Re: Cat's Out of the Bag
Lance McLain <lance-X3DuywwxauBWk0Htik3J/[email protected]>
| Newsgroups | gmane.music.dadl.ot |
|---|---|
| Message-ID | <[email protected]> |
On Mar 10, 2011, at 1:04 PM, Bruce Geerdes wrote: > On Thu, Mar 10, 2011 at 11:51 AM, Peter T. Chattaway <petert-LOVM4QxV+tDq6eQxt3vRmLDks+cytr/[email protected] > > wrote: > And of course, the sooner you start paying to own your own home, the > sooner you will truly *be* the owner (as opposed to sharing > ownership with the bank). > > Yes, a good reason to get a shorter rather than longer mortgage term. Absolutely! I'd definitely recommend at 15yr note if you could make it. Or a 30 yr, but make 15yr type payments on it. FYI...if you haven't already, you should check out the NYTimes rent vs buy calculator. It is awesome! If you think about it, much of the bubble in housing and the reason for the crazy high prices is because of the availability of absurd loans. It is the same reason why tuition fees are extraordinarily high. Cheap loans with small monthly payment. Banks have structured the pricing and people shop for houses, not on the basis of total price they will pay for the house, but upon a monthly payment. If there were fewer loans, then housing would be far far more reasonably priced. The system is structured to reward those who would borrow and punish the prudent savers. Even with the bubble collapse, housing should still be down another 20-25% just to be around historic norms compared to median income. (And I think even that is too high). regards, -Lance -- dadl-ot mailing list http://mail.thehood.us/mailman/listinfo/dadl-ot_thehood.us http://news.gmane.org/gmane.music.dadl.ot