Deleted
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Post by Deleted on Nov 26, 2014 21:25:13 GMT -5
DH and I were both raised in this shithole state and are well aware of how expensive it is to live here so we would have made sure to have over 20%, inheritance or no. I hate this state to begin with but until DH dies, I ain't getting out. We would have saved the money, or used our wedding gift money, from 11 years ago. It just happened to be convenient for us that my dad died almost exactly 6 months after we got married, November 22, 2003 in case you were wondering to use the money almost 2 years later, towards the down payment so we wouldn't have PMI regardless. I have lived here for over 30 years. I would MUCH rather have my daddy than the money. so without an inheritance how would you have saved $100k by age 30? Also, I dont' live where Chiver is looking (way overpriced but she has a good job so can afford it in my mind) and TheHaitian, well, overpriced and not worth it from my standpoint, but considering there situation, it works for them, not me. I live in the Nawth Shaw(Cael's word's) area and if you know MA at all, it's a whole different ballgame. The whole state is overpriced, no matter what. We had the money to put a down payment, my father dying just happened to be a bonus. Unless you are the idiot that had to find him dead Then... the nightmares still haven't ended, 11 years later. I'd rather have him than the shitty condo, believe you me.
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chiver78
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Post by chiver78 on Nov 26, 2014 21:41:51 GMT -5
let me preface my comments now by saying that I have submitted my "last/best/highest" and am still awaiting word. I'm at best cranky, at worst a little drunk. but we all just played Cards Against Humanity so yah. quiet night in, here anyway. empress, I don't fault you at all....play the cards you're dealt! I don't need a USDA loan, but the numbers all worked better....so that's what my offer included. I have a feeling that will be the reason u lose this house, if I do, but whatever. if this was supposed to be my house, it would all work out. that's what I keep telling myself anyway. we'll see how I feel when the decision comes down. sent from my electronic distraction
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wvugurl26
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Post by wvugurl26 on Nov 26, 2014 21:50:37 GMT -5
My dad's loan has PMI for 5 years. I assume if he refinanced with someone else he might be able to get rid of it. If he keeps it as is then he can't get rid of it until 5 years have past.
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chiver78
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Post by chiver78 on Nov 26, 2014 21:51:23 GMT -5
so without an inheritance how would you have saved $100k by age 30? Also, I dont' live where Chiver is looking (way overpriced but she has a good job so can afford it in my mind) and TheHaitian, well, overpriced and not worth it from my standpoint, but considering there situation, it works for them, not me. I live in the Nawth Shaw(Cael's word's) area and if you know MA at all, it's a whole different ballgame. The whole state is overpriced, no matter what. We had the money to put a down payment, my father dying just happened to be a bonus. Unless you are the idiot that had to find him dead Then... the nightmares still haven't ended, 11 years later. I'd rather have him than the shitty condo, believe you me. . You flatter, thanks for that....i do well enough to live comfortably for myself, which is the balance I'm walking now. I am looking for something that gives me the space I need daily, that also has an extra bedroom or two - to give me guest space as well as space for a roommate to split the bills. I don't value either option more than the other really, I'm more focused on me right now, for the first time ever. I think that is the worst emotional tie to this house I don't own yet.....that it is the first one that I really haven't considered anyone but myself in my offer. . sent from my electronic distraction
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Deleted
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Post by Deleted on Nov 26, 2014 21:55:53 GMT -5
let me preface my comments now by saying that I have submitted my "last/best/highest" and am still awaiting word. I'm at best cranky, at worst a little drunk. but we all just played Cards Against Humanity so yah. quiet night in, here anyway. empress, I don't fault you at all....play the cards you're dealt! I don't need a USDA loan, but the numbers all worked better....so that's what my offer included. I have a feeling that will be the reason u lose this house, if I do, but whatever. if this was supposed to be my house, it would all work out. that's what I keep telling myself anyway. we'll see how I feel when the decision comes down. sent from my electronic distraction Keep your fingers crossed and I will keep my finger and toes crossed for you. Although, if I find out where you live, lots of luck to you!!! Please keep us updated on the status. I will admit I am not a fan of the Cape area, just for traffic alone (need I scream Bourne Bridge here?!?!?!?!), but if I know someone there..well....
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TheHaitian
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Post by TheHaitian on Nov 26, 2014 21:59:13 GMT -5
So you 30 and your husband 36 - lived at home till you got married - got an inheritance
How common is that again for the rest of the population?
I have been paying rent since I was 23, other people my age for just as long of not longer.
Again your situation is not the norm and cannot be applied to the rest of the population at large. Most of the population got to pay rent and save a downpayment.
You cannot take your situation and go: I did it and so could you when it is not that common.
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TheHaitian
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Post by TheHaitian on Nov 26, 2014 22:05:53 GMT -5
let me preface my comments now by saying that I have submitted my "last/best/highest" and am still awaiting word. I'm at best cranky, at worst a little drunk. but we all just played Cards Against Humanity so yah. quiet night in, here anyway. empress, I don't fault you at all....play the cards you're dealt! I don't need a USDA loan, but the numbers all worked better....so that's what my offer included. I have a feeling that will be the reason u lose this house, if I do, but whatever. if this was supposed to be my house, it would all work out. that's what I keep telling myself anyway. we'll see how I feel when the decision comes down. sent from my electronic distraction Same for us... We had 30k to put down so did not need USDA; was thinking FHA. But USDA ended up being ~$250 cheaper a month vs FHA and we were able to use that money to pay for the upgrades out of pocket vs financing an extra ~20k and paying off 10k of one of my student loans.
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Deleted
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Post by Deleted on Nov 26, 2014 22:13:34 GMT -5
Also, I dont' live where Chiver is looking (way overpriced but she has a good job so can afford it in my mind) and TheHaitian, well, overpriced and not worth it from my standpoint, but considering there situation, it works for them, not me. I live in the Nawth Shaw(Cael's word's) area and if you know MA at all, it's a whole different ballgame. The whole state is overpriced, no matter what. We had the money to put a down payment, my father dying just happened to be a bonus. Unless you are the idiot that had to find him dead Then... the nightmares still haven't ended, 11 years later. I'd rather have him than the shitty condo, believe you me. . You flatter, thanks for that....i do well enough to live comfortably for myself, which is the balance I'm walking now. I am looking for something that gives me the space I need daily, that also has an extra bedroom or two - to give me guest space as well as space for a roommate to split the bills. I don't value either option more than the other really, I'm more focused on me right now, for the first time ever. I think that is the worst emotional tie to this house I don't own yet.....that it is the first one that I really haven't considered anyone but myself in my offer. . sent from my electronic distraction Too bad you're looking at the Cape. I know my nephew is looking for a place that isn't his parent's basement but he's a CO at Concord so that would be too far. Too bad. He's an awesome kid. And believe me, I don't feel the same about the rest of the nieces and nephew so that's saying a lot.
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Deleted
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Post by Deleted on Nov 26, 2014 22:21:28 GMT -5
let me preface my comments now by saying that I have submitted my "last/best/highest" and am still awaiting word. I'm at best cranky, at worst a little drunk. but we all just played Cards Against Humanity so yah. quiet night in, here anyway. empress, I don't fault you at all....play the cards you're dealt! I don't need a USDA loan, but the numbers all worked better....so that's what my offer included. I have a feeling that will be the reason u lose this house, if I do, but whatever. if this was supposed to be my house, it would all work out. that's what I keep telling myself anyway. we'll see how I feel when the decision comes down. sent from my electronic distraction Same for us... We had 30k to put down so did not need USDA; was thinking FHA. But USDA ended up being ~$250 cheaper a month vs FHA and we were able to use that money to pay for the upgrades out of pocket vs financing an extra ~20k and paying off 10k of one of my student loans. Sadly, I know nothing about USDA or FHA loans. My sister had friend who got a Veterans loan, name escapes me, because he served somewhere at some point. In my case, dead parent had a lot of life insurance in the event that someone else needed to raise the kids. Divorce can really suck in more way than one. He hated my mother.
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truthbound
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Post by truthbound on Nov 27, 2014 5:11:01 GMT -5
Just put down more than 20% and you don't have to worry about PMI. That is the minimum you should be putting down anyway. thanks for your unsolicited advice. Unsolicited? You solicited advice when you started the thread. Back in the day when most people only bought stuff they could afford they put down an average of around 25% on a new home. Those days are gone. The average in our modern generation is between 12-15%. But that is a rant for another thread. The bottom line here is regardless of interest variations you will pay upwards of tens of thousands more over the course of the loan than you would if you just put down 20%. It is simple math. If you want pay more do so. If you don't that is fine as well. Either way I hope you enjoy your new place.
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phil5185
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Post by phil5185 on Nov 27, 2014 9:54:58 GMT -5
1. 40% DP. $200k house, $40k DP, $160k 4% loan = $275,000, total cost of DP & loan = $315,000.
2. Zero DP. $200k house, zero DP, $200k 4% loan = $344,000 total. Place your $40k cash in an 11%/yr Index for 30 yrs = $916,000.
Like you say - the loan costs tens of thousands more - $29,000 more in this example. But I'm happy to pay that extra $29k to retain the use of my $40,000 for 30 years to earn $916,000. The math is only simple if you don't calculate the second half of the problem - what you do with the $40,000 that you didn't spend on a DP. (The "time-value-of-money")
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DVM gone riding
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Post by DVM gone riding on Nov 28, 2014 1:00:04 GMT -5
Not to disagree with you Phil. But most people don't put 20% down because they do not have it! Now if they saved and then choose to invest in the market instead of real estate and use leverage the numbers would make sense.
Though I completely agree with you and jimb that more often then not most people would be better off maxing their retirement then paying down the mortgage.
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shanendoah
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Post by shanendoah on Nov 28, 2014 14:14:16 GMT -5
truthbound - Yes, back in the day when a new house in southern CA cost around $15k (1970s, what may parents paid for their first house in the 1970s). 20% of $15k is $3k. My father made around $20k/year (and this is lowballing), so their first house cost LESS than a single working adult's yearly salary. And that $3k he needed to save, only about 15% of his yearly income.
Fast forward 30 years (which was 10 years ago) to when I bought my first house - older and more established than my parents had been when they bought theirs. Cost was $180k (still not bad, though I had to have a 100 mile round trip commute to work in order to buy a house that cheap). 20% of $180k is $36k. C and I combined made about $90k/year, so our house cost 2x 2 working adults' yearly salary. And that $36k down payment was about 40% of our yearly salary.
So yes, there was a time when a 20% down payment was completely reasonable, and the average middle class family could afford to save that and buy a house. But that time has been gone for around 20 years (or more). Housing prices have far outpaced inflation. Yes, combined, C and I made 4.5x what my father made, but our house cost over 10x what my parents' first house cost.
The 20% rule just isn't realistic anymore. (And I don't even live in that high a COLA compared to Chiver.) And because the banks and lenders are recognizing that 20% down isn't realistic, they are creating new ways to help people be able to afford to buy houses, and that includes the lender paid PMI.
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truthbound
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Post by truthbound on Nov 29, 2014 8:51:45 GMT -5
You can fast forward fifty years. Inflation is what it is. What the banks say is irrelevant. They are in it for the money. If your income can't support the payments you can't afford the house. That remains true no matter what year it is. And no one has ever been forced to take out a loan that they could not afford. All that aside I don't know why you are arguing with me. I told the OP to do whatever they want and to enjoy their new place.
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shanendoah
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Post by shanendoah on Nov 29, 2014 12:32:34 GMT -5
Affording the payments and having 20% down are two completely different things. I've never had 20% down. I've never had any trouble affording my payments. (There was the really tight period, 5 years after we bought this house when C first lost his job, but we still were able to afford our payments).
Being able to afford your house payments, which replace rent, is very different from being able to save $40k as a down payment WHILE paying rent.
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Deleted
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Post by Deleted on Nov 30, 2014 22:55:53 GMT -5
So you 30 and your husband 36 - lived at home till you got married - got an inheritance How common is that again for the rest of the population? I have been paying rent since I was 23, other people my age for just as long of not longer. Again your situation is not the norm and cannot be applied to the rest of the population at large. Most of the population got to pay rent and save a downpayment. You cannot take your situation and go: I did it and so could you when it is not that common. I do think more people could save the 20% if they really wanted to and made it a priority, but these days it's encouraged to borrow more. The HCOL areas also normally come with higher wages. You pay what? $500/month for your apartment? How much could your wife and you have put away living together in that apartment? 30K/year? Yeah, probably not ideal living conditions, but it wouldn't take long. It IS doable.
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TheHaitian
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Post by TheHaitian on Dec 1, 2014 0:01:29 GMT -5
So you 30 and your husband 36 - lived at home till you got married - got an inheritance How common is that again for the rest of the population? I have been paying rent since I was 23, other people my age for just as long of not longer. Again your situation is not the norm and cannot be applied to the rest of the population at large. Most of the population got to pay rent and save a downpayment. You cannot take your situation and go: I did it and so could you when it is not that common. I do think more people could save the 20% if they really wanted to and made it a priority, but these days it's encouraged to borrow more. The HCOL areas also normally come with higher wages. You pay what? $500/month for your apartment? How much could your wife and you have put away living together in that apartment? 30K/year? Yeah, probably not ideal living conditions, but it wouldn't take long. It IS doable. My apartment is in Podunk town USA at $550/month. Good luck finding it at that price in our area in MA. And no one said it was not "feasible" just it would take longer vs if they stayed at home till 30 and 36 and inherited 100k. I chose a different path with the resources I had at my disposal and 6 months in I am still happy with the way "I" did it. It is not for everyone but it was right for me at the time.
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Deleted
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Post by Deleted on Dec 1, 2014 6:17:25 GMT -5
So you 30 and your husband 36 - lived at home till you got married - got an inheritance How common is that again for the rest of the population? I have been paying rent since I was 23, other people my age for just as long of not longer. Again your situation is not the norm and cannot be applied to the rest of the population at large. Most of the population got to pay rent and save a downpayment. You cannot take your situation and go: I did it and so could you when it is not that common. I do think more people could save the 20% if they really wanted to and made it a priority, but these days it's encouraged to borrow more. The HCOL areas also normally come with higher wages. You pay what? $500/month for your apartment? How much could your wife and you have put away living together in that apartment? 30K/year? Yeah, probably not ideal living conditions, but it wouldn't take long. It IS doable. $500 a month? I paid almost $400 in rent in 1988 to rent a room in a townhouse.
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Deleted
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Post by Deleted on Dec 1, 2014 7:23:37 GMT -5
I do think more people could save the 20% if they really wanted to and made it a priority, but these days it's encouraged to borrow more. The HCOL areas also normally come with higher wages. You pay what? $500/month for your apartment? How much could your wife and you have put away living together in that apartment? 30K/year? Yeah, probably not ideal living conditions, but it wouldn't take long. It IS doable. $500 a month? I paid almost $400 in rent in 1988 to rent a room in a townhouse. Okay, I was WAY off. He pays $550. On a 120K income.
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Deleted
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Post by Deleted on Dec 1, 2014 8:21:13 GMT -5
$500 a month? I paid almost $400 in rent in 1988 to rent a room in a townhouse. Okay, I was WAY off. He pays $550. On a 120K income. are you talking about Carl? he pays $550 a month for an apartment for him....his wife wouldn't have a job if she was sharing that apartment with him (and like Mrs. Carl, I wouldn't live in a crappy apartment in a so-so neighborhood) so their income wouldn't be $12ok....plus they would need something bigger since his MIL lives with them and then add on for the pet rent.
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Deleted
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Post by Deleted on Dec 1, 2014 8:31:19 GMT -5
Okay, I was WAY off. He pays $550. On a 120K income. are you talking about Carl? he pays $550 a month for an apartment for him....his wife wouldn't have a job if she was sharing that apartment with him (and like Mrs. Carl, I wouldn't live in a crappy apartment in a so-so neighborhood) so their income wouldn't be $12ok....plus they would need something bigger since his MIL lives with them and then add on for the pet rent. He makes 120K without Mrs. Carl. She makes just 40K or something like that. But, you're missing my point. It's all about choices.
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TheHaitian
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Post by TheHaitian on Dec 1, 2014 8:33:13 GMT -5
$500 a month? I paid almost $400 in rent in 1988 to rent a room in a townhouse. Okay, I was WAY off. He pays $550. On a 120K income. You are forgetting to mention it is a studio apartment or an efficiency as they call them. In a bad neighborhood and in a building that is on the "cop watch" for drug dealing And I am the only one in the building working or not on assistance Also the big point: in Podunk town USA I am ok there because I just go to sleep there so does not phase me. Heck the people that report to me wouldn't live in my neighborhood and has told me as much. But yeah it is dirt cheap
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Deleted
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Post by Deleted on Dec 1, 2014 9:10:32 GMT -5
Okay, I was WAY off. He pays $550. On a 120K income. You are forgetting to mention it is a studio apartment or an efficiency as they call them. In a bad neighborhood and in a building that is on the "cop watch" for drug dealing And I am the only one in the building working or not on assistance Also the big point: in Podunk town USA I am ok there because I just go to sleep there so does not phase me. Heck the people that report to me wouldn't live in my neighborhood and has told me as much. But yeah it is dirt cheap do you make $120K on your own?
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andreawick
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Post by andreawick on Dec 1, 2014 10:57:18 GMT -5
thanks for your unsolicited advice. Unsolicited? You solicited advice when you started the thread. Back in the day when most people only bought stuff they could afford they put down an average of around 25% on a new home. Those days are gone. The average in our modern generation is between 12-15%. But that is a rant for another thread. The bottom line here is regardless of interest variations you will pay upwards of tens of thousands more over the course of the loan than you would if you just put down 20%. It is simple math. If you want pay more do so. If you don't that is fine as well. Either way I hope you enjoy your new place.
Carry on.
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chiver78
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Post by chiver78 on Dec 1, 2014 13:01:02 GMT -5
Unsolicited? You solicited advice when you started the thread. Back in the day when most people only bought stuff they could afford they put down an average of around 25% on a new home. Those days are gone. The average in our modern generation is between 12-15%. But that is a rant for another thread. The bottom line here is regardless of interest variations you will pay upwards of tens of thousands more over the course of the loan than you would if you just put down 20%. It is simple math. If you want pay more do so. If you don't that is fine as well. Either way I hope you enjoy your new place.
Carry on.
do you have anything of value to add to this thread, other than to pump truthbound's tires? you informed me I got served last week, and have nothing useful to add to this post of his either. but go ahead, carry on with that. and yes, his post was unsolicited. you both ought to go back and read my OP, where I asked if anyone had ever heard of this before, that I was scratching my head. I don't recall asking whether I should be putting down a specific amount.
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ArchietheDragon
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Post by ArchietheDragon on Dec 1, 2014 13:17:05 GMT -5
Carry on.
do you have anything of value to add to this thread, other than to pump truthbound's tires? you informed me I got served last week, and have nothing useful to add to this post of his either. but go ahead, carry on with that. and yes, his post was unsolicited. you both ought to go back and read my OP, where I asked if anyone had ever heard of this before, that I was scratching my head. I don't recall asking whether I should be putting down a specific amount. Often more people than just the OP read through a thread and people post their thoughts about topics related to the specific questions asked by the OP and it can be very helpful to others reading the thread.
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andreawick
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Post by andreawick on Dec 1, 2014 13:17:08 GMT -5
Carry on.
do you have anything of value to add to this thread, other than to pump truthbound's tires? you informed me I got served last week, and have nothing useful to add to this post of his either. but go ahead, carry on with that. and yes, his post was unsolicited. you both ought to go back and read my OP, where I asked if anyone had ever heard of this before, that I was scratching my head. I don't recall asking whether I should be putting down a specific amount. Carry on.
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andreawick
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Post by andreawick on Dec 1, 2014 13:18:18 GMT -5
do you have anything of value to add to this thread, other than to pump truthbound's tires? you informed me I got served last week, and have nothing useful to add to this post of his either. but go ahead, carry on with that. and yes, his post was unsolicited. you both ought to go back and read my OP, where I asked if anyone had ever heard of this before, that I was scratching my head. I don't recall asking whether I should be putting down a specific amount. Often more people than just the OP read through a thread and people post their thoughts about topics related to the specific questions asked by the OP and it can be very helpful to others reading the thread. We can all learn from the OP's mistakes in this case.
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chiver78
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Post by chiver78 on Dec 1, 2014 13:20:20 GMT -5
who's made a mistake? I haven't purchased anything....
dare I ask why you have this chip on your shoulder?
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chiver78
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Post by chiver78 on Dec 1, 2014 13:22:53 GMT -5
do you have anything of value to add to this thread, other than to pump truthbound's tires? you informed me I got served last week, and have nothing useful to add to this post of his either. but go ahead, carry on with that. and yes, his post was unsolicited. you both ought to go back and read my OP, where I asked if anyone had ever heard of this before, that I was scratching my head. I don't recall asking whether I should be putting down a specific amount. Often more people than just the OP read through a thread and people post their thoughts about topics related to the specific questions asked by the OP and it can be very helpful to others reading the thread. that's fair. that said, I stand by my comment that there was no value added by the quotes. I ignored the first, and now wonder what that poster's problem with me is.
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