Our house was priced at 199,000. Before we pay it off it will cost us almost a half million dollars! That’s FCKING criminal.Why do we tolerate this? It’s the same with cars,a 20,000 car will cost 35,000. I have no problem with loan companies making a profit but this is ridiculous. These people should be boiled in oil. They are the reason my family is loosing our house. The b#tards are foreclosing and I can’t do a F-ing thing. WHAT? The Gov. They turned us down!!:mad:
I’m not sure what you’re ranting about. Didn’t you agree to those terms when you bought the house? If so, you really have nothing to complain about.
next time save up then ?
I never had loans and such till I got married and wanted a nicer place
I signed the loan papers I took responsibility for my actions I hate paying loans but again no body put a gun to my head and said do this !!!
so to me its part of the hey they lent my the money to do this and gave me half a lifetime to pay it off
would you loan your friend your car and say bring it back in 5-7 years no problem ?
Yeah! Down with free markets! Down with personal responsibility! Down with capitalism! Fucking bastards!
Agreed with the fact that you signed the papers. Oh, and it’ll only cost you that much if you only make the minimum payments. We will have cut off about 80k from our loan by simply paying more than the minimum payment each month.
Look at it another way, without the loan, you’d be renting, and renting is like throwing money into can and lighting it on fire.
No they are not.
Good luck
Welcome to the reality of long-term compounded interest.
You can be its master, or its slave.
Every time I see a 60 year mortgage toted on HGTV or some other similar home buying show, I die a little inside.
Edit: What terms did you agree to anyway? A 30-year mortgage at today’s rates doesn’t come out to $500k.
*Some terms and conditions may apply
Usury, it’s considered a massive sin by most of the Middle-Eastern religions, FWIW.
That being said, it is what it is. You gotta pay to play.
The wife and I have taken a liking to Dave Ramsey. 
I made sure I was debt-free when we got married, and I haven’t had a CC since, nor do I want one. I’d love to be able to charge a new BCM mid-length, or swipe the plastic on the POF Gen III lower I’ve been eyeballing for a year; instead I just stick some cash in an envelope, and buy my goodies when I’ve got the loot. This way, when I get it, it’s mine, and instead of figuring out where that next payment is going to come from, I get to worry about whether or not Grant’s got the LPK I’m looking for in-stock. It’s made me more cautious with purchases, and the thrill of the hunt is more rewarding.
We’re in the process of sucking it up, taking the hard medicine, and blasting hers like poppers. Everytime one’s paid off, out come the shears.
I personally won’t buy anything on credit, house exempted, unless I can come up with at least half. Cars, motorcycles, etc.
Buy what you can afford. That’s what typically gets folks into a pickle. If you can’t afford it now, be patient until you can afford it.
I’m no banker, but the loan calculator says 35k for a 20k car would be a ~25% APR on a 5yr loan. I know there’s people who will sign on for that, but…
On the mortgage, 500k for a 199k house is ~7.5%. There are much better interest rates to be had, but some will have to pay that much.
Making an extra mortgage payment on your prinicpal every year, or adding $100-150 each month, can take years off your loan. Doing so on a 199k loan, for 30yrs, at 6%, is a ~6 year gain.
It isn’t criminal, it’s capitalism. If you wanted my money for 5 years, or 30 years, I’d want a real return, too.
Now, if you want to take about criminal/predatory loan practices, there’s title and payday loans.
What I find greasy is the concept of fractional-reserve banking, but I’m not gonna go there. That’s what makes the situation different from me or Skintop lending you the cash, and expecting a return. The banksters are getting a return on fluff’ed up, notional bullshit, that doesn’t even really exist.
That being said, again, you’ve gotta pay to play. As much as I think the international bankers are a bunch of slimebags, I personally don’t have enough cash on hand to buy a house outright, so, I gotta pay to play.
As an aside, as difficult for me as it is to not blame the banksters for the economic mess we’re in, I blame Joe Q. Sixpack, for buying more house than he needs, under the wishful thinking that by the time the loan reset, he’d have doubled the value of his home. This sort of Jiminy Cricket bullshit is laughable. Housing had to implode, because real-estate was outstripping wages by an ungodly margin.
Living beyond our means, buying more than we can afford, keeping up with the Kardashians is what’s responsible for what’s happened. Last year my boss made $97,000. He lives in a $100,000 house. That’s what I call making prudent decisions.
You don’t want the banks to control your life? Don’t let 'em.
You agreed to borrow their money. No one made you sign the papers. Think of it this way. Would you loan someone 100-200k for 30 years unless it were worth your time? The only person to blame is the person who over leveraged themselves into buying a 20k car and a 200k house. Perhaps a 15k car and a 150k house would have been more affordable? I’m not trying to kick you while you’re down, but you can’t blame others for living beyond your means.
I agree with you. Fractional reserve banking is total BS. Its like printing money, only worse. I remember remarking to my wife 5 years ago that something had to give when the house of cards would finally collapse
+1 for Dave Ramsey. Did FPU and now see the light. Recommend it for all. Get control of your finances and you then have control of your life.
A-fucking-men.
Every time I see some $30k/year guy driving around in a leased $60k car and going home to a $300k condo on the beach I think “you should be locked up LONG before any banker that ‘conned’ you into all that shit”.
My first townhouse, bought just at the start of the upswing, cost 150% percent of what my fiance (at the time) and I made a year. I wanted 1:1 but the shitbags had already started living above their means and inflating prices. I sold that and rented for 5 years waiting for the crash, and now that the crash is here I’m happily shopping. Unfortunately things crashed harder than they should have, and now there’s the whole “may not have a job in a month” problem to contend with, not to mention lenders being more than a little apprehensive thanks to the shitbags. :mad:
There’s a certain liberation in being in control of your own financial destiny.
I mean, there ain’t no getting around taxes, so we don’t even need to debate that course, but debt is something you do have control over.
I hope, and God knows I have, everyone can come out of this financial mess having learned some lessons.
My most valued lesson: take nothing for granted.
In not being in control? I am sure this has to be a typo. Not being in control is what causes stress. That’s why so many divorces are about money.
Well said while I hate to see good people suffer I personally have never been in a better financial state bad economy or not it still boils down to don’t spend more than you make and don’t spend all that you make you gotta leave something left over for SHTF type scenarios that goes for everything not just active shooters or disasters
Boom. Houston has had it easy compared to most of the country, but we have a bunch of thirty thousand dollar millionaires who created some great buying opportunities as well.
Ezzackly!
Whenever I wonder how people afford that craziness, I’m reminded of my old friend credit.
I can technically afford a new truck, and I would love one. I sold my bike in '03 for 5K, bought a '94 Ranger for 2K, and swore I’d be happier than a pig in poop, if it lasted 'til '04. Well, seven years later that damned thing refuses to die. I think, oil changes aside, I installed a new alternator and had to replace a $10 relay. When my buddies are home on leave, they’re shocked that I’m still driving the world’s lamest ride.
The wife and I bought our first home in May '09. The irony of the situation is that we were in a bidding war over it in March of '08, after the bank seized it. There were some serious fixer-upper issues going on, and we didn’t care because the price was 50k less than everything else in the neighborhood. A “flipper” beat us out, and sat on it for 14 months, and fixed everything. Nice guy even tore out the old concrete patio that was cracked, and put a new one in. Even put sheetrock up in the garage. Replaced the hardwoods, and put up some really fancy crown moulding. The best part, is that, after all that, we paid less than we offered during the bidding war.
If you’re shopping, my advice, good or bad since it’s highly speculative, is dependent upon what sort of down payment you’re looking at. If you’re sporting some cash for a sizeable down payment, I’d recommend holding out, since I believe interest rates will eventually move up, which will further kick the dog snot out of real estate prices. If you’re not rocking serious scratch for a down payment, there’ll eventually be a tipping point between those two issues (price/vs interest rates), which would be, in my opinion, the iron in need of striking.
I don’t know about your industry, but the Civil Engineering/Land Surveying field has been kicked squarely in the nutz. I’ve been on a 20-hour a week furlough since October, and we’ve had several huge contracts awarded that are just waiting for a kickoff.
If I hadn’t been prudent/nuked my CCs, and the wife and I hadn’t bought at/below our means, we’d be up the creek without a paddle. We could’ve easily afforded way more house, but we didn’t need way more house.
The downside to marriage is that I wanted a house about 30k less than the one we’re in that, was for all intents-and-purposes, was a borderline dump. Bigger yard, basement, and within 100 yds. from Lake Allatoona. That whole testosterone thing will make you sacrifice house nice for yard nice.
Here’s my recipe for not keeping up with the Jones’:
Navigating Collapse’s Cookie-Factor:
Say, I could buy an E350 Benz, which looks to my redneck eyeballs a LOT like a Civic. Or I could buy the Civic.
What is my incentive for that additional payment? The reliability isn’t drastically different. As far as I’m concerned they look the same, only the E350’s got a pretty fancy grille. So, what is my incentive. Ahhhhh, esteem.
Okay, if my “friends” associate with me because of my car, I need new buddies.
But, I wanna look successful, God-Damnit! I’m getting the Benz.
No one, not even the local cop, is going to pull me over, and give me a cookie for making that decision. If I don’t get a fuckin’ cookie for spending almost enough to buy three Civics instead, then what is the point?
I’m too utilitarian and redneck with vehicles to see the luxury in fancy dancery.
(NavCol’s Cookie-Factor doesn’t apply to AR-15s. You’re getting way more mileage for a minimal price difference, if at all, between a solid-make and low-tier, un-staked, non-parkerized under the FSB, junk ;))
When I was into sportbikes I was constantly harangued by riding buds that I needed a bigger bike (650cc was apparently for chicks). Dude, I’m sorry but I’m not likely to break 120 on the road, and I don’t race, so I’m straight, thanks. I could have honestly gotten by with a 250.
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Definite typo.