In the current economy, what is expected of LI homeowners?

[sneakyvegan]

Honestly I think it might not be as much an attitude of entitlement as it is that a lot of people just don't "get" money. It had never occurred to me to take out a loan for home improvements until a friend told me she was taking out a loan to remodel her bathroom. This same friend has been driving around in a BMW for years, but only recently got health insurance. Another friend lives paycheck to paycheck, but she and her husband both drive luxury cars and took out an FHA mortgage for their house. She actually makes fun of people who put a substantial amount of cash down for their house. My husband and I make far less than her and her husband, but we live much more comfortably. We still go on vacation, we still buy nice clothes, we still go out to dinner and hang out in the city, but we recognize that just because we make X dollars doesn't mean we should spend X dollars.

[Apple juice]

Jamaican style... Buy supplies and materials little by little. When you have everything you need then you do your renovations. @&$! a loan for unnecessary luxuries.

“Buy what thou hast no Need of and ere long thou shalt sell thy Necessaries.”
-Benjamin Franklin

[Pequaman]

Originally Posted by LegalDiva

1. Neither would I. I am still kicking myself for the completely moronic move I made buying a condo w/ less than 20% down and now PMI will never come off until the year 2026. Regret is not even the right word for it.

2. No, you are not in the minority but unfortunately I am noticing that it seems the homeowners who did take a financial risk by buying homes w/ less than 20% and boderline "barely approved for the loan amount" folks have no compunction about justifying their ill-made decision to strangers online. Just read another LI message board where a couple dipped into their 401K accounts to put down LESS than 20% on a home. The cincher is a chunk of those funds taken from the 401K account are sitting in a bank account now earning little to no interest! And they get defensive when told flat out "you're an idiot for even doing this". Some people just don't like to be told how their financial decisions come from a place of complete stupidity.

So you're saying you know for a fact that this is a stupid investment for a couple of strangers on a message board? That's quite presumptuous, don't you think? Especially considering your condo blunder and your ignoring the ole location, location, location motto.

To OP: Do what makes you happy, and do it at your own pace. Do not fall into the Jones's mindset.