General Discussion
In reply to the discussion: Is Buying a House Still the Best Way to Build Wealth? [View all]Adrahil
(13,340 posts)But my point is that unless you have the cash to outright BUY a house, a mortgage loan is still a good way to build wealth, even in a not-so-great market. Especially so right now with the rates so historically low. I bought my current house back in 2004 (yeah, at the top of the market), with an interest rate of 6 1/8 percent, which was decent back then. Even with the market collapse, and the the fact that my house STILL has not recovered to its purchase price value, I managed to build some $65K in equity. When the loan rates dropped so much, I requested a loan modification from my bank, which they granted due to a spotless payment record, and they lowered the rate to 2 7/8 percent and a 15 year term. Now I'm building equity like a mad man! The house will be paid off before I retire too, which is a nice.