Apol
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Cash: $ 0.45
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Joined: 26 Oct 2007
Location: LA
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| Need some serious advice |
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Let me start off by saying what a great forum this is, I just found it today.
I am in quite a dilemma. My wife and I filed Chapter 13 back in '05 and we are on the five-year repayment plan. Things are going great with it and we have learned to manage money a lot better. We are at the point now though that we want to purchase the home we are renting. I am a 14 year military member and at my 15 year mark, I will be offered a REDUX retirement plan. Basically, if I take $30,000 at my 15 year point and stay for 20 years, my retirement will be 40%. If I dont take it, my retirement will be 50%.
I would like to take the money and put it toward a house. Not sure if I can get a VA loan though in this bankruptcy.
Any advice would be great.
Thanks
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Fri Oct 26, 2007 11:15 pm |
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pf101
Senior Member
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Location: Portland, OR
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Do the math. That's what it's going to take to figure out this question. Figure out the difference between the 40% and the 50% over your life expectancy. Figure out the difference in mortgage payments without the $30k. Then see what works out better.
Would your landlord consider private financing? At least until you are out of the BK?
Before you decide anything you should also talk with a loan officer who is familiar with VA loans and see what they have to say.
Good luck
Personal Finance 101
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Fri Oct 26, 2007 11:49 pm |
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Apollo
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Cash: $ 73.85
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Joined: 10 Sep 2007
Location: New York
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| Re: Need some serious advice |
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One thing that find very difficult when you try to figure out the difference between 40% and 50% of retirement (any percentage for that matter) during 'your life expectancy' is how do you calculate life-expectancy, what number will you use?
If you decide to do that I would recommend a higher number just to be on the safe side.
You may want to look into private financing.
Personally I would not take the 30k to put it towards a home.
It is not smart to play it safe but it is safe to play it smart.
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Sat Oct 27, 2007 6:38 pm |
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Apol
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Cash: $ 0.45
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Joined: 26 Oct 2007
Location: LA
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I am not to concerned about life-expectancy. I dont plan on using the 40-50% retirement for a full income. I will retire at the age of 37 and I will be starting a new career in something. Contrary to popular belief, the military retirement system is not what it is cracked up to be.
As far as private financing, I dont know if the land lord would or not. Not to sure what that involves.
I spoke with the VA people and they already said they would back a loan for me while in the CH 13, but does this mean I would still be a sub-prime candidate or would I be in a bit of a better situation since it would be a VA loan?
I have searched and searched the internet and I cant come up with some of the answers to the questions when it involves bankruptcy.
Apollo...you stated you wouldnt take the 30k to put on a home, why not? I will get my money back in the end and I wont be throwing away thousands in rent.
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Sun Oct 28, 2007 3:26 pm |
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Apollo
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Cash: $ 73.85
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Joined: 10 Sep 2007
Location: New York
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The main reason why I wouldn't tak the 30k and put it towards a home is that I have a complete different approach to home-ownership. It's great to own a home but most people, in my opinion, approach it the wrong way which is one reason why we have so many problems in the housing market to begin with.
Would I take the 30k?
Yes, but I would do something else with that money and then buy my home.
It's just a personal preference and choice in order to avoid potential problems with mortgage payments in the future. You never know what happens over the next 30-years and the last thing you want is not to be able to pay your mortgage on time (due to job loss, family emergency, etc.).
That's the reason why I wouldn't take the 30k and put it tpward a down-payment on any home.
It is not smart to play it safe but it is safe to play it smart.
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Mon Oct 29, 2007 10:38 am |
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