[allan5oh]

Originally Posted by no_worries

Sounds like a Dave Ramsay convert :lol: Who's to say it wouldn't be a wise decision? If you can such it up and swing the payments, in a couple of years that piece of real estate just might be worth $800,000. Topics like this are simply much too variable to paint with such a broad brush.

OK so this magical house you buy is now worth 800k. What do you do with it?

About the only thing you can do is brag to your friends. Do you think they care?

Are you going to move out and move into a much smaller house? That's about the only way to capitalize on the appreciation.

I've said it before and I'll say it again, your house is a liability. It's not an asset. Assets you can CASH OUT.

If you do that, where are you going to live?

Of course, this doesn't apply to rental properties. I'd much rather buy a 500k house/duplex for a rental property then for myself.

[allan5oh]

Originally Posted by Sonny Pruitt

"If you can't afford a 15 yr mortgage the home should not be bought" Allen5oh

Is it really a hard concept?

That doesn't mean that you should get a 15 year mortgage, situations can be different.

BUT... if you cannot afford that 15 year mortgage, who is to say you can afford a 25 or 30 year mortgage?

That was my point. Hope for the best, prepare for the worst.

[Sonny Pruitt]

sounds like some back peddling but...

don't be so smug about how great you are doing financially
just ask some of the Limo drivers at Newark airport

a 15 yr is pretty stiff for a young couple and almost forces the wife to keep working after she has kids ....which sucks
you don't want anyone raising your kids but you and your wife
no not grandma,or auntie so and so

My wife stopped working to raise our 3 sons
and is only now back in the workforce

You can rush to put equity in your home
with a 15
Or if you really want to get a 30 and make extra payments
and still have a cushion to pay less if you want to

[RostyC]

Or if you really want to get a 30 and make extra payments
and still have a cushion to pay less if you want to

That's how I do everything, it never hurts to stretch it out as long as possible IF you have the discipline to pay extra. I pay extra on my house and vehicle (s). If things get bad I have a cushion to work with and not lose my gots. (possessions) 8)

[ncnewbie]

The courts don't think Britney is the best choice to raise her kids. I got sole custody in my divorce. My cousin came home to a note that essentially said Bye, don't want to do this anymore and you can keep the kids (3).

Can't agree the husband/wife team is always the best. And I'm sure there's just as many examples of husband's being the "bad" one too.

Sounds like you have an admirable game plan for your family Sonny. I remind my daughter that if she doesn't make a plan for her life then somebody else will. And she may not like their plan!

Best of luck!

[allan5oh]

Originally Posted by Sonny Pruitt

sounds like some back peddling but...[

don't be so smug about how great you are doing financially
just ask some of the Limo drivers at Newark airport

I'm doing ok I guess. Planning is everything. I run my business and my house like a business. Too many o/o's run their business like they're truck drivers.

a 15 yr is pretty stiff for a young couple and almost forces the wife to keep working after she has kids ....which sucks
you don't want anyone raising your kids but you and your wife
no not grandma,or auntie so and so

No it doesn't, it all depends on your lifestyle and your life choices.

My wife stopped working to raise our 3 sons
and is only now back in the workforce

Sounds like you have a strog commitment to your family, that's fantastic.

You can rush to put equity in your home
with a 15
Or if you really want to get a 30 and make extra payments
and still have a cushion to pay less if you want to

The later comments were more for comparison.

I'm saying if a 15 yr mortgage vs. a 25 year mortgage "breaks the deal", there's something wrong overall.

[no_worries]

I'm not saying that your idea is a bad one allan. However, you approach the matter as if it's the best way to do things. It's simply not true and would be presumptuous to assume so. What may be great for one person in one particular situation may not be what's best for someone else in a similar circumstance. Like I said, the subject is to complex to paint with such a broad brush as saying if you can't do it on a 15-year then you can't afford to do it.

As far as what to do with the $800,000 house. Someone that can't figure out how to manage a $200,000 windfall won't have to worry about it for very long :lol: At the bare minimum you're now wealthier by $200,000, whether you stay in the house or not. People that truly understand finances understand the difference between income and wealth why wealth is what matters.

Those are general statements, not YOU specifically.

[allan5oh]

Yes, but when that "wealth" is locked away to the point where if you sold your house and bought another house, you'd break even. How else can you use this wealth? You could use it to borrow money, that's about it.

You feel wealthy, but everything else indicates you aren't.

Besides, that wealth can disappear, as we're seeing.

A house is not an investment, it's a liability.

[Ian Williams]

Originally Posted by RostyC

That's how I do everything, it never hurts to stretch it out as long as possible IF you have the discipline to pay extra. I pay extra on my house and vehicle (s). If things get bad I have a cushion to work with and not lose my gots. (possessions) 8)

That is exactly what I did on my current car, 5 yr note with no prepayment penalty. I view the payment as simply a minimum, depending on how my finances are each month I pay 1.5X-3X minimum. The car is roughly 45% paid off already.

[no_worries]

Like I said, a small portion of the populace knows how to make wealth work for them...the rest don't have to worry about it. And you're right, for some, a house is a liability. But once again, it would be inaccurate to claim that is always the case.