Archive for September 14, 2011

5DC (Dalia Cracken) | September 14, 2011
3 comments

Government Loans to Reduce You Deposit.

Buying a home can be a nerve-racking time.  Especially in this tough economic climate.  There is a lot of stress associated with it and at the end of the day you hope you make the right decision.

There are some factors that play in the decision making.  How much you earn on a monthly basis, how much you have saved for your down deposit and closing costs, and your existing debt and credit worthiness.  This will help determine whether a bank or lender will be willing to lend you the remaining 80%.

The good news is that you are no longer giving your money away as rent.  Buying a home is an investment and one where you can walk away with a profit when you sell it.  But make sure you are going to live there for 3-4 years as the costs of buying and selling means that you could lose money if you move before then.  And if its under 2 years you will be liable for capital gains tax on any profit you make.  So consider how motivated you are to stay in the house – ask yourself whether  your job is settled or are you likely to be moved?

Prices vary across the country.  If in your area monthly rent costs are on average 35% lower than your anticipated monthly mortgage payment, then it makes sense to continue renting.  In this situation you would do better to wait until home prices come down, or rents increase.

If the time is right to buy then organize your finances.  Make sure your credit report is up to date and get errors removed.  Determine how much mortgage can I afford?  Use a mortgage calculator to figure this out.  Then get pre approved by a lender.  Save enough cash to pay for your down deposit and closing costs.  The deposit is usually 20% of the cost of the home – although this figure can be lower if you can get a government type of loan such as FHA or Fannie May.

Category: Home |
5DC (Dalia Cracken) | September 9, 2011
One comment

Those Liberal Republicans

As the next election year draws closer, topics on politics and party divisions become more common, heated and stronger. And while this is relatively thematic, it actually detracts from and mitigates the opportunity for dialectic exchange, which is important today, possibly more now than ever before. There is a tremendous amount of importance placed on creating a winning argument and defeating your opponent. While that has its place, it is also contrary to creating a greater understanding of issues and finding new comprehensive answers. Finding a common ground between party divisions sounds like an impossible task, and people have been called traitors or sympathizers simply for suggesting it. However, it’s essential to progress, which is essential to healing this great nation.

But how do we go about having a respectful dialogue, when everyone seems to be so full of blame, anger, fear and resentment? It’s not enough that the economy is in such dire straights, or that we’re about to honor the victims of 9/11 on this 10th anniversary of the tragedy. What do financial advisors, money mutual Montel Williams, suggest will help bridge the divide? Well, expert opinions vary, though a thorough understanding of the opponent’s position is essential for many reasons.

One of the easiest ways to gain respect and an understanding of your adversary is to consider the relative nature of politics as well as culture and economic history. This includes the reality that the two main political parties are actually a bit more transient and fluid than most people realize. Most of the uber conservative right wing Republican voter base has no idea that their beloved GOP was once the liberal domain of the poor majority. And even more surprising, to some though not all, is the reality that when the major substantiation of political parties began to take place, their  political philosophies were entirely reversed. Interestingly, they have done an almost complete 90 degree switch in the past century and some odd years.

During the Civil War, the Republican Party came into its existence, and Abraham Lincoln was the first elected Republican president. The party arose from socially progressive minded individuals and former members of the Whigs. It was primarily composed of a poor farmer population from the North, and was formed primarily as a strong response to the Kansas-Nebraska Act. The rich, Confederate, plantation owners from the South composed the Democratic Party and they were against the civil rights, progressive, social service, equal rights for all agenda of the Republicans. In dealing with the economic and political crisis of today, a simple look at money mutual reviews will tell us it’s wise to remember we once stood in the others’ shoes. Let’s try it again.

Category: Politics | Tags: , ,