Doing so may save someone else a lot of money.

 

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So you are here why?? You appear to think you are helping, I for one don't perceive it this way. If we choose to finance that is OUR choice and it affects you in no way. You continue to be smart and pay cash, I for one will continue to use what I have available to me. I can afford to finance what is needed and continue to live comfortably, if I pay a percentage to the people financing me that is my choice. You have made your point that you don't believe in financing, you've stated that very clearly. So be it and congrats to you.

 

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i have to agree with too much to a degree as well. buying a new car is stupid.. Of course I've always bought my cars new because I felt that the extra $30-$50 a month was worth it. I currently have two 2002 models at the lowest interest rate Ford and GMAC was offering at the time of purchase: they are both under 3% interest rate. plus I bought both vehicles at $100 over invoice. They were both good deals so I went for them.. And what is crazy my FICO was under 640. Thats right.. I had high utilization on my cards with totals in excess of 35,000 and a mortgage. Yet both seperate dealers approved me. Also my mortgage company approved me for a loan two and a half times what I made at 1% down at 7% interest now being streamlined to 6%.. FHA so no refinance costs. and this was done with a FICO between 580-640..

So YES it is stupid to buy new cars because of resale value but. whocares its worth it
YES you can get good % rates from dealers and mortgage companies with a so so FICO if you work them right..
YES everyone will lend you more than you can actually handle because that is where I am right now. screwed...
not really because they loaned me more than I could handle but because the economy went to shit I lost my money in the market, lost my job, and the payscale for what I do went to the cr@pper.. not my fault.. not anyones fault. It just happened.

 

Re: Re: Re: 2003 Expedition loan approved! 7.4%

Too much,

Why are you here really? You went from "if you have to finance a car, you can't afford it", and that was bad enough.. now you went to "if you can't pay CASH for your house, you're throwing money away". You know, you'd feel a lot more at home at the MSN groups.. not here.

Do you know how much it is to rent? Where I live, a 3 bedroom apartment is about $2,000. That's $24,000 a year you'll never see again, and *that's* not throwing money away? You'll pay less than that on a $250,000 home that keeps increasing in value year after year thereby increasing your equity! How many people can afford to pay cash on a $250,000 home? If you want a "decent" house around where I live you're talking about at *least* $175,000.. or you'll be getting a house that's barely liveable or too small for a family of 5. How many people can afford that? and how long it take the average person to come up with that amount?

Let's say it takes 7 years (the amount of time you say it took you), and I have a family and needed at least that 3 bedroom apartment. So that's $24,000 * 7 years = $168,000 I'll never see again, and that I'll never be able to claim on taxes. Wait 7 years until everything appreciates in value and it keeps getting harder to buy an affordable decent home? Your advise there is absurd.

See, if you could afford to pay cash on your home, well good for you! But don't go around preaching everyone should to the same or they're "throwing money away". Not everyone here can afford that, and for most people it's plain dumb considering all the benefits and incentives of financing a home.

Don't get me wrong, I do agree on cash purchases for most things, but a house?! Give me a break.

 

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I still don't understand what too much is doing here.

 

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First, you're basing your assumption on the idea that real estate will continue to rise in the near-term. That's not a very safe assumption. The people who are buying houses right now are buying at absulutely the top of a real estate bubble. If they buy with little/no down, they will be buried in their homes for years to come. Those who can't afford to pay the mortgage will face forclosure.

Read your history, and don't listen to what tv news is telling you about the economy. The current real estate bubble is causing people to make incorrect assumptions like yours ( "Wait 7 years until everything appreciates in value and it keeps getting harder to buy an affordable decent home?")

$2000/month rent? If you're living in an area where rent costs that much, you're living beyond your means. This is exactly what I was referring to in my earlier posts. Most people simply cannot understand the concept of living within their means. It's a hard fact to face, but it's true that most people aren't entitled to the best things in life. Cheap and easy credit have allowed us to temporarily obtain them, but that cannot go on forever. As more people lose their jobs in this economy, and the Federal Reserve is forced to raise interest rates to fight inflation, you're going to see the record number of forclosures and bankruptcies that we're currently experiencing skyrocket even further.

 

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Because this is a board to express opinions and offer advice on credit matters. If you don't like my opinion, don't read my messages.

Simple?

 

Re: Re: Re: Re: 2003 Expedition loan approved! 7.4%

Let's do ourselves a favor.... let's move on to other topics. =)

Disputes? hehe

 

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The original poster wasn't asking your advice. If you didn't like her post why didn't you follow your own advice and not read it and leave it alone? Your posts are so full of contradictions and hypocrisies it's almost comical. But, being in the financial state you claim to be in, I don't even understand why you would go to this site in the first place, let alone this message board. Probably to feel superior by putting other people down and making them feel worse about themselves. I don't think you've helped anyone with your posts thus far. Good job, though.

 

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I posted the information/opinions in order to help others learn from someone else's mistake. If you would rather that people went around misinformed about such matters, that's certainly your choice. However, I think that anyone with an open mind can see that the information wasn't presented to hurt someone... it was written to help others who simply do not understand how financing and economics work.

If my posts were so full of "contradictions and hypocrisies," why not try to correct me, so that others can learn from the experience?

 

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Look, no one here is asking for your opinion with your holier-than-thou preachy crap. Go to the motley fool or msn boards for that.. you'll fit right in. Some of us PREFER to finance our homes, because it's smarter for *US*. I bought my home 3 years ago, and since then, my home has gone up $65,000 in value, and it's perfect. Had I waited, I'd be looking at a small 2 bedroom home for the same original price I got my current home for. So take your "pay-cash-for-everything-including-your-house" garbage and tell someone who cares. This is my last response to you.

Have a good life.

 

Well congratulations to all that believe if you can't pay cash, you don't need it. Our ancestors subscribed to that theory. Ever wonder why they died younger?

When you die, you'll have tons of money in the bank, a house that is paid for, and an old--fully depreciated junker in the driveway--for somebody else to enjoy.

For all the posturing about cash vs. credit. Nobody has talked about the pleasure value of things. I could wait 10 or 12 years, pay cash for a house, and remain in a little dump where my family is all cramped up, or I could buy now, watch my children enjoy having a home of their own, and create memories that won't go away when the lease is up.

I could drive an old clunker, pray that it makes it to the nearest mechanic when it breaks down, or I could drive a newish car, and when DH is out of town (which is alot), I know one phone call to the dealership, and I have whatever fixed and something to drive while I wait.

There is nothing wrong with waiting and paying cash for things. But just because some of us choose to not wait does not make us financial idiots, nor does it say we are entitled to these things.

It says we love life, and we choose to enjoy it!

 

jlynn, amen!