Comments on: Mortgages May Prove Difficult to Get http://finance.youngmoney.com/credit_debt/Money-Management/mortgages-may-prove-difficult-to-get/ Money: Earn it, Invest it, Spend it Fri, 19 May 2017 17:24:17 +0000 hourly 1 https://wordpress.org/?v=4.7.5 By: Paul Petillo of Target2025.com http://finance.youngmoney.com/credit_debt/Money-Management/mortgages-may-prove-difficult-to-get/comment-page-1/#comment-8692 Tue, 28 Sep 2010 18:45:51 +0000 http://finance.youngmoney.com/careers/mortgages-may-prove-difficult-to-get/#comment-8692 That could be a blessing in disguise and a lesson in personal finance that your parents got once, promptly forgot and now are revisiting. Homes are still a “hole in the ground you throw money into” and even with the historically low rates available to, as you mentioned, those with the best credit scores, they may not be worth the effort. Except in the old-fashioned sense.

Back in the day, a downpayment swayed many lenders to offer you a mortgage. To get a down payment, often 20% or more, you had to do well with your available cash flow. The choices were limited. As renters, you can imagine homeownership by creating a self-imposed rent increase based on twice what you are paying the landlord now. Can’t do it? Then you can’t afford a house. If you can, chances are you will have amassed a down payment within two years, learned to live within your budget and be forced to buy a house you can afford. If won’t be the house you want, but it will be yours.

Renting is only bad if you spend every available dollar after the bills are paid. Renting should be a bargain because once you get a house, you’ll get a first class lesson in how to live cheap, appreciate a bargain and be thrifty.

Paul Petillo of Target2025.com

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