4 ms·

I don't understand the desire to pay off the mortgage after a big windfall, especially with interest rates so low. I suppose you get a vague sense of security,

I don't understand the desire to pay off the mortgage after a big windfall, especially with interest rates so low. I suppose you get a vague sense of security, as in "the bank can never take my house away now", but you just took a big chunk of liquid money that could have been used to pay any kind of expense, and you put it into very illiquid home equity that was being loaned to you at a long-term locked-in rate barely above the historical rate of inflation.

eevee 11y ago
I understand the math, but I feel like debt is a huge weight on my shoulders. I grew up with parents who were constantly in more debt than they could handle and constantly reminding me of it. I would rather not be anywhere near that situation again, even if keeping moderate debt would've worked out a little better in the long run.
- OneOneOneOne 11y ago
  Thumbs up. Too many people take on unnecessary debt (big house, new cars, toys, ...) It seems like many are at peace with their debt. Going into debt for anything more than a modest house (rather than paying rent) doesn't make sense to me.
  - eclipxe 11y ago
    Nothing wrong with debt and being at peace with it. Why doesn't it make sense to you? (I genuinely want to know your opinion)
    - OneOneOneOne 11y ago
      Being in debt limits your freedom. We all need to provide for our well being but why take on more than is necessary?
      - eclipxe 11y ago
        Who determines what is "necessary"? Why does it limit freedom?
  - duderific 11y ago
    I have a pretty sizable mortgage, and it doesn't feel any different to me than renting, other than I am responsible when things break or stop working. The monthly payments are similar if not less than renting. There are huge upsides, such as that my payment is locked in (I have a fixed rate mortgage), so no egregious rent increases, and we can do anything we want to the house (remodeling, landscaping etc.) to make it our own. The only way you can get hosed is if housing prices drop and simultaneously you are forced to move, which doesn't seem too likely for me. Many people got crushed in the housing crash, but generally that was because they took on loans that they couldn't afford, with an adjustable rate loan, or they were planning to flip the house and got caught holding the bag when prices plummeted. Those who bought for the right reasons (a place to live rather than an investment) have no downside to their house being worth less than when they bought it. I guess you could say I am at peace with my debt, in that I don't lie awake at night worrying about all this money I owe, since I'll never have to pay it all back at once anyway.
- hunterloftis 11y ago
  This resonated with me because I feel the same way and grew up with similar parents. I'm actually in the process of a cash-based home buy... the potential extra earnings of not fully owning my home aren't worth the mental anguish it would cause.

eevee 11y ago

I understand the math, but I feel like debt is a huge weight on my shoulders. I grew up with parents who were constantly in more debt than they could handle and constantly reminding me of it. I would rather not be anywhere near that situation again, even if keeping moderate debt would've worked out a little better in the long run.

OneOneOneOne 11y ago
Thumbs up. Too many people take on unnecessary debt (big house, new cars, toys, ...) It seems like many are at peace with their debt. Going into debt for anything more than a modest house (rather than paying rent) doesn't make sense to me.
- eclipxe 11y ago
  Nothing wrong with debt and being at peace with it. Why doesn't it make sense to you? (I genuinely want to know your opinion)
  - OneOneOneOne 11y ago
    Being in debt limits your freedom. We all need to provide for our well being but why take on more than is necessary?
    - eclipxe 11y ago
      Who determines what is "necessary"? Why does it limit freedom?
- duderific 11y ago
  I have a pretty sizable mortgage, and it doesn't feel any different to me than renting, other than I am responsible when things break or stop working. The monthly payments are similar if not less than renting. There are huge upsides, such as that my payment is locked in (I have a fixed rate mortgage), so no egregious rent increases, and we can do anything we want to the house (remodeling, landscaping etc.) to make it our own. The only way you can get hosed is if housing prices drop and simultaneously you are forced to move, which doesn't seem too likely for me. Many people got crushed in the housing crash, but generally that was because they took on loans that they couldn't afford, with an adjustable rate loan, or they were planning to flip the house and got caught holding the bag when prices plummeted. Those who bought for the right reasons (a place to live rather than an investment) have no downside to their house being worth less than when they bought it. I guess you could say I am at peace with my debt, in that I don't lie awake at night worrying about all this money I owe, since I'll never have to pay it all back at once anyway.
hunterloftis 11y ago
This resonated with me because I feel the same way and grew up with similar parents. I'm actually in the process of a cash-based home buy... the potential extra earnings of not fully owning my home aren't worth the mental anguish it would cause.