Quote:
Originally Posted by Sly
And houses are a great guarantee?
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he isn't buying the house as an investment, it is his personal residence and he already lives there. We are not talking about is buying real-estate better than investing in stocks.
you trying to compare apples and oranges.
The discussion is do you spend a couple hundred more a month to pay down your mortgage and save money on interest or do you pay the min amount each month, more on interest and try to make more money by investing that couple hundred into something else. Stock market = no guarantees. paying down your mortgage and getting a net savings of 4% is a guaranteed savings. You make the payments, you pay that much less in interest. Its simple math. I has nothing to do with house values. It has to do with his mortage, he pays his mortgage no matter what his house is worth. His interest doesn't go up or down based on the value of his home. Simply, taking that money and paying down the mortgage guarantees you a savings by paying less interest.