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Post by 60isolderthanithot on Jan 18, 2010 15:35:39 GMT -5
I've actually been thinking about replying to this thread for a while now...... here's what bothers me a little bit. Refinancing so you can go into bigger debt on a nicer house seems like a poor financial plan to me. Unless you have an insanely great property you can get for an insanely great price, moving costs take YEARS to come back. Maybe you have six kids in a 2 bedroom house. Needing something you can't have where you are can change a financial picture. But too often, I've seen people get a little ahead and they just have to find a way to spend it. If it's not a house, it's a new car, boat, big TV.
One of the things I've learned the last couple of years of financial reverses is that not owing money on my HOME was of primary importance. There's nothing like having NO mortgage. We are too used to assuming things will always go on forever exactly as they were when we wanted a new [house/car/computer/plastic surgery/advanced education, etc.] and it can go very very VERY wrong if something happens - such as one spouse dying or losing a job. Living beneath your means can give you choices when those around you are contemplating Chapter 7.
I don't mean to throw ice water on this, I'm just saying what I'd say to a friend over coffee. Getting deeper into debt can make your old age a whole different world than the one you dreamt of when you were 30 or 40.
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