"What I bought with my $8000 tax credit"

Discussion in 'Economics' started by Clubber Lang, Sep 8, 2009.

  1. http://money.cnn.com/galleries/2009/real_estate/0908/gallery.first_time_homebuyers/3.html

    "My fiance and I were running around making wedding plans and looking to buy a home in San Carlos -- about halfway between San Francisco and San Jose. We finally found the right place on Roost.com.

    We get married in November, but we're moving into the house this month. I'm excited because it's the best entertaining house we've ever seen. The house is built around a courtyard, and there's a barbecue. I love to entertain.

    We felt like we had to hurry and buy before the end of the year so we wouldn't miss out on the tax credit. That turned out to be truer than we thought: As we got closer to the end, we realized how much closing costs and other fees would add to the purchase price, which was high enough already.

    The $8,000 tax credit is saving us. Wedding, new house, we're tapped out. We're definitely big fans of the tax credit!

    Still, we feel good about the purchase. Even though it's a lot to pay, we feel we got a good buy. The house next door is going for $1.2 million.

    Prices have tumbled in this area, so the house is a lot cheaper than it would have sold for a year or two ago, and we got a great rate, about 5.5%, on a FHA loan. We'll use some of the credit money to updating some of the home's circa-1950's decor -- fake wood beams and chandeliers, textured wallpaper and the like.

    OK, so here is my question for these two morons-

    The cutoff for the credit is 75k for a single filer and 150k for joint filing.

    HOW THE FUCK CAN YOU BUY A $750,000 HOME WHEN YOUR MAXIMUM TAKE HOME PAY IS 100K (150k minus 1/3 in taxes)?

    Your mortgage rate is 5.5%. Your payments are going to be $4200 per month ($50,000 for the year). THAT IS HALF YOUR ENTIRE TAKE HOME PAY!!!! You still have to pay property tax, insurance, utilities, phone, cable, automotive, food, entertainment, clothing, travel, oh and a little thing called RETIREMENT SAVINGS!!!!


    P.S.- Love this quote-
    "The $8,000 tax credit is saving us. Wedding, new house, we're tapped out. We're definitely big fans of the tax credit!"

    An $8000 credit on a 750k house is "saving them". It's less than two mortgage payments you d-bags!!!! LMAO.
  2. People are STUPID, what else do you need to know :D
  3. That sums up my thoughts exactly. :)
  4. aegis


    It's near Frisco. I bet lenders are more lenient there because the real estate is still ridiculously overpriced and likely always will be. Similar to 100 year mortgages in Japan.
  5. Maybe they got one of those 1% teaser adjustable rate loans that will explode in their face in 2 years. The numbers just don't pencil out, but this is one way the deal could work...
  6. In the article he said he got a 5.5% FHA loan.
  7. logikos


    What, are you suggesting they buy a house without a fire pit? For God's sake, you heard him, he loves to entertain!

    Maybe one day he will entertain the repo man, but for now, by golly, don't rain on his parade!:p
  8. LMAO. :D
  9. MattF


    "She is a hair stylist and he operates a crane..."

    Says a lot there too.

    Once one loses their job or gets cut back on work....it's over.
  10. its possible, maybe he put a huge down payment on the house..my bad , didnt know fha meant little down payment
    #10     Sep 8, 2009