Tuesday, April 12, 2005

Death by Mortgage

"What we try to talk about isn't the price of the house, but the monthly payment," said Weichert Realtors' Phyllis Bixon, a regional vice president for Bergen and Hudson counties.

Good to see that the realtors are borrowing that ages-old trick from car dealers — whatever you do, don't talk about price. Or total cost with financing. Or term of loan.

No. Just focus on monthly payment. That's where you turn a customer into a buyer.

One of Bergen's scarce $300,000 single-family houses is in Wyckoff, where million-dollar homes are commonplace. The pristine "bungalow-style ranch," listed at $299,900, has two bedrooms (one of which has no closets), one bath, a crawl space instead a basement and no road frontage.

"It's perfect for an individual just starting out, or someone who wants the Wyckoff address to keep a child in the school system," said Anthony J. Cali, whose Hawthorne agency, ERA A.J. Cali Real Estate, is listing the property.

A perfect starter home, huh? For who? Paris Hilton?

NorthJersey.com: "Want to buy a house for under $300,000? Lotsa luck!"

Kiplinger: "40-Year Mortgage"

And in other semi-related news:

AutoRemarketing.com: "Edmonds: 26 Percent of Consumers Upside Down"


— Posted by Michael @ 3:23 PM


TG I don't live in New Jersey! I mean, how can normal people even afford houses? One the couples in the article, (each makes under $30K) purchased a $285K house. And they were grateful that they got a 5 year interest only mortgage. Unbelieveable.


And the thing is, I see stories about this every day. Every day. People are absolutely wrapped up in the idea of home ownership, and price is of little concern.

A few years down the road, and we'll see where couples such as this one stand.

Even if you disregard the mortgage payments, owning a house ain't cheap. The peripheral costs are substantial.

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Thoughts on my personal finances, goals, experiences, motivations, and accomplishments (or lack thereof).

My financial life began turning around when I took responsibility for it.
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Currently: $0
[About Our Debt Paydown]


Savings Goal: $15,000
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