Quote:
Originally Posted by AGDee
Another thought struck me. When you sign those mortgage papers, one of those papers has this horrendous page that tells you how much you will pay for that house (with the interest all included) over the 30 years of your mortgage. That figure is usually around 3-4 times the purchase price of the home. For someone who has been paying their mortgage regularly for 20 years and then lose their home, they've paid for that house twice already, honestly. The bank takes the whole house back and they are left with nothing at all. There's something that doesn't seem quite right about that either. However, that's the risk we all take when we get a mortgage and we know that. It's still pretty awful to experience though.
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This is exactly why 30 year mortgages are lame. Get a 15 year mortgage, with a payment that is 25% or less of your take home pay, get a little less house, and pay it off a bit quicker. For a couple who buys the house Pre-kids, it'll be paid for before the kids go to college. <--My goal
Banks are in it to make money. If you dont want to give the bank all your money, pay for the house in cash. Yes, it can be done. If you make $80K a year and live on $30K, you can buy a house in cash in 3-4 years.
I learned the hard way when I bought my brand new off the lot 2003 Totota Celica, which was over priced at 23K, and I paid and paid and paid on it, and even paid it off 2 years early, and STILL paid over $37K total for the damn thing. Let me tell you, I'm driving that car until the wheels fall off...and then I'll replace the wheeels and keep driving it some more.
