/biz/ - Business & Finance

>>614281

Who says you can't get rich, anon?

Just invest the money you make, it will grow over time.

How much did the house cost?

>>614283
23,000

I went through fucking hell getting this house.
The same fucking routine every day is working, imageboards, and v4c instasynch.

I have had many single moms, sluts, niggers, jews, and bank-loaners trying to get my wage money.
Now I am happy living alone with dank memes and video games. Dream come true.

>>614291
you have a nice sense of humor, anon :)

>Make dosh from 16 - 19 working for my uncle and living with parents
>Move away for school
>Spend all of that money on college
>Move back home with parents after I drop out
>Finally get a decent job ($15/hour)
>Living with parents still
>Plan to pay off my student loans and car
>Extra cash is being saved while I scout properties
>Going to buy a small 3 bedroom home and rent the spare rooms to cover mortgage

I don't care to drive a Ferrari (although I'd like to), I really just want to have a ton of free time and a decent place to live

>>614299
>renting
>"Going to buy"

>>614291
Did you just buy a small hut for a dog or what? Where do you live? A house here cost about 150-250k, a new one 350-400k.

>>614325
In my county there are some 3 bed/2 bath houses selling for 300k and others selling below 50k. Only recently did those houses reach 50k, they were 30k 2 years ago. It all depends on market conditions, if no one wants the house and a bank has to sell it then the price is going way down.

>>614317
I take that back. You are going to jew the other rooms for yourself. I see what you are doing... still renting if you are going to pay a mortgage.

>>614325
I live in South Texas. Mobile Homes are cheap as fuck down here.

>>614281
>corporate latter
tsss, what about a corporate former or somethin tsss

>>614340
Not really. When you have equity in a home it becomes a financial asset not a liability, especially if it is generating revenue for you (via renting).

I plan on putting about $40K down on something under $80K and getting a 5 year ARM. Pay that bitch off quickly and start to collect rent to sustain my living habits.

>>614353
why would you want an ARM? the interest rate is below 5% already. for some it's under 4.

>>614375

When you get a 15/30 year mortgage the interest is applied to the front of the loan, meaning that you're paying that 4% of interest right away and even if you decide to pay off what you think to believe the principle, you are first paying off the interest. With an ARM I could pay off the principle whenever I want as long as I have the cash, without paying off the interest for a full 5 year period.


I could be wrong, but this is my understanding of the difference between the two. Ideally I would only be getting a $40-55K mortgage, so that's pretty easily paid off in a 5 year term.

>>614325
mobile home prices are similar to that, between 12k-25k

you tend to die in bad weather but otherwise fairly cheap.

on the benefits though you are saving tons on fees since no long term loans.

>>614396
i'm not familiar with how a ARM mortgage works, but with a regular mortgage you aren't paying off just the interest in the beginning. you are paying off your principle, just very little of it. you can always overpay and that will save you a lot in interest that you would have paid. paying off about a sixth of my initial principle in under a year saved me roughly 40% of the total interest payments i would have made.

>>614615
I just want to clarify: with a regular mortgage, if you pay more than your monthly payment, all the extra goes into paying off the principle, correct?

>>614396
>>614615

Mortgage banker here. ARM products work by having your interest rate fixed for a certain period of time. (Normally 3,5,7 or 10 years) but the loan itself is amortized over 30 years.

Let's say you have a 5 year ARM - You get a low interest rate locked for 5 years, but you're still paying principle, interest, taxes, and insurance, as well as mortgage insurance if above 80% LTV.

After that 5 year term your interest rate can adjust for every year after that for 25 years until your balance is paid in full.

Hope this answered your questions. Also AMA - I do this like twice a week on /biz/.

>>614631
Yes.

>>614631
i believe that's what it says on the paper bill, but i pay online and it gives you an extra field where you specify how much you want to pay extra and what is it supposed to be for. you can choose principal or escrow (which i don't have).

>>614396
when rates go up in 5 years you'll be fucked

>>614636
In the case of a $50K loan [with the expectation of being paid off within 5 years], what would my best option be for financing?

>>614641
My nigga you clearly do not understand anything that was written in that post.

>>614641
It can go up or down depending on the market.

>>614642
30 Year fixed because you'll have the lowest possible PITI payment and you can throw whatever excess amount of money on the principle. It gives you flexibility. The 5 year ARM works also in your situation but the 30 year gives you a safety net because even if you don't pay it off in 5 years your still at a bare minimum payment.