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In reply to the discussion: Is Buying a House Still the Best Way to Build Wealth? [View all]Sunlei
(22,651 posts)54. did that but put no money down at all. Lenders handed out mortgages like candy & I took advantage!
"pre-payment penalty" << these days people need to be careful about this, have a good lawyer check your mortgage agreement and make sure there is no penalty.
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to build wealth for the lender from the thousands of almost pure interest payments.
Sunlei
Feb 2015
#1
mortgages are front loaded for interest. the majority of the first many years are interest payments.
Sunlei
Feb 2015
#13
did that but put no money down at all. Lenders handed out mortgages like candy & I took advantage!
Sunlei
Feb 2015
#54
I'm glad you got a good deal. The neighborhood would have changed either way, so it's good
merrily
Feb 2015
#23
They would have had no equity with that price drop even if they had put 20% down.
Gormy Cuss
Feb 2015
#24
I wouldn't sell a home that is paid for. Rent it for retirement or general income.
Sunlei
Feb 2015
#42
The strategic reason to buy property with interest-only loans is that you don't tie up your cash
Gormy Cuss
Feb 2015
#26
It is still the best way, they are not making any more land. Well they are but not on that large of
ChosenUnWisely
Feb 2015
#31
like everything else the housing market's been "financialized": suburbs aren't built for housing for
MisterP
Feb 2015
#55
If they're at that kind of place in their lives where they can manage to do that without issue, then
MADem
Feb 2015
#68
There really are so many factors that can weigh heavily for, or against, buying a home
Lex
Feb 2015
#51
Probably is at least an effective defense against poverty in old age...If you can pay it off
TheKentuckian
Feb 2015
#90
It all depends on the circumstances. We encouraged our daughter and son-in-law to buy
pnwmom
Feb 2015
#91
How is home owership supposed to make up for "dwindling pensions and stagnant wages"
Matariki
Feb 2015
#92