Why our kids expect to be rich...

[summer_gphib]

It's amazing the people who question our decision to wait and get an affordable starter home and live within our means.

We are going through the same thing! It's so funny because the fact we don't want to do a 100 percent mortgage and actually HAVE A DOWNPAYMENT seems to be something many of our friends don't understand.

I'll be ordering that book as well. It's funny when I think about it. Many of the wealthiest people I know don't waste their money and shop wisely.

[AlphaFrog]

Originally Posted by summer_gphib

We are going through the same thing! It's so funny because the fact we don't want to do a 100 percent mortgage and actually HAVE A DOWNPAYMENT seems to be something many of our friends don't understand.

Heck, I can't figure out who in their right mind would get one of those Quicken Intrest-Only Mortgages that I see commerical after commercial for. Sure, your monthly payment may be 40% lower, and you might "save" thousands a year - but unless you're taking those thousands and investing in something with a higher % rate of return than your mortgage APR, you're actually LOSING money, that is, if you ever plan on paying off your house. If you're not ever planning on paying off your house, you might as well be renting - at least someone else is responsible for the repairs. How hard is it to understand that if you're only paying interest, your priciple is NOT going down?

[RU OX Alum]

some people sign onto loans, with or without interest only ones, and then flip the house and get bought out of the loan and then do that again.

i'm not entirely sure on the process, but it involves something along the lines of you made the payments, you have a nicer house than when you started but this nice house comes with debt so the house and all loans associated therewith are transfered upon sale of said properity

[AlphaFrog]

I can see it being useful for house-flipping...but that's not who those commericals are targeting. Those commercials target the same people who are like the guy on the lawnmower in the credit consolidation commerical saying "How do I do it? I'm in debt up to my eyeballs...someone help me please!".