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[ProgMatinee]

Heck with mortgage interest rates as low as they are now why would you even want to pay cash for a house? After the 20% down you could invest the rest in something that could probably end up making you money in the long run.

Yep. That's a great point. There is a valid counter argument that carrying a mortgage at the current rates as long as possible, even paying interest only and then investing the funds into a higher yield investment is smarter. Risky as hell though.

I fall in the middle.

Personally, I don't see the point in paying rent to a landlord while all your cash sits in a savings account making .01% interest until you have $200,000 seems to suggest just to avoid paying 3.5% interest. That would take most people 30 years anyway.

But I also don't believe that you should invest in higher risk stuff instead of paying your mortgage.

For me, paying off the mortgage early is a guaranteed 3.5% profit plus the peace of mind of watching it go down.

 

[jonny88]

Instead of being a jackass, try actually explaining this theory of yours that is so easy..

Maybe his theory is having a really good paying job, while being a freeloader, living somewhere for free, mooching off people. That would then be easy to buy a house in cash in 4-5 years.

 

[BuffyGirl]

I just feel like, with the rising costs of homes (and let me tell you, May last year the house we wanted was $170k, today the home we want is $230k) that even if we saved for 5 years, by the time that 5 years is up, the homes will cost that much more and we will have to just keep saving. It's kind of a vicious cycle.

I'll take my low rate, my pretty fair down payment and get that house we want today, for as cheap as we can.

I'm going to just do what someone else mentioned, that I had planned to do anyways. Just wait until I have a lump in my paypal account and make one transfer, instead of small ones.

 

[jonny88]

I just feel like, with the rising costs of homes (and let me tell you, May last year the house we wanted was $170k, today the home we want is $230k) that even if we saved for 5 years, by the time that 5 years is up, the homes will cost that much more and we will have to just keep saving. It's kind of a vicious cycle.

I'll take my low rate, my pretty fair down payment and get that house we want today, for as cheap as we can. ]

That's the best thing to do. Have a large down payment saved up, then just make morgage payments, which aren't much more then monthy rent payments anway. Makes more sense to own for very little more then to rent, which get's you no where.

 

[F0RSAK3N]

All things being equal, you can't rent a place for less than it would cost to buy.

I disagree with this statement, although in general I agree with your other points.

And BG definitely get a house relatively soon as assets other than cash are going to hold their value better than our currency in my opinion in the next 5-10 years.

 

[BuffyGirl]

I disagree with this statement, although in general I agree with your other points.

And BG definitely get a house relatively soon as assets other than cash are going to hold their value better than our currency in my opinion in the next 5-10 years.

No doubt. We are buying this year, there is no changing that.

 

[Ish]

What you're asking is for the PayPal debit, I have had it for a few years and its great, no complaints and no fees last time I checked.

 

[BuffyGirl]

What you're asking is for the PayPal debit, I have had it for a few years and its great, no complaints and no fees last time I checked.

Okay yeah, that's is probably it. The debit card. So no complaints is good. I'll look into it further.

 

[ProgMatinee]

I disagree with this statement, although in general I agree with your other points.

Lets say you can borrow for as low as 4% interest rate. I'm pretty sure no home owner is going to ask for a lower return on investment from a renter than the current borrowing rate of 4%. It would be smarter for the property owner to sell and invest in something else.