Mr. Murray Right Again!

[Tracy]

I tell ya', folks - that R. Murray who moderates this forum is right on the money! Remember that discussion about the 80/20 financing with the lowered monthly payments? This is different from the traditional 80/20 programs - this one is based on LIBOR which stands for London Inter Bank Offer Rate (LIBOR) Mr. Murray actually called a mortgage broker who offered this and determined that it would be foolish to get this kind of mortgage. Well, Clark Howard agrees with him one THOUSAND percent. In case you're not familiar with Clark, he's the nationally syndicated talk radio host of a consumer-advice program and is THE EXPERT on all things financial. I just read his column in the July 18th edition of the Atlanta Journal-Constitution (website address: AJC.com) about this very subject and - it's just like Mr. Murray says - this loan program is dynamite. You get into it with low monthly payments but then you wind up with escalating interest rates and a huge balance to pay off at some point. It's making me distrustful of mortgage brokers now since I've had THREE of them suggest this as a way to go. If anybody suggests this to you - run like hell !!!!! Thanks again, Mr. Murray.

[rmurray]

Thanks for the compliment...the but...

I do not moderate THIS forum...Randy Eaton...the author of the books mentioned on this web site does..

On this board...I am only a visitor...like tha many other here...I never comment on anything here that I do not have direct knowledge of...Questions about product, set up and traditions outside of the SE...I leave for others to comment on...

I do moderate the forum called "Homeowners Forum"....Here if a question is asked about things I am not familier with...I will spend what ever time it takes to get up to speed..This has hepled me as much as it has helped others..Stop by..

By the way...I listen to Clark Howards radio show daily....In many areas he has some VERY good advice...He has helped me save thousands in my personal financial world..Especially on travel, telephone service and gas delivery service in GA..For others sake...He has a great web site with numerous forums like these..

www.ClarkHoward.com

Also..I did not post the final info I obtained on this loan...It is a monthly varible rate loan...MOST important it has NO caps on interest rate hikes...

Technically it could be 4% one month and as high as 300% (this maximum legal rate in GA)..the next...Of course if this happened the worlds economy would be in shambles and it would not matter..Still rate increases form 4% to 15% with in 5 years would not be unheard of..

Just remember....mortgage originators are commission sales persons...NOT financial councelors..

[Tracy]

Okay, here's another question, speaking of the world being in shambles. With the stock market crashing and all the other bad financial news (Worldcom, Enron, etc.) what would (or will) happen if we have another Great Depression, as many people are predicting? Let's say I buy a manufactured home (or any home) tomorrow and next January we're in a full-scale depression. What happens as far as my mortgage goes? Are monthly payments greatly reduced or do lenders start foreclosing on everybody? I know you're not a financial guru, but perhaps you know the answer to this. I've been warned by several people not to take on any new debt right now. What's your opinion?

[rmurray]

Naysayers are all over the place when you ask advise on a home purchase....Understand where they are coming from...If they recommend you buy...things go bad..they are afraid that you will blame them...They recommend you not buy...never damage to your personal relationship..

The ecomomy is in full recovery...do not allow the news reports about the stock market confuse you about the economy...These are 2 different things...Stocks have been over valued for some time and corrections are going on in the market,,,Of course..this would effect you if you hold stocks...Unemplyment is historically low..job creation is high....

You should make personal financial decisions from your personal stand point...The important thing for homes is..the interest rate is the lowest in 30 years...plus..credit is very available at these rates...if lenders with all the financial info they have thought a maasive depression was in the cards they would have tightened credit already and started to invest in gold.......delay in your decision will only cost tens of thousands...

You always have housing costs...if you cannot pay payments for housing...landlords are much more likely to kick you out...If there is very major economic down turns...mortgage companies will not want your home either...Most likely they would work out some plan....

You can always find a reason NOT to buy...Focus on the reasons that you should buy...If they are there...GO FOR IT...

[Tracy]

Okay, that all makes good sense, but as for investments - people ARE investing in gold now. The value of my (small) stock portfolio is less than half what it was 6 months ago - how I wish I'd followed the advice of an elderly friend back then and pulled out of the stock market. My new-home down-payment was going to derive from the sale of some stocks, but now I don't want to do that because of the huge loss I'll take (and yes, I know I can deduct that on my taxes, but so what?), so a ZERO DOWN loan looks good right now. On the other hand, I want to keep my payments low. I find it hard to believe what the news-makers say about being in a recovery because I know many, many people who are out of work - more than I've ever known at any one time before. I don't want to be brainwashed by the doomsayers, but I don't want to be naive either. But I keep telling myself what you just said - the interest rates are NEVER (in my lifetime) going to be any lower than they are now.

[Dan Fiske]

Take a look at the list this site provides for financing. I called a few and found northstar financial does $0.00 down loans. they worked hard to help us call and ask for Ken he is very nice.

[Tracy]

Thank you - I'll give Ken a call. I appreciate all the input.