GM Prez - Hiring could begin soon

General Motors Co. could start hiring lower-paid hourly workers soon, as the automaker struggles to produce enough popular new vehicles, President Mark Reuss said today.

Under the terms of the United Auto Workers collective bargaining agreement reached in 2007, new hires receive $14 an hour and less-generous benefits than veteran workers.

Reuss, in a conference call with reporters, would not give a timeline or say how many workers could be hired. But since emerging from bankruptcy court in July, GM has invested $1.5 billion at 20 U.S. and Canadian facilities and restored or created 7,500 jobs -- including 900 at its Fairfax plant in Kansas City, Kansas.

From The Detroit News:

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$14/hr means about $29k/yr which equals a maximum home price via mortgage of about $73k (standard 2.5 times your annual income) ... and you'd still have to come up with the $15k down payment in cash.

Lenders might be telling you otherwise about "affording" a more expensive house or about putting up less of a down payment, but they would be just trying to screw you.

At any rate, the chance of you being employed around $14/hr for the life of the mortgage is slim. So you should be setting your housing expectation to 2 times your annual income, meaning a maximum house price of $58k, hence only a $12k down payment.

Start saving, folks. You do remember how to do that, right?

29K is about typical for Toledo. I think median is around 33K.

Most households have two people working - or at least 2 people who want jobs.

And I would agree with the fact that you shouldn't trust the lenders. I was told I could spend 25,000 more than the house I'm in. I've cut way back and have no problem paying my bills, but I can't imagine having a mortgage the size that was recommended. Only you know your finances. Don't trust someone who's trying to sell you something.

And if one goes with an FHA loan, you need 3% down, although it would be wise to put more down. Realtors and all know how to get around that down payment though - tack on that 3% or whatever to the offer and have sellers pay it, therefore you just put the necessary cash up for the downpayment, but just added it on to the mortgage.

Probably not the wisest thing to do. However, with the price of homes in the foreclosure market, it's a huge temptation to do all this when ones mortgage payment is still less than rent in an apt.

..of the mortgage? The way things seem to go for many of us is that we get employment, lose it after a few years, spend weeks or months looking for employment (at less than we were earning), and when we get back to work we are in debt. You might not even be able to sell your house if there is no market for it. It seems the old rules no longer apply. Unless you have a government job (about the only ones that seem secure now) the cost of buying a home is out of reach for many (unless they've saved the money).

Old South End Broadway

Actually, there are even older rules that apply. One of those says that you must bring money to the transaction.

I don't know what to tell that other poster, here. What, is the FHA supposed to be the only lender in America now? A 20% down payment is a sane metric and we need to return to it before the Second Great Depression can properly run its course.

Prices for housing must continue to fall in the Toledo area, since wages and jobs continue to fall. Income and employment determine savings and credit-worthiness. Those are the ultimate bases for determining the prices of housing. expected price change of -6.00% in 2010 .

Old South End Broadway

GM needs to payoff TARP money to the taxpayer before it starts its' next move toward bankruptcy.

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