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ChadTower:

--- Quote from: javeryh on March 22, 2011, 04:38:20 pm ---I've been in my house for 7 years and I just refinanced a second time so I'm back up to 30 years but the monthly payments are almost $1,000 less than where I started.  Sure I'll be paying more in interest long term but the extra $1,000 a month helps me and my family live a little more comfortably NOW.  I might refinance again if it made sense.  Once the kids are out of college I'll probably be able to pay down the mortgage much quicker but for now I think I'm doing OK.

--- End quote ---


Do a little reading on amortization periods so you understand why you're setting yourself back with each refi.  It's an important concept to grasp if you are refinancing every 3-4 years.

Donkbaca:
he's not setting himself back if he's using that capital to bring back a greater return then the present value of the future interest payments.  The future interest payments might not even matter because he could 1) sell before then; or 2) walk away and not pay them.

ChadTower:

If he's talking about the inability to escape credit card debt he's not going to be bringing back a greater return.  He's going to be folding in consumer debt to lessen the interest going out.

Samstag:

--- Quote from: javeryh on March 22, 2011, 04:38:20 pm ---I honestly don't know what I'm doing when it comes to this stuff but you people talking about not carrying a mortgage are either nuts or wealthy.  It's just not realistic - especially where I currently live.  I guess if I wanted to move to Middle of Nowhere, USA I could swing a very cheap house but there's just no way the average person can afford less than a 30 year mortgage.  I mean, the average person can't even keep themselves out of credit card debt never mind being fiscally responsible enough to quickly pay off a house. 

--- End quote ---

Sure, but the average person buys a lot of stuff they don't really need, and probably a much nicer/bigger house than they need.  When I was house hunting they approved me for 3 times the mortgage I ended up with and tried to steer me toward homes I didn't need.  Most of my friends ended up in much more expensive homes and live paycheck to paycheck.

The American Dream can be pretty expensive, but a big tv in every room of an oversized house isn't mandatory.

I realize there are some parts of the country where housing is just ridiculous.  Sometimes your best financial move is to move to a better location.

Donkbaca:
I think the best financial move is to leverage to the max and blow it all on cristal and hookers in Barbados.  They can repossess your house, they can't reposses your vacations.

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