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AL HARRISON LUGGAGE OUTLET
FIND IT
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FINANCE
Luggage — Business Cases — Small Leather Goods — Handbags
IN THE
EVERYTHING EVERYDAY 20-50% OFF
3116 W. 12 Mile • Between Greenfield & Coolidge • 545 7393
House vs. Condo,
Both Advantageous
-
DEDE WEINBERG
How does someone know
when it's time to buy instead
of rent? After the last out-
rageous rent hike! There may
be other reasons, too, but this
is usually the catalyst. When
rent becomes as high as a
house payment one begins to
think about alternative hous-
ing. Home ownership today,
however, does not just mean
a house; it could also be a
condominium. And, if it's a
condominium it can be a
townhouse, a one-floor
apartment-style, or a free-
standing unit. Usually one's
pocketbook dictates which
one of these is the right
choice.
In reality, there are no real
advantages in owning a home
versus owning a con-
dominium. It is just a matter
of life style. As a form of
home ownership, con-
dominiums are here to stay
and no longer are the finan-
cial unknown they were sev-
eral years ago. For many of
the women now in the work
force with executive-type em-
ployment, it is a very easy
decision — condo instead of a
home.
Condominiums offer the
same tax benefits as home
ownership with much less re-
sponsibility. Most association
dues include water, landscape
upkeep, garbage pick-up,
snow removal, the master in-
surance plan covering the
shell of the dwelling and
sometimes heat. Some people
argue over the cost of the
association dues, but if one
was to add up these expenses
on a private home, depending
on the area, they would be
nearly the same.
How does someone ascer-
tain what and where they
should buy? When starting
out, it is very important to
know realistically what the
bank would approve for a
mortgage amount on a pro-
spective buyer. One should
make an appointment with a
banker and discuss finances
in terms of salary, debts,
length of time at one's pre-
sent job, future earning
potential, etc.
Many professionals tend to
think that they are auto-
matically entitled to be ap-
proved for a mortgage. It's
true only to the extent that
one can qualify. This also
means that one has to plan
for closing costs in addition to
a down payment.
DeDe Weinberg is an
associate broker with
Chamberlain Realtors.
The mortgage business has
changed drastically within
the last several years. There
are many different mortgage
plans from which to choose. It
is advisable to speak with an
accountant about which kind
of mortgage would be best
suited for the buyer.
Everyone now pays
"points" — each point being 1
percent of the loan balance to
obtain a mortgage and if one
has less than 20 percent of
the sales price to put down on
his/her investment, under
federal law they will pay a
somewhat higher percentage
because of private mortgage
insurance which is used to
insure the loan.
It is important to keep sev-
eral things in mind when de-
terminining whether or not
one can afford to purchase a
home or condo. First, if one's
family has offered to help
with the down payment, a
gift letter must be presented
to the lending_ institution.
The lender will then, more
than likely, ask where the
money is presently deposited
and run a check on it. There-
fore, it is important to advise
a family member of this and
let them know it is normal
operating procedure.
Most banks use the for-
mula 28/36 to determine how
much of a mortgage a person
can get. The 28 stands for 28
percent of one's gross
monthly earnings, and it
would cover the payment plus
taxes and insurance. The 36
stands for a debt ratio of not
more than 36 percent of one's
gross monthly earnings. This
would include such things as
car payments, minimum bal-
ances on credit cards, child
support, bank loans, etc.
However, there is one prob-
lem with this formula. Since
the bank only cares that the
buyer not default, they db not
consider what else someone
does with their monthly in-
come.
Most people are pleasantly
surprised at what the bank
would approve them for,
however, the bank does not
take into consideration the
other facets of a person's life.
One must conside the quality
of one's life. Therefore, it is
important to consider one's
overall lifestyle in deciding
on a comfortable house pay-
ment.
To many, a very important
reason for home ownership is
quality of life. That small
vegetable garden you missed
from your childhood, caring
OPENING
TUESDAY, NOVEMBER 18
A RESTAURANT AND MUCH MORE!
Lunch Served Monday Through Friday 11:00 a.m. till 4:00 p.m.
Dinner Served Until 12:00 Midnight Monday Through Saturday
Nibbles and Dancing Till 2:00 a.m.
IN THE AMERICAN CENTER BUILDING
27777 FRANKLIN ROAD
Southfield
350-8450
BANQUET FACILITIES UP TO 175 PEOPLE
VISIT OUR OTHER LOCATIONS ... PANACHE IN BIRMINGHAM
AND MAVERICK'S IN ROYAL OAK
THE FORCE OF ATTRACTION THAT ACTS BETWEEN All BODIES
LIVE ENTERTAINMENT
DANCING
Reflections . . . Thru November 15
Wednesdays .....
. . No Admission Charge.
Singles Night
Reduced Cocktail Prices
Until 11 p.m.
Thursdays
No Admission Charge.
Complimentary Hors d'Oeuvres.
Fridays ...... • • • • • •
Fun Starts at 8 p.m.
Burgers in Nifty's '50s Grille
Before Dancing at Gravity.
.
Saturdays
Dinner at Norm's
Before Dancing at Gravity.
MEM
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Nightclub/Dancing
Wed. Thru Sat. 8 p.m.-2 a.m.
Corner Franklin Rd. & Northwestern Hwy.
357-4458
Continued on Page 82
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