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537902 No.537902 [Reply] [Original]

-buy house with home loan
-pay off mortgage with loan
-rent out house to someone
-earn income from house

house is 59,000. base payments are 400/month

once i make decent income i can live in it myself for a while. once im the owner and live in it, do i still have to pay to live in it? i dont know houses work?

>> No.537905

>>537902
It's foolproof.

>> No.537908

>>537905
no, its risky. im aware of this. i could break my credit with this.

plus i want to buy a house for myself, or someone else. and theres no point in doing anything, if you're afraid to take a risk. it could turn out well.

>> No.537911

>>537902
>do i still have to pay to live in it?
Yeah, there's a little something called property taxes that you pay forever.

>> No.537916

>>537911
why do people buy houses? thats stupid. but aside from electric, heat and water, you dont pay anything for the house itself anymore, right?

>> No.537929

>>537916
>why do people buy houses
You have to live somewhere.
>you don't have to pay anything for the house itself anymore
Maintenance and taxes.

As for the OP, why would you pay off a mortgage with a personal loan?

>> No.537937

>>537916
If you rent, your landlord pays taxes, and he makes that a part of your monthly rent accordingly. If you plan on renting the place out, you sure as fuck better consider the taxes associated when you come up with the monthly rent cost.

>> No.537938

>>537929
thats how the realtor described it.

you buy a house with a loan, then pay off the bank for the loan.

>> No.537942

>>537937
Thanks for the advice. i hadnt even considered this. i was thinking id set the rent as high as my own needs required, but to include taxes is important it seems.

>> No.537950

>>537938
Sounds like the realtor is trying to unload a piece of shit on you that the bank wouldn't go near with a mortgage.

Mortage rates are MUCH cheaper than personal loans since there is collateral associated with it.

>> No.537953

>>537938
You pay off the bank FOR the loan, yes. A mortgage is a type of loan. You don't pay it back with loans.

>> No.537979

God damn OP are you in middle school or something?

>> No.538006

>>537979
This, why don't you just wait till you have the money to invest, then think about it again.
It's a lot less risk.

>> No.538073

>>538006
because im never going to have a successful business, if im not willing to take risks.

if i wait to have funds, im losing business growth. ive gotta compromise somewhere.

>> No.538087

>>538073
There's taking risks and then there's nonsense. You haven't explained why it's to your advantage to pay off a mortgage loan (which is secured and has tax advantages) with a personal loan (which is unsecured and not advantaged)

>> No.538089

>>538087
whats the difference between a personal loan, and a home loan?

>> No.538095

>>538089
A home loan (aka mortgage) is secured against the property (if you don't pay, they can take the property as payment). This means it's less risky for the lender and they can charge lower interest rates. You can also deduct mortgage interest from your primary residence or a second home.
A personal loan is generally unsecured (if you don't pay, they have to go through courts and there's no guarantee that they'll get anything). This means it's more risky to the lender and they'll charge higher interest rates to compensate. It's also not tax advantaged.

>> No.538114

>>538089

jesus watch some kahn academy videos already. Crack a fucking book.

underage B& middle school troll

>> No.538229

>>538089
There's also automobile loans.