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Old 12-04-2017, 10:02 AM
 
4,294 posts, read 6,361,392 times
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Quote:
Originally Posted by Pilot1 View Post
This is why I got a 15 year mortgage instead of a 30 year, and the monthly payment wasn't THAT much more. The interest savings were considerable.

2nd

I'm on my 4th home, finally woke up to other loan options than the 30yr fixed (which, in hindsight, has been among the worst of the options available). My current loan is a 10-1 ARM (and paid in full at 15 years), the payments were actually LESS than a 30yr fixed, it was a small difference monthly ($20? less?), but the difference in Interest was huge. Since we weren't foolish enough to make ourselves 'house poor' we can and do pay more than the monthly minimums, applied to the principle, who looks to cut our total loan length to under a decade. Our total interest outlay will be a tiny faction of a traditional 30yr fixed.

Find a good loan officer, either a traditional bank/CU based or a broker that deals with lots, and find out all the different options.
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Old 12-04-2017, 10:31 AM
 
Location: Philadelphia/South Jersey area
2,232 posts, read 1,015,386 times
Reputation: 7354
Quote:
Originally Posted by louie0406 View Post
While true, youíre not factoring in property tax that will continue to go up and never go away even after the home is paid off, along with home owners insurance.

The upkeep of your home can run in the 10ís of thousands over the course of your mortgage as well. Things like your roof, water heater, boiler, sidings, air condition unit, landscaping, etc that will need attention over the years. That $250k house can very well run you double that once all is said and done.
lol

I think people who are homeowners conveniently block this out. I own my home and it is a HUGE drain on finances even without a mortgage. and the older the house gets, the more maintenance it will need. I have a HOA also that goes up annually.

So you need to look at a lot more than the cost of a mortgage. Now I live in the northeast so with this new tax plan, I'm taking a huge hit because my real estate taxes will only be deductible up to a certain point so the tax incentive for ownership is going away.

I also don't understand how people say their mortgage does not go up. My mortgage payment includes my escrow account which is property taxes and home owners insurance. believe me op, my mortgage most definitely has gone up. my property taxes have gone up annually as well as my homeowners insurance.

this most likely will be the last house I ever own. It's not conducive to aging in it as it has 4 floors. when I sell this puppy I may, may get a condo but since I want to be a snowbird, I'll probably get a small condo for Philly and rent for the winter in the south.

I hope to never own again.
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Old 12-04-2017, 11:06 AM
 
Location: New York
2,251 posts, read 4,153,425 times
Reputation: 1607
My $00.02

Paid our 30yr loan off in 14 years.......

At the time - was a struggle sending extra towards principle.

Look back at what we did, glad we did it.

Now no debt - credit 800+.....
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Old 12-04-2017, 01:52 PM
 
1,908 posts, read 1,080,717 times
Reputation: 1997
I def think most people underestimate maintenance. In the last year alone we've needed a new dishwasher, new cabinets, and a new garage door. We still need a new heating system (8k), new floors (carpets are old) 5k, new windows (10k), new door (1k). We'll probably do one project per year for the next 4-5 years. At the end of that I guarantee will need 2-3 other things.
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Old 12-04-2017, 01:56 PM
 
Location: USA
12,975 posts, read 7,200,905 times
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Quote:
Originally Posted by dysgenic View Post
I def think most people underestimate maintenance. In the last year alone we've needed a new dishwasher, new cabinets, and a new garage door. We still need a new heating system (8k), new floors (carpets are old) 5k, new windows (10k), new door (1k). We'll probably do one project per year for the next 4-5 years. At the end of that I guarantee will need 2-3 other things.

That's a good point, but I think you are still ahead most of the time over renting. The only thing is homes may not be a liquid asset, depending on the condition of the home, and the market. You can just move at the end of a lease. Not so with a home. You need to sell it first.
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Old 12-04-2017, 02:49 PM
 
Location: Los Angeles
3,401 posts, read 1,948,079 times
Reputation: 10017
Quote:
Originally Posted by dysgenic View Post
I def think most people underestimate maintenance. In the last year alone we've needed a new dishwasher, new cabinets, and a new garage door. We still need a new heating system (8k), new floors (carpets are old) 5k, new windows (10k), new door (1k). We'll probably do one project per year for the next 4-5 years. At the end of that I guarantee will need 2-3 other things.
Those items aren't maintenance, they're upgrades. If you were renting, you'd have to make do with the crappy dishwasher, the old cabinets, the old furnace and the old carpets because the landlord wouldn't do all that for you. True, home ownership allows you the ABILITY to upgrade your home, but you don't have to.
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Old 12-04-2017, 03:09 PM
 
1,908 posts, read 1,080,717 times
Reputation: 1997
Quote:
Originally Posted by Pilot1 View Post
That's a good point, but I think you are still ahead most of the time over renting. The only thing is homes may not be a liquid asset, depending on the condition of the home, and the market. You can just move at the end of a lease. Not so with a home. You need to sell it first.
Probably but like someone else mentioned it's situation dependent. I live in a townhouse community, so I don't even have a single family home. That being said the location is perfect for my kids...but if it wasn't for them it totally wouldn't be worth it.
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Old 12-04-2017, 03:38 PM
 
1,908 posts, read 1,080,717 times
Reputation: 1997
Quote:
Originally Posted by JustMike77 View Post
Those items aren't maintenance, they're upgrades. If you were renting, you'd have to make do with the crappy dishwasher, the old cabinets, the old furnace and the old carpets because the landlord wouldn't do all that for you. True, home ownership allows you the ABILITY to upgrade your home, but you don't have to.
I hear you...some of them are upgrades some of them are true maintenance. Dishwasher was broken. I could have fixed it but it was going to be almost as much $$ to fix as getting a new one. Floor is upgrade. Window upgrade. Door upgrade. Cabinets upgrade. Garage was busted needed to get done. Heating system is already the backup, so it's not an emergency but needs to get done within a year or 2.


But the thing is, most homeowners (smartly) will try to protect their investment by putting $$ into the home. Which costs a lot more than people think.
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Old 12-04-2017, 06:51 PM
 
303 posts, read 191,569 times
Reputation: 280
Rents increase Three percent (3%) to eight percent (8%) every 12 months in accordance with the annual rent increase percentage, which is based on the Consumer Price Index (CPI) average for the twelve (12).

Mortgage payment are fixed for 30 years until paid off, and are tax deductible.

Why would anyone rent? Chances are your paying a mortgage payment anyways, your landlords. I am a property manager and I see so many tenants tell me they lived in the apartment 20 years, they paid the place off for the landlord and get no benefit.

One tenants said they started at $450 a month decade or more ago, they were complaining the rent is increasing to $1,850. Imagine if they bought they would still be paying 1998 payments.
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Old 12-05-2017, 07:07 AM
 
4,910 posts, read 5,503,332 times
Reputation: 7129
Quote:
Originally Posted by forzalugano View Post
Rents increase Three percent (3%) to eight percent (8%) every 12 months in accordance with the annual rent increase percentage, which is based on the Consumer Price Index (CPI) average for the twelve (12).

Mortgage payment are fixed for 30 years until paid off, and are tax deductible.

Why would anyone rent? Chances are your paying a mortgage payment anyways, your landlords. I am a property manager and I see so many tenants tell me they lived in the apartment 20 years, they paid the place off for the landlord and get no benefit.

One tenants said they started at $450 a month decade or more ago, they were complaining the rent is increasing to $1,850. Imagine if they bought they would still be paying 1998 payments.
Mortgage payments are fixed, but property tax and home owners insurance arenít.

A good friend of mine who purchased a home in my area said that heís had 3 property tax hikes in the 3yrs that heís been there. According to him, they werenít small hikes either. Heís paying a significant amount more now than he was 3yrs ago.
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