Millennial Looking for Creative Alternatives for Loan/Mortgage

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liz24
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Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by liz24 »

Hello Bogleheads,

I am a millennial who lived through and vividly remembers the Great Recession. I saw what irresponsible banking practices did to everyday Americans, families, marriages, and the country as a whole. I personally experienced employment and financial instability during that time.

Fast forward many years, and, due to a lot of hard work, working at times multiple jobs, saving aggressively, and living as frugally as possible, I will be purchasing my first home at the age of 34.

I will be closing on my house this year (projected Spring or Summer 2020), and I have been interested in creative options/alternatives for a loan as opposed to a traditional mortgage from a bank.

My loan size: roughly $275,000. Banks, after 10+ years since the financial crisis, still seem to loan irresponsibly, as I was told I could have a loan at nearly double that, which, in my calculations, would have been incredibly hard to bear. I currently have bankers bidding for my business.

Given the knowledge, life experiences, and levels of wealth of those on this board I wanted to ask: would anyone have any completely valid and legal ideas/methods on borrowing money and structuring a loan/amortization schedule so that my money would actually go to some positive and good purpose in the world? I am very happy to pay some interest rate- preferably lower than what a bank would currently give me- 3.7 or 3.8ish. I just would want my money to actually help people and the world, rather than go to the banks.

Are there people/donors/organizations who do this and show you how your money is going to help others? I am not familiar with this territory, but I would love to know if there are some better, more creative loan options out there. For example, some social project I could fund? I would love to use my house as a force for good.

As always, thank you in advance for your consideration and responses :)
Last edited by liz24 on Mon Jan 06, 2020 6:34 am, edited 1 time in total.
livesoft
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Re: Creative Alternatives for Loan/Mortgage?

Post by livesoft »

Donating money to charity is very common. One doesn't need a bank to help them. You are already doing something: You are apparently buying less home than you can afford which means you pay less on a mortgage than you would on a more expensive home which in turns leaves you with more cash to donate to the charities of your choice.

Cut out the middle men. Donate your money directly.
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Money Market
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Money Market »

How about getting a mortgage from your local credit union instead of a bank?
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JoeRetire
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by JoeRetire »

liz24 wrote: Mon Jan 06, 2020 6:19 amwould anyone have any completely valid and legal ideas/methods on borrowing money and structuring a loan/amortization schedule so that my money would actually go to some positive and good purpose in the world?
So you want to borrow money, but have your money go to some positive and good purpose?

If you are borrowing money, it's not your money. And the purpose is to give you the leverage to purchase a home rather than wait until you have accumulated enough to purchase one without a loan.
I am very happy to pay some interest rate- preferably lower than what a bank would currently give me- 3.7 or 3.8ish. I just would want my money to actually help people and the world, rather than go to the banks.
So you want to borrow money at a lower rate than banks would charge? Can your parents lend you the money?

This is confusing.

If you hate banks/mortgages, save your money and purchase a home when you have enough to do so without a mortgage. And if you want to use your money to help people and the world, donate your money to the charity of your choice.
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dcw213
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by dcw213 »

Unfortunately you will not have much luck in your pursuit. Contrary to your, and many's, opinion, mortgages are not a consumer lending product where banks gouge the consumer in interest rate (credit cards are a different story). It is actually quite the contrary - rates and duration of mortgages are very consumer friendly.

Mortgages are effectively subsidized by the federal government, in that most of them wind up in mortgage backed securities that are explicitly guaranteed by the government (Ginnie Mae, Fannie Mae, Freddie Mac). These MBS are bought by global investors and traded as highly liquid bonds with no credit risk given the guarantee. Banks generally dont hold most mortgages they originate as assets and those that do dont make much risk adjusted net interest income from the asset. Many offer the product as a way to remain connected to consumers given the prevalence of home ownership in this country.

Think about it, if you had a large amount of capital to deploy, would you really lend to a consumer at just 1% - 2% above a risk free rate of return while taking on the credit risk of borrower default and the interest rate risk of a 30 year duration (with a free prepayment option from the borrower)? Not good terms, good luck finding an institution that wants to lend to you and take on this asset and this risk. Best bet is a wealthy family member that wants to help you out, but based on your post you seem to want to help an institution.

I understand your contempt for "the banks" but this is not an area where you have much opportunity to go around the standard mortgage industry. You could go to a non bank lender or a credit union, but they all offer the same products and run through the same industry. Government involvement makes it the only option unless you would want to pony up way more in interest and/or take on a variable rate to compensate private capital for the risks they would be taking.

Only real way to not get yourself involved in the mortgage industry is to buy your home in cash (not possible for most). You dont hsve any leverage here, take the mortgage if you need it and donate to charity.
Last edited by dcw213 on Mon Jan 06, 2020 7:17 am, edited 2 times in total.
wilked
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by wilked »

No one is going to loan you $275K and ask for lower interest than a bank would. It's a great idea but is not possible. The only way you can get a below-market interest rate is via family member or good friend. And that is not typically advised (unless you wish to make Thanksgiving dinners much more high-tension!)

As noted, if you wish to support charity do it as a separate transaction from your mortgage
BlueCable
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by BlueCable »

wilked wrote: Mon Jan 06, 2020 7:15 am No one is going to loan you $275K and ask for lower interest than a bank would.
This is exactly what the three credit unions I've used would do.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by wilked »

BlueCable wrote: Mon Jan 06, 2020 7:17 am
wilked wrote: Mon Jan 06, 2020 7:15 am No one is going to loan you $275K and ask for lower interest than a bank would.
This is exactly what the three credit unions I've used would do.
I understand, and would say it's a little bit semantics; when I say bank I include Credit Unions, while acknowledging they are technically different things
BlueCable
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by BlueCable »

wilked wrote: Mon Jan 06, 2020 7:19 am
BlueCable wrote: Mon Jan 06, 2020 7:17 am
wilked wrote: Mon Jan 06, 2020 7:15 am No one is going to loan you $275K and ask for lower interest than a bank would.
This is exactly what the three credit unions I've used would do.
I understand, and would say it's a little bit semantics; when I say bank I include Credit Unions, while acknowledging they are technically different things
That's how I always thought of it too, but have been surprised to see some posters here not considered Credit Unions at all for some reason.

I think some people who are not familiar with credit unions do not realize that good ones consistently offer you better loan rates and better deposit rates then a bank.

And I think the mission of a credit union fits with what the OP is looking for.
Admiral
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Admiral »

Why do you feel "the banks" continue to loan "irresponsibly"? Presumably your lender did its underwriting and made a determination of how much you could afford to pay based on your income and assets? Whether you agree with this figure or not, they are not in the game to have mortgagees default. In fact lending standards have tightened considerably since 2008.

A credit union would certainly be a better choice than a bank, though they, too, are still in the game to make money.
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Tamarind
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Tamarind »

Hi fellow millennial!

A local credit union would be a good idea for you, I think. There are many with sound missions that support local communities.

However you should expect to pay more, not less, to do this. It costs money to run social responsibility programs or make donations, and most of that that money has to come from the members in the form of higher rates on loans and lower rates on deposits.

Alternatively, you can take the cheaper loan from a national bank and use the money saved on interest to contribute to cause that mean the most to you personally.
BlueCable
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by BlueCable »

Tamarind wrote: Mon Jan 06, 2020 7:40 am A local credit union would be a good idea for you, I think. There are many with sound missions that support local communities.

However you should expect to pay more, not less, to do this. It costs money to run social responsibility programs or make donations, and most of that that money has to come from the members in the form of higher rates on loans and lower rates on
Maybe this varies by region, but it is absolutely not true here in Iowa. Credit Unions have the best savings rates and the best loan rates here.
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Tamarind
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Tamarind »

BlueCable wrote: Mon Jan 06, 2020 7:45 am
Tamarind wrote: Mon Jan 06, 2020 7:40 am A local credit union would be a good idea for you, I think. There are many with sound missions that support local communities.

However you should expect to pay more, not less, to do this. It costs money to run social responsibility programs or make donations, and most of that that money has to come from the members in the form of higher rates on loans and lower rates on
Maybe this varies by region, but it is absolutely not true here in Iowa. Credit Unions have the best savings rates and the best loan rates here.
Fair enough, none of my central NC credit unions are competitive with Ally. Might also vary by size of CU.
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djpeteski
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by djpeteski »

liz24 wrote: Mon Jan 06, 2020 6:19 am I just would want my money to actually help people and the world, rather than go to the banks.
I am not a fan of banks, however they do help people. They are responsible for hundreds of secure translations per year for me and my family. Without that platform, our life would be more difficult.

By lending you money, they are helping you. Presumably your home purchase is a good emotional and financial decision. Without their help and faith in you, there would be no participation by you in that transaction. Also the seller of the home is benefiting from the sale.

If it was me, I would finance through a bank that I enjoyed doing business with that also provided a competitive rate.
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Brianmcg321
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Brianmcg321 »

If banks are so evil you should stop borrowing money from them.

Pay your house off as quick as you can and then you can start donating your mortgage payment every month.
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student
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by student »

I don't understand why you only blame the banks. It is a two-way street. Both the lender and the borrower were irresponsible in those bad mortgages during the great recession.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by SovereignInvestor »

student wrote: Mon Jan 06, 2020 8:16 am I don't understand why you only blame the banks. It is a two-way street. Both the lender and the borrower were irresponsible in those bad mortgages during the great recession.
Moreover on the unwarranted blaming of banks. They are greedy and want to compete to make as many loans as possible so they compete against each other to offer lowest interest rate. If one isn't getting the lowest rate possible it's likey because the individual didn't shop around and take advantage of competition.

As others mentioned mortgage rates are subsidized to be lower due to federal government being a buyer.

But it isn't crazy to make loans at 1.5% or so above risk free rate.....mortgages are pretty safe....assuming current solid underwriting standards..hard for banks to lose when there's 20% down payment equity buffer. And if there is no 20% down, then they're protected via mortgage insurance.
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whodidntante
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by whodidntante »

If you have a friend or a family member who is interested in holding your note at the same rate, that may help them out and be a net positive. The money would go to good things like whatever they need to spend money on and how they like to donate money. However, it should be a secured loan in every sense, including the ability to legally take the house on a reasonable timeframe if you default. And you would have a legal obligation to repay the money. I would also think that you have an ethical obligation to repay the money even if you live in a non-recourse state. And you should put down 20% to reduce their risk.

If you do this, you can use a third pary to service the note. I.e., if you prepay 10k in principal, both you and the holder of the note would want that to be recorded correctly. And someone should check that you have the required insurance and that you pay your taxes.

If you want a lower rate, go for a 15 year or 20 year mortgage. 30 years is a long time and the market demands a higher rate for that.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by dcw213 »

SovereignInvestor wrote: Mon Jan 06, 2020 8:23 am
student wrote: Mon Jan 06, 2020 8:16 am I don't understand why you only blame the banks. It is a two-way street. Both the lender and the borrower were irresponsible in those bad mortgages during the great recession.

But it isn't crazy to make loans at 1.5% or so above risk free rate.....mortgages are pretty safe....assuming current solid underwriting standards..hard for banks to lose when there's 20% down payment equity buffer. And if there is no 20% down, then they're protected via mortgage insurance.
Obviously people do invest in the loans, but I would say it would be crazy to make this asset a sizable part of a balance sheet. Not a good risk/profitability trade off if you hold the credit risk (most MBS investors today do not). The US is the only country where the 30 year fixed rate prepayable mortgage is prevalent for a reason. If it was a good investment or loan, it would be the standard. Role of the government is key.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by stoptothink »

Ummm, if there were organizations who provided mortgages (for less than banks) and the interest went to a "good cause", everybody on the planet would be doing it and OP wouldn't have to ask this question. Unless you can get a private loan from friend/family, you are probably out of luck.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by hachiko »

You're on the wrong side of the transaction to "do good." You're a borrower which means the only benefit you provide to the lender is interest.

Lending can "do good" by providing access to money that an organization or person can't otherwise get, and/or at a lower interest rate. But borrowing is rarely an opportunity to "do good."
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Wellfleet »

Definitely a credit union associated with a group you may have an affinity for. Because I live in Massachusetts, I would suggest some place like this: https://www.cityofbostoncu.com/ or look at this one in Vermont, certainly doesn't look like a big bad bank to me! http://www.members1cu.com/
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by bloom2708 »

HEDGEFUNDIE wrote: Mon Jan 06, 2020 9:34 am This might be the most millennial thing I’ve ever read.

And I say that as a millennial.
+1

I think the OP has been duped. Don't believe everything you read.

Responsible borrowing. If you go into a bank and they are willing to borrow you $500k, but you can't possibly afford it based on your numbers, who did wrong? The bank/credit union has your house as collateral. They are trying to make money through fees and interest collected. You have to determine what you can borrow and if you can meet your financial goals.

Renting is the best option to meet your criteria. Not borrowing $275k.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Unladen_Swallow »

Are you confusing borrowing with lending?
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Unladen_Swallow »

hachiko wrote: Mon Jan 06, 2020 9:29 am You're on the wrong side of the transaction to "do good." You're a borrower which means the only benefit you provide to the lender is interest.
This.
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watchnerd
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by watchnerd »

liz24 wrote: Mon Jan 06, 2020 6:19 am
would anyone have any completely valid and legal ideas/methods on borrowing money and structuring a loan/amortization schedule so that my money would actually go to some positive and good purpose in the world? I am very happy to pay some interest rate- preferably lower than what a bank would currently give me- 3.7 or 3.8ish. I just would want my money to actually help people and the world, rather than go to the banks.
Are you willing to pay a higher interest rate if that money is going to a good cause?

Say charge you +1% -2% more APR?

There might be a business that could be built doing that. "Fair trade mortgages" or something.

Think of it like organic, sustainable food for mortgages.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Grt2bOutdoors »

Irresponsible lending? - the next time you pass by a Low Income Housing project, think about where the financing for those projects come from. The next time you see redevelopment of blighted areas occur, think about where the financing comes from. Your local municipality - you really believe that all public works are paid for through your tax dollars? Many of those all the rage solar/wind power projects - that's right, the money comes from banks. Without borrowing the economy would grind to a halt. It is up to you as the borrower to determine what is responsible and what is not. You have a choice, many of those who got in over their heads had zero business purchasing homes - many of them knew it too, but plunged ahead anyway because of FOMO. If you're going to point fingers, there are plenty of other folks who are culpable for the fallout. Much of it goes back to those who signed a piece of paper that said "I promise to pay".

Noble thought on your part but not many are willing to accept below market interest rates in return for placing their money at risk. As suggested, if you want to do good, return it in the form of charity - time, money, skills you possess. That is the best way to contribute to society.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by HEDGEFUNDIE »

watchnerd wrote: Mon Jan 06, 2020 10:31 am
liz24 wrote: Mon Jan 06, 2020 6:19 am
would anyone have any completely valid and legal ideas/methods on borrowing money and structuring a loan/amortization schedule so that my money would actually go to some positive and good purpose in the world? I am very happy to pay some interest rate- preferably lower than what a bank would currently give me- 3.7 or 3.8ish. I just would want my money to actually help people and the world, rather than go to the banks.
Are you willing to pay a higher interest rate if that money is going to a good cause?

Say charge you +1% -2% more APR?

There might be a business that could be built doing that. "Fair trade mortgages" or something.

Think of it like organic, sustainable food for mortgages.
I only borrow free range mortgages.
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watchnerd
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by watchnerd »

HEDGEFUNDIE wrote: Mon Jan 06, 2020 10:32 am

I only borrow free range mortgages.
As you should if you care about the humane treatment of mortgages.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by investingdad »

OP,

The people that lost homes during the mortgage crisis did so because they borrowed more than they could afford.

If a lender says I can afford to borrow X, it's ultimately up to me to know if I can really afford it. Did I run the numbers? Did I do what if scenarios? Or did I willingly believe them because I didn't care about reality and really just wanted to believe I could afford the house I wanted?

A lot of people fall into latter category. I remember reading all the hard luck stories as it was happening and my wife and I continued to wonder what made anyone think they could afford a 400k mortgage on an 90k salary. The consumer didn't want to be responsible for checking themself and naturally the banks were fine with it.

Just bundle the questionable mortgages with good ones and spread the risk.

None of it would have gone down if home mortgage borrowers would have used common sense and crunched the numbers. Instead it was, oh...i didn't know what I was signing, don't blame me.

Lack of personal financial responsibility.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Admiral »

I'm not a Millennial, but I don't think we need to rag on the OP (or Millennials generally) for a desire to perhaps discover a more socially responsible means of acquiring a home. Certainly there were (and are) some predatory lenders, but banks serve a purpose in our capitalist system. Often, they commit bad acts, and they probably need better regulation. But, that's the system we've chosen. If you want to borrow a lot of money, you need a bank, credit union, or rich uncle.

But there are religious and other social groups who lend money within their own own clans/families, either because they have no access to credit or don't want to pay interest to outsiders. But unless one has a very rich and very generous clan member, there's likely to be some interest. The question is what happens to it: Is it taken as profit, or re-invested within the group for some desirable purpose.
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greg24
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by greg24 »

Borrow from a credit union.

Limit the term as much as possible. 15- or 20-year mortgages are your best bet. Lower rate and shorter term than the 30-year means much much less interest paid. My local credit union is offering 3.375% on a 30-year, and 2.875% on a 15-year.

If you want to be super aggressive in avoiding interest, try to find a 10-year term, or maybe even go crazy and get an ARM. If you do get an ARM loan, I would suggest only doing this if you plan to be very very aggressive in paying down the loan from the beginning. As in, making twice the payment every month, or even more aggressive.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by Admiral »

investingdad wrote: Mon Jan 06, 2020 10:37 am OP,

The people that lost homes during the mortgage crisis did so because they borrowed more than they could afford.

If a lender says I can afford to borrow X, it's ultimately up to me to know if I can really afford it. Did I run the numbers? Did I do what if scenarios? Or did I willingly believe them because I didn't care about reality and really just wanted to believe I could afford the house I wanted?

A lot of people fall into latter category. I remember reading all the hard luck stories as it was happening and my wife and I continued to wonder what made anyone think they could afford a 400k mortgage on an 90k salary. The consumer didn't want to be responsible for checking themself and naturally the banks were fine with it.

Just bundle the questionable mortgages with good ones and spread the risk.

None of it would have gone down if home mortgage borrowers would have used common sense and crunched the numbers. Instead it was, oh...i didn't know what I was signing, don't blame me.

Lack of personal financial responsibility.
I don't disagree, but I think the reason people took "liar loans" is simple: we were in a real estate bubble and people simply assumed they could sell the house quickly and make a lot of money (or the value would continue to go up and they could take cash out, which many did).
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by surfstar »

How to world actually works and how you want the world to work, do not always align.

Getting "creative" with money/loans is usually a risky thing.


OP - find the best/lowest rate you can, from a Credit Union if that makes you feel better. Donate the "savings" vs a higher priced loan to some charity, if you're so inclined.


...or just go full millennial and build your own Tiny Home / #VanLife.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by hachiko »

investingdad wrote: Mon Jan 06, 2020 10:37 am None of it would have gone down if home mortgage borrowers would have used common sense and crunched the numbers. Instead it was, oh...i didn't know what I was signing, don't blame me.

Lack of personal financial responsibility.
I agree with your post's overall sentiment, but I think this is a vast oversimplification of what went on.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by koala2 »

+1 for a mortgage with a local bank. In addition to supporting the local economy, it also has the added benefit that if anything comes up, you can go to a physical address down the road instead of spending a lot of time in call center purgatory.
When we bought our first house we were shocked at how much we were preapproved for. We could have bought a house 2x what we did for just my salary alone. Of course the system continues to be irresponsible on many sides. FWIW, we "reconciled" our feelings by realizing we can voice our opinion on said system at the ballot box.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by watchnerd »

SovereignInvestor wrote: Mon Jan 06, 2020 11:18 am
Good chance bank sells mortgage and it ends up in a pension fund that helps middle class retired people retire. Is thst bad?
For those increasingly rare pension funds that still exist.

Otherwise, packaged up as MBS and sold in a bond fund to self-directed investors.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by ohai »

Which part of the bank behavior was "irresponsible"?

If you are mad that some (large) banks were not well capitalized during the crisis and posed a systemic risk, then just do business with the ones that were well capitalized (JPM, WFC, GS, etc.), and in fact, "rescued" other institutions.

If you are mad about securitization of loans, then you can find banks that did not participate in this sort of business.

Protesting "banks" as a category seems pretty naive, and grouping every member of a group together in a negative way is basically [stereotyping --admin LadyGeek].
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by SovereignInvestor »

watchnerd wrote: Mon Jan 06, 2020 11:22 am
SovereignInvestor wrote: Mon Jan 06, 2020 11:18 am
Good chance bank sells mortgage and it ends up in a pension fund that helps middle class retired people retire. Is thst bad?
For those increasingly rare pension funds that still exist.

Otherwise, packaged up as MBS and sold in a bond fund to self-directed investors.
Pension funds aren't that rare. They may be less common for new employees bit there's so much pension fund capital out there for existing retirees and soon to be retirees who started in plans from the 1990s or 1980s..
mervinj7
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by mervinj7 »

[OT quote and comment removed by Moderator Misenplace]

That said, to keep on topic for OP, I would recommend using a local credit union and avoiding some of larger banks if that's your concern. However, it does not necessarily mean you will get a lower rate. In fact, you may have to pay slightly more depending on your credit and asset qualifications.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by playtothebeat »

Rather than focusing on the mortgage aspect, focus on the home buying where you can certainly find ways to satisfy your needs. For instance, rather than buying from a national home builder (presuming you’re buying new construction), but from a local builder. When hiring contractors for renovations, hire local Family owned businesses, etc.
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watchnerd
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by watchnerd »

SovereignInvestor wrote: Mon Jan 06, 2020 12:11 pm
Pension funds aren't that rare. They may be less common for new employees bit there's so much pension fund capital out there for existing retirees and soon to be retirees who started in plans from the 1990s or 1980s..
13% of Americans have pension funds these days.

25 years ago, that number was 38%.

I'd call that rare and getting rarer.
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alwayshedge
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by alwayshedge »

This post is confusing. You’re borrowing money and want your repayment to go to a good cause? :confused
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by investingdad »

alwayshedge wrote: Mon Jan 06, 2020 12:21 pm This post is confusing. You’re borrowing money and want your repayment to go to a good cause? :confused
That's what I read as well.

I don't really know how to respond.
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JoeRetire
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by JoeRetire »

watchnerd wrote: Mon Jan 06, 2020 10:35 am
HEDGEFUNDIE wrote: Mon Jan 06, 2020 10:32 am

I only borrow free range mortgages.
As you should if you care about the humane treatment of mortgages.
But are they organic and sustainable?
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by SovereignInvestor »

watchnerd wrote: Mon Jan 06, 2020 12:21 pm
SovereignInvestor wrote: Mon Jan 06, 2020 12:11 pm
Pension funds aren't that rare. They may be less common for new employees bit there's so much pension fund capital out there for existing retirees and soon to be retirees who started in plans from the 1990s or 1980s..
13% of Americans have pension funds these days.

25 years ago, that number was 38%.

I'd call that rare and getting rarer.
It is rarer but that is for CURRENT EMPLOYEES. For retirees the decline hasn't been as severe because it hits employees first then retirees.

Even if all employees in workforce fully had pensions frozen and eliminate there would still be substantial money in pension funds paying out already promised benefits for decades.

Yes they're declining but it is a very slow decline for the funds since they have 30-50 year liabilities for any promise already made.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by SovereignInvestor »

JoeRetire wrote: Mon Jan 06, 2020 2:11 pm
watchnerd wrote: Mon Jan 06, 2020 10:35 am
HEDGEFUNDIE wrote: Mon Jan 06, 2020 10:32 am

I only borrow free range mortgages.
As you should if you care about the humane treatment of mortgages.
But are they organic and sustainable?
Perhaps the mortgaged are organic but at they non GMO?
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by DriftWood »

I only borrow money from socially responsible lenders. Why? Cause I am a millennia with higher education degree.
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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by mervinj7 »

DriftWood wrote: Mon Jan 06, 2020 2:40 pm I only borrow money from socially responsible lenders. Why? Cause I am a millennia with higher education degree.
Do you look for community development financial institutions (CDFI)? In theory, they should be socially responsible lenders.

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Re: Millennial Looking for Creative Alternatives for Loan/Mortgage

Post by TN_Boy »

investingdad wrote: Mon Jan 06, 2020 2:04 pm
alwayshedge wrote: Mon Jan 06, 2020 12:21 pm This post is confusing. You’re borrowing money and want your repayment to go to a good cause? :confused
That's what I read as well.

I don't really know how to respond.
The post was a bit confusing to me to, but I think all the OP is saying is that they want the profits earned via lending to OP to be earned by a "better" institution than a large bank.

In which case the idea of borrowing from a local credit union is probably as good an any, assuming that reasonable choices exist for the OP.
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