RE: Stop Spending SO Much! Idiot! (Part One)
Save: I need to live somewhere now. Rental apartment costs 1800-2000 in my city. Every month payment for a home including percents cost 1600-1800.
Looking on this numbers I always consider paying home payments is CHEAPER than to rent something.
Did you ever buy a home? I'm just curious if you ever looked on mortgage and rental payments before suggesting others do not take a mortgage loan?
I would suggest to pay extra every month for a home loan ONLY if mortgage contract doesn't have any penalty for AND if you would buy a home on a low market.
For current estate market - when it's too high - I would never suggest to pay any extra cents, because if market gows down (actually not "if" but "when"), so, when a market goes down it would not have any sense to buy/pay a bank 600k plus percents for a home which costs now 300k. If this situation a smart home buyer should make a short sale (or return his bank his property) and buy another home better and much cheaper on a market buttom. If you would pay extra for a home which was bought on a high market you would just gift your loan bank some extra money for nothing.
Also, the truth is no one lives in the same home for 30 years (loan time life) so everyone should consider market fluctuations and his possible life events like new kids/works/divorces/marriages for that time period BEFORE buying a house
Until interest rates rise. Or you have to fix the roof.
have you ever signed any mortgage documents? from where did you get an idea about raised percents for mortgage AFTER signing a document with says 3.25% for 30 years?
For a roof specifically, I have a roof insurance which cost 250$ for 2 years. and they fix any problems roof free. beside to roof insurance, there is a usual home insurance which covers a roof too.
and on top of this: buying a home on a market's bottom and then selling with higher price could bring you a lot of money. Why don't you consider this fact?