I think it is wise to have an equity line of credit, regardless whether you have a mortgage or not.
Who is getting their low refinancing where? My son wants to do it and has not had a return call from his broker, while waiting for 4.75 and no points.

 

Maybe these are the same people that have 500k mortgages on a $900 week income

But your right as were finding out more and more everyday. The majority of people are idiots.

 

Mine is with GMAC. 4.625% but with 2 points.

 

I don't think I've seen anything under 5% with no points. The refi I'm getting ready to settle on is 4.625% (like Carmen's) but with a 1% loan origination fee and 1.625 points. Big bucks.

 

The majority of people aren't idiots.

There are consumers who did not do all of their homework or some who possibly didn't understand or read all the fine print.

They may even have done business with someone they trusted, only to find themselves ending up in a bad situation. People "in the know" were telling these folks "you CAN do this." Many elderly folks have been taken advantage of with shady reverse mortgages.

While buyer beware is a good rule to follow, many people are not as resourceful as some, but I wouldn't call them all idiots. My Dad would come back and haunt me if I did.

 

Ok than your excused, but my stance stays


Most are idiots or knowingly know they cannot do it but say what the heck there going to gimme the money ill ride it as long as i can.

 

My Dad will be visiting you tonight.

He used to say, people do stupid things, but that does not make them stupid, nor can you call them stupid. Same would go for calling people idiots.

You're grounded.

 

^ Ill let you know how I slept

 

ok so they're not idiots.
how about good decision impaired.

but dave is wrong.

only half of all people are below average, and that's not a majority.
One could further the argument to state that you would likely extend the cutoff to be significantly below average before you get into a target rich environment shall we say.

Now if you want to talk buffoons however....


Now paying off your house.

I'd love to be in a position to pay off my house.
I don't foresee it in the immediate future.
It is interesting that the concept of risk coupled with a mortgage has largely evaporated over the last 50 years.
I think a lot of people developed the notion of a house as an investment vehicle through observation.
many watched their parents or friends of theirs parents sell off the house they owned for 40 years and satisfactorily fund a big chunk of retirement in Florida.
Obviously many things changed, Florida got more expensive for one,
but the notion of the house as a viable vehicle for investment became a imbued in a generation.

 

Actually, that's not quite right. Half (less one) are below the median, not below average. There wasn't enough data provided to know how many are below average.