Buying a house

[Dancing Fire]

Date: 5/1/2005 8:53:24 PM
Author: ^__*
even the condos are expensive, they''re like $340K and up...I wonder if the price will ever go down..

i live in No. CAL.so i know the housing market has been going up like crazy but ,don''t rush into buying a house.the fed will raise short term interest rate tomorrow by .25%, with interest rate going up this will slow down the housing market and people with adjustable rate will get hit instantly with higher monthly payment.how do you know when the market has peak? when lots of people is buying with little or 0 down payment,like now (highest % ever) just like the stock market in march of 2000 people buying on borrowed money (highest % ever) margin to the max thinking the market will go to the moon, then the bubble burst.

within the next 3 yrs we will see the highest % of loan default ever.

 

[sasa]

I remeber when my mother bought her house 7 years ago, it was only $230K, it''s a 4 bedroom, 2 1/2 bath. It''s a very nice house. Her monthly mortgage is cheaper than my 1 bedroom apartment

 

[fire&ice]

Interest rates for housing are tied to the bond market - that''s what you need to track. In the end, it''s just gazing into a crystal ball. Just a little tip, typically interest rates are lower at the end of the week. Also, just for the basics, I''m sure they make a "real estate for dummies" book. And, some mortage companies will publish a little pamphlet. To know how much you can afford, do a asset/liabilities sheet - your debt is key. Most mortgage companies will accept a back debt of about 33-38% & a housing debt of about 25-28% ratio to your monthly salary. Though, those may be old numbers with all the creative financing available today. If you are self-employed, they will need to see your tax returns for a track record of about 3 years.

Also, you can get a good feel for the housing market in your area from realtor.com. Get out and pound the pavement - going to open houses, etc.

Good luck. Housing prices ebbs and flows. Years ago a friend bought a house on the high end of the bubble in Conn. The next year the house depreciated by about 35%. Currently, the house is worth more than 3x what they paid for it.