Finances and Women

[BellaFlor]

My boyfriend is the one who would like to have a house at the beginning, and I've been telling him that it's not necessary and it might be better to wait and maybe rent a small apartment to begin with, to get on our feet when we finally do get married.quote]



It is best starting in the small. My husband before we married got an appartment, it is fine, yet not so very big too. But for us this is big enough. If there will come a house later is something the future will tell. We rent this as well.

Nothing bad with start renting and saving up money for building or buying a own house later. And if you pray to God about these things, He will certainly provide for you, in some way or another. -God Bless-

 

[thimsrebma]

Debt usually means you bought things you don't need with money you don't have.

That is true for credit card and store credit debt, but there is other type of debt as well. For instance

medical debt - no one wants to be hospitalized, but you may have to be, some may not have insurance and insurance doesnt cover everything

student loan debt - yes you could go part time and work your way thru school and not borrow a penny but that usually will take at least 3 times as long to graduate

Home Mortgage - most people, at least in the US, when buying homes get a mortgage. Thats because not many people have $200k or so laying around to buy a house.

 

[Jennifleur]

My boyfriend is the one who would like to have a house at the beginning, and I've been telling him that it's not necessary and it might be better to wait and maybe rent a small apartment to begin with, to get on our feet when we finally do get married.

It is best starting in the small. My husband before we married got an appartment, it is fine, yet not so very big too. But for us this is big enough. If there will come a house later is something the future will tell. We rent this as well.

Nothing bad with start renting and saving up money for building or buying a own house later. And if you pray to God about these things, He will certainly provide for you, in some way or another. -God Bless-

After talking about it, we're going to start small and save money. Once the house and kids come along, it's difficult to save much at all, so it's better to save while you can. But we both trust God to provide for us, however that might be. We've already seen His provision and answers to prayers in some things.

 

[NukePooch]

Home Mortgage - most people, at least in the US, when buying homes get a mortgage. Thats because not many people have $200k or so laying around to buy a house.

And most people in the US have no business buying a house with a $200k mortgage. Just because you can afford it does not mean you should...

The word mortgage actually started as the French term 'mort gaige' or death pledge. A 30 year mortgage of $160,000 on a $200,000 house (never, ever pay less than 20% down) will cost you $384,000. Add the original down payment of $40,000, and your $200,000 house will cost you $424,000 over 30 years.

So...maybe you rent until you've got enough to put a substantial down payment on a starter home (perhaps $20K down on a $75-100K home)...keep the loan small, and keep it short. Never over 15 years, preferably 10 years or less. Always pay more than 20% down to avoid PMI (Private Mortgage Insurance) and to help avoid being upside-down if property values drop.

 

[thimsrebma]

And most people in the US have no business buying a house with a $200k mortgage. Just because you can afford it does not mean you should...

The word mortgage actually started as the French term 'mort gaige' or death pledge. A 30 year mortgage of $160,000 on a $200,000 house (never, ever pay less than 20% down) will cost you $384,000. Add the original down payment of $40,000, and your $200,000 house will cost you $424,000 over 30 years.

So...maybe you rent until you've got enough to put a substantial down payment on a starter home (perhaps $20K down on a $75-100K home)...keep the loan small, and keep it short. Never over 15 years, preferably 10 years or less. Always pay more than 20% down to avoid PMI (Private Mortgage Insurance) and to help avoid being upside-down if property values drop.

I totally understand being house poor. The reason why we had the whole mortgage crisis the past few years was because of people getting as much as the bank would loan them. Most banks will loan up to 3X your annual income, but that doesnt mean you should take that much.

But I wasn't saying take a full $200k mortgage was a good idea. I was saying that most people do not have $200k to pay for the full cost of the house. I was only trying to differentiate between the different types of debt whether it be $50K mortgage or $150K mortgage, its still mortgage debt.

Also sometimes purchasing a home is cheaper than renting. Its actually the main reason why I began looking to purchase.

 

[timbo2computers]

Debt usually means you bought things you don't need with money you don't have.

hahah i owe the bank the best part of a million.... woops i couldent resist a block of leaky flats!

 

[timbo2computers]

And most people in the US have no business buying a house with a $200k mortgage. Just because you can afford it does not mean you should...

The word mortgage actually started as the French term 'mort gaige' or death pledge. A 30 year mortgage of $160,000 on a $200,000 house (never, ever pay less than 20% down) will cost you $384,000. Add the original down payment of $40,000, and your $200,000 house will cost you $424,000 over 30 years.

So...maybe you rent until you've got enough to put a substantial down payment on a starter home (perhaps $20K down on a $75-100K home)...keep the loan small, and keep it short. Never over 15 years, preferably 10 years or less. Always pay more than 20% down to avoid PMI (Private Mortgage Insurance) and to help avoid being upside-down if property values drop.

you wont go far like this! first of never live in an investment. get the biggest loan the bank will give you every year and buy buy buy that way renters can pay off the most part of the dept and if you wait you mite be able to make capital gain and then YOU WIN! if you never try you will have nothing. worst that can happen is you go bankrupted and start all over in your wifes name!

 

[BellaFlor]

After talking about it, we're going to start small and save money. Once the house and kids come along, it's difficult to save much at all, so it's better to save while you can. But we both trust God to provide for us, however that might be. We've already seen His provision and answers to prayers in some things.

That's great. It is always great seeing God is there answering and helping one when praying. He is taking care of you, and of your future. You are doing wise in starting small and saving. It is a lot better than taking up huge loans that will only give you higher debts. Wishing you all the best!

 

[NukePooch]

you wont go far like this! first of never live in an investment. get the biggest loan the bank will give you every year and buy buy buy that way renters can pay off the most part of the dept and if you wait you mite be able to make capital gain and then YOU WIN! if you never try you will have nothing. worst that can happen is you go bankrupted and start all over in your wifes name!

I'm assuming that you're kidding...if you aren't, then...Then you win? Win what? Ulcers, stress, and an early coronary? Pass. Money simply doesn't matter enough to live your whole life in pursuit of it. It's a whole lot better to live simply and put your energy, time, and resources into something that truly matters. Might I suggest God?