: Herring405 made the following inexplicable comment:
: > the interest on a mortgage is quite manageable
: > when you look at the earnings you free up for
: > other things by not paying the whole enchilada
: > at once. It really isn't all that great to have
: > a house paid off.
: Mr. 405:
: Please inform me of your math abilities, because I would like to know how exactly paying $300,000 for a house that is worth $100,000 frees up more money for "other things?"
Well, it goes like this: You make 29,950 a year, and thus have a limited amount to spend per year on your home. But you don't want to live in a house that costs 20,000, which you could afford to plunk down the whole amount for, due to location, or state of disrepair, or sheer unavailability. So you take out a loan for a house that you would want to live in, in an area you would like to be in. It's a quality of life issue.
Now, I could either save up 100% of my income for just over three and a third years, and plunk it all down for the $100,000 house, or I could take out a loan. (I know, I could do other things too.)
If I take out a loan, I can pay it off in a way that is manageable, while living already in a place I want to be, with a nice house under my family (and above it). I can buy food too. I can probably even get a car, and maybe an occasional movie or CD. All without racking up an incredible credit card debt (at double or more the interest of the home loan).
If I choose to, I can earmark an amount larger than the monthly due, for payment against the principle of the loan, thus helping to bring down the "final cost" figure.
Seems pretty simple to me. Live in a house I want to live in, with a manageable debt, vs. live in one I do not want to live in, and own it.
But I guess things are different for you fat cats with all the money, eh KentDB? Congratulations on being able to plunk down that kind of a wad!
And stop rubbing it in, mister genius.
Herring405
PS: by "manageable debt" I mean "one that I can live with," not the economist's term of the same name. Yes, I know the difference.
Re: Math collision on the 405, film at eleven
H
Herring405
(view)
: Herring405 made the following inexplicable comment:
: > the interest on a mortgage is quite manageable
: > when you look at the earnings you free up for
: > other things by not paying the whole enchilada
: > at once. It really isn't all that great to have
: > a house paid off.
: Mr. 405:
: Please inform me of your math abilities, because I would like to know how exactly paying $300,000 for a house that is worth $100,000 frees up more money for "other things?"
Well, it goes like this: You make 29,950 a year, and thus have a limited amount to spend per year on your home. But you don't want to live in a house that costs 20,000, which you could afford to plunk down the whole amount for, due to location, or state of disrepair, or sheer unavailability. So you take out a loan for a house that you would want to live in, in an area you would like to be in. It's a quality of life issue.
Now, I could either save up 100% of my income for just over three and a third years, and plunk it all down for the $100,000 house, or I could take out a loan. (I know, I could do other things too.)
If I take out a loan, I can pay it off in a way that is manageable, while living already in a place I want to be, with a nice house under my family (and above it). I can buy food too. I can probably even get a car, and maybe an occasional movie or CD. All without racking up an incredible credit card debt (at double or more the interest of the home loan).
If I choose to, I can earmark an amount larger than the monthly due, for payment against the principle of the loan, thus helping to bring down the "final cost" figure.
Seems pretty simple to me. Live in a house I want to live in, with a manageable debt, vs. live in one I do not want to live in, and own it.
But I guess things are different for you fat cats with all the money, eh KentDB? Congratulations on being able to plunk down that kind of a wad!
And stop rubbing it in, mister genius.
Herring405
PS: by "manageable debt" I mean "one that I can live with," not the economist's term of the same name. Yes, I know the difference.
: > the interest on a mortgage is quite manageable
: > when you look at the earnings you free up for
: > other things by not paying the whole enchilada
: > at once. It really isn't all that great to have
: > a house paid off.
: Mr. 405:
: Please inform me of your math abilities, because I would like to know how exactly paying $300,000 for a house that is worth $100,000 frees up more money for "other things?"
Well, it goes like this: You make 29,950 a year, and thus have a limited amount to spend per year on your home. But you don't want to live in a house that costs 20,000, which you could afford to plunk down the whole amount for, due to location, or state of disrepair, or sheer unavailability. So you take out a loan for a house that you would want to live in, in an area you would like to be in. It's a quality of life issue.
Now, I could either save up 100% of my income for just over three and a third years, and plunk it all down for the $100,000 house, or I could take out a loan. (I know, I could do other things too.)
If I take out a loan, I can pay it off in a way that is manageable, while living already in a place I want to be, with a nice house under my family (and above it). I can buy food too. I can probably even get a car, and maybe an occasional movie or CD. All without racking up an incredible credit card debt (at double or more the interest of the home loan).
If I choose to, I can earmark an amount larger than the monthly due, for payment against the principle of the loan, thus helping to bring down the "final cost" figure.
Seems pretty simple to me. Live in a house I want to live in, with a manageable debt, vs. live in one I do not want to live in, and own it.
But I guess things are different for you fat cats with all the money, eh KentDB? Congratulations on being able to plunk down that kind of a wad!
And stop rubbing it in, mister genius.
Herring405
PS: by "manageable debt" I mean "one that I can live with," not the economist's term of the same name. Yes, I know the difference.
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They STILL Live - John Carpenter Responds! – KentDB741 on July 22nd, 2002-
John Carpenter Responds? – Reg on July 23rd, 2002-
Re: John Carpenter Responds? – KentDB741 on July 23rd, 2002
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My Pagan Dreams – Reg on July 24th, 2002
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I don't understand the subject of my college degree? – KentDB741 on July 25th, 2002
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No. – Gregory on July 25th, 2002
Re: My Pagan Dreams – KentDB741 on July 25th, 2002
Re: My Pagan Dreams – KentDB741 on July 25th, 2002
Re: John Carpenter Responds? – BlockDog on July 23rd, 2002
Re: John Carpenter Responds? – krm on July 23rd, 2002
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