Originally Posted by TransWorld
(Post 3213100)
Exactly.
You certainly get more than 2.5% (less tax savings) in your investments. If you can’t, you need a good financial planner to help educate you. But the other side of me loves the debt-free philosophy on life (e.g., Dave Ramsey). I like not having payments to take care of each month. Am I thinking of this correctly? |
Originally Posted by 123494
(Post 3213116)
I get that argument. Say if the house is $300k. I can put the 20% down and throw the other money into a Total Market ETF or something similar. If I pay in cash, I'd lose out on that potential compounding returns.
But the other side of me loves the debt-free philosophy on life (e.g., Dave Ramsey). I like not having payments to take care of each month. Am I thinking of this correctly? I look at it as you controlling your debt, and wisely using debt. Not debt controlling you. As far as the emotional feelings, I understand the emotionally driven good feeling of owing nothing to anyone. But consider two situations. Someone with enough for just a down payment on a house could stay debt free by living in an apartment until they can pay cash for a house several decades down the road. Not a wise business decision. A business wanting to expand, but having to go into debt to do it, and getting a profit from it, would wisely and prudently use debt. Hope this provides some logical contrasting perspective on the emotional side of the brain. |
Originally Posted by TransWorld
(Post 3213340)
Yes, Dave Ramsey has a very good point to get out of 18%+ high interest credit card debt (and even car debt, a depreciating asset). A house, when interest rates are this low (and an appreciating asset), is a different animal. The use of that money at say, 8% rate of return in investments is better than the 2.5% rate of return in paying down your home loan.
I look at it as you controlling your debt, and wisely using debt. Not debt controlling you. As far as the emotional feelings, I understand the emotionally driven good feeling of owing nothing to anyone. But consider two situations. Someone with enough for just a down payment on a house could stay debt free by living in an apartment until they can pay cash for a house several decades down the road. Not a wise business decision. A business wanting to expand, but having to go into debt to do it, and getting a profit from it, would wisely and prudently use debt. Hope this provides some logical contrasting perspective on the emotional side of the brain. |
Originally Posted by MartyTHL
(Post 2388946)
Plan your income off your min guarantee and bonuses, but know that usually a lender can use your actual hours versus the min guarantee if needed. Hope that gives you a basic starting point. Let me know if you need anything else. Fly safe! Marty Sent from my iPhone using Tapatalk |
Originally Posted by TransWorld
(Post 3213340)
Yes, Dave Ramsey has a very good point to get out of 18%+ high interest credit card debt (and even car debt, a depreciating asset). A house, when interest rates are this low (and an appreciating asset), is a different animal. The use of that money at say, 8% rate of return in investments is better than the 2.5% rate of return in paying down your home loan.
I look at it as you controlling your debt, and wisely using debt. Not debt controlling you. As far as the emotional feelings, I understand the emotionally driven good feeling of owing nothing to anyone. But consider two situations. Someone with enough for just a down payment on a house could stay debt free by living in an apartment until they can pay cash for a house several decades down the road. Not a wise business decision. A business wanting to expand, but having to go into debt to do it, and getting a profit from it, would wisely and prudently use debt. Hope this provides some logical contrasting perspective on the emotional side of the brain. I have owned my entire airline career. Property appreciation more than covered my payments. I will retire with a brand new retirement home and a vacation home plus about 400,000 in equity left over after just selling my prior home. Had I rented I would not have two paid in full homes and 400,000 extra in the bank. |
Originally Posted by flyingmau5
(Post 3242920)
When you said actual hours... Is that based off of the current timecards/paystubs? What is underwriting going to look at when taking the higher pay into consideration?
Luis [email protected] |
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