August 13, 2013 • Page 3 shop online at www.missourivalleyshopper.com Dave Says Gary, Gary Not Enough Down Payment? BY DAVE RAMSEY Dear Dave, When is it okay to purchase a house without making a 20 percent down payment? — Hannah Dear Hannah, When you’re willing to pay private mortgage insurance (PMI). And that’s not something you want to do. PMI costs about $75 a month per $100,000 borrowed. So, if you borrow $200,000 on a home, and you don’t put down at least 20 percent on the transaction, you’ll have to pay out an extra $150 a month as part of your mortgage payment. Private mortgage insurance does nothing for you except pay your mortgage company in the event they have to foreclose on you and they lose money. PMI is foreclosure insurance that protects the lender, and you get to pay for it if you don’t make a 20 percent down payment. In the scenario I mentioned before, that would be an additional $1,800 a year on a $200,000 loan. In a sense, that’s an extra 0.9 percent on your interest rate. That’s what it feels like. So you can see that PMI is not a positive thing. Often, a first-time homebuyer will purchase a house with 10 percent down then pay the other 10 percent as quickly as possible in order to get rid of the PMI. Stay away from it, Hannah. It’s nasty stuff! — Dave Quite contrary … Needed some land to plow. He picked up the paper … and found 80 acres … Now all he needs is a cow! LOVING YOUR FRIEND ENOUGH FOR THE TRUTH Dear Dave, I have a close friend whose 17-yearold daughter is going to college Dave to become a high-school band director. Her daughter wants to take out student loans to attend an expensive private school, and tuition alone over four years will cost $100,000. I feel this is a really bad idea, but I don’t know how to talk to her about this. — Natalie Dear Natalie, I’m sure your friend and her family are nice people. But what we’ve got here is a little teenage girl who has her heart set on something, and no one has told her no in a while. You’re getting ready to help introduce a new word into her vocabulary, because what you’ve described to me is stupid. Listen, I love high school band directors. It just doesn’t make sense to spend over $100,000 on a degree to become one. Most of them make about $30,000 a year, so the return on investment for this kind of thing is terrible. It doesn’t matter if you’re a band director, English teacher or a doughnut shop owner, you need to figure out what you’re going to make versus what you spend to get there. Make sure you talk to your friend directly, not her RAMSEY Whether you’re buying or selling, the classifieds have what you need! Call us and place yours today! Missouri Valley Shopper SHOPPER IN PRINT & ONLINE Classifieds MISSOURI VALLEY To place your ad, call: 319 Walnut St. Yankton, SD 605-665-5884 605-665-5884 NO DOCUMENTATION FEES One & two bedroom apartments. Wakonda Apartments, 611 First St. Wakonda, SD 57073. Laundry. Rental assistance available to those who qualify. For appointments or applications please call 605-624-5218 or visit www.oakleafpm.com. Brian & Jean DeGroot, Owners 802 Broadway, Yankton, SD (Never have, never will.) Buy • Sell • Trade Quatlity...USED Cars, Trucks, Campers, Boats & Consignments daughter. If you do that, you’ll end up branded as mom’s mean friend. Use your relationship and history together to help her see this is a train wreck waiting to happen. My suggestion would be for her daughter to live at home, work, and attend a community college for a couple of years. Then, when she transfers to a fouryear school, make sure it’s a state institution and she keeps working. The trick is to kindly and gently maintain enough influence to guide these two weak people away from a horrible decision. At the same time, you’ve got to be strong enough to call mom out for not stepping up and providing proper guidance. Mommies who don’t try to stop their babies from doing things this dumb are known as bad mommies. People who spend $100,000 to $150,000 to make the kind of money that’s waiting on her daughter are either young and inexperienced, or they’re what are known as fools. I’m sure you’ll find a nice way to say it, but basically your friend needs to grow a backbone and tell her daughter no. — Dave ——— Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books. “The Dave Ramsey Show” is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com. When you ?nish reading, Please RECYCLE. Town Square Town Square I & II o 505 507 W. Apartments 505-507 W. Ve ermillion, Main St. Vermillion, SD 57069. 1 BR apartments for anyone 55 years of age older, or older, or persons with disabilities. Please call 605-624-5218 or visit www.oakleafpm.com. www.oakleafpm.com. Utilities are included and we are pet friendly. Rental friendly. assistance available to those who qualify. qualify. Equal Housing Opportunity Equal Housing Opportunity “Bert looks good this morning, Doc,” Dud said, quietly. Three stools down the counter, Bert smiled and said, “Yes, I certainly do!” We turned toward our old pal. “You heard that?” “Sure did, guys,” he grinned. “Look….” He pointed to his ears. “Hearing aids,” he said. We walked over and looked, and sure enough. “It was Maizie’s idea,” Bert said. “She made the appointment and everything. Said she was tired of having the TV on so loud.” “But it was a good idea, Bert,” Doc said. “Oh, I know. I’d been thinking about it for some time, Doc, but you know how a guy gets. You never really want to admit you need them, I guess. Truth is, I didn’t know how bad my hearing had become until I got them. Yesterday, when we got that little shower … I heard the rain on the roof. I heard a clock tick, too, and it’s been years for both those things.” “Both what things?” said Herb. -----------Join the conversation wherever you go. Good hearing keeps you connected with friends and loved ones. Call BELTONE at 1866-867-8700 to schedule your FREE hearing screening. TWO LOCATIONS TO SERVE YOU Yankton, SD • 605-665-4540 • Toll Free: 1-800-526-8095 Wagner, SD • 605-384-3681 • Toll Free: 1-800-693-1990 Web site: www.marksinc.com Financing provided by CNH Capital ©2006 CNH America LLC. All rights reserved. Case IH is a registered trademark of CNH America LLC. CNH Capital is a trademark of CNH America LLC. www.caseih.com Back to SCHOOL turning into Back to BROKE? Get FAST CASH! Loans on Almost Anything! A-1 PAWN 515 E 4th St. ? Yankton ? 605-665-3182 665-1596 Equal Housing Opportunity Schuurmans Farm Supply www.bridgecityautoyankton.com Liquor Specials 5 miles West of Tyndall on Hwy 50 Corner of Hwys 50 & 37 109 W. 3rd St. in Downtown Yankton www.yanktonr exall.com Busch & Busch Light Black Velvet 1.75 mL 30pks 15.95 $ Old Crow 1.75 mL 14.99 $ We all looked at each other. We knew who should be next. “Rain and clocks, Herb.” “Oh … yeah.” “The hearing test lady came in the little room when the test was over and asked me if I’d shot guns a lot,” Bert said. Bert’s younger days as a hunting guide brought nods and chuckles from us. “There’s a range of sound that loud noises can hurt, and I guess that’s what happened with me. Turns out, it’s also the range of most women’s voices.” He grinned. “That may have something to do with Maizie’s making that appointment for me. Now I have no excuse when she says things like ‘Take out the trash’ and ‘When are you gonna mow the lawn?’” 14.99 $ Karkov Vodka 1.75 mL 12.99 $ FREE Customer Parking 605-665-7865 Hours Monday-Friday 8:30-6:00 Saturday 9:00-4:30 Phone: (605) 589-3909 Cell: (605) 464-1113 Price Effective www.schuurmans farmsupply.com August 13th - 19th, 2013 Check Our Website for SPECIAL COUPONS in our Toy and Gift Departments Answer it! Find the job you’ve always wanted with a little help from the classifieds. Check the Help Wanted Section of the Missouri Valley Shopper for a variety of job listings – start a new career today! SHOPPER MISSOURI VALLEY 319 Walnut, Yankton SD 605-665-5884 Fax: 605-665-0288