Quote:
Originally Posted by Boilermaker128
Some people choose to pay off a small house and get a nice car when they're young. Not take out 1/4+ million dollar mortgages and drive a cheap vehicle. My mortgage and bills can be paid on unemployment if that situation comes up. It's nice not having everything tied up into a house banking on the market not crashing and interest rates staying low, God forbid they rise near double digits again.
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If I have a mortgage in Los Angeles [which I do] then it's going to be more than $250k borrowed. But also, if you look at what it costs to rent it's not really that much cheaper to rent unless you want to live in a studio in an area of town that you don't prefer.
Also once you have the low interest rate, why would it matter if interest rates go up? Unless you're financing with some sort of ARM then you are protected from fluctuation in the cost of money.
You can do whatever you want with your money, but if you make as much money a year as the car costs then that is a poor financial decision, like objectively.