Things can be different at any lending source. If you decide to visit a few banks - keep one thing in mind. They are usually one of two things - a primary lender or a secondary lender. To put that in plain English - some lend their own money (well, sort of their's), and others lend money from outside sources. If you find a bank that lends its own money - it is free to make its own rules about who they lend to and why. If they like you, they might lend while other banks will not. On the other hand, secondary lenders have strict rules and guidelines - usually very strict. Primary lenders are often small independent banks - we have several in my area of New York. Have you considered some sort of HUD deal? They often give very low interest loans to first time home buyers and often own the houses they sell. I've wanted to buy a few - but cannot since one strict requirement is - you have to live in it - i.e. you cannot buy one just for investment purposes. An old farm house sold here recently - it was forclosed upon with $120K against it. Farm house, two barns, gravel pit, and 17 acres. HUD listed it for sale on-line. My town government tried to buy it just for the gravel pit - but they were not allowed to buy. They offered $70,000 and got refused. Someone bought the place for $22,000 and a 5.5% mortgage - and they're living in it now. For myself - I've never had a car loan - and only had one mortgage ever - and that was in 1979. Local family-owned bank had a forclosed farm house with 40K against it. I had $2000, three kids, and was making $5 per hour at a Deere tractor dealership. After some dickering, they sold it to me for $12,000. I put $2000 down, and took a mortgage for 10 years for the $10,000 balance at 14%. I had it paid off in five years and cursed every payment until I owned it. When I made the last mortgage payment - I felt free - for about ten minutes. Then my wife demanded we get a home equity loan - since the house was now worth around $70K and spend the money on a big vacation, a new car, and some home improvements. We got divorced not long after that. I was miserable at that time - but in retrospect - it was the best thing that ever happened to me. I later found a mid-western girl who is even cheaper (and smarter) than me - and we've been happily married ever since. Obviously, things have changed a bit. Less family-owned banks around, higher house prices - but much better interest rates and easier credit in many cases. Main thing is - whatever you want to buy, it needs to - at least - retain its value. That means NOT finding a house with a temporarily high price that might go down later and leave you with negative equity. One example is one of my sons in Colorado. Makes 100K a year working for IBM - which is more than I ever dreamed of making. But, he spends it faster then - and before - he makes it. He bought a new house in Longmont - in a development in a desert type area. Took a full variable-rate mortgage for $325,00 - no down payment and his monthly payments are for the interest only. He was convinced it would increase in value and that would be his equity. Now, three years later - he wants to move to Texas - and he's told his house is only worth $275,000 now. So, to sell and get out - he will be in a huge financial hole. To the other extreme - I have another son who bought an older house a few years ago in Westminster, Colorado. He had just gotten out of the Navy - and had $15,000 for a down payment. He bought an older home for $120K in a suburban neighborhood - with a fixed mortgage - and the monthly payments pay taxes and principal as well as interest. The house is worth a bit more now, then what he paid - instead of less. So, he gets more equity into it as time goes along - and if he decides to move - he'll be able to do it. Good luck. If I ever had to get a mortgage again - I think I'd shoot myself. But, I'm not as young and energetic as I used to be.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - The Engine Rebuild Kit - by Curtis Von Fange. I always liked engine rebuild kits. They have all the replacement parts for overhauling an engine without going to the store to get gaskets, special measuring tools, or miscellaneous parts. They come neatly packaged, clean and tidy. But it's important not to let that packaging lull you into a false sense of security. The appearance of matching sleeves, pistons, rings, and bearings can cause frustration and agony if not properly measured and installed in a workshop environment. Following c
... [Read Article]
Latest Ad:
Sell 1958 Hi-Altitude Massey Fergerson tractor, original condition. three point hitch pto engine, Runs well, photos available upon request
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
