Quote:
Originally Posted by maat55
I agree that your home is a better investment than renting, but it's not as good an investment as people think. Too many people have too much of their income tied up in their homes. Some homes have seen large appreiciation, but most have not, but we keep putting large sums of money into them instead of true investments.
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Yes, that's true too. Most people buy too much house for too much money, especially here in California. Unfortunatly because of the rental situation, and the bad loan choices, people lose both ways.
I still see a lot of families that keep borrowing on their homes as well. I understand real needs and borrowing in those cases.... but not for wants; not for a vacation, not for a new car.
When you borrow against your home you add years of interest payments back into the obligation and you add more time to paying off the total debt.