metatron
Fighting The Good Fight ™   SSHOLE |
Posts: 467 Registered: 4/12/2002 Offline
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4/14/2005 at 03:25 |
Argh. Growing up is a serious bitch. I'm trying to prepare myself for the perils of being a debting college graduate. Hopefully there are some brains out amongst the LinkSwarm collective that can be picked (or pricked, whatever).
Item 1: I mentioned this in a journal comment not too long ago, but I'm looking at about $25k in student loans that will need to be repaid starting within 6 months of my May graduation. About $20k of this is a FASFA Unsubsidized Direct loan (I pay yearly interest already) and the rest is an unsubsidized loan from my university's alumni endowment association. My question pertains to the idea of consolidating these loans into one single payment, at what I have read to be lower interest rates. Is this a sham? It sounds to good to be true. Has anyone had experience in student loan consolidation that might lend some helpful advice?
Item 2: I'm also in search of a new place to live. Following graduation, I've already got my full-time employment gig waiting which should keep me in gucci, gold and g-wagons (MB G Class for all you dumbskulls). The question - Am I a fool to ponder the idea of buying a house? Would I even have a long shot at getting a decent mortgage with very little for a possible down payment and a minimal credit history (auto loan, credit card)? I'm fairly sure I could afford the payments, it's just the up-front stuff that scares me.
Thanks in advance for any advice.
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"it's water out of your body" - vasudeva
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ghostrider
liberal exit  SSHOLEPosts: 2410 Registered: 7/29/2004 Offline
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4/14/2005 at 03:34 |
item 1 : YES, consolidate the loans and never miss a payment. I did this and it saved my life, because it ties into..
item 2 : student loan payments figure heavily into loan apps for home buying. Seek out a first time buyers loan program in your state, and be prepared to apply twice, as you will be turned down the first time. Do whatever it takes to have some money to put down on a house, as this will increase yer chances of loan approval.
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i feed my dog (Magic Man) Kraft Singles cheese slices for a week.one slice over each of his food dishes a day. then i take him backyard and place a cheese slice over his shit piles.he consumes the cheese and waste. ~tantrum |
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metatron
Fighting The Good Fight ™ SSHOLEPosts: 467 Registered: 4/12/2002 Offline
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4/14/2005 at 03:37 |
ghostrideryyz: item 1 : YES, consolidate the loans and never miss a payment. I did this and it saved my life, because it ties into..
item 2 : student loan payments figure heavily into loan apps for home buying. Seek out a first time buyers loan program in your state, and be prepared to apply twice, as you will be turned down the first time. Do whatever it takes to have some money to put down on a house, as this will increase yer chances of loan approval.
Is there a reccommended place to consolidate with? Fannie/Sallie Mae? Just any old internet consolidation shop?
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"it's water out of your body" - vasudeva |
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ghostrider
liberal exit SSHOLEPosts: 2410 Registered: 7/29/2004 Offline
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4/14/2005 at 03:43 |
i did mine through a credit union
[Edited on 14/4/2005 by ghostrideryyz]
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i feed my dog (Magic Man) Kraft Singles cheese slices for a week.one slice over each of his food dishes a day. then i take him backyard and place a cheese slice over his shit piles.he consumes the cheese and waste. ~tantrum |
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nocal
It's insane, this guy's taint  SSHOLEPosts: 810 Registered: 8/25/2004 Offline
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4/14/2005 at 03:48 |
1) Alls I know is, consolidate with a legit loan company. My mom went ahead and did this for me (I trust her, she worked for a mortgage broker) and i'm saving in the neighborhood of $300 a month. Figure that one out and go for it.
2) No, don't bother. You will have to apply for a loan, and when you apply, whether approved or not, they do a credit check. This takes (I think) 20 points off your score no matter what. Not a ton, but still...I would say, wait until you have some legitimate cash and collateral and a steady long-term job (all pluses) before you bother with this. Better than a house even, possibly look into buying a condo. Cheaper, better than renting (not "throwing away" money to live somewhere), and when you go to buy a house, it can be collateral/an investment that can end up earning you extra cash whether you sell/rent. That is my slightly educated opinion. |
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ragoo
We are not amused.  SSHOLEPosts: 649 Registered: 9/4/2004 Offline
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4/14/2005 at 04:06 |
nocal: 1) Alls I know is, consolidate with a legit loan company.
Truth. There are a million companies that will offer to consolidate debt, but there are MANY that are in it simply to take your money. Use a local bank or, as ghost suggested, a credit union--which generally involves a lot less bureaucracy.
Wait on buying the house, until you have stashed away 5-10% of the cost to put toward a downpayment. Be prepared for a lot of nonsense from your mortgage company, even after you're approved and have made an offer. They will lose all the documentation you send them several times, and will relish springing last-minute surprises on you--like calling you at 4:30 the day before your closing to say you need to have the property sprayed TODAY to prevent the possibilty of termites.
One of the best pieces of advice I can give: after your offer has been accepted, retain a real estate attorney to deal with the mortage company, seller and real estate agents. They usually have one fee, determined by the state, so that you don't get raped. A concientious lawyer can save you from dealing with a ton of bullshit and telephone calls.
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Interjections show excitement or emotion. They're generally set apart from a sentence by an exclamation point, or by a comma when the feeling's not as strong. |
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LORDKAHUNA
Don't make me fuk your moustache  SSHOLEPosts: 1608 Registered: 8/5/2003 Offline
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4/14/2005 at 11:52 |
Ragoo: Wait on buying the house
Home ownership is a fuking trap, forget the bullshit about building equity cause most ppl use that equity to just buy bigger houses. By the time you finish paying for it you are an old man, and when shit goes wrong (ie plumbing, electrical, roof leaking, etc) that shit comes outa your pocket.
Renting rocks, and when you get tired of your place you can just move with a minimum of fuss. and household repairs are a phone call away.
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the rice I had yesterday came out practically verbatim |
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LORDKAHUNA
Don't make me fuk your moustache SSHOLEPosts: 1608 Registered: 8/5/2003 Offline
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4/14/2005 at 11:52 |
Fuk!
double post
[Edited on 14/4/2005 by LORDKAHUNA]
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the rice I had yesterday came out practically verbatim |
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McGoatCheese
SIR BABYHEAD  Posts: 79 Registered: 7/22/2002 Offline
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4/14/2005 at 12:34 |
1. i did my loan consolidation through the government, was simple enough and if rates are still as low as they were then i'd certainly say, yeah, jump on that. also make sure you get a fixed intrest rate. much better than variable, won't ever go up on you. plus i found out when the rate drops in general my rate goes down as well, but it will never go above the cap rate that i had it set at.
2. I've been thinking about the whole buy a house thing myself lately, and certainly around here prices are insane. but I was talking to a friend who has a house already and a general rule is go into things with 10% down payment already figured out before loans and such, drive the cost of things down alot. also i heard found out an interesting thing re: capital gains. If you have a house, and sell it after living there for 2 years you don't have to pay capital gains on anything. and you can do this as many times as you want as long as you do it every 2 years. yeah, it'd require moving every 2 years.. but saving money....
and as w/ anything on the interwebs do your own research, i may be misremembering some stuff on question 2.
--goat |
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InfectionConnection
SIR BABYHEAD  Posts: 94 Registered: 9/24/2003 Offline
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4/14/2005 at 20:20 |
Item 2
1. I've never heard that simply applying for a home loan would affect your credit rating. I am sceptical about this assertion. I've heard that looking into consumer loans (eg credit cards) does this, but to what extent i wouldn't know.
2. I've bought two properties without a lawyer. If you are detail oriented, have a good (experienced agent) you probably don't need one. Your agent doesn't get shit until the sale is complete so they do have a financial incentive in getting your paperwork all together.
3. Home ownership is not a trap. I've acquired a bunch of equity, lowered my monthly housing cost, and in less than 15 years, well before I retire, I will have paid off my mortgage unless I move.
4. Renting blows. You are essentially paying for someone else to buy a house. Sure, you may have to fix a pipe now and then, but let me tell you, copper pipe and blowtorches are cool.
5. Condos are good for (common area) repairs, but they generally don't appreciate as much as a house will. Houses are a lot more work.
6. You will need money down. This can be as little as 5%. Talk to a mortgage broker. They will tell you: What you can afford, How much down you'll need, and what the closing costs will cost you.
7. The Capital Gains exemption only works for the first $250k of profit on a "primary residence" ($500k for a married couple). Keeping track of capital improvement costs (ie a new roof, a new kitchen, etc - Not general maintenance) increases the exemptoin by the amount you spend for those items. You can get the C/G exemption every 2 years
The 3 Rules of buying real estate are Location, Location and Location. You can do a lot to a crappy looking house, but you can't do shit for a crappy neighborhood....
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paris_hilton
Tender vittles  Posts: 3 Registered: 4/14/2005 Offline
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4/14/2005 at 20:28 |
debt? |
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InfectionConnection
SIR BABYHEAD Posts: 94 Registered: 9/24/2003 Offline
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4/14/2005 at 20:37 |
May 2005 Kiplinger's Personal Finance magazine has an article on student loan consolidation AND and article on the US housing market
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Acidburn
I am El Chupacabra  SSHOLEPosts: 748 Registered: 8/1/2004 Offline
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4/15/2005 at 01:24 |
Maybe whore your ass out. The pay is good I hear but the bennies suck....
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No you can't have my rights. I'm not through with them!
You got Down Syndrome so bad you probably have up,left and right too.
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This is Rabbit. and it kills everyday.
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mundhra
dread pirate neckbeard  SSHOLEPosts: 1615 Registered: 3/25/2002 Offline
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4/15/2005 at 03:24 |
consolidation is defintely a win, especially if interest rates are still low.
renting is for suckers. i should've bought a place as soon as i moved here, then again i wasn't really ready to. i couldn't afford anything but a shitty ghetto place now... or else drive an hour and a half each way to work.
my gf bought her condo at 117k and two years later it's worth ~200k. i knew a guy who made 75k in 9 months on a place. then again, the housing market's ridiculous around here...
but, have enough to put down and don't overextend yourself. make sure you're ready, though.
[Edited on 15/4/2005 by mundhra] |
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Steel
If you want to keep your tongue, don't lick me in the Winter!  SSHOLEPosts: 486 Registered: 10/14/2004 Offline
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4/15/2005 at 14:58 |
I also enjoy owning my own home. Nothing witty to say here. |
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BeachGoat
DARTH MENSES  Posts: 431 Registered: 10/31/2003 Offline
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4/15/2005 at 15:21 |
We paid 138 for our house including closing. In a little over six years its worth has climbed to over 550. You can't go wrong. Buy the fucking house. Money is transitory. Property is tactile. That's why they call it REAL estate.
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