[Pharmaciest2007]

Originally posted by DanS
Next were a set of questions about external circumstances that might make you need to move out of town. If something like that happens, you need to be able to get out of your condo.

Based on your answers, none of those situations seem likely. But try to think of odd stuff happening. Probably not, but after spending an hour digging out cars and reflecting on the 50"+ of snow we got last month, Florida doesn't sound half bad. Hell, even Texas might be worth a shot.

Excellent Dan, thank you very much. Still have the same kinda iffy feeling about it as before, but at least it's better founded now and I can see some of the reasoning behind it.

[Centurnion]

Oh yeah...if it were an option, would you guess that waiting another year or so would be advantageous as far as prices and interest rates go?

I know, it's a guess, but...

[spounnypneups]

Don't buy now. Prices will be cheaper a year from now and it is a buyer's market right now. Time is on your side so let him take the price hit.

[pooncophy]

My property taxes basically amount to $350 per month; which is nothing to sneeze at. Factor that in to your monthly cost equations visa vi renting vs buying. Also all condos have home owners' association dues which must be paid and can suck up another couple hundred a month.

I think you'll find that you're better off renting then buying in a bear real estate market.

[Qynvtlur]

A $350,000 mortgage at 6% for 30 years is $2,098.43 while the same terms & amount over 20 years is $2,507.51 per month.

That's a relatively small mortgage too. 20% extra is a lot extra but better in the long term if you can swing it.

[CtEkM8Vq]

Offer something really low. Really low. You never know how much they need the dough. The worst they can do is say no, and you are likely better off waiting a year anyway. Look elsewhere as well and mention it to them. They'll then be worried about losing the rental income during hard times and be more likely to consider your low offer.

[tsaaapla]

Originally posted by DanS


Flubber: 30-year is a standard time period here in the States. Fannie Mae purchases loans like these that conform to certain criteria, thereby guaranteeing a market for loan originators and lowering prices to a reasonable premium.

In any event, in truth, a 100-year or interest-only loan would make sense if you put 20% down. This is a somewhat advanced and theoretical discussion though. On the investment side I can see a lot of merit in longer terms if the assumption is that you will earn more than your mortgage rate of interest on your investments (pretty good assumption in the long term based on market history). But we are pretty risk adverse when it comes to our home (we don`t view it strictly or even mainly as an investment and plan to be here for 20 years plus) . We take a lot of comfort and security from the fact that our home equity currently exceeds what we owe by a wide margin.

[SteantyjetMaw]

Originally posted by Flubber
On the investment side I can see a lot of merit in longer terms if the assumption is that you will earn more than your mortgage rate of interest on your investments (pretty good assumption in the long term based on market history). But we are pretty risk adverse when it comes to our home (we don`t view it strictly or even mainly as an investment and plan to be here for 20 years plus) . We take a lot of comfort and security from the fact that our home equity currently exceeds what we owe by a wide margin. Well, that's your psychology, so suit yourself.

But from a financial standpoint, you should match your liabilities with usage. A house's useful life is a long, long time. Having a mortgage with a like payoff period is the optimal financial path, so long as you are able to exit the arrangement at the time of your choosing (the reason for the 20% down).