Again, without the bank's loans, 90+% of people would never own a home or could not afford one until they were 40+...

It is the chicken and the egg. What causes what? Banks lend money so builders charge more and people can resell for more. Just like would the medical industry be able to charge so much without insurance company contracts? No, bc they would have to charge to market. People access more funds and costs are able to go up to increase margins.

 

The last 10 years or so have proven that you can't always "sell for more." Banks took risks and got bitten.

Again, without the bank's loans, 90+% of people would never own a home or could not afford one until they were 40+...

 

And houses wouldn't cost so much bc people couldn't afford a home until they were 40+. So, as it is people are willing to borrow, people have to follow their lead reluctantly bc the values rise beyond affordable levels and I can still not like the necessity of it.

And houses wouldn't cost so much bc people couldn't afford a home until they were 40+. So, as it is people are willing to borrow, people have to follow their lead reluctantly bc the values rise beyond affordable levels and I can still not like the necessity of it.

 

I think your argument is too simplistic and ignores not only other financial considerations but, also, intangibles.

 

You ignored the tax breaks that come with a mortgage, for example. You ignore the ability to free up cash for other investments or the ability help start a business, for example.

I think your argument is too simplistic and ignores not only other financial considerations but, also, intangibles.

 

You ignored the tax breaks that come with a mortgage, for example. You ignore the ability to free up cash for other investments or the ability help start a business, for example.

 

I thought that we were talking about a world without banks.

I think your argument is too simplistic and ignores not only other financial considerations but, also, intangibles.

 

You ignored the tax breaks that come with a mortgage, for example. You ignore the ability to free up cash for other investments or the ability help start a business, for example.

 

Continue to pay the bank so you can get a tax break......or no house payment and donate to a worthy cause and get the same tax break.

I thought that we were talking about a world without banks.

 

That's what I thought too.

 

I do agree with what Clizzy is saying. When we got the mortgage for our house, it was provided by a small bank in Maysville. We had nothing to put down on the house, but were without any other debt too. I wanted a single loan (no 80/20s), 15 years, fixed rate, no PMI. Shopped around all kinds of places and the Bank of Maysville was the only one who gave us what we were looking for. I was very grateful for their willingness to give us what others could not, or would not.

That's what I thought too.

 

I do agree with what Clizzy is saying. When we got the mortgage for our house, it was provided by a small bank in Maysville. We had nothing to put down on the house, but were without any other debt too. I wanted a single loan (no 80/20s), 15 years, fixed rate, no PMI. Shopped around all kinds of places and the Bank of Maysville was the only one who gave us what we were looking for. I was very grateful for their willingness to give us what others could not, or would not.

 

Oh, I agree. In the real world, banks, LIKE LAWYERS, are necessary. May not like'em, but you need'em. My original post was to make the point that, while necessary, I hate to think of the $172,000 extra that I pay on my mortgage if it goes to term. The front loading of loans is bogus, lucrative for banks, but bogus. So, I would love to pay off my loan, keep that money in my pocket, and extend my digit. MAINLY, I HATE BORROWING AND OWING. It eats me up.

I think your argument is too simplistic and ignores not only other financial considerations but, also, intangibles.

 

You ignored the tax breaks that come with a mortgage, for example. You ignore the ability to free up cash for other investments or the ability help start a business, for example.

 

If you are on a 15 year mortgage many of those tax breaks go away. Example, the mortgage interest paid I cant use on tax return because its not enough to get us past standard deduction, (even with the other stuff as well)

If you are on a 15 year mortgage many of those tax breaks go away. Example, the mortgage interest paid I cant use on tax return because its not enough to get us past standard deduction, (even with the other stuff as well)

 

Technically, the tax break is still there, it's just not useful for you to use, so you take the standard deduction. It didn't go away.

I hate to think of the $172,000 extra that I pay on my mortgage if it goes to term.

 

We paid a total of $43,090 in interest for ours and that was only for 7 years & 3 months. That's a small amount of interest compared to other mortgages, but it still eats at me.

We paid a total of $43' date='090 in interest for ours and that was only for 7 years & 3 months. That's a small amount of interest compared to other mortgages, but it still eats at me.[/quote']

 

 

How much would it cost for you to rent the same house you bought?

How much would it cost for you to rent the same house you bought?

 

In our area, probably about $600 per month. But I don't know a tremendous deal about rental values/costs.

 

We bought it for $142,000 in April of 2007.

In our area, probably about $600 per month.

 

There is a house on our street directly behind our home, with a value slightly lower than ours, that rents for $500 per month.

There is a house on our street directly behind our home, with a value slightly lower than ours, that rents for $500 per month.

 

No one likes the idea of paying interest. However, consider the alternative. You could have paid about $52,000 in rent and then continued to pay more rent. Now you have an asset that you are no longer paying on.