Survey shows that 64% of Americans think this is an ideal time to buy a home

[Trompe le Monde 1,107]

I know Peoria (?) is still affordable for someone on the median income for the area (as opposed to where I live where average prices are something like 10x the median income), but I would still approach with some caution and definitely wouldn't take on a bigger mortgage than I could really afford (which I'm sure you won't).

[Alex+R 0]

Can someone explain to me why a zero down loan is a bad idea? I mean, it sounds bad, but like John McCain I am befuddled by such questions.

[GaryC 7]

I know Peoria (?) is still affordable for someone on the median income for the area (as opposed to where I live where average prices are something like 10x the median income), but I would still approach with some caution and definitely wouldn't take on a bigger mortgage than I could really afford (which I'm sure you won't).

The homes I posted are the kinds I am looking at. I am comfortable with what I am paying in rent right now ($725/month) and with a 6% no-down VA loan I can afford a $125k home. The payments including taxes and insurance would be less than $900/month which puts my housing costs at less than 1/3 of my take home. I have seen some nice homes in the $90-$110k range which is where I will probably go with.

[Dan J 277]

There are really two different "Americas" where the housing markets are concerned. The coasts and the fly-over areas have vastly different dynamics. I understand that on the coasts the markets went through the roof for a while and are still in the "correction" mode. I wouldn't buy in a market that is still dropping. But here in the heartland the market has been a little more stable.

Well said.

I excel-churned OFHEO HPI metrics a few weeks ago and was astounded at how "straight line" the price appreciation was in Charlotte and Dallas and how "topsy turvy" it was in NYC/Boston/LA.

Coasts, plus any metro area with a significant number of people. Its not quite the time to buy in the Minneapolis, St Paul area, prices are still dropping.

But I suppose some cities didn't see as much growth, and probably wont see much of a drop in value.

[GaryC 7]

Can someone explain to me why a zero down loan is a bad idea? I mean, it sounds bad, but like John McCain I am befuddled by such questions.

If you have a zero down loan and the market goes down you will have negative equity. If something should happen and you must sell you can't get back enough to pay off the loan. A zero down loan is only recommended if you plan to stay for 10+ years.

[Jenn! 918]

I know Peoria (?) is still affordable for someone on the median income for the area (as opposed to where I live where average prices are something like 10x the median income), but I would still approach with some caution and definitely wouldn't take on a bigger mortgage than I could really afford (which I'm sure you won't).

The homes I posted are the kinds I am looking at. I am comfortable with what I am paying in rent right now ($725/month) and with a 6% no-down VA loan I can afford a $125k home. The payments including taxes and insurance would be less than $900/month which puts my housing costs at less than 1/3 of my take home. I have seen some nice homes in the $90-$110k range which is where I will probably go with.

I must to say, I'm very tempted to start thinking about starting to look for jobs far away from the ocean.

[w¡n9Nµ7 §£@¥€r 123]

Can someone explain to me why a zero down loan is a bad idea? I mean, it sounds bad, but like John McCain I am befuddled by such questions.

Hypothetical example--

Sale price: $300,000

Loan amount: $300,000

Assuming 6% loan, your monthly principal+interest will be $1798.65. That doesn't include property taxes and insurance.

Now, let's say you've been there 4 years and life has changed in a way that requires that you sell. Assuming you made no extra payments to principal in the last four years, your mortgage balance is now $283843.65.

Let's say you had purchased in a falling market and the best offer you have is 10% less than what you bought it for - $270,000.

You sell for $270,000. You owe the realtor 6% - $16,200. You owe the bank $283843.65. After paying the realtor and the bank, you will end up paying a good sum of money (over 30k) out of pocket.

I know Peoria (?) is still affordable for someone on the median income for the area (as opposed to where I live where average prices are something like 10x the median income), but I would still approach with some caution and definitely wouldn't take on a bigger mortgage than I could really afford (which I'm sure you won't).

The homes I posted are the kinds I am looking at. I am comfortable with what I am paying in rent right now ($725/month) and with a 6% no-down VA loan I can afford a $125k home. The payments including taxes and insurance would be less than $900/month which puts my housing costs at less than 1/3 of my take home. I have seen some nice homes in the $90-$110k range which is where I will probably go with.

I must to say, I'm very tempted to start thinking about starting to look for jobs far away from the ocean.

No kidding. Once my wife finishes grad school we are considering a red state move ourselves.

Edited February 7, 2008 by VJ Troll

[GaryC 7]

I know Peoria (?) is still affordable for someone on the median income for the area (as opposed to where I live where average prices are something like 10x the median income), but I would still approach with some caution and definitely wouldn't take on a bigger mortgage than I could really afford (which I'm sure you won't).

The homes I posted are the kinds I am looking at. I am comfortable with what I am paying in rent right now ($725/month) and with a 6% no-down VA loan I can afford a $125k home. The payments including taxes and insurance would be less than $900/month which puts my housing costs at less than 1/3 of my take home. I have seen some nice homes in the $90-$110k range which is where I will probably go with.

I must to say, I'm very tempted to start thinking about starting to look for jobs far away from the ocean.

You do pay a premium for the proximity to the oceans. I lived in California for a while. I liked it there but the cost of living made it to big of a price to pay for the nice weather and the beaches. The mid-west may be boring to some but it's easier to make a comfortable living.

[Alex+R 0]

Thanks, Troll. That makes sense.

PS the midwest might be comfy but it's cold. If I move to a red state it'll be Georgia, I think. That sounds fun.

[w¡n9Nµ7 §£@¥€r 123]

Traffic in Atlanta is crazy. I considered it and even went to Alpharetta on a business trip and checked out some homes. Way worse than Jersey that way.

[Jenn! 918]

How about the southwest - AZ, CO, UT, NM, etc.? Those seem decent.

[GaryC 7]

Thanks, Troll. That makes sense.

PS the midwest might be comfy but it's cold. If I move to a red state it'll be Georgia, I think. That sounds fun.

Aww Alex, it isn't that bad. Here is the view from our house this morning.

[w¡n9Nµ7 §£@¥€r 123]

How about the southwest - AZ, CO, UT, NM, etc.? Those seem decent.

AZ is in freefall- major bubble out there the last few years. I don't know anything about the other three.

[Ban Hammer 12,836]

Thanks, Troll. That makes sense.

PS the midwest might be comfy but it's cold. If I move to a red state it'll be Georgia, I think. That sounds fun.

Aww Alex, it isn't that bad. Here is the view from our house this morning.

dunno what's so bad about snow, she's from minnisota

[w¡n9Nµ7 §£@¥€r 123]

Snow is very pretty.

That's about all it has going for it, though