April 28, 2008
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A Room of My Own
You know, I really want a house.
I've been to three different mortgage companies in the past three weeks. I've been approved for a mortgage with all three of them. And in the process I've been told my interest rate would range from a low of 5.85 to a high of 6.65. That's a pretty huge difference.
I've been pushed and prodded in the direction of different things that I know are not in my best interest. I've been told things that are blatantly not true, some things that are questionable, and a few things that I might be able to count on since they are printed on company letterhead.
For example, I was told by one person that unless I put down 30% I would have to pay Private Mortgage insurance - not true, as of today it's a LAW that lenders can't make you pay it from the get go if you have 20% down and if you are paying it yourself they have to stop requiring it when you reach 22% equity. - Unless it's FHA, or the PMI is paid by the lender and don't EVEN get me started on what a bad idea that is for the buyer.
The woman across the desk from me today also told me "in the 18 years I've been in this business, the highest rate I've ever locked in was 7% and the lowest was right at 5%, mortgage rates just don't change that much." This after telling me that on her first house she had a rate of 8.25 and on her current house she got a really sweet deal at 4.75. (On my first home loan the interest rate was 7.75 so it's not like I believed her about the rates not changing.)
This whole house thing could make me really cranky.
It's no wonder that so many people got pushed into mortgages that they didn't understand and couldn't afford. The people selling mortgages start adding, subtracting, refiguring, reconsidering, and ... it's enough to make a sane person say forget it, just give me a paper to sign.
I think the truth is that people will tell me whatever they think I need to hear in order to get me to sign on their dotted line.
So for yet another night, I'm back at home with my money safely sitting in my bank account and still seeming no closer to a house than I was three years ago when I was waiting tables and grateful if I had an extra $30 to put in my bank account.
I know that many of my newer readers weren't here for those days, so to catch you up on the history, I was waiting tables, struggling to pay the rent and buy groceries, and when my savings account reached a balance of $500 I was so grateful that I cried and we all celebrated (by not spending any money!).
I want a room of my own. I want a home that's mine, that no one can take away from me. I want to know that when I'm 70 years old, I won't be the little old woman with my oxygen tank standing in the Walmart entrance greeting you so that I can get my check and pay my $5000 a month rental bill and say grace over the catfood that's all I can afford to eat with the remainder. (Although, with my current health care and insurance situation I guess maybe I shouldn't worry so much about being 70 ...)
On the other hand, I had a really GREAT hair day. I got no phone calls from the school. I still have a job. I had a lovely lunch. I have a friend who came with me to meet the mortgage person this afternoon to keep me from being overwhelmed by it all and to give me moral support. I don't have to wait tables tonight. My kids are safe. My cat is fat. Life could be a lot worse.
... the pep talk didn't work. I'm still feeling kind of bummed. I want the house.
Comments (23)
Oh wow...
let's not get me started...
except to say that we can sum it up into two words
predatory lending
anyone who tells you that every loan isn't based on that in some way is seriously still living a 1952 world.
Stay strong, remember to read the fine print & if it smells like shit it probably is.
it's ok to be bummed and to still want it!!! seriously! but you are an intelligent person who won't be taken advantaged off- which is why you won't be on oxygen greeting others at wal-mart when you're 70! when the time is right-- you'll be ready to buy! i wish it was today! *pouting with you!*
LOL.....don't go anywhere near a mortgage broker without bringing along a friend who is: 1. Already versed in the homeowner thing and can understand what is going on and 2. has no emotional attachment to your house-hunting journey. Bring this person when you look at homes, too, because they can help you see past the lovely paint effects in the kitchen and the potted grass squares on the coffee table so that you won't end up buying a dressed-up lemon.
That liar mortgage lady! Does she think you're an idiot?! If there's one thing that changes GREATLY and often it is mortgage interest rates. When we bought our first house back in 1990 the rates were 10%!! Then 9, then 8, etc. etc. We now have a fixed at 7% and an adjustable (yes, two mortgages, don't get me started) that has dropped to 5% (woohoo, for now - need to get that one into a fixed once it starts creeping up again...). So what the heck was she talking about?
Anyway, keep on keeping on and keep on saving.
it sounds like you're very clear on the state of banks and lenders. whether it's buying a car or a house, secured debt is a ball and chain that requires a lot of caution and planning. you have a lot more behind you than many of the people who ran into homes they couldn't afford who are now paying the price.
these people never expected to actually pay for these homes and stay. they were looking for a quick stopover to sell it at a nice profit while taking advantage of the convenient capital gains break for real estate gains.
sounds like a conspiracy doesn't it?
all i'm saying is the advice that i'm grateful i didn't take was to "buy the most house you could afford." as long as you are buying something that is manageable you'll be sure to actually pay it off and own it outright.
take your time and remember that fretting over a percent or two of interest needs to be balanced by the fact that mortgage interest is tax deductible so it's less of a difference when that is taken into account.
you'll get there. good hair and fat cat and all!
I'm already resigned to the fact that I'll be the Wal-Mart greeter...air tank and all. But it's ok, when I can't go to work anymore, I'll go into a home, paid for by whatever agency is in charge of homeless, unable to breathe people who can't afford anything better. Till then, I'mma gonna LIVE!
and HEY!
where's the new profile pic???
we can't have the new do not showing!
I hate bad loan officers. Our first one was shady, but luckily that deal fell through because we couldn't cut short our lease with our apartment without losing money. The second time around, we picked a mortgage lady who was recommended by a good and knowledgeable friend of mine. *sigh* I'm still happy that you'll be able to save up some more money. And I think housing prices are going to drop even more and you will find your home. *hug* Pretty hair!
I'm rooting for all your wildest dreams to come true.
The pep talk made ME feel better!
I DO HOPE THAT YOU GET YOUR HOUSE SOON!
this is a really great time to be looking at houses. our daughter got a very good deal on the one she found & is hoping to own soon...
I'm sorry you feel bummed.
But I understand why. Oh...I just had to leave a house I love...where my kids grew up...and we haven't found another house yet we can buy. We are renting and it doesn't feel like my home in any way at all. I wonder if it ever will. I am praying for you...I still believe that God has a house for you and He will work out all the details. I believe that with all my heart!!!
I know it doesn't help right now....but you do have a lot to be thankful for.
Hugs, and Hang in there, C.
Its amazing what they will say and do to get people to sign on that dotted line and make commission checks.
I was so happy when we bought our home, I jumped up and down and cried and screamed!! lol
A place of your own, and a special room of your own, surrounded by the reflections of you - is wonderful.
Blessings, ~Helena
The Lord knows the right time for you to get your dream home. I admire your patience to wait and do the right and best thing!
First of all, kudos to you for being so smart and educated about this. I think that we didn't do a very good job when we bought our home, but we were anxious to have a house and, what someone said above, we were a victim of predatory lending.
Either way, since you have schooled yourself well on this and are sharp, I think that you will get a house and won't be (excuse the pun) taken to the bank!
you have to really know your stuff to get a loan don't you?
I've owned 3 houses in my life and each time I've moved up to a nicer one and used the profit from the last one. Nowadays kids go straight to a mansion but sounds like you just want a home. Are you a single gal? I know you have kids.
i have a house and i don't have my own room.
Wanting a home of our own and to make a nest seems to be born in women. Hope things come true for you and soon.
Your timing on buying a house could be really good...or really bad....depending on how you look at it. Prices are sliding and I don't think we are nearly at the bottom. Good. Which also means that if you buy now, you will not be building equity but will in fact be losing equity and PMI may kick in at some point. I happen to think that if you are in it for the long run, now is a good time to buy. My daughter bought her first house last summer and is worried and I understand that. But, as long as you're not selling any time in the near future.....
Take a friend with you to the mortgage brokers. And also take an experienced friend with you when house hunting. I know how it is to long for a house that is yours, but take your time.
The last time I had a house refinanced, they lied to me and said it included an escrow for the taxes.
It didn't, I found out, when it came time to pay the tax.
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