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View Diary: An Economy cannot be based on CONSUMPTION (285 comments)

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  •  I was encouraged to borrow 110% (9+ / 0-)

    of what my prospective house cost, circa 2003. And to take out a variable rate loan. "Take a cruise", the broker said.

    However, I wanted to put about 25% down and also to buy down the interest rate (to 6 and something, which looked pretty cheap at the time). I did put the closing costs on the loan, though. Bottom line, I had been renting the place for $600 a month, and then put about $14k down and was buying it for about $300 a month, including property taxes.

    I thought something was up, mainly because the last time I had bought a house prior to that, in about 1992, I had to go hunting for a mortgage. In 03 they seemed to jump out and grab me by the leg, lol. Brokers were everywhere and seemed to be young enough to have been in high school a few years before.

    Then in late 05 I found I didn't need a house anymore due to a marriage and I sold the sucker for about a 65% gain after all costs. Too bad I had only paid $50k for it. It was tiny, but a year or two after I got rid of it it sold for almost $100k. Not sure what it would go for now.

    Moderation in most things.

    by billmosby on Thu Sep 29, 2011 at 08:51:44 AM PDT

    [ Parent ]

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