Financial Python

Studies in Finance and Python

Posts Tagged ‘mortgage

Innumerate America on HGTV

with one comment

I couldn’t sleep last night and ended up watching, of all things, HGTV’s “My First Place.” It was incredibly frustrating. A young couple moves from Colorado to Arizona and is looking to buy a home. They are pre-approved for 100% financing and are looking to spend about $350,000 for four bedrooms, etc. Over the course of the episode, they consider buying a home in foreclosure, their financing falls through, Phoenix is designated a falling market, and they end up borrowing the 3% downpayment they need to buy a less expensive home that comes in around $290k if I remember correctly. It’s like they are trying to end up upside-down on their mortgage.

The husband is a gym teacher and the wife is graduating from veterinary school. The couple seems very nice, but also incredibly clueless. What are they doing looking to buy a four bedroom home (they have two dogs but no kids) with zero equity in a falling market? If I hear the phrase “granite countertops” again, I’m going to lose it.

Now, I’m not sure when the episode was taped. Probably last year sometime. Nevertheless…WAKE UP AMERICA! If you are just graduating from school and can’t scrounge together even 3% in equity in a falling market, you have no business buying a house! It’s insane! (unless mommy and daddy are wrapping your risk, in which case, congratulations).

Written by DK

July 1, 2009 at 1:26 am

Posted in Finance

Tagged with , ,