[AK]

You’re buying at 58% off peak, so in a sense your 20% down payment is really (drum roll) … an 8.4% down payment relative to peak! 🙂

Seriously though, there’s no such thing as a perfect house, nor is there any such thing as a house without problems. Just buy the frickin’ house and enjoy it. If you must, draw a big amortization chart on one of the interior garage walls, plot the balance of the principal each time you make a payment, and watch your equity grow.

And about the beach … look at resale timeshares. Some let you use the common facilities year-round.

[AK]

I’m already practicing the “get off my lawn” speech. Along with “I would’ve gotten away with it if it weren’t for these meddling kids!”

I agree on the part about paying off your house as soon as practical. If prices were a little bit lower (say, in the absence of government intervention) I’d consider a 20-year conventional loan … the payments aren’t really that much different.

But I’d still want to keep a fair chunk of change in the bank … enough to cover unanticipated major repairs or to get through a period of unemployment or underemployment.

[AK]

I’m already practicing the “get off my lawn” speech. Along with “I would’ve gotten away with it if it weren’t for these meddling kids!”

I agree on the part about paying off your house as soon as practical. If prices were a little bit lower (say, in the absence of government intervention) I’d consider a 20-year conventional loan … the payments aren’t really that much different.

But I’d still want to keep a fair chunk of change in the bank … enough to cover unanticipated major repairs or to get through a period of unemployment or underemployment.

[AK]

I’m already practicing the “get off my lawn” speech. Along with “I would’ve gotten away with it if it weren’t for these meddling kids!”

I agree on the part about paying off your house as soon as practical. If prices were a little bit lower (say, in the absence of government intervention) I’d consider a 20-year conventional loan … the payments aren’t really that much different.

But I’d still want to keep a fair chunk of change in the bank … enough to cover unanticipated major repairs or to get through a period of unemployment or underemployment.

[AK]

I’m already practicing the “get off my lawn” speech. Along with “I would’ve gotten away with it if it weren’t for these meddling kids!”

I agree on the part about paying off your house as soon as practical. If prices were a little bit lower (say, in the absence of government intervention) I’d consider a 20-year conventional loan … the payments aren’t really that much different.

But I’d still want to keep a fair chunk of change in the bank … enough to cover unanticipated major repairs or to get through a period of unemployment or underemployment.

[AK]

I’m already practicing the “get off my lawn” speech. Along with “I would’ve gotten away with it if it weren’t for these meddling kids!”

I agree on the part about paying off your house as soon as practical. If prices were a little bit lower (say, in the absence of government intervention) I’d consider a 20-year conventional loan … the payments aren’t really that much different.

But I’d still want to keep a fair chunk of change in the bank … enough to cover unanticipated major repairs or to get through a period of unemployment or underemployment.

[AK]

Everyone focuses on the 20% down payment … but in hard times, and especially in deflationary times, wouldn’t it be better to put down as little as possible consistent with affordability, and preserve your liquidity?

PMI is expensive but sooner or later it goes away. Psychologically it seems like the carrot and stick approach — keep making your house payments on time and in five years or so they’ll go down.

[AK]

Everyone focuses on the 20% down payment … but in hard times, and especially in deflationary times, wouldn’t it be better to put down as little as possible consistent with affordability, and preserve your liquidity?

PMI is expensive but sooner or later it goes away. Psychologically it seems like the carrot and stick approach — keep making your house payments on time and in five years or so they’ll go down.

[AK]

Everyone focuses on the 20% down payment … but in hard times, and especially in deflationary times, wouldn’t it be better to put down as little as possible consistent with affordability, and preserve your liquidity?

PMI is expensive but sooner or later it goes away. Psychologically it seems like the carrot and stick approach — keep making your house payments on time and in five years or so they’ll go down.

[AK]

Everyone focuses on the 20% down payment … but in hard times, and especially in deflationary times, wouldn’t it be better to put down as little as possible consistent with affordability, and preserve your liquidity?

PMI is expensive but sooner or later it goes away. Psychologically it seems like the carrot and stick approach — keep making your house payments on time and in five years or so they’ll go down.

[AK]

Everyone focuses on the 20% down payment … but in hard times, and especially in deflationary times, wouldn’t it be better to put down as little as possible consistent with affordability, and preserve your liquidity?

PMI is expensive but sooner or later it goes away. Psychologically it seems like the carrot and stick approach — keep making your house payments on time and in five years or so they’ll go down.

[AK]

I’d say if you can afford something now that you can live with for the next 10 years or so, buy now.

I think the “3x gross income” rule is a little bit too conservative, but better safe than sorry. You have to think about kids, retirement savings, all that good stuff. But if your car payment is only $380/mo you’re probably not living a lifestyle of lavish, reckless consumption. Congrats! 🙂

[AK]

I’d say if you can afford something now that you can live with for the next 10 years or so, buy now.

I think the “3x gross income” rule is a little bit too conservative, but better safe than sorry. You have to think about kids, retirement savings, all that good stuff. But if your car payment is only $380/mo you’re probably not living a lifestyle of lavish, reckless consumption. Congrats! 🙂

[AK]

I’d say if you can afford something now that you can live with for the next 10 years or so, buy now.

I think the “3x gross income” rule is a little bit too conservative, but better safe than sorry. You have to think about kids, retirement savings, all that good stuff. But if your car payment is only $380/mo you’re probably not living a lifestyle of lavish, reckless consumption. Congrats! 🙂

[AK]

I’d say if you can afford something now that you can live with for the next 10 years or so, buy now.

I think the “3x gross income” rule is a little bit too conservative, but better safe than sorry. You have to think about kids, retirement savings, all that good stuff. But if your car payment is only $380/mo you’re probably not living a lifestyle of lavish, reckless consumption. Congrats! 🙂

[Author]

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