On 3/27/2015 10:01 PM, firstname.lastname@example.org wrote:
Exactly, I still remember looking at my mother, dumbfounded. I showed
the spreadsheet schedule to my father, he was an accountant, and
explained how soon he could pay off his home and how much money he could
save. My mother commented, why do you want to make payments bigger than
necessary, you will always have house payments or rent.
The notion of constantly being in debt is imprinted in way too many
I believe that most people that can't put any extra money in with their
payments have bitten off more than they can chew to begin with. And I
don't feel sorry for those people. I have been there.
The biggest advantage to paying your home off is greatly reducing the
risk of loosing it. Yes you can make other investments but if you loose
income and cant afford those investments you may only loose your
investment. If you can't make house payments you loose your home and
may not be able to afford rent either. Than where do you go?
Perhaps they have bitten more off than they can chew but you have to
start Thanksgiving dinner with the first bite. We were really far out
on the ledge with our first house but interest rates were 14.5%, too
(down from 18% when we were looking). There was no chance of paying a
I don't feel sorry for the results of anyone's choices. They have the
right to make choices and with that goes the chance to fail. It's a
great trade-off, IMO.
Precisely the reason I don't invest the extra payments (though I
understand it). At this point in my life, the security of the home is
much better than a few extra bucks I could gamble in the market. Yeah,
I lost big time over the last couple of years but there's that
"choice" thing again.
On 3/28/2015 5:49 PM, email@example.com wrote:
Understood, we once had 12% the rate was 13 and a couple years later it
went up to 18. We were stuck in that routine until rates came down to 9
and then we started the process by refinancing to a 15 year loan. We
did not lower our payments but a couple of dollars but we went from
about $36 a month going towards principal instantly to $158 per month
for a couple of years and then started adding $300 per month as we paid
I think most peoples problem is that they invest money in the market
that they cannot afford to loose. I don't depend on my market
investments at all, if I lost all of that money I would be highly upset
with myself but it would not change the way I live.
I relocated in 1981 and the rates were high. I was able to get a 15%.
It came down to "how much a month can I afford" and bought a house
priced accordingly. Great times if you had an old low interest mortgage
or no mortgage and were buying CD's for 12% return.
A few years later I recall walking out of the bank after the first re-fi
knowing I just saved $40,000+ Then did it again. And again.
Well while those interest rates seemed good, they were only high to keep
up with inflation. If you could get a CD with those rates you were
basically insuring that your stash was not loosing spending power. The
ideal time to have purchased a home was early to mid 70's. In Houston
10 years later the homes almost tripled in value. I find that CD's are
a safe and good investment if you are drawing a LOT of money and not
spending it all.
As I have once heard, CD's are a safe way to watch your money loose value.
I work with a woman that has never lived in a bought house. Her parents
rented, when she was married they rented, she still rents, Upon
retirement her plan is to go into senior housing. She seems to be
content with it, but that is not what I aspired to.
Same here. Long time ago and did not like it.
My goal was to have the house paid for long before retirement. I'm now
collecting social security (still working 80% too) Taxes, insurance,
utilities are all iIneed to survive. I like the idea of knowing my ass
will not be out on the street in my old age. Or having a nasty landlord.
She was never taught, in a way she could understand, to think
differently. There is a shocking amount of people that think that way.
Exactly. Unfortunately down here we still have the threat of the
government and taxes, even if our homes are paid off. But fortunately
at 65 you still owe taxes but you can take an exemption and pay them
with penalty when you sell, if you sell. ;~)
Thank you for correcting me. Lets certainly not leave them out or
police, our service men and women, and to mention again health care
workers and our educators, or anyone that risks their lives for us.
I think we should feel better about spending more of our money for their
salaries than those that don't help out in the ways that these people do.
BUT we have been trained to believe that we should spend our money the
way we want and in particular we are trained to spend our money on what
makes us feel good at the moment and not on what is good for us long
term. We are no longer investing in our longevity as a society.
You had the choice to hire them.
If I hired a roofing company to roof my house, they would have to
provide me with proof that all workers were here legally and they were
getting paid market value and workers' comp.
Oh, and I would want to inspect recent jobs to make sure they knew WTF
there were doing.
"Playing is not something I do at night, it's my function in life"
I went with a referral. But it was amazing the cultural difference
between the salesperson who came to speak with me, and the group who
arrived to do the work. I think the workers were working on some sort of
"first-come, first-served" basis, as there were at least a half-dozen
car and trucks on my street by 7:00 am. And since the first day was
"rained-out", the same thing happened the next day.
Correction on my above comment.
Kind'a sounds like your contractor went to HD to buy the materials and
hired several guys at the parking lot to to the job. The guy that
showed up the most often and consistently this month is the on site job
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