Ok, this isn’t even close to Ok, this isn’t even close to scientific. Just mildly curious how different Piggs are to the “households that have such high debt loads, in addition to their mortgages.” Sloppy quote from recent Bloomberg article.
scaredyclassic
January 30, 2010 @
11:39 PM
no, but it’s manageable. No no, but it’s manageable. No car payment, no credit cards. Just student loan debt. One chunk will be paid of in less than 2 years. The other chunk will be with me a long time, but it’s very small with a very low interest rate. So small, in fact, that in 2 years I will subjectively feel debt-free, a half day’s wages covers it. Don’t even need to have life insurance against it, it’s dischargeable on death.
briansd1
January 31, 2010 @
12:28 AM
I rent. I pay cash for cars I rent. I pay cash for cars and I normally buy used.
I don’t spend much so I have no credit card debts.
My investment equity exceed the my debts.
Perhaps the question should be “do you have a positive net worth, not counting your future earnings.”
flyer
January 31, 2010 @
4:34 AM
One other category you might One other category you might want to add, just for clarification might be:
Yes. No mortgage (own home(s) free and clear), no car payments, no cc debt, and, as the last poster noted–“have a positive net worth.”
We happen to be in this category, and it would be interesting to the results of this vote.
LesBaer45
January 31, 2010 @
7:08 AM
I went with the affordable I went with the affordable mortgage bit because there was no “Will be paid off in full this year” option. 🙂
No car loan, no cc (other than current charges such as gas for the commute, paid off every month), no student loans, no HELOC, hell no toys period. 🙁
After the house is paid off this year, assuming I still have a job I’m going to re-stock the cigar locker and liqour stash though.
I might still be in the positive net worth category but after the last week or so that might not be true. Since ‘beat the bankers’ became cool again I’ve lost a ton in the market. :-{
meadandale
January 31, 2010 @
8:14 AM
No credit card debt.
Just No credit card debt.
Just finished paying off my truck and am now paying the amount of the car payment into my savings account so I can pay cash (or mostly) for my next car.
Have a reasonably affordable mortgage on an older house.
Save quite a bit of money every month (not including retirement savings).
I voted ‘Yes, with affordable I voted ‘Yes, with affordable mortgage…’.
But, if could have voted: ‘Yes, with cash to payoff’
Currently at 60% LTV ratio of current value.
Plan to Recast loan at $50k per year to reduce payments until paid in full, estimate about 5 years or sooner.
Looking to use saved money to invest in business to return about 20% ROI or more…
Any suggestions?
Plan: Business will payoff home in 5 years.
With little or no risk of principle.
Lucky in OC
davelj
January 31, 2010 @
1:34 PM
Another option is: “Yes. Another option is: “Yes. Have a mortgage, but only for liquidity purposes. Could pay it off at any time.”
It’s very hard to turn down long-term financing that costs less than 3% after tax, even if you can buy your house(s) for cash.
UCGal
January 31, 2010 @
1:52 PM
I have a mortgage. No CC I have a mortgage. No CC debt, no car payments. I use credit cards but pay in full each month. If fees go up, I’m going back to cash. (I like the costco amex where I get cash back… so I put almost everything on that – the bill is huge, but paid in full each month.
I could pay my mortgage in full with IRA money or 529 money – but that would involve a tax hit or losing a tax benefit. Only have 8 years left on the small mortgage. Payment is affordable on one income – we currently have 1.5 incomes so we’re paying extra on the mortgage.
It was liberating when I paid off all my debt (except mortgage) 10 years ago. I had options in the money and decided to go for it. I got SUPER lucky since it coincided with the peak price of my employer stock… (Pure luck!)
Ricechex
January 31, 2010 @
2:25 PM
Small mortgage debt on rental Small mortgage debt on rental house, tenant’s rent covers mortgage. No CC debt, use Pentagon Federal VISA cashback card. Car paid in full. I agree with UCGal, paying off debt is very liberating, paid mine off 7 years ago.
svelte
February 1, 2010 @
7:15 AM
Knowing that mortgage rates Knowing that mortgage rates are near record lows and that interest rates in general are very likely to rise dramatically in the next few years, why would you want to be mortgage free right now?
Maybe if you’re near retirement age, but otherwise the free liquidity is the way to go…
creechrr
February 1, 2010 @
11:05 AM
svelte wrote:Knowing that [quote=svelte]Knowing that mortgage rates are near record lows and that interest rates in general are very likely to rise dramatically in the next few years, why would you want to be mortgage free right now?
Maybe if you’re near retirement age, but otherwise the free liquidity is the way to go…[/quote]
My wife and I have come to the conclusion that we have no idea what we are doing financially. We only have student loans to repay (less than $250/mo combined) but, don’t see how we could possibly afford to purchase anything in a decent part of the county.
Could you expand on this free liquidity idea?
DWCAP
February 1, 2010 @
10:16 AM
I am a ‘no debt of any kind’ I am a ‘no debt of any kind’ voter, but I wouldnt say that means too much. I dont own a house and my car is 10 years old.
CBad
February 1, 2010 @
11:24 AM
svelte wrote:Knowing that [quote=svelte]Knowing that mortgage rates are near record lows and that interest rates in general are very likely to rise dramatically in the next few years, why would you want to be mortgage free right now?
Maybe if you’re near retirement age, but otherwise the free liquidity is the way to go…[/quote]
It still costs money to refinance. And yes, interests rates are very low but I still can’t put the money anywhere that is guaranteed to beat them (if you know where please share). If you have enough liquid beyond paying off the mortgage (and obviously have other investments maxed and no other debt), why not pay it off? You gain more liquidity every month that you don’t pay it. I see merits on both theories here but just get a little tired of people assuming people who pay off their mortgages are morons.
Anonymous
February 1, 2010 @
11:47 AM
CBad wrote:interests rates [quote=CBad]interests rates are very low but I still can’t put the money anywhere that is guaranteed to beat them[/quote]
It’s pretty hard to find a low-risk return of more than 4.5% now, but financial history suggests that rate of return should not be difficult to beat, on average, over the next 30 years.
flyer
February 1, 2010 @
3:03 PM
Agree with maintaining Agree with maintaining maximum liquidity versus paying of a mortgage in this
low-interest rate environment–especially if you can lock in a great rate.
Because our residences and rentals were purchased or inherited quite a few years ago, we have been able to pay them off, and still maintain maximum liquidity, which, as many posters have stated, is extremely important.
CBad
February 1, 2010 @
3:17 PM
If you paid yours off, how If you paid yours off, how are you also arguing you are maintaining “maximum” liquidity? You’re kinda arguing both sides here aren’t you? Again as I previously stated, if you already have enough liquid beyond paying it off, why not? Isn’t that what you did?
flyer
February 1, 2010 @
3:39 PM
CBad, I probably phrased my CBad, I probably phrased my comment incorrectly.
Many previous posters indicated that they preferred having some mortgage debt versus diminished liquidity. I was agreeing that, in this case, with rates so low, and if it’s an either/or situation, a low-rate mortgage loan is a great idea.
Because liquidity is not an issue for us,
I, like you, prefer no mortgage or other debt.
CBad
February 1, 2010 @
3:52 PM
Ok, understood, thanks for Ok, understood, thanks for clarifying for me. 🙂
svelte
February 1, 2010 @
9:14 PM
CBad wrote:
I see merits on [quote=CBad]
I see merits on both theories here but just get a little tired of people assuming people who pay off their mortgages are morons.[/quote]
Understood. I get tired of people assuming that people who don’t pay off their mortgage are morons.
garysears
February 1, 2010 @
10:25 PM
“Understood. I get tired of “Understood. I get tired of people assuming that people who don’t pay off their mortgage are morons.”
I seem to go back and forth between the two arguments. Currently I rent but I’m shopping mortgages and still don’t know if I should get a shorter term loan at a lower rate and pay it down quick or take the lower payment 30 year fixed route.
For long term stability and security I see great value in reducing cash flow requirements. A mortgage is a liability, not an asset. The equity that is the asset may not be easy to get to.
I just don’t want to be a slave to my current income. The more turmoil the job market faces, the less I’m inclined to risk hanging onto a payment longer than I need to.
There is no such thing as risk free returns greater than mortgage rates so paying off debt is the more financially beneficial plan….unless you need a lot of cash urgently in the future.
I’ve been debating 7/1 ARM vs 15 yr fixed vs 30 yr fixed. Today I think the answer for me is going to be some middle ground. I will split my excess income between saving and paying down the mortgage. So maybe the 15 yr fixed? Or maybe the 30? I’m so confused.
temeculaguy
February 1, 2010 @
11:03 PM
Gary, don’t fret, settle on Gary, don’t fret, settle on the 30 yr fixed and just relax, you can always send extra prinicipal payments or make biweekly payments which amount to an extra payment. With most lender’s websites, it’s easy to schedule a higher payment or throw a little extra in between payments.
The ARM’s are for specific scenarios, probably not yours. If you were at a place in your career where pay hikes were in your near future or maybe your spouse would be returning to the workforce soon or if you thoght appreciation was on the way or if you thought rates would come down, then an arm can work, but with 5% 30yr fixed out there, don’t take a loan that is designed to be temporary unless you think your needing the loan is temporary. I know the people who got arms in the last couple of years have made out fine but these low rates are being forced, they can’t hold it forever. The problem with a 15 is that you cannot convert it to a 30 without considerable cost, but 30’s can be paid off early, unless you feel you need to be forced and will piss away your extra money, I’m like that sometimes, that’s why I have my witholdings set high so I get a big tax return, I need to be forced sometimes.
I’m in that “debt free with the exception of my mortgage” but I’m good with that, Im at peace. I also have a 30 yr mort when I can afford a 15, but I feared I might get too close to the tipping point by over extending, if things got tight, if something unexpected happened, I could swing the higher mortgage but might start cutting out other investments, or financing other things.
Unless you have cash to buy a house outright, the next best plan for the rest of us is to fix your housing costs long term and make those costs as close to rent as possible. Then ignore your house as an investment, just think of it as long term rent control and spend your extra money and energy on actual investments.
CA renter
February 2, 2010 @
1:26 AM
temeculaguy wrote:Gary, don’t [quote=temeculaguy]Gary, don’t fret, settle on the 30 yr fixed and just relax, you can always send extra prinicipal payments or make biweekly payments which amount to an extra payment. With most lender’s websites, it’s easy to schedule a higher payment or throw a little extra in between payments.
The ARM’s are for specific scenarios, probably not yours. If you were at a place in your career where pay hikes were in your near future or maybe your spouse would be returning to the workforce soon or if you thoght appreciation was on the way or if you thought rates would come down, then an arm can work, but with 5% 30yr fixed out there, don’t take a loan that is designed to be temporary unless you think your needing the loan is temporary. I know the people who got arms in the last couple of years have made out fine but these low rates are being forced, they can’t hold it forever. The problem with a 15 is that you cannot convert it to a 30 without considerable cost, but 30’s can be paid off early, unless you feel you need to be forced and will piss away your extra money, I’m like that sometimes, that’s why I have my witholdings set high so I get a big tax return, I need to be forced sometimes.
I’m in that “debt free with the exception of my mortgage” but I’m good with that, Im at peace. I also have a 30 yr mort when I can afford a 15, but I feared I might get too close to the tipping point by over extending, if things got tight, if something unexpected happened, I could swing the higher mortgage but might start cutting out other investments, or financing other things.
Unless you have cash to buy a house outright, the next best plan for the rest of us is to fix your housing costs long term and make those costs as close to rent as possible. Then ignore your house as an investment, just think of it as long term rent control and spend your extra money and energy on actual investments.[/quote]
Agree 100% with this advice.
—————–
Also agree with your explanation regarding the (44%, as of this moment) debt-free Piggs. Like you when you were renting, we have no debt except for our credit card which is paid off every month. It certainly helps to be a renter when taking polls like this, because our rent isn’t considered “debt” while a home owner’s monthly payment is considered a debt. It’s a bit biased, I suppose.
Yes, we’re a bunch of geeky, financially conservative types who probably over-analyze everything. Personally, I’m deathly afraid of debt; and it’s likely you’ll find more debt-averse people on a site like this rather than ESPN or RedTube. 😉
Diego Mamani
February 1, 2010 @
2:56 PM
Sold my house in the summer Sold my house in the summer of 2005. Our cars are paid for… cc’s we use for the airline miles and I pay them in full every month. I’m on the losing end of the current “War on Savers” that our politicians are waging.
Multiplepropertyowner
February 1, 2010 @
11:12 PM
I gotta call BS on this I gotta call BS on this survey. If the number is 10% of Piggs being totally debt free it would be off the charts. Anyone who works in financial planning knows that there is no way these numbers are even close to realistic. Sorry to burst all your bubbles…
temeculaguy
February 1, 2010 @
11:31 PM
I don’t know mutliple, we I don’t know mutliple, we aren’t a cross section of the population, it’s a housing blog. Most of those debt free voters are renting and saving for a house, I didn’t vote that way but when I was most active on the boards while I was renting, I was debt free. Sometimes I miss it, I was so flush with cash, it was great. I had owned homes for fifteen years and for three years, I didn’t. It sucked and it was fantastic, all at the same time. Now that I’m back to the grind of home ownership, when my tax return arrives, I’ll be looking at wood floor samples instead of expedia. Did you know that it costs more to change the flooring material in just three rooms that it does to go to a resort in the caribbean where bathing suit tops are optional, and I did this on purpose…aarrrggg!
I’ll repeat myself, it’s a housing blog, this is my one hobby that is so geekish it’s off the charts. Now if these numbers held up on espn’s website or porn sites or any of the other sites I also visit, then I would call BS, but this is a unique group of overly financially conservative folks, polls here have no frame of reference in society as a whole, it’s too weird of a group.
January 30, 2010 @ 11:38 PM
Ok, this isn’t even close to
Ok, this isn’t even close to scientific. Just mildly curious how different Piggs are to the “households that have such high debt loads, in addition to their mortgages.” Sloppy quote from recent Bloomberg article.
January 30, 2010 @ 11:39 PM
no, but it’s manageable. No
no, but it’s manageable. No car payment, no credit cards. Just student loan debt. One chunk will be paid of in less than 2 years. The other chunk will be with me a long time, but it’s very small with a very low interest rate. So small, in fact, that in 2 years I will subjectively feel debt-free, a half day’s wages covers it. Don’t even need to have life insurance against it, it’s dischargeable on death.
January 31, 2010 @ 12:28 AM
I rent. I pay cash for cars
I rent. I pay cash for cars and I normally buy used.
I don’t spend much so I have no credit card debts.
My investment equity exceed the my debts.
Perhaps the question should be “do you have a positive net worth, not counting your future earnings.”
January 31, 2010 @ 4:34 AM
One other category you might
One other category you might want to add, just for clarification might be:
Yes. No mortgage (own home(s) free and clear), no car payments, no cc debt, and, as the last poster noted–“have a positive net worth.”
We happen to be in this category, and it would be interesting to the results of this vote.
January 31, 2010 @ 7:08 AM
I went with the affordable
I went with the affordable mortgage bit because there was no “Will be paid off in full this year” option. 🙂
No car loan, no cc (other than current charges such as gas for the commute, paid off every month), no student loans, no HELOC, hell no toys period. 🙁
After the house is paid off this year, assuming I still have a job I’m going to re-stock the cigar locker and liqour stash though.
I might still be in the positive net worth category but after the last week or so that might not be true. Since ‘beat the bankers’ became cool again I’ve lost a ton in the market. :-{
January 31, 2010 @ 8:14 AM
No credit card debt.
Just
No credit card debt.
Just finished paying off my truck and am now paying the amount of the car payment into my savings account so I can pay cash (or mostly) for my next car.
Have a reasonably affordable mortgage on an older house.
Save quite a bit of money every month (not including retirement savings).
January 31, 2010 @ 9:33 AM
Are you geting approximately
Are you geting approximately what you want out of life and a good night sleep too?
http://www.youtube.com/watch?v=JIbp5C-5WXM
January 31, 2010 @ 12:59 PM
I voted ‘Yes, with affordable
I voted ‘Yes, with affordable mortgage…’.
But, if could have voted: ‘Yes, with cash to payoff’
Currently at 60% LTV ratio of current value.
Plan to Recast loan at $50k per year to reduce payments until paid in full, estimate about 5 years or sooner.
Looking to use saved money to invest in business to return about 20% ROI or more…
Any suggestions?
Plan: Business will payoff home in 5 years.
With little or no risk of principle.
Lucky in OC
January 31, 2010 @ 1:34 PM
Another option is: “Yes.
Another option is: “Yes. Have a mortgage, but only for liquidity purposes. Could pay it off at any time.”
It’s very hard to turn down long-term financing that costs less than 3% after tax, even if you can buy your house(s) for cash.
January 31, 2010 @ 1:52 PM
I have a mortgage. No CC
I have a mortgage. No CC debt, no car payments. I use credit cards but pay in full each month. If fees go up, I’m going back to cash. (I like the costco amex where I get cash back… so I put almost everything on that – the bill is huge, but paid in full each month.
I could pay my mortgage in full with IRA money or 529 money – but that would involve a tax hit or losing a tax benefit. Only have 8 years left on the small mortgage. Payment is affordable on one income – we currently have 1.5 incomes so we’re paying extra on the mortgage.
It was liberating when I paid off all my debt (except mortgage) 10 years ago. I had options in the money and decided to go for it. I got SUPER lucky since it coincided with the peak price of my employer stock… (Pure luck!)
January 31, 2010 @ 2:25 PM
Small mortgage debt on rental
Small mortgage debt on rental house, tenant’s rent covers mortgage. No CC debt, use Pentagon Federal VISA cashback card. Car paid in full. I agree with UCGal, paying off debt is very liberating, paid mine off 7 years ago.
February 1, 2010 @ 7:15 AM
Knowing that mortgage rates
Knowing that mortgage rates are near record lows and that interest rates in general are very likely to rise dramatically in the next few years, why would you want to be mortgage free right now?
Maybe if you’re near retirement age, but otherwise the free liquidity is the way to go…
February 1, 2010 @ 11:05 AM
svelte wrote:Knowing that
[quote=svelte]Knowing that mortgage rates are near record lows and that interest rates in general are very likely to rise dramatically in the next few years, why would you want to be mortgage free right now?
Maybe if you’re near retirement age, but otherwise the free liquidity is the way to go…[/quote]
My wife and I have come to the conclusion that we have no idea what we are doing financially. We only have student loans to repay (less than $250/mo combined) but, don’t see how we could possibly afford to purchase anything in a decent part of the county.
Could you expand on this free liquidity idea?
February 1, 2010 @ 10:16 AM
I am a ‘no debt of any kind’
I am a ‘no debt of any kind’ voter, but I wouldnt say that means too much. I dont own a house and my car is 10 years old.
February 1, 2010 @ 11:24 AM
svelte wrote:Knowing that
[quote=svelte]Knowing that mortgage rates are near record lows and that interest rates in general are very likely to rise dramatically in the next few years, why would you want to be mortgage free right now?
Maybe if you’re near retirement age, but otherwise the free liquidity is the way to go…[/quote]
It still costs money to refinance. And yes, interests rates are very low but I still can’t put the money anywhere that is guaranteed to beat them (if you know where please share). If you have enough liquid beyond paying off the mortgage (and obviously have other investments maxed and no other debt), why not pay it off? You gain more liquidity every month that you don’t pay it. I see merits on both theories here but just get a little tired of people assuming people who pay off their mortgages are morons.
February 1, 2010 @ 11:47 AM
CBad wrote:interests rates
[quote=CBad]interests rates are very low but I still can’t put the money anywhere that is guaranteed to beat them[/quote]
It’s pretty hard to find a low-risk return of more than 4.5% now, but financial history suggests that rate of return should not be difficult to beat, on average, over the next 30 years.
February 1, 2010 @ 3:03 PM
Agree with maintaining
Agree with maintaining maximum liquidity versus paying of a mortgage in this
low-interest rate environment–especially if you can lock in a great rate.
Because our residences and rentals were purchased or inherited quite a few years ago, we have been able to pay them off, and still maintain maximum liquidity, which, as many posters have stated, is extremely important.
February 1, 2010 @ 3:17 PM
If you paid yours off, how
If you paid yours off, how are you also arguing you are maintaining “maximum” liquidity? You’re kinda arguing both sides here aren’t you? Again as I previously stated, if you already have enough liquid beyond paying it off, why not? Isn’t that what you did?
February 1, 2010 @ 3:39 PM
CBad, I probably phrased my
CBad, I probably phrased my comment incorrectly.
Many previous posters indicated that they preferred having some mortgage debt versus diminished liquidity. I was agreeing that, in this case, with rates so low, and if it’s an either/or situation, a low-rate mortgage loan is a great idea.
Because liquidity is not an issue for us,
I, like you, prefer no mortgage or other debt.
February 1, 2010 @ 3:52 PM
Ok, understood, thanks for
Ok, understood, thanks for clarifying for me. 🙂
February 1, 2010 @ 9:14 PM
CBad wrote:
I see merits on
[quote=CBad]
I see merits on both theories here but just get a little tired of people assuming people who pay off their mortgages are morons.[/quote]
Understood. I get tired of people assuming that people who don’t pay off their mortgage are morons.
February 1, 2010 @ 10:25 PM
“Understood. I get tired of
“Understood. I get tired of people assuming that people who don’t pay off their mortgage are morons.”
I seem to go back and forth between the two arguments. Currently I rent but I’m shopping mortgages and still don’t know if I should get a shorter term loan at a lower rate and pay it down quick or take the lower payment 30 year fixed route.
For long term stability and security I see great value in reducing cash flow requirements. A mortgage is a liability, not an asset. The equity that is the asset may not be easy to get to.
I just don’t want to be a slave to my current income. The more turmoil the job market faces, the less I’m inclined to risk hanging onto a payment longer than I need to.
There is no such thing as risk free returns greater than mortgage rates so paying off debt is the more financially beneficial plan….unless you need a lot of cash urgently in the future.
I’ve been debating 7/1 ARM vs 15 yr fixed vs 30 yr fixed. Today I think the answer for me is going to be some middle ground. I will split my excess income between saving and paying down the mortgage. So maybe the 15 yr fixed? Or maybe the 30? I’m so confused.
February 1, 2010 @ 11:03 PM
Gary, don’t fret, settle on
Gary, don’t fret, settle on the 30 yr fixed and just relax, you can always send extra prinicipal payments or make biweekly payments which amount to an extra payment. With most lender’s websites, it’s easy to schedule a higher payment or throw a little extra in between payments.
The ARM’s are for specific scenarios, probably not yours. If you were at a place in your career where pay hikes were in your near future or maybe your spouse would be returning to the workforce soon or if you thoght appreciation was on the way or if you thought rates would come down, then an arm can work, but with 5% 30yr fixed out there, don’t take a loan that is designed to be temporary unless you think your needing the loan is temporary. I know the people who got arms in the last couple of years have made out fine but these low rates are being forced, they can’t hold it forever. The problem with a 15 is that you cannot convert it to a 30 without considerable cost, but 30’s can be paid off early, unless you feel you need to be forced and will piss away your extra money, I’m like that sometimes, that’s why I have my witholdings set high so I get a big tax return, I need to be forced sometimes.
I’m in that “debt free with the exception of my mortgage” but I’m good with that, Im at peace. I also have a 30 yr mort when I can afford a 15, but I feared I might get too close to the tipping point by over extending, if things got tight, if something unexpected happened, I could swing the higher mortgage but might start cutting out other investments, or financing other things.
Unless you have cash to buy a house outright, the next best plan for the rest of us is to fix your housing costs long term and make those costs as close to rent as possible. Then ignore your house as an investment, just think of it as long term rent control and spend your extra money and energy on actual investments.
February 2, 2010 @ 1:26 AM
temeculaguy wrote:Gary, don’t
[quote=temeculaguy]Gary, don’t fret, settle on the 30 yr fixed and just relax, you can always send extra prinicipal payments or make biweekly payments which amount to an extra payment. With most lender’s websites, it’s easy to schedule a higher payment or throw a little extra in between payments.
The ARM’s are for specific scenarios, probably not yours. If you were at a place in your career where pay hikes were in your near future or maybe your spouse would be returning to the workforce soon or if you thoght appreciation was on the way or if you thought rates would come down, then an arm can work, but with 5% 30yr fixed out there, don’t take a loan that is designed to be temporary unless you think your needing the loan is temporary. I know the people who got arms in the last couple of years have made out fine but these low rates are being forced, they can’t hold it forever. The problem with a 15 is that you cannot convert it to a 30 without considerable cost, but 30’s can be paid off early, unless you feel you need to be forced and will piss away your extra money, I’m like that sometimes, that’s why I have my witholdings set high so I get a big tax return, I need to be forced sometimes.
I’m in that “debt free with the exception of my mortgage” but I’m good with that, Im at peace. I also have a 30 yr mort when I can afford a 15, but I feared I might get too close to the tipping point by over extending, if things got tight, if something unexpected happened, I could swing the higher mortgage but might start cutting out other investments, or financing other things.
Unless you have cash to buy a house outright, the next best plan for the rest of us is to fix your housing costs long term and make those costs as close to rent as possible. Then ignore your house as an investment, just think of it as long term rent control and spend your extra money and energy on actual investments.[/quote]
Agree 100% with this advice.
—————–
Also agree with your explanation regarding the (44%, as of this moment) debt-free Piggs. Like you when you were renting, we have no debt except for our credit card which is paid off every month. It certainly helps to be a renter when taking polls like this, because our rent isn’t considered “debt” while a home owner’s monthly payment is considered a debt. It’s a bit biased, I suppose.
Yes, we’re a bunch of geeky, financially conservative types who probably over-analyze everything. Personally, I’m deathly afraid of debt; and it’s likely you’ll find more debt-averse people on a site like this rather than ESPN or RedTube. 😉
February 1, 2010 @ 2:56 PM
Sold my house in the summer
Sold my house in the summer of 2005. Our cars are paid for… cc’s we use for the airline miles and I pay them in full every month. I’m on the losing end of the current “War on Savers” that our politicians are waging.
February 1, 2010 @ 11:12 PM
I gotta call BS on this
I gotta call BS on this survey. If the number is 10% of Piggs being totally debt free it would be off the charts. Anyone who works in financial planning knows that there is no way these numbers are even close to realistic. Sorry to burst all your bubbles…
February 1, 2010 @ 11:31 PM
I don’t know mutliple, we
I don’t know mutliple, we aren’t a cross section of the population, it’s a housing blog. Most of those debt free voters are renting and saving for a house, I didn’t vote that way but when I was most active on the boards while I was renting, I was debt free. Sometimes I miss it, I was so flush with cash, it was great. I had owned homes for fifteen years and for three years, I didn’t. It sucked and it was fantastic, all at the same time. Now that I’m back to the grind of home ownership, when my tax return arrives, I’ll be looking at wood floor samples instead of expedia. Did you know that it costs more to change the flooring material in just three rooms that it does to go to a resort in the caribbean where bathing suit tops are optional, and I did this on purpose…aarrrggg!
I’ll repeat myself, it’s a housing blog, this is my one hobby that is so geekish it’s off the charts. Now if these numbers held up on espn’s website or porn sites or any of the other sites I also visit, then I would call BS, but this is a unique group of overly financially conservative folks, polls here have no frame of reference in society as a whole, it’s too weird of a group.