Re: Loan payments impact on credit score

jIM <noreplysoccer@[EMAIL PROTECTED]
> writes:

> > skyrocket in price.  If you think you might be able to
> > afford that house in 6 months, you can bet that you'll still
> > be able to afford it in 12, with a much bigger margin of
> > day-to-day cashflow safety.

> In June of 2005 we put money down (lot hold) in same neighborhood on
> same floorplan with same builder- just deeper into neighborhood.  Cost
> of house had increased to $352k.  77k increase in about 6-12 months.

That was during a unique and extraordinary period.  Over the
long run, houses go up at about 1-1.5% above inflation, NOT
at 20% in 6 months.  Houses that go up 20% in 6 months can
come *down* almost that fast, especially when purchased by
folks who leverage very hard to buy them and have no cash
cu****on.  Those are the some of the same people being
forced to dump them right now.

> Sometimes waiting costs you money.  In our case we liked going into
> house debt free and on our terms.  In this market if you walked away
> like we did, they will bend over to keep you.  In the market of 2004
> that lot was resold within 2 weeks.

The odds are overwhelmingly against what you described.
It happens that the markets behaved that way a handful
of times over the last century.  Not a great bet, or
at least certainly not a *conservative* one and not
one I'd ever recommend to the OP to engage in.  And it
sounds like you did the smart thing, too - by not buying
that place until you really were ready.

-- 
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