« Reverse Mortgage Retirement Incomes | Real Estate | Risky Home Buyers 2008-2009 »
Month-to-Month Mortgage Risky Homeowners
Real Estate - Renting a Foreclosed Home Leasing - Careers
Some people are not cut out to be homeowners. What distinguishes them is not their income, their mobility, or where they live rather, it is how they live. Some people week-to-week or month-to-month, depending on how often they are paid. Typically, they have nothing left at the end of the period, and if they run out early, they often borrow at high interest rates.
When they purchase durables, such as a TVs, they price the purchase in terms of the monthly payment, which they attempt to fit into their monthly budget. They never get ahead of the game, and if they run into an emergency that costs money, they are in trouble. Because homeownership is rife with such emergencies, should not be homeowners.
Sometimes say that buying a house is cheaper than renting. They would buy a house in the same way they would buy a TV set, by seeing if they can afford the monthly payment. They have no savings but have heard that it is possible to get a loan for 100% of the sale price. I try to discourage them by explaining the hidden costs and risks of homeownership, and by pointing out that, as owners, they, rather than the landlord, are responsible for everything that goes wrong.
Ahorre June 12, 2009 06:03 PM | New Fairfield Connecticut