So who carries debt?
09-02-2007, 10:32 AM
#91
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well that's why if you want a guaranteed (at least over time) moneymaker property, you've got to buy it where there's no room to build more and lots of rich people want to live.
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09-02-2007, 11:38 AM
#92
Being in the mortgage biz for a few years now, I still don't understand the need for people to pay off their house even to the detriment of their current financial stability.
I see this scenario all the time:
Age - 60+ yo
Job - Retired
Mortgage - 30 year (or even 15 year) fixed principal + interest loan
Assets - very little to none
Equity - **** loads
I can't tell you how many people I talk to every week with the above situation that has to start working part time or even full time so they can pay their house payments, but refuse to take as much money out of their house to live on.
WTF is so important about paying off your house???
I talked to a guy in his late 60's who recently bought a $250,000 house and put down $180,000 and depleted his life savings. Now his FICO is in the 400s because he couldn't pay his monthly bills and there's no ******* way he can get that money out of his house by refinancing. He recently started working PT at an Ace Hardware to make ends meet.
And WTF advised him to put down ALL of his savings on this purchase???
I see this scenario all the time:
Age - 60+ yo
Job - Retired
Mortgage - 30 year (or even 15 year) fixed principal + interest loan
Assets - very little to none
Equity - **** loads
I can't tell you how many people I talk to every week with the above situation that has to start working part time or even full time so they can pay their house payments, but refuse to take as much money out of their house to live on.
WTF is so important about paying off your house???
I talked to a guy in his late 60's who recently bought a $250,000 house and put down $180,000 and depleted his life savings. Now his FICO is in the 400s because he couldn't pay his monthly bills and there's no ******* way he can get that money out of his house by refinancing. He recently started working PT at an Ace Hardware to make ends meet.
And WTF advised him to put down ALL of his savings on this purchase???
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09-02-2007, 01:05 PM
#94
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It's pretty fucked up when developers are ripping up parking lots and just about every usable space they can find just to build condos,appartments and houses.
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09-02-2007, 02:05 PM
#95
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here all the new construction is keeping prices down, no one wants a used home when a new is the same price. everywhere you ******* look open fields are being plowed under and houses built, for no ******* reason.
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09-02-2007, 02:30 PM
#96
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Sounds like what the area I grew up in was like, until they ran out of area around there, now my parents house is worth double what they paid for and raising.
BTW Phillip where in CO do you live? From about end of 03 to middle of 05 I was living out in Denver. Based on what your saying your not in Denver, I heard that the neighboring cities are growing like wildfire out there.
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09-02-2007, 02:30 PM
#97
The trick is having it all paid for before you are 60+ I agree that guy was stupid to open 250K in debt at age 60, but if he already had the house paid for and he lived another 40-50 years. Not having a mortage would be a nice +. In his case a 50-80K $ house would probably have worked just fine and he could have lived comfortably as long as he liked. I dont know if i could ever stomach knowing someone could just come in a take my stuff if i didn't pay them a monthly fee **** that. It is either mine 100000% or i don't need it yet. Alot of people aren't as patient as i am though.
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09-02-2007, 02:37 PM
#98
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Sounds like what the area I grew up in was like, until they ran out of area around there, now my parents house is worth double what they paid for and raising.
BTW Phillip where in CO do you live? From about end of 03 to middle of 05 I was living out in Denver. Based on what your saying your not in Denver, I heard that the neighboring cities are growing like wildfire out there.
BTW Phillip where in CO do you live? From about end of 03 to middle of 05 I was living out in Denver. Based on what your saying your not in Denver, I heard that the neighboring cities are growing like wildfire out there.
if I haven't made it clear, I ******* hate CO.
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09-02-2007, 02:46 PM
#99
The trick is having it all paid for before you are 60+ I agree that guy was stupid to open 250K in debt at age 60, but if he already had the house paid for and he lived another 40-50 years. Not having a mortage would be a nice +. In his case a 50-80K $ house would probably have worked just fine and he could have lived comfortably as long as he liked. I dont know if i could ever stomach knowing someone could just come in a take my stuff if i didn't pay them a monthly fee **** that. It is either mine 100000% or i don't need it yet. Alot of people aren't as patient as i am though.
Why would you want to pay off the house or put that much money into a house? So you can brag that you have equity in the house???
The old man in my example had ZERO reserves left. Imagine what he could have done with that $180,000 still sitting in an investment account? He could have paid his mortgage automatically and not have to work.
In the end, at his age, he could foreclose on his house and still be renting a place WITH all his money in his pocket.
The money you put INTO a house is very difficult to get back out and is very costly to do so. If you keep the money in your pocket, you ALWAYS have the option of putting INTO the house.
The bottom line is, money in hand is much better than money in a non-liquid asset(?) like your house.
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