Trying to buy a 1st house while still in school - Page 4 - PeachParts Mercedes-Benz Forum

TwitchKitty · #46 06-11-2006, 11:31 AM

Quote:

Originally Posted by John Holmes III

Get a grip???

......You contradict yourself so much in one thread that ordering the moderator to get a grip is funny.

There is no such thing as free credit card money. Be one minute late on a payment, or exceed the credit limit and you will find out how free that money is. My neighboor is a bankruptcy attorney and he works seven days a week and still has to turn down clients. Most of his clients have to file because they got into trouble with credit cards. People risk financial suicide if they take out enough money in cash advances on credit cards to buy a house.

No fee HEL usually involve hidden costs of some sort. Someone has to pay for a appraisal, inspection, title search, document stamps, closing costs ad nauseum. No bank will make a HEL to someone that has so much outstanding in recent credit card debt, on a run down propert that has little curb appeal at this point. There are many legit ways to buy a home with little or no down payment, and pay a regular mortgage payment.

I have a grip, on my wallet.

Point out a contradiction, if I made an error I will correct it. I don't think that you can because I think you are just arguing a position and are happy to lie to do it.

You make a good point about the loan approval with outstanding debt. When you call CS to check on your approval and they say you are denied due to outstanding debt you must tell them that you are using the new loan to pay off the old debt.

And of course you have to watch for hidden fees but this is with any business, any loan, etc.

The perils of using credit cards also applies to any purchase with credit cards and not just a deal like this. This is where the puppies get trampled by the big dogs. If you don't have the discipline to work the system without self-destructing, get back under the porch.

TwitchKitty · #47 06-11-2006, 11:42 AM

Quote:

Originally Posted by John Holmes III

I Getting a good rate on CD's from the bank is advantageous use of MY capital. In essence, I am loaning people like you the money you need to buy a house with cash advances on credit cards. A slow nickel works better for me than a fast dime.

BTW, american airline credit union was recently offering 7% on a six mo? CD. Enrollment is pretty much open and small deposits qualified. I think the offer is still good.

In the idea I have put forth you aren't really buying the house on credit cards. You just use the credit line to secure clear title to the house so that you can get the cheap mortgage. If you stay on top of it you only carry the credit card debt for a short while. Paying off a $50K balance looks pretty impressive to lenders.

TwitchKitty · #48 06-11-2006, 11:53 AM

Our HEL is with Netbank, it had a total of $10 in fees and from what I understand, the $10 payment was optional. I think we paid more for the money order and shipping than we paid for the mortgage. There were no hidden fees and we don't even pay mortgage insurance. PMI is one of the big costs that the unintiated get slammed with. They paid for a drive-by appraisal and our house was appraised for twice what we paid for it.

Now the chances of anyone getting as good a deal is slim, this was several years ago. But the point is that the best deals are not advertised, you have to dig. There is no incentive to advertise the deals because brokers make no money off of them. If you just call your local banks or take the deal that you friends got or call an ad in the paper you will pay too much.

I think it is hilarious that people here get excited about cheap synthetic oil at Wal-Mart and call me stupid for saving many thousands on RE.

to the bank

#49 06-11-2006, 12:01 PM

Quote:

Originally Posted by TwitchKitty

Point out a contradiction, if I made an error I will correct it. I don't think that you can because I think you are just arguing a position and are happy to lie to do it.

You make a good point about the loan approval with outstanding debt. When you call CS to check on your approval and they say you are denied due to outstanding debt you must tell them that you are using the new loan to pay off the old debt.

And of course you have to watch for hidden fees but this is with any business, any loan, etc.

The perils of using credit cards also applies to any purchase with credit cards and not just a deal like this. This is where the puppies get trampled by the big dogs. If you don't have the discipline to work the system without self-destructing, get back under the porch.

The bank doesn't care, all they know is that some turkey has taken a cash advance on credit cards to buy a home and the credit card debt is still outstanding. If they would be willing to give a hel to pay off credit card cash advances then they would fall over to give a staight out mortgage. When you buy a washing machine with a credit card you don't stand to risk total financial ruin if you make a late payment, on the other hand, missing a payment on 50k worth of cash advances will make you feel sorry you didn't get juiced by a loan shark.

Financial discipline means not taking a risk that a bank wouldn't take.

Btw, I can't get under the porch, I don't fit.

#50 06-11-2006, 12:06 PM

A house that is over appraised is risky for the buyer and lender. It's a big problem in the industry.

TwitchKitty · #51 06-11-2006, 12:44 PM

You keep saying the same thing, doom, miss a payment, gloom, miss a payment. If you can't make the payments, don't take the loan, simple. Same point, stay under the porch. And same point, we are only talking about a couple credit card payments until you pay off the credit cards. Is the chore of writing two checks and mailing them really worrying you that much?
Stay under the porch.

I guess you are impressed with your hypotheticals, I am not.

You know what banks think? It is very revealing that you think you can read the minds of entities which have no minds. I can see where you might identify with them on this point.

TwitchKitty · #52 06-11-2006, 12:49 PM

Quote:

Originally Posted by John Holmes III

A house that is over appraised is risky for the buyer and lender. It's a big problem in the industry.

I agree with this, the prices are astronomically insane on much of the property these days. Our house would sell for more than we owe on it, pretty sure.

In many of the areas in which we travel the houses are priced at much higher prices than people who work in the area can afford to pay. Someone has to pay, something has to give.

John Doe · #53 06-11-2006, 01:21 PM

Quote:

Originally Posted by TwitchKitty

BTW, I have never heard of a fixed rate HELOC.

....and you speak of inexperience? Good luck keeping ahead of all that debt. I am sure it will provide a life of luxury until they last one gets called.

#54 06-11-2006, 01:33 PM

Quote:

Originally Posted by TwitchKitty

In the idea I have put forth you aren't really buying the house on credit cards. You just use the credit line to secure clear title to the house so that you can get the cheap mortgage. If you stay on top of it you only carry the credit card debt for a short while. Paying off a $50K balance looks pretty impressive to lenders.

Paying off a credit card will do nothing more than boost your credit score. Thinking that an underwriter looks at something and says WOW is a fantasy.

#55 06-11-2006, 01:37 PM

The reason you have never heard of a fixed rate HELOC is because you choose to be your own expert. I cannot think of a HELOC that does NOT have a fixed option.

http://www.chase.com/cm/cs?pagename=Chase/Href&urlname=chf/home-equity/page/FAQs.jsp

#56 06-11-2006, 10:18 PM

Quote:

Originally Posted by TwitchKitty

You keep saying the same thing, doom, miss a payment, gloom, miss a payment. If you can't make the payments, don't take the loan, simple. Same point, stay under the porch. And same point, we are only talking about a couple credit card payments until you pay off the credit cards. Is the chore of writing two checks and mailing them really worrying you that much?
Stay under the porch.

I guess you are impressed with your hypotheticals, I am not.

You know what banks think? It is very revealing that you think you can read the minds of entities which have no minds. I can see where you might identify with them on this point.

Yeah sure, only a couple of credit card payments.... unless something goes wrong. What about insurance? That costs money, and without it, no bank will give you a hel. My real estate attorney would never advise buying a house using cash advances from a credit card. Of course, he only wants his pitifull money.

Maybe your right, I should keep my hypothetizing, mindless self under the porch.

GottaDiesel · #57 06-11-2006, 11:20 PM

Quote:

Originally Posted by MedMech

Not all HELOCs are variable, in fact almost all of them have a fixed option. You and gotta are a perfect match perhaps you can run the post count up on his website, at least there no damage can be done(because nobody will be looking). Why would you use a credit card while waiting for a "free" FRM when you can have a mortgage from a lender in less than 7 days?

However I do agree that if you have a family member with the cash by all means use it, at least someone with a vested interest will keep an eye on it.

BTW what is a "free" FRM.

I love the way this character attacks me and a toy website of mine but really can't say anything about the topic. I guess that is the best he can do since he clearly doesn't know a thing about the topic. I guess an educated customer is NOT something our "Jeff" wants.

GottaDiesel · #58 06-11-2006, 11:24 PM

Quote:

Originally Posted by TwitchKitty

I am talking about a no fee loan, not a loan where the fees are "rolled in".

The title, recording and transfer tax depend on where you are and who handles the transfer. That is why I said go straight to a title agent. Shop for prices at title agencies. They are usually owned by a RE attorney. Shop attorneys also.

I do respect your specialized knowledge, if you want to explain any of this I will be happy to learn. I will be buying property for years to come and can always use new angles.

The only "angle" you'll learn from this character is how to pay too much in fees so he can sit and play banker on this forum. I've read most of what he posts, and when it comes to serious financing of properies you would be better going to the corner bookie for funds. This jokester wouldn't know a COFI from a cup of java. A total jokester.