Why is it dumb to get a mortgage?

[Anonymous]

[ohsheeT]

Well it could be done but I mean it could be a smart thing too it depends on your interest rates it depends on how much money you put down and how much you can afford per month save a bigger down payment I mean triple your down payment if you can
Or

Buy something beat up fix it up triple your money and just keep her you're working your way up until you get the house that you want you have to let your money keep working for you at all times
But if you're by yourself and you have a little down payment your interest rates and everything are going to go sky high and you'll just be paying on the interest of the home instead of actually paying it off


Like I said start off small start out with something little that you can fix up and sell it doesn't cost that much to fix things up it's basically putting a face mask on it and just making everything look beautiful and secure

[NaultD]

It's not. It's the single best way to borrow money. You got sleep, got eat might as well be somewhere reliable and mortgages are 30 year so you got 30 years of inflation on your side.

The feds like 2.0 intrest in inflation. Thats a free 2.0 bounce every year if you are in dedt if you have a flat rate. So i refinance my morgage to 3.1 just before covid19 lockdown. So now the same amount of money march 2020 dosen't have the same purchasing power as it does today but I'm paying the same morgage as if it's march 2020 again every month till it's done.

I could pay off my morgage but that same money that could is in the stock market growing 5%. So intrest of 2% every year and another 5% groth in stocks is on my side of growing more money. So I'm getting more money compared to any other form of borrowing money which should be expensive but for me is profit.

[Anonymous]

It’s not dumb, but it will put you in debt till you pay it off, which may or may not be a good decision depending on your financial situation

[Levin]

Well, I suppose ideally, it would be best to have a big down-payment so you're paying as little interest as possible. Or some may be lucky to have generational wealth.

You could also make some wider philosophical point that it's a form of enslavement. 'Death-bond'. We're the only species who pays to eat and for shelter. You spend your life slaving away for 30+ years in a job you hate, just to pay for a roof over your head. And by the time you can enjoy it you're pretty much ready for death. Yada, yada.

I have sympathy for that. Plus how we're getting screwed over with our respective economies, inflation, pressure on housing due to mass migration. Prices have skyrocketed, less disposable income for leisure.

But hey, if no one cares, why should I care.

For all practical purposes, it's the best option out of a series of bad options.

[RavVid]

It is not dumb if it reduces your costs in the long term and increases your assets to get a house on a mortgage. Typically the costs are higher at the beginning but even after 5 years can become cheaper than rent would be.

Real estate goes in a cycle so renting might be very stressful at the top of the market.

What people don't factor in is maintenance costs which renters don't have. And improvements.

[Miristheiss]

It isn't dumb.

That is how you buy a house. Unless you have 250,000 to 500,000 liquid cash to stap down.

I would advise getting a 15 year mortgage and only getting a house your budget can afford.

My wife and I are debt free, we just paid our mortgage off.

[slatyb]

It's not dumb. It's a complex decision and there's always some element of risk in buying or continuing to rent. It's dumb to get a mortgage that will leave you living paycheck to paycheck. It's dumb to get a mortgage for a home you can't really afford. When you own, you are responsible for maintenance and you need to budget for it.

[Ariesman81]

Stop listening to Grant Cardone... the man makes a fortune on rental income.

Rent is throwing your money out the window. A mortgage is at the very least a store of value that can be borrowed against IF you gain equity. Sure the crash of 2008 was bad for a lot of home owners, but a fixed rate mortgage on a home you can afford will always be the best choice. You might not be as liquid as a renter, but a mortgage offers many more options financially.

[Lynx122]

It depends. In general it's a good thing to own a house because it becomes more valuable over time. But there's also costs associated with it so if you're just barely able to buy a house it might ruin you later on.

[exitseven]

I do not think it is dumb. Paying rent forever is dumb.

[jahaims]

It's not if you can afford it and house maintenance.

[PsychicBoobs]

Depends on your financial standing

[seeyounexttuesday]

It isn’t.