no loan without 20% down

[Raybyrnes]

Jumbo rates might not be great for someone with average credit but with good credit rates are still in the high 5 low 6 range.

Morgage Interest is not deductible over 1 Million. Would need to simply run a weighted average calculation to adjust for cost of capital relative to potential rates of return. May find that this is a reason to put down or not put down additional capital.

I would not personally elect to put more down than absolutely necessary because as long as I possess the capital or ahve acces to it I have security knowing that in a worst case scenario I ahve bought myself additional time to make payments whereas if I plunk money down than the bank has my capital and I ahve to trust in my ability to get Equity lines and other products if I need to unlock the equity.

Sort of like this. Hurrican Katrina hits. Would I rather have a low monthly payment and little capital in the bank or would I rather have a higher monthly payment but lots of money in the bank. I would rather opt for scenario 2 provided I was not getting hit with some absurd premium. IE a 9% loan as opposed to 6%. That is my reasoning. Is there some flaw that you would point out to me.

[kewp]

CONCHO,

This strikes me as a bit of a defeatist attitude.

I’m seeing lots of “I can’t afford to buy a house in SD *pout*”. Yeah no duh, housing is insanely expensive here.

If you want a cheap house, move to Detroit or Cleveland. You can buy one for under 10k; you won’t even need a mortgage.

For the rest of the country there will not be a bailout in any meaningful sense either and prices will come back to reality. How many dotbombs were bailed out after the tech bubble popped? The only bailout I got was 10 months of unemployment insurance after that meltdown.

If you don’t like your savings being eaten away by inflation, buy gold or open a foreign savings account somewhere with harder currency. If you don’t like the housing bubble, rent and short the builders and banks. Build equity while everyone else’s is going down the toilet.

America really is the land of opportunity. But you have to seek it yourself, no one is going to hand it to you.

[kewp]

CONCHO,

This strikes me as a bit of a defeatist attitude.

I’m seeing lots of “I can’t afford to buy a house in SD *pout*”. Yeah no duh, housing is insanely expensive here.

If you want a cheap house, move to Detroit or Cleveland. You can buy one for under 10k; you won’t even need a mortgage.

For the rest of the country there will not be a bailout in any meaningful sense either and prices will come back to reality. How many dotbombs were bailed out after the tech bubble popped? The only bailout I got was 10 months of unemployment insurance after that meltdown.

If you don’t like your savings being eaten away by inflation, buy gold or open a foreign savings account somewhere with harder currency. If you don’t like the housing bubble, rent and short the builders and banks. Build equity while everyone else’s is going down the toilet.

America really is the land of opportunity. But you have to seek it yourself, no one is going to hand it to you.

[kewp]

CONCHO,

This strikes me as a bit of a defeatist attitude.

I’m seeing lots of “I can’t afford to buy a house in SD *pout*”. Yeah no duh, housing is insanely expensive here.

If you want a cheap house, move to Detroit or Cleveland. You can buy one for under 10k; you won’t even need a mortgage.

For the rest of the country there will not be a bailout in any meaningful sense either and prices will come back to reality. How many dotbombs were bailed out after the tech bubble popped? The only bailout I got was 10 months of unemployment insurance after that meltdown.

If you don’t like your savings being eaten away by inflation, buy gold or open a foreign savings account somewhere with harder currency. If you don’t like the housing bubble, rent and short the builders and banks. Build equity while everyone else’s is going down the toilet.

America really is the land of opportunity. But you have to seek it yourself, no one is going to hand it to you.

[kewp]

CONCHO,

This strikes me as a bit of a defeatist attitude.

I’m seeing lots of “I can’t afford to buy a house in SD *pout*”. Yeah no duh, housing is insanely expensive here.

If you want a cheap house, move to Detroit or Cleveland. You can buy one for under 10k; you won’t even need a mortgage.

For the rest of the country there will not be a bailout in any meaningful sense either and prices will come back to reality. How many dotbombs were bailed out after the tech bubble popped? The only bailout I got was 10 months of unemployment insurance after that meltdown.

If you don’t like your savings being eaten away by inflation, buy gold or open a foreign savings account somewhere with harder currency. If you don’t like the housing bubble, rent and short the builders and banks. Build equity while everyone else’s is going down the toilet.

America really is the land of opportunity. But you have to seek it yourself, no one is going to hand it to you.

[kewp]

CONCHO,

This strikes me as a bit of a defeatist attitude.

I’m seeing lots of “I can’t afford to buy a house in SD *pout*”. Yeah no duh, housing is insanely expensive here.

If you want a cheap house, move to Detroit or Cleveland. You can buy one for under 10k; you won’t even need a mortgage.

For the rest of the country there will not be a bailout in any meaningful sense either and prices will come back to reality. How many dotbombs were bailed out after the tech bubble popped? The only bailout I got was 10 months of unemployment insurance after that meltdown.

If you don’t like your savings being eaten away by inflation, buy gold or open a foreign savings account somewhere with harder currency. If you don’t like the housing bubble, rent and short the builders and banks. Build equity while everyone else’s is going down the toilet.

America really is the land of opportunity. But you have to seek it yourself, no one is going to hand it to you.

[JustLurking]

Raybyrnes,

I don’t think your reasoning is flawed. The finance books all agree that you should finance as much as possible, if the rates are reasonable. But personally, I am not comfortable with that. My income is high now, but I am essentially self-employed so I don’t take that for granted. At any given time I can look ahead 5 years and feel confident about my business, but beyond that there is just too much uncertainty. I don’t have a crystal ball to predict the future of my industry, the economy, etc. etc. So I would prefer to keep my monthly expenses low and live well below my means.

Living this way offers peace of mind and flexibility that is hard to put a price on. A few years ago, my spouse was laid off. Since we already lived on one income (and saved the rest), we had options that others in his situation didn’t. He took some time off to spend with the kids and now is doing work that is personally rewarding, but much less lucrative than his old job. We are all happier. We didn’t “need” the money to support our lifestyle. If we had a huge mortgage payment, we would have had to dip into savings every month and I just wouldn’t have felt comfortable doing it. I know that if I had “banked” the downpayment, I could draw on that account. On paper that is the same thing, but it wouldn’t feel that way.

I guess it boils down to what makes you feel the most secure – seeing a larger balance on your monthly financial statements, or having plenty of money left over every month after you pay your bills.

[JustLurking]

Raybyrnes,

I don’t think your reasoning is flawed. The finance books all agree that you should finance as much as possible, if the rates are reasonable. But personally, I am not comfortable with that. My income is high now, but I am essentially self-employed so I don’t take that for granted. At any given time I can look ahead 5 years and feel confident about my business, but beyond that there is just too much uncertainty. I don’t have a crystal ball to predict the future of my industry, the economy, etc. etc. So I would prefer to keep my monthly expenses low and live well below my means.

Living this way offers peace of mind and flexibility that is hard to put a price on. A few years ago, my spouse was laid off. Since we already lived on one income (and saved the rest), we had options that others in his situation didn’t. He took some time off to spend with the kids and now is doing work that is personally rewarding, but much less lucrative than his old job. We are all happier. We didn’t “need” the money to support our lifestyle. If we had a huge mortgage payment, we would have had to dip into savings every month and I just wouldn’t have felt comfortable doing it. I know that if I had “banked” the downpayment, I could draw on that account. On paper that is the same thing, but it wouldn’t feel that way.

I guess it boils down to what makes you feel the most secure – seeing a larger balance on your monthly financial statements, or having plenty of money left over every month after you pay your bills.

[JustLurking]

Raybyrnes,

I don’t think your reasoning is flawed. The finance books all agree that you should finance as much as possible, if the rates are reasonable. But personally, I am not comfortable with that. My income is high now, but I am essentially self-employed so I don’t take that for granted. At any given time I can look ahead 5 years and feel confident about my business, but beyond that there is just too much uncertainty. I don’t have a crystal ball to predict the future of my industry, the economy, etc. etc. So I would prefer to keep my monthly expenses low and live well below my means.

Living this way offers peace of mind and flexibility that is hard to put a price on. A few years ago, my spouse was laid off. Since we already lived on one income (and saved the rest), we had options that others in his situation didn’t. He took some time off to spend with the kids and now is doing work that is personally rewarding, but much less lucrative than his old job. We are all happier. We didn’t “need” the money to support our lifestyle. If we had a huge mortgage payment, we would have had to dip into savings every month and I just wouldn’t have felt comfortable doing it. I know that if I had “banked” the downpayment, I could draw on that account. On paper that is the same thing, but it wouldn’t feel that way.

I guess it boils down to what makes you feel the most secure – seeing a larger balance on your monthly financial statements, or having plenty of money left over every month after you pay your bills.

[JustLurking]

Raybyrnes,

I don’t think your reasoning is flawed. The finance books all agree that you should finance as much as possible, if the rates are reasonable. But personally, I am not comfortable with that. My income is high now, but I am essentially self-employed so I don’t take that for granted. At any given time I can look ahead 5 years and feel confident about my business, but beyond that there is just too much uncertainty. I don’t have a crystal ball to predict the future of my industry, the economy, etc. etc. So I would prefer to keep my monthly expenses low and live well below my means.

Living this way offers peace of mind and flexibility that is hard to put a price on. A few years ago, my spouse was laid off. Since we already lived on one income (and saved the rest), we had options that others in his situation didn’t. He took some time off to spend with the kids and now is doing work that is personally rewarding, but much less lucrative than his old job. We are all happier. We didn’t “need” the money to support our lifestyle. If we had a huge mortgage payment, we would have had to dip into savings every month and I just wouldn’t have felt comfortable doing it. I know that if I had “banked” the downpayment, I could draw on that account. On paper that is the same thing, but it wouldn’t feel that way.

I guess it boils down to what makes you feel the most secure – seeing a larger balance on your monthly financial statements, or having plenty of money left over every month after you pay your bills.

[JustLurking]

Raybyrnes,

I don’t think your reasoning is flawed. The finance books all agree that you should finance as much as possible, if the rates are reasonable. But personally, I am not comfortable with that. My income is high now, but I am essentially self-employed so I don’t take that for granted. At any given time I can look ahead 5 years and feel confident about my business, but beyond that there is just too much uncertainty. I don’t have a crystal ball to predict the future of my industry, the economy, etc. etc. So I would prefer to keep my monthly expenses low and live well below my means.

Living this way offers peace of mind and flexibility that is hard to put a price on. A few years ago, my spouse was laid off. Since we already lived on one income (and saved the rest), we had options that others in his situation didn’t. He took some time off to spend with the kids and now is doing work that is personally rewarding, but much less lucrative than his old job. We are all happier. We didn’t “need” the money to support our lifestyle. If we had a huge mortgage payment, we would have had to dip into savings every month and I just wouldn’t have felt comfortable doing it. I know that if I had “banked” the downpayment, I could draw on that account. On paper that is the same thing, but it wouldn’t feel that way.

I guess it boils down to what makes you feel the most secure – seeing a larger balance on your monthly financial statements, or having plenty of money left over every month after you pay your bills.

[raptorduck]

Raybyrnes. I have great financial advisors, but at the end of the day I take advice from me. Frankly, now that I am where I am, I am much more conservative. I don’t need to leverage my money/income. I am almost a cash n carry kind of guy now. I carry absolutely no debt other than a mortgage. I pay cash for cars, vacations, furniture, electronics, everything. And, eventually, I intend to carry no more than the maximum mortgage I can get a tax benifit from ($1M).

It is just how I like to live. Without worriying about paying a debt and having enough $$ in the bank to pay off all debt, and have enough left over to be jobless if I needed to be and still maintain my lifestyle. There are so many wealthy people in the world, but only a minority of them are finacially independent. I still consider myself a slave to my job, but I am getting there. I could “look” richer I suppose, but I would be less financially independent to get there. That is not where I want to go.

I am not rich, but rich enough for my taste. My wealth is growing despite my contrarian non-leveraged stance. That is good enough for me.

If I find an arbitrage opportunity, I do take it, but I don’t look for one.

I am the kind of guy who has always strived to be the dumbest person in the room, the poorest in the neighborhood, and the lowest paid in my job. As you get smarter, more successful and richer, you have to try harder to surround yourself with people smarter, more successful, and richer than you.

Before long, you have become quite successful at being a poor ignoramus.

[raptorduck]

Raybyrnes. I have great financial advisors, but at the end of the day I take advice from me. Frankly, now that I am where I am, I am much more conservative. I don’t need to leverage my money/income. I am almost a cash n carry kind of guy now. I carry absolutely no debt other than a mortgage. I pay cash for cars, vacations, furniture, electronics, everything. And, eventually, I intend to carry no more than the maximum mortgage I can get a tax benifit from ($1M).

It is just how I like to live. Without worriying about paying a debt and having enough $$ in the bank to pay off all debt, and have enough left over to be jobless if I needed to be and still maintain my lifestyle. There are so many wealthy people in the world, but only a minority of them are finacially independent. I still consider myself a slave to my job, but I am getting there. I could “look” richer I suppose, but I would be less financially independent to get there. That is not where I want to go.

I am not rich, but rich enough for my taste. My wealth is growing despite my contrarian non-leveraged stance. That is good enough for me.

If I find an arbitrage opportunity, I do take it, but I don’t look for one.

I am the kind of guy who has always strived to be the dumbest person in the room, the poorest in the neighborhood, and the lowest paid in my job. As you get smarter, more successful and richer, you have to try harder to surround yourself with people smarter, more successful, and richer than you.

Before long, you have become quite successful at being a poor ignoramus.

[raptorduck]

Raybyrnes. I have great financial advisors, but at the end of the day I take advice from me. Frankly, now that I am where I am, I am much more conservative. I don’t need to leverage my money/income. I am almost a cash n carry kind of guy now. I carry absolutely no debt other than a mortgage. I pay cash for cars, vacations, furniture, electronics, everything. And, eventually, I intend to carry no more than the maximum mortgage I can get a tax benifit from ($1M).

It is just how I like to live. Without worriying about paying a debt and having enough $$ in the bank to pay off all debt, and have enough left over to be jobless if I needed to be and still maintain my lifestyle. There are so many wealthy people in the world, but only a minority of them are finacially independent. I still consider myself a slave to my job, but I am getting there. I could “look” richer I suppose, but I would be less financially independent to get there. That is not where I want to go.

I am not rich, but rich enough for my taste. My wealth is growing despite my contrarian non-leveraged stance. That is good enough for me.

If I find an arbitrage opportunity, I do take it, but I don’t look for one.

I am the kind of guy who has always strived to be the dumbest person in the room, the poorest in the neighborhood, and the lowest paid in my job. As you get smarter, more successful and richer, you have to try harder to surround yourself with people smarter, more successful, and richer than you.

Before long, you have become quite successful at being a poor ignoramus.

[raptorduck]

Raybyrnes. I have great financial advisors, but at the end of the day I take advice from me. Frankly, now that I am where I am, I am much more conservative. I don’t need to leverage my money/income. I am almost a cash n carry kind of guy now. I carry absolutely no debt other than a mortgage. I pay cash for cars, vacations, furniture, electronics, everything. And, eventually, I intend to carry no more than the maximum mortgage I can get a tax benifit from ($1M).

It is just how I like to live. Without worriying about paying a debt and having enough $$ in the bank to pay off all debt, and have enough left over to be jobless if I needed to be and still maintain my lifestyle. There are so many wealthy people in the world, but only a minority of them are finacially independent. I still consider myself a slave to my job, but I am getting there. I could “look” richer I suppose, but I would be less financially independent to get there. That is not where I want to go.

I am not rich, but rich enough for my taste. My wealth is growing despite my contrarian non-leveraged stance. That is good enough for me.

If I find an arbitrage opportunity, I do take it, but I don’t look for one.

I am the kind of guy who has always strived to be the dumbest person in the room, the poorest in the neighborhood, and the lowest paid in my job. As you get smarter, more successful and richer, you have to try harder to surround yourself with people smarter, more successful, and richer than you.

Before long, you have become quite successful at being a poor ignoramus.

[Author]

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