Saturday, March 22, 2014
March 21 - Online Discussion Question 1
Newlyweds, Benita and Raoul, have found a house they want, but they’ll need some creative financing to make it work. They’ve lined up a 30-year fixed-rate loan but need to have a 10% down payment to get the interest rate. They will need to get another loan for the down payment and Benita has asked her dad to co-sign. Raul is your friend and has asked for your advice. What will you tell him?
Subscribe to:
Post Comments (Atom)
I would tell him that they should rent until they can save enough to pay the 10% down payment on their own and then get a 15-year fixed-rate mortgage. Also, never involve friends or family in borrowing money.
ReplyDeleteRent until they save enough to pay the 10% down payment on their own rather than having his dad cosign it to save on their relationship later on. Also, they should get a 15-year fixed-rate mortgage.
ReplyDeleteNever have some-one co-sign, it could cause great tragedy to occur for the co-signer. Also, loans are never good, maybe rent and save some more to put a larger down-payment down.
ReplyDeleteJust wait and rent until you can pay the 10% down on your own. Don't do a 30-year fixed rate mortgage, either. Do the 15. It's also a bad idea to have your dad co-sign.
ReplyDeleteAutumn
I would say that they should be waiting until they can actually afford the 10% on the down, or you'll be roped into a large loan and a long fixed mortgage. You should have people you're related to co-sign, because then it may corrupt relationships because of the bondage of money.
ReplyDeleteThey should not take any loans or have Benita's dad co-sign. Instead, they should rent until they have enough money to make a 10% down payment. They should also get a 15 year mortgage instead of a 30 year mortgage.
ReplyDeleteThey should not take any loans or have Benita's dad co-sign. Instead, they should rent until they have enough money to make a 10% down payment. Also, they should get a 15 year mortgage instead of a 30 year mortgage.
ReplyDeleteDefinitely rent. If you a loan to even have enough for 10% down plus you need someone to co-sign plus you're wanting to get a 30 year mortgage instead of 15 year you're obviously not ready to buy.
ReplyDeleteeyezik
Rent to save up for a larger down payment and get a house where they can afford a 15 yr fixed-rate. furthermore, it is always a bad idea to involve friends or family in borrowing money, it creates tension and can ruin relationships.
ReplyDeleteI would tell them that the house is not worth the loans and the co-signing. This borrowing money from the family will only make matters worse. If they have to get a loan just the cover the down payment then what chance do they have of paying off two loans at the same time for the same object.
ReplyDeleteAdam
I would tell them to save and learn to be more patent and not take out that many loans...
ReplyDeleteI would tell Raoul that this complicated mortgage plan sounds like a huge mess of debt to me. I would encourage him and Benita to wait to buy a house. Rent for a while, saving as much as they can for a good down payment (at least 10%). Scrap the 30-year mortgage, and find a 15-year fixed-rate mortgage. This will eliminate the co-signing of Benita's father, and will save them more money than a 30-year mortgage.
ReplyDeleteIf you must contact any company to obtain an online loan with a low interest rate of 3% and better payment plans / plans, contact the ONLINE ACCESS LOAN COMPANY. Also, he does not know that I am doing this, but because of the joy in me, I am very happy and I want people to know more about this great company that really offers loans, it is my prayer that GOD bless them more while they put smiles on people's faces. You can contact them by email at { directaccesservice @ gmail. com } or whatsapp @ +16315735726
ReplyDelete