Subprime lenders – Subprime rates – Don’t Buy a Home Until You Can Afford It!
Delaying Gratification Means Wait Until the Time is RIGHT -
Banks and financial institutions are lending at subprime rates to
borrowers that are high risk due to poor payment history, inadequate
earning power and less than 20% down payment. As you can read one story
about the impact of borrowing before you are ready on Yahoo! – Subprime bust forces families from homes by Adam Geller.
Avoid foreclosure – get a mortgage at a reasonable rate with monthly
payments you can easily afford after you have set up your emergency
fund and pulled together a solid downpayment (at least 20% – if not
more!) otherwise wait.
Foreclosure. Of course it’s an ugly thing – people losing their
homes due to financial set backs and climbing interest rates. Even
families that are able to sell their house to avoid foreclosure process
feel the pain of losing their home because they couldn’t afford to pay
the price.
What is even worse is all the struggling that goes on BEFORE they
actually foreclose on the property. The mental anguish. Yes, I know.
Renting may be unattractive. Home ownership is glamourized as the
American dream.
But… I’ll tell you this: worrying losing all the money you have
poured into a home that you will lose anyway is life shattering.
If you apply for a mortgage and hear the term – subprime lender or
subprime rate. Your best bet is to stop right there. Rethink your plan
and save up a bigger deposit while paying off your debt. Making regular
minimum payments as you snowball
your debt until you are debt free. Remember that subprime lenders can
become very risky because they are lending money at higher rates to
people with less than stellar credit histories – the risk of
foreclosure is great for these mortgages.
Delay Gratification – learn to wait and build for the things you
want in life. Deny yourself the pleasure of owning a home or expensive
car until you have shed the chains of debt and built your emergency
fund. You will see how much better it would have been for this family
in the subprime article.
Tammy – Debt Crunch
Tags: avoid foreclosure, banks, debt, debt-crunch, families, foreclosure, home, mortage, save money, subprime, yahoo
