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Right there with you. I am down to less than 6 left. Looking forward to it.
Agree....I remember the old mortgage burning parties people used to have. Burned mine when I got the cancelled mortgage back with my wife while drinking a bottle of wine.
Better to burn a photocopy of the cancellation at the party. Keep the originals in a secure location. You never know when you might have to "show proof."
Eh, SC has a mandatory filing system. Its all on record with the County Register of Deeds. This is why people don't need the actual deed whenever they sell their house.
I assume he means extra money in the house, not skipping the house altogether. The $50k only increases to $2,500 in your scenario as opposed to $25k (not $30k) if we're looking at extra payments on a house. I agree with you overall that most people will do better with a house. Mathematically and for disciplined people, the stock market is better over the long term. Most people are not disciplined and will spend the excess though which is why housing is best for them.
Not really. You have to live somewhere and interest rates are at historic lows. If you don't move often it won't take long for your mortgage to be less than renting. Homes generally appreciate at a higher level than current interest rates. Buy one in a decent growing area. Rent can add up quickly. Now if you know you are moving often then the transaction costs (realtors, loan costs) can change that equation.
In this scenario you would only have 50k in equity, not 500k...people forget this easily.
Also depends on how good you negotiate the house price. I haggled on my current house last year and got it for 25k less than it appraised. Realtor called me last week and asked if I wanted to sell it and offered around 60k more than I paid. Also just sold my first house last month. It was a small 2 bed 1 bath that needed some work. Typical starter house. Bought it for 25k about 10 years ago. Dropped about 25k in upgrades but did most of the work myself. Sold it for 110k.
Home prices generally rise with inflation. Yeah, you can time it right at times and depending on the market there are outliers. But in general, they home values take a big hit from inflation.
That thought has crossed my mind as well (working at my current employer) as some has come back after retirement.At the moment, we work 12 hrs rotating M/E shifts.I’ve told some of the older people there,they isn’t going to see me on the weekends pulling 36 hrs nights when I get 62. The bad or you could say good thing about working 12s on the weekends 2x a month is when the gamecocks are bad I don’t have the chance to watch.I miss about half the games for the last 10-11 years because of working the weekends.
We’ve done the same. Bought a house 5 years ago. It’ll Be paid off in 5 more. I’ll be 42 and debt free!
So many people like your employee. And then there are also many which do understand investing and manage to accumulate some money but they also have a large burden of debt with a home mortgage, cars, credit cards, education loans, etc so that their net worth is very low or even negative. So they are actually broke but believe that they are doing well.
Absolutes are tough. What are you investing in the market? Index fund like the sp500? How were the returns from 2000-2012? Returns have been great since then but past performance is not a guarantee. Once you have a fixed rate mortgage you know how much it will cost you to service the loan. How much is rent on a lakefront or other nice house? In many cases rent could be more than owning. In South Carolina property taxes are MUCH higher on non-residents than residents. A family member bought a house and is paying a little over 1200 a year in property taxes. The previous owner rented it out. He was paying over 7000 for the same property. That is reflected in the costs for the property and passed on to the renters. Someone owns the place you live and has to pay the taxes and maintenance and have some sort of return on the investment.
Bingo! I love it when renters for for my houses. Of course I hate when they break $hit
I’m a financial advisor and that guy sounds like he wanted to line his own pocket. That’s crappy! Our job is to access the whole financial
Wish I could like this more than once
That is certainly the issue. Yes, you can turn a good profit, but is it really a profit when you're spending all of it to replace what you just sold? To me, that's just taking from one hand and putting it in the other hand. I'd certainly be in favor of someone cashing in on their primary residence if they also have a rental that they can move into for a temporary period. Then, when a downturn happens (and it certainly will, I've seen and done business through the song, dance, and cycle through numerous up and downs), you pounce. Sell when everyone's buying, buy when everyone's selling. I know that isn't always possible, but it's the ideal way to do it.
Not specifically I suppose. But if you don't see the logic of the video in the original post and are arguing to spend more money paying off your house quickly than you're missing the point.
Obviously taking on even more debt and especially at higher interest rates would negate any advantage. Certainly it's a balance. It also takes discipline. That's something in short supply.
You don't have to spend more money to payoff your mortgage more quickly. You can simply split the regular payment and pay half on the 15th before the payment is due and the remainder on the due date. You will end up with approximately 7 years off a 30-year mortgage.
I think you are confusing bi-weekly payments with doing what you are describing and just splitting up the mortgage into two payments. Bi-weekly payments can shorten a 30 year mortgage by about 6 years. But that is primarily because you are making extra payments. Basically an extra monthly payment each year. Some months (twice a year) you would be paying 3 times instead of two. Doing what you describe would not save 7 years.
