You want to buy a home, a modern version of Ma and Pa Shtetl…

It should be a decent place in a decent neighborhood in a decent part of the country… and let’s say it costs $300,000. Why $300,000? Dunno. We just made it up. Forget Beverly Hills for 3 meg – you’re not there yet. Once you’ve done the exercise once (and like some other things, it’ll hurt the first time), you’ll have a much better sense for the process.

In a normal scenario (prior to 2008), if you had $50,000 and a decent job, most banks would lend you the $250,000 (or more) to buy your home. In addition, if you took out a 30 year fixed mortgage at 6%, you pay only $1,500 per month and a total interest over the life of the loan almost equal to the loan itself.

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