Comments on: Thought, word and deeds

By: Francis W. Porretto

Francis W. Porretto — Sun, 18 Mar 2007 19:26:02 +0000

It’s not absolute insanity to want to own your own home. It’s just necessary to keep in mind that it’s a consumption expense rather than an investment. Given the size and duration of the mortgage commitment, it’s one that most young couples, who need their mobility more than they need a yard or a basement, should avoid.

I own my own home, and have lived in it for 27 years. (Yup, the same home.) I bought it for $72,000 in 1980, and have plowed more than $130,000 into maintenance, insurance, and improvements since then. At this time, the total of my mortgage / interest / property tax payments to date is just a hair under $400,000. So I’ve spent about $530,000 on it, which is considerably more than I could sell it for. (Current appraisal: about $325,000)

That $130,000 figure might strike you as atypical. But think about it: it’s less than $5000 per year, or $400 per month. A lot of families spend more than that on their electricity alone.

But the worst part of home ownership, for me, is this: it’s kept me on Long Island. In 1984 I had a stunning offer from a Los Angeles firm, at more than twice my salary, that I declined because I couldn’t bear the idea of selling my house! I could have been a Californicator, lazing in the endless sun, with my arm around a blonde bathing beauty instead of…oh, hi, sweetie. Done with the corned beef already? Of course I’ll take care of the dishes!

Later, folks.

By: ms7168

ms7168 — Wed, 14 Mar 2007 15:01:35 +0000

When I bought my house all I could get was a 30 year FHA mortgage. Six years later I refinanced to a 15 year Conventional mortgage at a fixed rate 2.125% lower. Granted the lower rate helped a lot. The payment isn’t that much more and you make a lot more headway on a 15 year term. It is really nice seeing “11 years 2 months” left instead of “26 years 2 months” :)

By: McGehee

McGehee — Tue, 13 Mar 2007 22:08:06 +0000

The biggest problem with buying a house is the long-term mortgage. Anyone who can manage the payment schedule should look into a shorter term — even just a 15-year mortgage can mean big savings down the line.

Of course, it was easier to swing the right payments when interest rates were lower.

By: CGHill

CGHill — Tue, 13 Mar 2007 18:29:47 +0000

I have no regrets signing on the dotted line; having spent too many years in too many crappy apartments, I’d have done this anyway, whether I break even on the deal or not.

By: Heather

Heather — Tue, 13 Mar 2007 18:08:04 +0000

It is kind of depressing when you think about it like this, but what options do we really have? Pay rent, and let someone else be responsible for the water heater if it breaks, that could be a viable option.

However, we can pay rent the rest of our life on someone else’s property, but if we pay on this house for 30 years (ugh) then it is ours, and it is kind of nice to think that our daughter may always have a home if she is smart enough to hang onto it.

I admit I don’t know what else to do.