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You know that you can sell houses before you pay off your mortgage, right? If you aren't in an area with very high housing costs (which, obviously, very many r
by aetherson 7y ago
You know that you can sell houses before you pay off your mortgage, right?
If you aren't in an area with very high housing costs (which, obviously, very many readers of this site are), it's not even that big a deal to sell your house when you need to. If your house constitutes 40% of your net worth, and you take a 5% hit on your sale price, then your net worth has declined... 2%. A good job is worth that.
Admittedly, it's different when your house is 90% of your net worth and you're barely able to afford your mortgage.
- ska 7y agoClosing costs will kill you if you are doing this too often. If you are pretty certain you will stay at least 5 years, you should be ok.
- fredophile 7y agoSelling isn't free. Where I live you can expect to pay 6% just to the realtors. You also have other costs like lawyers, etc. You're also ignoring leverage. If the house is 40% of my net worth, I take a 5% hit on the sale price, and I've only paid 20% of the house then I've lost 10% of my net worth not 2%.