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Isn't a low number to be expected after a housing bubble in a low interest scenario where people refinanced, moved up, flipped houses, took out second and third mortgages, etc., combined with a large number of foreclosures in the subsequent bust?
I paid my mortgage off as quickly as I could - not the wisest decision investment wise but I don't like owing money, especially to banks. I didn't have to stress when the economy tanked in 2008 which was a big relief.
These days I think I would rent mainly because getting work is more difficult and competitive than in the past not to mention laid off workers taking jobs they are over-qualified for at far less pay.
Hopefully most of the 70% that owes on their mortgage have the means to either pay them off or are able to keep the house even if they have to settle for a lower paying job. Low interest rates don't mean much if the payment is more than one can afford.
The strongest argument AGAINST home ownership (IMHO) is that it hurts mobility. When jobs are scarce and/or there is economic turmoil, owning a home, with or without a mortgage, can be a barrier to moving to where the jobs are.
There are few things as rewarding as receiving the mortgage document with a large PAID stamp on it. If more people had a plan to pay off debt, or paid as they go (paying off credit cards each month), it would likely lead to an increase in the savings rate, which would be a darned good thing. I like 'things' as much as most people. But until our country has a better balance between what we WANT and what we NEED and how we will PAY for things, debt will continue to plague us at all levels of society.
@BobC. I had a friend once who would go to the local bank branch to make his last mortgage payment, open a bottle of wine, share with the tellers on the day the home mortgage was paid. He conducted that little celebration for three homes. Those were the days!
Hey, if debt is used to increase productivity, that is a good thing for society, right?
Comments
Regards,
Ted
These days I think I would rent mainly because getting work is more difficult and competitive than in the past not to mention laid off workers taking jobs they are over-qualified for at far less pay.
Hopefully most of the 70% that owes on their mortgage have the means to either pay them off or are able to keep the house even if they have to settle for a lower paying job. Low interest rates don't mean much if the payment is more than one can afford.
Hey, if debt is used to increase productivity, that is a good thing for society, right?