no loan without 20% down

[SD Realtor]

Kewp undortunately you missed my point entirely. Not only did I not have any intent to imply real estate investment, I don’t believe I mentioned it at all in my post. The people I know all made money by varying means from taking risks and opening businesses, forming investment syndicates, purchasing mobile home parks, starting private practices, tax lien investments, selling freeking hot dogs are fairs, all kinds of stuff. Some of these people did it on their own, some did it with investors, some took out equity to do it, most all of them didn’t pump a 30-40% downpayment into the home they live in. All of them took risk. Some failed, many did not. I am quite envious of all of them for taking the risk.

I guess I should have spelled it out more clearly.

Show me where I said anything about real estate. Sorry you didn’t really get what I was trying to say.

SD Realtor

[SD Realtor]

Ray I think I see where our disconnect is. Whereas I am using the word risk, I should probably use the words personal peace of mind. Never would I advocate putting your entire savings into a downpayment. Of course one should always have cash reserves for emergencies. Let’s say I have 400k stashed in the house fund… Assume I have other monies stashed for emergencies, 401ks etc… So I see a home I want to buy for 800k. By your model you would say put down 10% maybe 20% rather then the 400k correct? As you said, reduce the debt by making an extra payment or whatever correct? With all the leftover invest that money or something of that nature. Putting the minimum amount of money down indeed reduces your risk because if something goes wrong, you walk away from the home with minimal loss.

I assume this is your point about minimizing risk.

*******

I understand that and agree to it. Per my first sentence here, it is about personal peace of mind. We are all wired different. Personally I don’t ever see myself walking away from a home. No matter what I do I will buy but it will be within my means. I have gauranteed it will be within my means because of the downpayment I will put down on it. Thus market up or market down I will always be able to afford my payment because I don’t want to ever move out until the kids are out of school OR I move because of personal choice not because of financial problems I BROUGHT UPON MYSELF buy purchasing something I cannot afford. The bottom line in my opinion is if home ownership were harder to obtain, and more personal responsibility was mandated, then we would not have the problems we have.

Your method of risk reduction indeed works because lenders are stupid enough to have ridiculous non recourse loans of which I have gone on record many a time should be banished.

What you say does make alot of sense and I agree with you in that respect. As I said, many of the wealthy people I know, indeed the majority of them think I am crazy for having as much of a downpayment as I will put down. They have made alot of money with alot less then what I will put down… I guess I play it to close to the vest. We are all wired differently.

SD Realtor

[SD Realtor]

Ray I think I see where our disconnect is. Whereas I am using the word risk, I should probably use the words personal peace of mind. Never would I advocate putting your entire savings into a downpayment. Of course one should always have cash reserves for emergencies. Let’s say I have 400k stashed in the house fund… Assume I have other monies stashed for emergencies, 401ks etc… So I see a home I want to buy for 800k. By your model you would say put down 10% maybe 20% rather then the 400k correct? As you said, reduce the debt by making an extra payment or whatever correct? With all the leftover invest that money or something of that nature. Putting the minimum amount of money down indeed reduces your risk because if something goes wrong, you walk away from the home with minimal loss.

I assume this is your point about minimizing risk.

*******

I understand that and agree to it. Per my first sentence here, it is about personal peace of mind. We are all wired different. Personally I don’t ever see myself walking away from a home. No matter what I do I will buy but it will be within my means. I have gauranteed it will be within my means because of the downpayment I will put down on it. Thus market up or market down I will always be able to afford my payment because I don’t want to ever move out until the kids are out of school OR I move because of personal choice not because of financial problems I BROUGHT UPON MYSELF buy purchasing something I cannot afford. The bottom line in my opinion is if home ownership were harder to obtain, and more personal responsibility was mandated, then we would not have the problems we have.

Your method of risk reduction indeed works because lenders are stupid enough to have ridiculous non recourse loans of which I have gone on record many a time should be banished.

What you say does make alot of sense and I agree with you in that respect. As I said, many of the wealthy people I know, indeed the majority of them think I am crazy for having as much of a downpayment as I will put down. They have made alot of money with alot less then what I will put down… I guess I play it to close to the vest. We are all wired differently.

SD Realtor

[SD Realtor]

Ray I think I see where our disconnect is. Whereas I am using the word risk, I should probably use the words personal peace of mind. Never would I advocate putting your entire savings into a downpayment. Of course one should always have cash reserves for emergencies. Let’s say I have 400k stashed in the house fund… Assume I have other monies stashed for emergencies, 401ks etc… So I see a home I want to buy for 800k. By your model you would say put down 10% maybe 20% rather then the 400k correct? As you said, reduce the debt by making an extra payment or whatever correct? With all the leftover invest that money or something of that nature. Putting the minimum amount of money down indeed reduces your risk because if something goes wrong, you walk away from the home with minimal loss.

I assume this is your point about minimizing risk.

*******

I understand that and agree to it. Per my first sentence here, it is about personal peace of mind. We are all wired different. Personally I don’t ever see myself walking away from a home. No matter what I do I will buy but it will be within my means. I have gauranteed it will be within my means because of the downpayment I will put down on it. Thus market up or market down I will always be able to afford my payment because I don’t want to ever move out until the kids are out of school OR I move because of personal choice not because of financial problems I BROUGHT UPON MYSELF buy purchasing something I cannot afford. The bottom line in my opinion is if home ownership were harder to obtain, and more personal responsibility was mandated, then we would not have the problems we have.

Your method of risk reduction indeed works because lenders are stupid enough to have ridiculous non recourse loans of which I have gone on record many a time should be banished.

What you say does make alot of sense and I agree with you in that respect. As I said, many of the wealthy people I know, indeed the majority of them think I am crazy for having as much of a downpayment as I will put down. They have made alot of money with alot less then what I will put down… I guess I play it to close to the vest. We are all wired differently.

SD Realtor

[SD Realtor]

Ray I think I see where our disconnect is. Whereas I am using the word risk, I should probably use the words personal peace of mind. Never would I advocate putting your entire savings into a downpayment. Of course one should always have cash reserves for emergencies. Let’s say I have 400k stashed in the house fund… Assume I have other monies stashed for emergencies, 401ks etc… So I see a home I want to buy for 800k. By your model you would say put down 10% maybe 20% rather then the 400k correct? As you said, reduce the debt by making an extra payment or whatever correct? With all the leftover invest that money or something of that nature. Putting the minimum amount of money down indeed reduces your risk because if something goes wrong, you walk away from the home with minimal loss.

I assume this is your point about minimizing risk.

*******

I understand that and agree to it. Per my first sentence here, it is about personal peace of mind. We are all wired different. Personally I don’t ever see myself walking away from a home. No matter what I do I will buy but it will be within my means. I have gauranteed it will be within my means because of the downpayment I will put down on it. Thus market up or market down I will always be able to afford my payment because I don’t want to ever move out until the kids are out of school OR I move because of personal choice not because of financial problems I BROUGHT UPON MYSELF buy purchasing something I cannot afford. The bottom line in my opinion is if home ownership were harder to obtain, and more personal responsibility was mandated, then we would not have the problems we have.

Your method of risk reduction indeed works because lenders are stupid enough to have ridiculous non recourse loans of which I have gone on record many a time should be banished.

What you say does make alot of sense and I agree with you in that respect. As I said, many of the wealthy people I know, indeed the majority of them think I am crazy for having as much of a downpayment as I will put down. They have made alot of money with alot less then what I will put down… I guess I play it to close to the vest. We are all wired differently.

SD Realtor

[SD Realtor]

Ray I think I see where our disconnect is. Whereas I am using the word risk, I should probably use the words personal peace of mind. Never would I advocate putting your entire savings into a downpayment. Of course one should always have cash reserves for emergencies. Let’s say I have 400k stashed in the house fund… Assume I have other monies stashed for emergencies, 401ks etc… So I see a home I want to buy for 800k. By your model you would say put down 10% maybe 20% rather then the 400k correct? As you said, reduce the debt by making an extra payment or whatever correct? With all the leftover invest that money or something of that nature. Putting the minimum amount of money down indeed reduces your risk because if something goes wrong, you walk away from the home with minimal loss.

I assume this is your point about minimizing risk.

*******

I understand that and agree to it. Per my first sentence here, it is about personal peace of mind. We are all wired different. Personally I don’t ever see myself walking away from a home. No matter what I do I will buy but it will be within my means. I have gauranteed it will be within my means because of the downpayment I will put down on it. Thus market up or market down I will always be able to afford my payment because I don’t want to ever move out until the kids are out of school OR I move because of personal choice not because of financial problems I BROUGHT UPON MYSELF buy purchasing something I cannot afford. The bottom line in my opinion is if home ownership were harder to obtain, and more personal responsibility was mandated, then we would not have the problems we have.

Your method of risk reduction indeed works because lenders are stupid enough to have ridiculous non recourse loans of which I have gone on record many a time should be banished.

What you say does make alot of sense and I agree with you in that respect. As I said, many of the wealthy people I know, indeed the majority of them think I am crazy for having as much of a downpayment as I will put down. They have made alot of money with alot less then what I will put down… I guess I play it to close to the vest. We are all wired differently.

SD Realtor

[Raybyrnes]

SD Realtor

Part of my thought process is the fact that you ca walk away but the real risk reduction I see is the fact that you currently know what the interest rate environment is. How do you know what the cost of money is going to be in 3, 5 or 10 years.

I know for a fact that if they go lower I can refinance form the 5 or 6 % I can get today. I also know that I can prepay down the mortgage. But if I park a big chunk of cash as a down payment and the interest rate environment were to shift at a period of time that I need to borrow then I would be pissed that I had not purchaed my money when it was cheap. By buying things at discounts we do a better job of reducing our exposure to risk.

My timeline for planning is further out than the normal person. And I will admit that I oten times get the urge to just pay all of my bills off and be debt free. But every time I log in to do it I am reminded that every thousand of debt I pay off costs me roughly 40 to 50 dollars in pretax risk free return. So I can fully relate to those who like the thought of being debt free. Unfortunately jsut as it would aggravate me to come to my car and see a ticket on the windshield , it would equally bother me to pay off debts that are allowing me to earn risk free money.

[Raybyrnes]

SD Realtor

Part of my thought process is the fact that you ca walk away but the real risk reduction I see is the fact that you currently know what the interest rate environment is. How do you know what the cost of money is going to be in 3, 5 or 10 years.

I know for a fact that if they go lower I can refinance form the 5 or 6 % I can get today. I also know that I can prepay down the mortgage. But if I park a big chunk of cash as a down payment and the interest rate environment were to shift at a period of time that I need to borrow then I would be pissed that I had not purchaed my money when it was cheap. By buying things at discounts we do a better job of reducing our exposure to risk.

My timeline for planning is further out than the normal person. And I will admit that I oten times get the urge to just pay all of my bills off and be debt free. But every time I log in to do it I am reminded that every thousand of debt I pay off costs me roughly 40 to 50 dollars in pretax risk free return. So I can fully relate to those who like the thought of being debt free. Unfortunately jsut as it would aggravate me to come to my car and see a ticket on the windshield , it would equally bother me to pay off debts that are allowing me to earn risk free money.

[Raybyrnes]

SD Realtor

Part of my thought process is the fact that you ca walk away but the real risk reduction I see is the fact that you currently know what the interest rate environment is. How do you know what the cost of money is going to be in 3, 5 or 10 years.

I know for a fact that if they go lower I can refinance form the 5 or 6 % I can get today. I also know that I can prepay down the mortgage. But if I park a big chunk of cash as a down payment and the interest rate environment were to shift at a period of time that I need to borrow then I would be pissed that I had not purchaed my money when it was cheap. By buying things at discounts we do a better job of reducing our exposure to risk.

My timeline for planning is further out than the normal person. And I will admit that I oten times get the urge to just pay all of my bills off and be debt free. But every time I log in to do it I am reminded that every thousand of debt I pay off costs me roughly 40 to 50 dollars in pretax risk free return. So I can fully relate to those who like the thought of being debt free. Unfortunately jsut as it would aggravate me to come to my car and see a ticket on the windshield , it would equally bother me to pay off debts that are allowing me to earn risk free money.

[Raybyrnes]

SD Realtor

Part of my thought process is the fact that you ca walk away but the real risk reduction I see is the fact that you currently know what the interest rate environment is. How do you know what the cost of money is going to be in 3, 5 or 10 years.

I know for a fact that if they go lower I can refinance form the 5 or 6 % I can get today. I also know that I can prepay down the mortgage. But if I park a big chunk of cash as a down payment and the interest rate environment were to shift at a period of time that I need to borrow then I would be pissed that I had not purchaed my money when it was cheap. By buying things at discounts we do a better job of reducing our exposure to risk.

My timeline for planning is further out than the normal person. And I will admit that I oten times get the urge to just pay all of my bills off and be debt free. But every time I log in to do it I am reminded that every thousand of debt I pay off costs me roughly 40 to 50 dollars in pretax risk free return. So I can fully relate to those who like the thought of being debt free. Unfortunately jsut as it would aggravate me to come to my car and see a ticket on the windshield , it would equally bother me to pay off debts that are allowing me to earn risk free money.

[Raybyrnes]

SD Realtor

Part of my thought process is the fact that you ca walk away but the real risk reduction I see is the fact that you currently know what the interest rate environment is. How do you know what the cost of money is going to be in 3, 5 or 10 years.

I know for a fact that if they go lower I can refinance form the 5 or 6 % I can get today. I also know that I can prepay down the mortgage. But if I park a big chunk of cash as a down payment and the interest rate environment were to shift at a period of time that I need to borrow then I would be pissed that I had not purchaed my money when it was cheap. By buying things at discounts we do a better job of reducing our exposure to risk.

My timeline for planning is further out than the normal person. And I will admit that I oten times get the urge to just pay all of my bills off and be debt free. But every time I log in to do it I am reminded that every thousand of debt I pay off costs me roughly 40 to 50 dollars in pretax risk free return. So I can fully relate to those who like the thought of being debt free. Unfortunately jsut as it would aggravate me to come to my car and see a ticket on the windshield , it would equally bother me to pay off debts that are allowing me to earn risk free money.

[kewp]

Show me where I said anything about real estate.

Thats where everyone else made bank over the last decade. Your buddies equity didn’t come from a vacuum.

I guess we will see how you all do when that gravy train get derailed.

[kewp]

Show me where I said anything about real estate.

Thats where everyone else made bank over the last decade. Your buddies equity didn’t come from a vacuum.

I guess we will see how you all do when that gravy train get derailed.

[kewp]

Show me where I said anything about real estate.

Thats where everyone else made bank over the last decade. Your buddies equity didn’t come from a vacuum.

I guess we will see how you all do when that gravy train get derailed.

[kewp]

Show me where I said anything about real estate.

Thats where everyone else made bank over the last decade. Your buddies equity didn’t come from a vacuum.

I guess we will see how you all do when that gravy train get derailed.

[Author]

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