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purplefaithful · 2 hours ago

We agree on one thing, trying to better the lives of our future generations...This is going to make it that much harder at a macro level:

badgervike · 2 hours ago

(2 hours ago)purplefaithful Wrote: We agree on one thing, trying to better the lives of our future generations...This is going to make it that much harder at a macro level:

We only agree on one thing PF? lol.

There isn't a chance in hell we solve the debt crisis with the division in this Country. You try to cut anything and you're killing babies, or seniors, or puppies. Look at the angst over DOGE. There's no bipartisanship anymore where bills of importance are passed on a truly bipartisan majority...and certainly not spending bills. A bipartisan bill these days is 8 Senators from one party. The US debt jumped way up during Covid and didn't come back to its pre-Covid levels...it was artificially inflated to the Covid levels with spending bills.

mblack · 2 hours ago

Now there is wait for it…. 15 year car loan to go with your 50 year home loan.

medaille

(2 hours ago)badgervike Wrote: We only agree on one thing PF? lol.

There isn't a chance in hell we solve the debt crisis with the division in this Country. You try to cut anything and you're killing babies, or seniors, or puppies. Look at the angst over DOGE. There's no bipartisanship anymore where bills of importance are passed on a truly bipartisan majority...and certainly not spending bills. A bipartisan bill these days is 8 Senators from one party. The US debt jumped way up during Covid and didn't come back to its pre-Covid levels...it was artificially inflated to the Covid levels with spending bills.

You can't solve the debt crisis because there's not enough money to pay off the debt. If you were to try and pay off all the debt, what would happen is that you would eliminate all the money that is in circulation, and you would still owe massive amounts more money. This lack of money in existence would mean no one would have money to buy anything, your work wouldn't have money to pay you, and everyone would have to go into more debt to create the money. This is what life inside a fractional reserve banking system is like.

The only way to actually pay off the debt is to create money outside of debt (aka the trillion dollar coin)

BigAl99 · 27 minutes ago

(3 hours ago)badgervike Wrote: You're still not understanding. Let's just make this simple and say that you have a $400k loan on a $450k home. Your monthly interest payments would be $2382.45 all of which is interest at the beginning. That's a total house payment of $286k over 10 years with virtually zero pay down on the note. Now..that $450k home is increasing in value by an average of 4% a year. That home is worth $667k or an increase in value of $217k over 10 years. So..you've increased the value of your house by $217k and made TOTAL payments of $286k. You're out of pocket $69k over 10 years for an increase in home value of $217k. At that point, you convert that original 50 year note to a shorter term and you're good to go...especially if the interest rates decline. The key is to wait for some equity to build in the house and interest rates to be at a reasonable amount and refinance. That will cost you a small amount to refinance.

By contrast...you could continue to pay $2500 per month for rent (assuming rent never goes up..lol) over 10 years. That's $150k out of pocket.

I just used simple numbers. The reality is that yes..you will make investments in your house. Rent will also likely increase over the years. You will also have to have a down payment of some nature. Pretty sure, the government doesn't want to get in the market of guaranteeing loans for those with no collateral and credit history once again. Most of us remember the financial crisis when "everybody deserved to own a home".

That value is the 20 year AVERAGE per year across the Country. Your house is an investment just like all investments there's no guarantee but the AVERAGE rate of return is 4%. I've actually done better than that over the years. Some of it's due to luck and some due to planning. A home purchase is your single biggest investment. Treat the purchase as such.

I do understand, what you are not getting is the concept of debt and tangible assets. I think you live in a world where a home equity line of credit, HELOC, is a tool to achieve wealth, without understanding or appreciating the dynamics of a Monte Carlo distribution over time. My values are different than yours, when it comes to my families security, my home has not been in that calculus, that is not money I bring to the table. The only time a pre-sale value is used is a HELOC, or a second mortgage as was the original term, and that usually does not work out well for the borrowers bottom line. It has been rebranded from a desperation move to a leveraged asset for attaining wealth.

I have had some luck and effort payoff over the years, but it don't make me stupid. When I see someone say "20 Year AVERAGE across the country" as a reason to buy in, I think 1.) Mean, Mode or Median 2.) How dumb does he think I am 3.) Hard no on that.

Badger Ive heard you claim to be everything from a Geophysicist, CEO producing medical products in China, Scientist of some sort who doesn't believe in peer review, all the while volunteering to help the homeless and downtrodden..... you always give me great...

Al the Bus driver