Principal + Interest + Tax + Insurance = Housing Expense
typically around 35% of gross income (before tax) or net income for self-employed and 1040.
maybe another 5% for other expense (student loan, car loan and credit card bills)
Tuesday, July 24, 2007
FNMA and GNMA
Fannie Mae and Ginnies Mae
Federal (Government) National Mortgage Association
These people sell loans money to investors, bonds that are mortgages.
Federal (Government) National Mortgage Association
These people sell loans money to investors, bonds that are mortgages.
Sunday, July 22, 2007
what can you afford?
1. 15 years vs 30 years
$150,000
15 years 30 years:
Interest: 7%== 7.25%
Monthly: 1079==819
Interest total: 74,147==17,4700
2. In the early years of repaying your mortgage, nearly all of your mortgage payment goes toward paying interest on the money that you borrowed. Not until the later years of the mortgage do you begin to rapidly pay down your load balance. It takes 22 years to pay off half the loan in the above case. Interest goes up, this number goes up.
$150,000
15 years 30 years:
Interest: 7%== 7.25%
Monthly: 1079==819
Interest total: 74,147==17,4700
2. In the early years of repaying your mortgage, nearly all of your mortgage payment goes toward paying interest on the money that you borrowed. Not until the later years of the mortgage do you begin to rapidly pay down your load balance. It takes 22 years to pay off half the loan in the above case. Interest goes up, this number goes up.
Buy Vs Rent
1. monthly rent * 200 = house price
2. inflation.
3. think of the things you don't like about the apartment
4. financial:
2. inflation.
3. think of the things you don't like about the apartment
4. financial:
- networth (asset-debt)
- forced saving by paying down the mortgage
- equity: trade down, borrowing, reverse mortgage
Condomenium
The kind of building in which a condo is located doesn't matter. what makes a condo a condo is the way its ownership is structured.
When you buy a detached home, an invisible line runs along the border of your property to separate what belongs to you from what belongs to your neighbors. When you purchase a condo, on the other hand, your property line is the interior surfaces (walls, floors, ceilings, windows, and doors) of your unit. In other words, with a condo, you get a deed to the air inside your unit and everything filling it — carpeting, window coverings, and all.
Air and interior improvements aren’t all you own. You and the other condo owners in the condominium complex share ownership of the land upon which the project is located and the high-rise building that contains your individual units. Thus, all of you own a portion of the roof, exterior building walls, and foundation — as well as a chunk of the garage, elevators, lobby, hallways, swimming pool, tennis courts, exercise facilities, and so on. All the parts of the complex beyond the individual units are known as common areas because you own them in common with all the other condo owners.
When you buy a detached home, an invisible line runs along the border of your property to separate what belongs to you from what belongs to your neighbors. When you purchase a condo, on the other hand, your property line is the interior surfaces (walls, floors, ceilings, windows, and doors) of your unit. In other words, with a condo, you get a deed to the air inside your unit and everything filling it — carpeting, window coverings, and all.
Air and interior improvements aren’t all you own. You and the other condo owners in the condominium complex share ownership of the land upon which the project is located and the high-rise building that contains your individual units. Thus, all of you own a portion of the roof, exterior building walls, and foundation — as well as a chunk of the garage, elevators, lobby, hallways, swimming pool, tennis courts, exercise facilities, and so on. All the parts of the complex beyond the individual units are known as common areas because you own them in common with all the other condo owners.
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