Current Events > wait, most mortgages are 30 years?

(+) Yeah! (+)

thats insane to me. be living in a house that the bank can just swoop up and take away if anything goes wrong in your finances in the next 30 fucking years

how the fuck

---

You can get a lower mortgage by making a bigger down payment, but you need more money for that.

Housing is fucked

---

Thats why I dont bother paying extra principal or interest.


---

Contrary to what you might have been told, they are not aggressive predators looking for any excuse they can find to take away your house.

If it comes to that, it's because there's some serious defaulting going on. Like, the kind of situation where you'd have gotten kicked out much quicker if you were in a rental and not able to pay for that long.

---

80% of people die before paying off their mortgages

---

It takes a while to actually get forcefully removed from your home. Banks don't want the house, they want your money. They will give you time to get your shit together.

---

lww99 posted...

Thats why I dont bother paying extra principal or interest.

yeah i was thinking okay i can just pay extra every month to bring it down

my budgeting calculator says i can pay off a mortgage in my area in half the time then. great!

but then

i wont be saving for retirement, or any other big expensive that may come up.

---

I think banks usually give you a few months to get your shit together as long as youre open with them

I know my parents almost lost our house due to a layoff and they didnt make a payment for like 5 months. Luckily happened early in the year so the entire tax refund went to getting caught up.

---

Trumble posted...

Contrary to what you might have been told, they are not aggressive predators looking for any excuse they can find to take away your house.

If it comes to that, it's because there's some serious defaulting going on. Like, the kind of situation where you'd have gotten kicked out much quicker if you were in a rental and not able to pay for that long.

ok thats good to know.

---

TheBlueMonk_ posted...

yeah i was thinking okay i can just pay extra every month to bring it down

my budgeting calculator says i can pay off a mortgage in my area in half the time then. great!

but then

i wont be saving for retirement, or any other big expensive that may come up.

It depends.

Can you use those savings, to make more money, than you'd have saved by paying your mortgage off quicker - keeping in mind that paying it off quicker can significantly reduce the total amount you pay? (Even just making weekly rather than fortnightly payments, while otherwise still sticking to minimums, can knock close to $10k off an average size mortgage, simply because all the tiny amounts of interest saved this way add up. But it's quite possible you could use those savings, invested wisely, to make far more than $10k over the same time.)

---

Trumble posted...

Can you use those savings, to make more money, than you'd have saved by paying your mortgage off quicker - keeping in mind that paying it off quicker can significantly reduce the total amount you pay? (Even just making weekly rather than fortnightly payments, while otherwise still sticking to minimums, can knock close to $10k off an average size mortgage, simply because all the tiny amounts of interest saved this way add up. But it's quite possible you could use those savings, invested wisely, to make far more than $10k over the same time.)

hm so youre saying

dump all my savings into bitcoin and hope for the best
DONE

lol but seriously i see what youre saying. hmm im not sure... id have to do more calculations...

---