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Forum nameOkay Activist Archives
Topic subjectRE: your number are shaky...
Topic URLhttp://board.okayplayer.com/okp.php?az=show_topic&forum=22&topic_id=25270&mesg_id=25297
25297, RE: your number are shaky...
Posted by M2, Sun Apr-08-01 02:47 PM

>i do get your point, but
>these numbers are questionable.
>i mean, it all depends
>on your college stuff, but
>35-45 is a REALLY nice
>starting salary these days, and
>50-70 by the late 20s
>is one HELL of a

The Average Starting salary for Engineers, Accountants, Finance Majors and Comp Sci folks is between 35-45. That's what my friends majored in in college, (with 2 exceptions) the Lowest Starting salary was 35...but it was at an accounting firm that worked you to death and paid overtime...so it ended up being about 45k...50 wasn't out of the question either. I don't think any of us made less then 40 1st year out of college.

My point is that all of us wanted to make some serious money, and we picked our professions accordingly. I know a lot of people making 50-70 in their late 20s.....personally I don't think 50 is out of the question by age 30...heck you'd better make at least that much.

>then we get to the house
>stuff. you cover the
>downpayment, but don't forget, there's
>a mortgage (or 2) on
>that. if your FIRST
>house costs 150-200K, even if
>you pull 125K combined, with
>NO kids, you'll be paying
>for that house for 10
>years (at least). fix
>it up and sell it?
> well, that's where the
>second mortgage may come in.
> "fixing up" a house
>ain't cheap.

I'm assuming that the repairs/enhancements wouldn't require a second mortgage. Also, a lot of people (in my experience) borrow extra money if they feel they'll need it to fix up the house.

As for them still being in debt, it typically takes 30 years to pay off a house. Few people plan on paying off their first house, let alone a 250k one in 10 years or less. You get a 30 year mortgage, you wait 5 years to avoid the prepayment penalty (depending on what state you live in) and then you sell it and use the proceeds to pay off the principle remaining on the Mortgage...you take the rest and put it down on a new house. You don't need to pay off the house to sell it.

I'm not trying to sound daft, but I think you misunderstand how mortgages work. No matter how much money you make, most people have 30 year mortgages. Since the interest is usually fixed and you can invest the money you would use to pay the house off quicker...it is smarter (financially) to have a long mortgage then a short one. If you want, I can do the calcs for you........

Anyway, I just got done working on a project for Mortgage Origination company working with their loan origination software....I know the industry pretty well...trust me on this one.

> i
>get your point here, but
>i wanted to clarify how
>uneasy this whole thing can

Cool, and I added some detail.

I will say that I'm basing this on what my family and friends families did growing up and what my friends and colleagues are doing now. While the salaries may be inflated because of those professions I spoke off.....it does speak to people imitating their parents...because that what my friends are doing.