1.
>how many people here can explain the difference between ETFs
>and index funds off top?

2.
>how bout a tbill vs. a tip?

3.
>keeping it house specific how many can calculate PMI for a
>given loan amount off top? do we even know what the current
>base rates are?


before we get down to that level of knowledge,
how bout simple responsibility of paying your bills on time?
many ppl in the hood have jacked up credit from not paying bills as they should.
i honestly dont know 1 & 2. but i know 3. as i've built all kinds of spreadsheets/formulas calculating rent vs buy scenarios in the last couple years to assess my personal situation.

i knew what a tbill was but i had to google TIPS
Treasury Inflation Protected Securities (TIPS)



>deebojam might have just been giving an illustration above but
>it seems like he's promoting FHA loans when that's one of the
>worst options from a financial perspective, especially now. a
>good amount of black owners i know that shared the info copped
>with FHA loans or other similar programs. so you have plenty
>of ppl who DO own who are underwater or paying hundreds of
>dollars extra every month because they felt compelled to buy
>at an inopportune time



FHA are designed for ppl with iffy credit and marginal financials.
It is an alternate to "conventional" mortgage where the bank wants at least 5% downpayment and preferably 20% downpayment
I'm pushing FHA in this post because OP was focusing on really shitty/violent areas that are pre-gentrification.
Many times, those that CHOOSE to live in such violence and squalor cannot afford to live in "nicer" or "safer" or "prettier" confines.
using Philly as an example, if a person makes $90,000 per year with a 710 FICO and is looking to purchase a home, they rarely are going to be focused on Mantua.
They more than likely would want to find something several blocks south, closer to UPENN, in University City.

The financials of the current FHA program make it VERY EASY for someone to get into a mortgage (which the program was designed to do) but it also makes the loan more expensive over 30 years vs a conventional 30 year loan with 5% down.
with the FHA you have not only PMI but a MIP which you must pay for the life of the loan regardless.
At least in conventional mortgages once you get to 80% or 78% LTV you can get rid of the PMI.
which averages 0.75% - 1.15% of the value of your mortgage each year (ie can be a few hundred dollars per month EXTRA)


Yes FHA are crappy mortgage vehicles compared to a conventional, but remember who the FHA program was designed for.

More on the social aspect of these mortgages and neighborhoods.
OP is saying "buy where you live"
I was raised EXACTLY where they shot this video,
my mom lives DIRECTLY in front of this camera
my elementary school and high school (they share a fence) is DIRECTLY behind the camera
i know every nigga in the video
80% are my potnas the others i just know from being around them my entire life
https://www.youtube.com/watch?v=wvQxbBh2Le0

who wants to have their kids raised in/near situations like this (same neighborhood as above might i add):
https://www.youtube.com/watch?v=sQesmUU7ED0


Not only is it violent/sketchy to live in these areas but the schools are SHITTY because these same parents dont value education so they send their kids to school very unprepared, no homework is being done, and those students create disruptions for the students that DO want to learn.

If you have the means (savings, credit, salary) why would you subject your family to that mess? this stuff is generational. i know these dudes GRANDparents were gangbangers and the ppl in this video have KIDS who are gangbangers who have kids that they are raising to be gangbangers. so that is FIVE GENERATIONS of gangbangers all sittin on the same park bench when I go to a VALENCIA PARK pop warner football game. VP pop warner plays their football games at the high school which is in the background of that first video.


Also too, purchasing a home is an INVESTMENT.
why would i buy a home for $70k and invest $200k into it fixing it up
when at the end, it will only be worth $100k because the neighborhood is so shitty?
that's not a sound investment strategy.






all in all, I was promoting FHA loans above to illustrate to the OP that financials aren't the impediment for ppl to buy homes in this country because the entry costs for FHA loans are so low that if you can't meet those, then you need not be purchasing a home.
if someone is so desperate to go to a subprime lender such as Zeus or use hard money then they are SERIOUSLY losing the battle.


are their white ghettos like Mantua, North Philly, SouthEast San Diego, or Compton/Watts/South Central Los Angeles in this country?
I've heard Port Richmond in Philly is like that but i never been thru there. white people talk about trailer park trash but trailer parks are usually in rural areas and not smack dab in the middle of a metropolis
can an af-am studies student/professor chime in on this please?

****
pink toes: http://i.imgur.com/WN7DPL1