The road to socialism

iVillage Member
Registered: 04-04-2008
The road to socialism
424
Wed, 02-18-2009 - 10:40pm

It's true that Mr. Obama is taking us down the road to socialism.

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iVillage Member
Registered: 01-06-2009
Tue, 02-24-2009 - 12:54pm

(Just try, for one second, to imagine if you or your husband lost your job.

Kim

iVillage Member
Registered: 10-15-2008
Tue, 02-24-2009 - 12:58pm

Gee, thanks for the lesson in finance.


BUT:

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iVillage Member
Registered: 01-06-2009
Tue, 02-24-2009 - 1:02pm

(Absolutely they are! If you didn't over-buy in the first place and lived beneath your means which is always the smart thing to do it doesn't matter if you house has gone up or down in value. The payment stays the same. Oh--you were foolish enough to go with an adjustable rate mortgage and your payment has now increased and you can't refinance? DUH--another risk you chose to take. I've had dozens of mortgages over the years and NOT ONE was an adjustable rate. If you couldn't qualify for a fixed rate mortgage then YOU COULD NOT afford the house in the first place.)


Kim

iVillage Member
Registered: 03-26-2003
Tue, 02-24-2009 - 1:07pm

 


 


I disagree with you, but I'm pretty sure

iVillage Member
Registered: 12-08-2008
Tue, 02-24-2009 - 1:08pm

Good answer. Tying up all your capital in one non-liquid asset is not a smart move. When we had enough in savings to do have liquid assets and pay off the mortgage it was then and only then that we did so and made sure to have HELOC set up just in case it was ever needed.

iVillage Member
Registered: 01-06-2009
Tue, 02-24-2009 - 1:18pm

(But it IS luck to be able to plan ahead.

Kim

iVillage Member
Registered: 01-06-2009
Tue, 02-24-2009 - 1:22pm

(Well, where I live, you can't get a one-bedroom condo for under $200,000.

Kim

iVillage Member
Registered: 12-08-2008
Tue, 02-24-2009 - 1:22pm

>>Gee, thanks for the lesson in finance.<<

Most people could use a few more of them.

>>BUT: While having a reserve is clearly important, sitting on a large savings while continuing to pay a mortgage with interest is just plain silly, unless your savings account is paying more interest than your mortgage rate is charging. And this is rarely the case these days, money markets and savings accounts are paying 2-3% tops right now while mortgage interest rates are still 4.5% or so.<<

Not exactly. Mortgage loans are amortized. Depending on circumstances may afford tax savings and there are other things that can be done with the funds that very well may offer a higher rate of return. You've not considered taxes, inflation or the time value of money (TMV).

>>So, the moral of the story is that if one can pay off one's mortgage early, one should!<<

Not true.

iVillage Member
Registered: 10-15-2008
Tue, 02-24-2009 - 1:23pm

Wonderful.


But I am still stunned at how you and others could think that the "cycle of poverty" doesn't exist and that everyone has the same chances at success.

Photobucket
iVillage Member
Registered: 12-08-2008
Tue, 02-24-2009 - 1:24pm
I remember paying a fixed rate of 11% in 1987!

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