Annnnndddd.... Goodnight.
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Annnnndddd.... Goodnight.
Do you like mortgages?
Only if there is a rocket involved.
So you like rockets?
Whenever I need to leave it all behind
Or feel the need to get away
I find a quiet place, far from the human race
Out in the country
Show us where you adjuster touched you.Quote:
Originally Posted by KS63
Hey! Hey! Hey, now!......Quote:
Originally Posted by Great-Kazoo
I like fish sticks.Quote:
Originally Posted by KS63
You asking me?Quote:
Originally Posted by KS63
If not, then don't read the rest of this post... :) Disclaimer: This may be a bit incoherent. I just woke up. [zombie1]
1. "The borrower is slave to the lender" - This is not just an old axiom, it is very real. If I have a huge debt load and can't pay, the bank (or the IRS, etc) will take my house, my car, etc. When you owe money (or anything really) to someone else, they can have a lot of control in your life. Most Americans have gotten very comfortable with this (look at the student debt situation - it's been so normalized to graduate college with $50k+ in student debt, which many graduates take a very long time to pay off) and at the end of the day, the banks own them. This is why getting out of debt is called "financial freedom".
2. I think real estate is a good investment if you choose wisely and don't bite off more than you can chew. I think borrowing money is generally bad, especially if it is over a long period of time.
3. The first rule of investing (okay, maybe not the first, but it's an important one) is to take advantage compound interest. Taking 30 years to pay off your house is letting the BANK take advantage of YOU through compound interest. Just find a mortgage calculator and play with some numbers.
3a. Scenario #1: If I borrow 300k at 3.5% interest and take 30 years to pay it off, I would end up paying $484,968 over those 30 years. I think of it like paying a $184,968 tax to buy something that I probably couldn't afford in the first place.
3b. Scenario #2: If I borrow 300k at 3.5% interest and take 15 years to pay it off, I would end up paying $386,037 over those 15 years. Now I am only paying a $86,037 tax.
3c. Scenario #3: If I borrow 300k at 3.5% interest and take 7 years to pay it off, I would end up paying $338,684 over those 7 years. Now I am only paying a $38,684 tax.
3d. Scenario #4: If I buy a house with cash, I pay the face value and have more money to invest in other areas.
3e. Final note on compound interest: Anyone here who has a 30yr mortgage knows the pain in seeing the payments for the first 10 years be more interest than principle. 3.5% is a pretty dang good interest rate. If 5.5% is the best rate you can get, you're going to pay more on interest than on the actual house over 30 years. That's straight up depressing.
4. The main reason I'm okay with a mortgage (as long as it is a good rate and 15yr or less mortgage, combined with a wisely picked house) is because houses generally go up in value over time, unlike most other things that people borrow money for (cars, boats, consumer goods, etc)
Is that code for something? Sounds ...fishy...Quote:
Originally Posted by Irving