2007-01-20 16:24:41 · 6 answers · asked by shaunbebington 1 in Business & Finance ➔ Renting & Real Estate
While it might not be a bad thing, it is probably not the best thing...
To finance the home, you would likely need a sub-prime loan. Do some research. You'll find once most people get a sub-prime loan, the terms are so difficult that they wind up stuck forever in the sub-prime market.
The better thing to do is work on fixing your credit. You do this by paying your bills on time and paying down your balances. If you do this for three months, your credit score will improve. Three more months, it improves more. After a year, you start looking good, and after just two years, your credit is excellent and you're able to get the best rates and deals.
Buying the house now is instant gratification. But it comes at a long term cost. Waiting until you're in a better position is harder, but will have long term benefits that will last a lifetime. (Correcting money issues is very liberating. Give yourself that gift!)
But one more thing...the people who say shop around are abso-freakin-lutely correct. There are loan programs out there for people with blemished credit where they won't pay the highest rates. Credit unions and FHA are great places to start. If you can get a loan at a decent rate without having to use a sub-prime lender, go for it!
2007-01-20 22:01:43 · answer #1 · answered by CJKatl 4 · 0⤊ 0⤋
I am assuming you mean with a mortgage at the highest interest rate. The answer to your question is YES! It is a bad thing. You can talk all you want about how you could make the payments work, it's a great house, you don't want to miss out on it, etc. However, there are MANY places from which you can shop around for mortgages. Check out what your bank, savings & loan (in the U.S.), credit union or caisse populaire (in Canada), and reputable mortgage broker can get you. Of course, there is more to a mortgage than just the interest rate. The terms of the mortgage will spell this out and you need to be aware of the implications of all facets of the mortgage before committing. Finally, you will also want to ensure you are dealing with an organization that will service your needs and is reputable.
To sum up, NEVER accept the HIGHEST rate. Shop around.
Take care and all the best.
2007-01-21 00:40:47 · answer #2 · answered by Air Hockey Canada 4 · 0⤊ 0⤋
If you are considering a high interet rate I'll assume you have some credit challenges and if that's the case - if you purchase the house at a GOOD price (preferably with some equity remaining) yes it is a good thing to do.
However, if you miss any payments and don't improve your credit you will be stuck in the high rate category until you do. But you will be gaining equity along the way and will be able to refinance to a lower rate at some point.
2007-01-21 01:08:06 · answer #3 · answered by LadyB!™ 4 · 0⤊ 0⤋
That depends on how high that is...if you can afford the payment...and the house was for a good price..you could do it and get your credit score much higher..then in a few years refinance at a lower rate...that's just a suggestion
2007-01-21 00:34:57 · answer #4 · answered by Chris B 4 · 1⤊ 0⤋
Yes, you will be paying tons more money in interest than you would for a home with the lowest interest rate.
2007-01-21 00:33:40 · answer #5 · answered by Mariposa 7 · 0⤊ 0⤋
i just dont understand your question
2007-01-21 00:28:18 · answer #6 · answered by starla 3 · 0⤊ 0⤋