| Author | Message | ||
Jai_ycp Side Hero Username: Jai_ycp Post Number: 8132 Registered: 04-2015 Posted From: 173.73.238.123 Rating: N/A |
It varies from individual to individual. What is the use of money if kept aside? Ideally if you invest that money it's is more beneficial to take that route. Other major reason is affording bigger house.
There no risk what is the gain? How much difference is the interest between 10/1 and 15/30 loan? If it is more than 0.25, worth the gamble. One other thing to consider is the age of your kids. You don't want to be in the position of paying a big house payments when they are going through college. the story of YCP and TDP in 2014 (AP)- http://goo.gl/zgrYmQ http://goo.gl/gn6XL5 the story of TDP in 2014 (T) - http://goo.gl/nyu1Wu | ||
Kingjames Moderator Username: Kingjames Post Number: 5756 Registered: 11-2013 Rating: N/A |
maa colleague thinking... Principal pakkana petti, nuvvu pay chese interest tho rent ki vuntunna ani anuko antadu... I don't understand that but in a way, it makes sense in worst case anipistadi | ||
Maverick Legend Username: Maverick Post Number: 63545 Registered: 01-2008 Posted From: 68.50.104.56 Rating: N/A |
i will stash the principle monthly in my personal bank account? i am disciplined in that aspect..what else is the risk? Happy Vizag | ||
Jai_ycp Side Hero Username: Jai_ycp Post Number: 8131 Registered: 04-2015 Posted From: 173.73.238.123 Rating: N/A |
Refii anedhi traditional loan teesukunna chesukovachu. Question is what if market is down, house prices fell and your house is underwater. With no principal paid, you are stuck with the house, can't sell can't refinance unless you are prepared to loos quite a bit of money. Some of my friends who bought houses in peak boom in 2004-05 suffered the same fate the story of YCP and TDP in 2014 (AP)- http://goo.gl/zgrYmQ http://goo.gl/gn6XL5 the story of TDP in 2014 (T) - http://goo.gl/nyu1Wu | ||
Andhravodu Side Hero Username: Andhravodu Post Number: 6460 Registered: 07-2015 Posted From: 69.62.241.11 Rating: N/A |
seattle endi, prati chota undi. Calif lo maa friend 650k 7/1 ARM teesukunnadu in 2010 and last year refi chesadu maa palleturlone full busy market 2 years back, realtor.com lo HD nenu oka 5 houses choosi text message lu kodutunte, Pending status pettaru  2 days off teesukuni oka 15offers vesaka dorikindi maku | ||
Maverick Legend Username: Maverick Post Number: 63544 Registered: 01-2008 Posted From: 68.50.104.56 Rating: N/A |
market racha racha ga undi..i cant imagine how its going to be in spring smmer..konni listings pettina 4-5 hrs lo sale pending with cash offers or over the list price offers..ati kastam meeda oka new build dorikindi bothel lo..if u r looking, start hunting Happy Vizag | ||
Kingjames Moderator Username: Kingjames Post Number: 5755 Registered: 11-2013 Rating: N/A |
Yes, According to my thinking.. 10 yrs epudu taggina, same or less rate ki long term(15 or 30 yrs) cheyachu anukuntunna... | ||
Maverick Legend Username: Maverick Post Number: 63543 Registered: 01-2008 Posted From: 68.50.104.56 Rating: N/A |
i too didnt expect..seattle market lo istunnaremo mari Happy Vizag | ||
Maverick Legend Username: Maverick Post Number: 63542 Registered: 01-2008 Posted From: 68.50.104.56 Rating: N/A |
10 yrs arm ki risk takkuvemo anukuntunna..its not about affordability..i can do either one,but whats the -ve about these ani..i am sure rates will fall at least once in 10 yrs Happy Vizag | ||
Jai_ycp Side Hero Username: Jai_ycp Post Number: 8130 Registered: 04-2015 Posted From: 173.73.238.123 Rating: N/A |
After 10 years, it becomes a 20 year Loan where your principal is amortized but interest changes every year. I did on my first home like that and curse myself every day for that. Whatever money I saved never used for good use and 10 years were passed with principal same. I could afford p& I easily the story of YCP and TDP in 2014 (AP)- http://goo.gl/zgrYmQ http://goo.gl/gn6XL5 the story of TDP in 2014 (T) - http://goo.gl/nyu1Wu | ||
Andhravodu Side Hero Username: Andhravodu Post Number: 6458 Registered: 07-2015 Posted From: 69.62.241.11 Rating: N/A |
avi lekapote sagam mandi illu konaleru  | ||
Bithiri_bathi Comedian Username: Bithiri_bathi Post Number: 1289 Registered: 04-2016 Posted From: 144.49.132.22 Rating: N/A |
enti ee interest only loans inka isthunnara? 2008 crisis sagam ilanti loans valley kadha | ||
Jai_ycp Side Hero Username: Jai_ycp Post Number: 8128 Registered: 04-2015 Posted From: 173.73.238.123 Rating: N/A |
Arm ante if market is doing rates peruguthayi. So that is disadvantage unless you are betting that interest will stay the same or get lower. Unless you have current need to save the principal amount go with traditional loans. What is your plan? If it is about affording bigger house, do it. the story of YCP and TDP in 2014 (AP)- http://goo.gl/zgrYmQ http://goo.gl/gn6XL5 the story of TDP in 2014 (T) - http://goo.gl/nyu1Wu | ||
Maverick Legend Username: Maverick Post Number: 63541 Registered: 01-2008 Posted From: 68.50.104.56 Rating: N/A |
what happens after 10 yrs..will they just kick in principal+ rate then? so that means if u ur p&i per month now is 2500 and interest only is 1800..after 10 yrs..you start paying that 700 principal along with the prevailing wage? adi kakunda emanna -ve unda? Happy Vizag | ||
Xxx Hero Username: Xxx Post Number: 13646 Registered: 04-2009 Posted From: 172.72.87.25 Rating: N/A |
May work if you know what you will do with the money you save not paying back the principal - | ||
Kingjames Moderator Username: Kingjames Post Number: 5752 Registered: 11-2013 Rating: N/A |
Conventional fixed or ARm, 1) If you think, you can finish the loan in arm period(thinking it as a good investment) or 2) You are betting against market and taking a chance that interest will go down and go for conventional in the arm period for the same or less rate.. if both are not right, my understanding of RE is not right. my 2 cents. | ||
Maverick Legend Username: Maverick Post Number: 63540 Registered: 01-2008 Posted From: 68.50.104.56 Rating: N/A |
throw some light please.. Lower monthly payments (no principal)..10 yrs varaku Higher tax dedcutions due to bit more interest rate.. if u r desciplined put the monthly principal (u would have paid in a P&I loan) and dont touch it.. u have the money with u instead of bank what are the cons? why chose conventional fixed or arm p&i loans instead of this.. Happy Vizag |