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Mar. 20th, 2007 | 11:17 pm

I was thinking more about the idea of condo-buying, the interest on a $450,000 loan is nearly double what I'm currently paying in rent. Also my girlfriend should graduate in 2 (or 3) years.

It probably makes more sense to wait until a little after she graduates to figure out where she's likely to be working. Also if I can keep my money wasting to a minimum I should be able to have $30,000 to $40,000 in the bank (or stock market (+ retirement funds)) then. Which is actually approaching a real down payment for this area.

Though if I felt like following titus up on his offer of a CS grad school houses in East Lansing, Mi (near MSU) currently start at $80,000. (Life on a grad student income is probably much nicer if you own your own house free and clear).

Though I'm probably going to regret this conclusion when summer rolls around in full force.

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Comments {10}

secretslip

(no subject)

from: secretslip
date: Mar. 21st, 2007 09:42 am (UTC)
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Take more summer vacations to the mild and breezy coastal resort Santa Cruz. You can work remotely. Blinky can take summer school. Then you wont be sad about it being too hot.

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Diane Trout

(no subject)

from: alienghic
date: Mar. 21st, 2007 09:08 pm (UTC)
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Tempting, but travel is scary.

Hmm... but if I set barbara up with some software that'd let me remotely control her computer...

Ah right, cats, what'd we do with our cats? (I wish those biologists would get suspend animation working cheaply and reliably, it'd be really nice to be able to say, kitty, take a 2 week nap).

Also what's your current living arrangement?

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secretslip

(no subject)

from: secretslip
date: Mar. 21st, 2007 11:12 pm (UTC)
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Cats are easy. Just take a quick sample and then when you want to have the cat again use geneticsavingsandclone.

Live with mom and dad, meh. They want me to have more friends over. Maybe I could pay you people to convince my folks i have a social life and visit :D

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Diane Trout

(no subject)

from: alienghic
date: Mar. 22nd, 2007 12:02 am (UTC)
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Alas there's some randomness in the developmental pathways of domestic cats, so you don't get the same cat the second time around. (The coloration of calico cats is dependent on which copy of the X chromosome gets deactivated, which appears to be semi-randomly determined by each cell)

So unfortunately savings and clone went out of business.

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Ree

(no subject)

from: triskellion
date: Mar. 21st, 2007 01:50 pm (UTC)
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With the way the mortgage market is going, you really want to have that down payment, or else be very careful about your loan. A lot of people are defaulting on their crazy loans and the mortgage companies are declaring bankruptcy daily. Soon, anything other than a 10% or probably 20% down payment simply won't be acceptable anymore. We didn't have a down payment, but we were very careful about choosing out loans. And we also recently refinanced our way into a 30 year fixed. So if the market tanks around here, which it is threatening to do a little, we will just sit tight. Eh, the husband is better at all this. Suffice to say, do your research.

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Diane Trout

(no subject)

from: alienghic
date: Mar. 21st, 2007 09:13 pm (UTC)
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I'm pretty risk-adverse with my money, so an adjustable rate mortgages or interest only mortgages seem crazy. I had seen 7 or 10 year fixed ARMs, which I could imagine being useful in some situations.

The interesting thing is what'll happen to housing prices once they return to reasonable home loans. The current prices were only possible because the lenders were effectively giving out free money.

I have some difficulty believing that many Californians can save $90,000, which seems to suggest that those $450,000 condos need to come down a bit.

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It's French... bitch.

(no subject)

from: vengeant
date: Mar. 21st, 2007 11:41 pm (UTC)
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Well, interest-only mortgages seem crazy because they are crazy, and crazy in the sense of "batshit insane."

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Ree

(no subject)

from: triskellion
date: Mar. 22nd, 2007 02:15 pm (UTC)
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I quite agree. Part of me is afraid that having gotten in at $452,000 we are never going to get a down payment out of selling the place. We started with a 10 year arm, because that gave us time to find something else even if mortgage rates went all over the place. We also insisted in solid companies and knowing everything about our loans. People getting one year fixed paying less than interest at sub prime rates are the ones defaulting, but who in their right mind ever permitted such a loan?

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Dilinger

The housing market is mad

from: dilinger
date: Mar. 21st, 2007 04:49 pm (UTC)
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I'm curious what the housing market looks like up near cambell California. So much inflated land it is crazy. I should do more research too. Owning your 80k house and going to grad School sounds awesome.

I mean I am your friend and I would miss you but I don't want that to stand in the way of something good for you. Sounds like you have alot to think about. Any other option seems like a bunch of commuting.

The only part I don't like about your situation is not only the mortgage but in a town house/Condo you also have to pay an association due.

I was lucky to buy my condo several years ago before people lost thier freaking heads. But even now I am paying 200 dollars a month for Association dues. Yes I have a pool and spa, but they are weak. It pays for insurance mostly so I suppose it is ok. (that's what I tell myself)

Anywho, the big key is not to rush into anything as previously mentioned. Sounds like your thinking things through.

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Diane Trout

Re: The housing market is mad

from: alienghic
date: Mar. 21st, 2007 09:17 pm (UTC)
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I mean I am your friend and I would miss

I'd miss you and all my other California friends too, partly that can be solved by our wonderful tele-presence technology. Not to mention that neither my girlfriend or I want to settle down in the frozen north.

I'd hope that by mostly owning a house while going to grad school we could still save up money so that when done, the house could be resold and we could move back.

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